Nichols & Stone Slashes Local Operations
Last Gardner furniture factory faces uncertain future
Nichols & Stone, the only sizable furniture manufacturer still operating in the "chair city" of Gardner, is poised to quit making products from scratch.
"We're trying to do everything we can to continue as a manufacturer in America, which is a very difficult task," said President and CEO Carlton "Tuck" Nichols.
Layoffs have already hit Nichols & Stone employees hard. Nichols said he had more than 200 workers a year ago. According to a mass layoff notice that the company filed with the state government last month, that number is now down to 114. The notice says 29 more employees will be permanently laid off between May 20 and May 30, and additional layoffs will follow.
Nichols said the company has not finalized plans to change its operations, but it is already in the process of outsourcing much of its production work. He said the 151-year-old company hopes to continue doing assembly, finishing and packaging in Gardner.
Meanwhile, the company's two buildings are both up for sale. Nichols said he has already heard from some potential buyers interested in the main factory on Sherman Street. Currently, the company uses the other property, a nearby building on Cross Street that Nichols & Stone owns jointly with another company, mostly for assembling and packaging. He said one possible scenario is for the company to sell both buildings and then lease the Cross Street location back, moving in some equipment from the other location.
But reorganizing the production set-up for a new set of needs is expensive, and Nichols has been trying to get some government help. Along with Nichols himself, Gardner Mayor Mark Hawke and other city officials have been spending lots of time talking with representatives of various state business assistance programs, seeking some kind of financial support for the company. But Hawke said all the available funding sources are for businesses that are either starting or expanding, not shrinking. He said it's frustrating that there doesn't seem to be any state money for a company that needs to downsize to stay viable.
"They want to stay in this area, but I don't think any business is going to make a non-businesslike decision," Hawke said.
Chair City Icon
The future of Nichols & Stone is important to many locals in part because of its significance to the city's identity. At least according to its Web site, the company is the "oldest furniture company still in operation in the United States." Gardner calls itself "the furniture capital of New England," and it is a popular shopping destination for people interested in high-quality furniture. But aside from Nichols & Stone, the manufacturers that gave the city its reputation have closed or transformed into retailers selling mostly imports.
And then there are the jobs. North Central Massachusetts remains more dependent on manufacturing work than most of the state, and any time a factory downsizes it is a blow to the local economy. Nichols & Stone has been working with the Massachusetts Division of Career Services to offer support to the employees who have been laid off. Linnea Walsh, a spokeswoman for the agency, said a rapid response team has been holding information sessions and workshops about training and job opportunities for the workers.
IKEA-itis
The former employees are also eligible for assistance under the federal Trade Adjustment Assistance program, which helps workers who lose their jobs because of international competition. That entitles them to up to 104 weeks of training, compensation for job search and relocation expenses and cash payments that are available for 52 weeks after unemployment payments run out.
Robert Hubbard, the city's director of community development and planning, said the company has behaved responsibly by keeping the state informed so employees can get some support.
Meanwhile, besides trying to keep his workers from panicking, Nichols is also talking to his customers, in the hopes that getting the word out about the changes the company is making will boost sales.
He said the company is reducing prices by 20 to 30 percent, which he hopes will be enough to make the brand more appealing. He said the products will remain solid wood, and assembling them in Gardner should help with quality control.
Despite all the changes the company is making, Nichols said he is fighting a trend toward cheaper furniture that isn't built to last.
"A lot of young consumers aren't looking to buy furniture for their lifetime," he said.
Nichols said the next few months will be critical for the company, as he sees how well the cost-saving adjustments will work and how the market will react. As for the possibility that things won't work out and the company will have to close down operations entirely, he said he'd rather not think about it.
"That is not in our game plan," he said. "We're working awfully hard to make this plan work. I wouldn't be doing it if I thought we couldn't make it, but there's always things you can't control."
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