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Lt. Gov. listens to furniture officials
by Dennis Seid/NEMS Daily Journal
2 years ago | 1227 views | 4 4 comments | 10 10 recommendations | email to a friend | print
Lt Gov. Phil Bryant listens to executives at American Furniture in Ecru as several empty sewing machines sit vacant after the company was forced to cut those jobs because it was cheaper to get the same product made in China. (Thomas Wells)
Lt Gov. Phil Bryant listens to executives at American Furniture in Ecru as several empty sewing machines sit vacant after the company was forced to cut those jobs because it was cheaper to get the same product made in China. (Thomas Wells)
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ECRU – Standing in a sea of empty sewing machine stations and surrounded by cut-and-sew kits imported from China, Lt. Gov. Phil Bryant on Wednesday listened to furniture officials talk about the difficulties the industry faced.

“We’ve lost 1,100 furniture jobs since the beginning of the year, and 400 of those are cut-and-sew jobs,” said Ken Pruett, president of the Mississippi Furniture Association.

Ken Ranager, American Furniture Manunfacturing’s vice president of operations, said his company has had to eliminate 100 cut-and-sew jobs since July, leaving only 130. At its peak, the company had 300 cut-and-sew jobs.

Because it’s cheaper to import the kits from China, more cut-and-sew jobs will be lost across Northeast Mississippi.

The kits are pre-cut swatches of fabric used to cover furniture. But if they’re made in the U.S., furniture manufacturers pay an additional 17 percent tariff on the rolled fabric that they import, and bear higher wage and benefit costs to employees who cut and sew the material.

It’s a competitive disadvantage and furniture leaders say they need help to keep domestic cut-and-sew jobs. Earlier this year, they pushed a bill that would have provided a tax credit to furniture manufacturers who retained or brought back cut-and-sew jobs.

The Legislature passed the bill without dissent, only to have it vetoed by Gov. Haley Barbour.

Bryant, who toured two furniture plants and met with industry leaders and legislators after the tour, said he would work to get the bill through. But he said it would not be easy.

“I love targeted tax cuts,” Bryant said. “If tax cuts save jobs ... that’s a good thing.”

Bryant said he would work with legislators to craft a bill that would answer any concerns Barbour has. But he said furniture leaders and legislators likely would have to compromise in order to get Barbour’s approval.

When he vetoed the bill, Barbour said it unfairly targeted one industry and that the state’s already strained general budget could not absorb the cuts.

However, furniture officials say that the tax credits would not have required any money up front. And they, along with some legislators, say Barbour never expressed any reservations about the bill until he vetoed it.

But Bryant and other bill supporters say they’re ready to get help for the furniture industry.

“I don’t want to make any empty promises,” he said after the tour. “I want to be part of the solution. I hope it’s within my power. I’m going to do all I can to help this industry.”
Comments
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ultracreep
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December 18, 2009
sorry about the double post, but my first one disappeared on me. Doggone website!
ultracreep
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December 18, 2009
I think it's ridiculous that we should tax our own products, yet let one of the world's most serious human rights violators,China,get most favored trade nation status. It's a bad idea, and it should stop. It makes absolutely no sense to hurt ourselves economically like this.
ultracreep
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December 18, 2009
I don't understand it either...AT ALL. It seems like the opposite should be true. I can't believe our companies have to pay an extra 17 percent for something made RIGHT HERE, and something made by the Chinese is cheaper. Maybe it's all part of that favored trade nation status that China enjoys. We love doing business with one of the world's leading human rights violators, but we don't want to make it easier for us to do business with and for ourselves. RIDICULOUS!!!
Mr.T
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December 17, 2009
About 3 years ago I learned that OUR OWN GOVERNMENT charged 17% less tax on this material if the labor was done overseas. If the labor to cut and sew this material was done in the U.S.A. a extra 17% tax was added to this material. I did not understand why our own government would hurt American workers like that, and I still do NOT UNDERSTAND IT!!!