Flexsteel Industries, the nation’s fifth largest residential furniture maker, just announced they would be shutting down their manufacturing plant in Harrison on August 20. 109 people will now be without jobs. Employees of the plant were notified this week.
City officials are preparing for the significant impact this will have on the community, as Flexsteel has had roots in Harrison since the 1950s, and owns two buildings in the city. According to city mayor Jerry Jackson, he was made aware of the plant’s closure via a notice from the Arkansas Department of Workforce Development.
The president and CEO of the Harrison Chamber of Commerce told the Democrat-Gazette that there will be a job fair for the Flexsteel workers in July, as the city’s government coordinates with the community to ensure each displaced person has a local job lined up.
This closure comes as part of a companywide trend of cost-saving measures by Flexsteel which they are deeming “right-sizing,” a virtually nation-wide restructuring effort. Last month, the company closed a manufacturing plant in Riverside, Calif., which resulted in 130 jobs being displaced. There have also been layoffs at Flexsteel’s main manufacturing plant in Iowa. This despite the company receiving more than $10 million in tax incentives from the state.
Altogether, Flexsteel’s goal is to cut $32 million from employee-related costs and efficiency measures. They are forecasting an earnings decrease of up to $53 million, according to a release from this week.
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Image courtesy of Flexsteel Industries