Danville, Virginia-based IKEA Industry, the only IKEA Industry manufacturing facility in North America, has announced the closure of the facility in December 2018 which will result in the permanent layoff of 300 employees. A number of non-production employees will remain employed until the second quarter of 2020.
The decision appears driven by financial considerations, primarily the cost of wood and the costs of labor, which would see the same products being manufactured at a 70% discount in IKEA’S existing facilities in Europe. The union shop produces wood-based products for IKEA retail outlets in the United States and Canada.
According to a company spokesperson, “This was an extremely difficult decision to receive. We made every effort to improve and maintain the competitiveness of this plant, but unfortunately, the right cost conditions are not in place to continue production in Danville, Virginia for the long-term. We will do everything we can in the coming months to support our co-workers through this change as they look for new jobs and training opportunities.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?