Many people think that the economy here in Western North Carolina rests primarily on tourism, but we have always had a large manufacturing base. For the past century, textiles and furniture have been a vital part of the economy in WNC. Many people who live in our area have depended on industry for their jobs.
“We did the big move in 1926. My great-grandfather had to move out of New England because of high labor costs. A lot of the companies that are here in Western North Carolina came here for low labor costs. In fact, we came here then for the same reason that a lot of our companies are now moving to Asia – because of material and labor costs. We’re closer to raw materials and have lower labor costs here in Western North Carolina than we would have had in Massachusetts in the 1930s. A lot of textile companies that are based in North Carolina, South Carolina, Georgia, and Alabama have their roots in Massachusetts, Connecticut, and all those places. The evolution is still going on.” – Charlie Owen III
“Factories moved from the northern United States to the southern United States for cheaper labor. Likewise, the biggest fear the Chinese have is cheaper labor in Vietnam, Cambodia, and Laos. The companies that were in China making products are now moving to those countries because there is cheaper labor there than in China. So maybe Sub-Saharan Africa will be next.” – Charlie Owen III
What are the most basic things you need to start and maintain a successful business? Capital, materials, and labor. Businesses trying to compete in a free market seek out cheap raw materials and labor – this is the reason that so many textile companies, including Charlie Owen‘s family business, came to WNC in the early part of the twentieth century. It’s also the reason that so many of those companies are now moving overseas to developing countries where the materials cost less and people work for lower wages.
Now that much of the textile and furniture industries are moving overseas, what does that mean for the future of jobs in this area?
“There are winners and losers in Western North Carolina. If you look at it historically, productivity may have increased, and leisure and hospitality sales and health services have gone up, but the number of people employed in manufacturing has dropped in Buncombe County. There’s a reason that there are tons of factories across the southern United States that are closed now. The Textile industry has probably been the biggest loser across the board.” – Charlie Owen III
“I just can’t believe it. We sit around and say, ‘that’s not going to cost twenty-five cents to make in China.’ – not counting the material, but the labor. Twentyfive cents! How long would it take to make that? We would pay a dollar at home for a seamstress to sew a swim diaper. Our labor costs have gone down.” – Becky Can
