Ethan Allen Plans to Expand Manufacturing Production in Vermont, Announces New Job Openings and Increases Wages

Rhea-AI Summary

Ethan Allen Interiors Inc. has reaffirmed its commitment to enhance its North American workshops, focusing on customization and quality products despite rising manufacturing costs. The company is actively recruiting new employees in Vermont and has increased starting wages to $16.00 per hour to attract talent. CEO Kathwari highlights that maintaining production in Vermont is crucial for growth, though challenges like labor shortages and escalating costs remain. Ethan Allen continues to invest in technology and emphasizes its strong brand and community ties.

Positive

• Increased starting wage to $16.00 per hour aimed at attracting new talent.
• Commitment to maintaining and growing North American manufacturing facilities.
• Continued investment in technology to enhance production capabilities.

Negative

• Major declines in production in Vermont over the last twenty years due to labor shortages and increasing costs.
• Escalating state income taxes, property taxes, and electricity costs impacting profitability.

DANBURY, Conn., Sept. 27, 2021 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) today reaffirmed its commitment to maintain and grow its North American workshops where customization helps create relevant and quality products. To further this commitment, Ethan Allen is actively recruiting new employees for its manufacturing operations in both Beecher Falls and Orleans, Vermont despite escalating manufacturing costs.

Kathwari stated, “We are pleased to see our business continue to be strong as we work to deliver customer orders and help them make their home a haven. Our commitment to manufacturing most of our own products has proven both a strategic and a branding advantage. We are fortunate to have maintained and grown our manufacturing facilities in North America which enables us to be in a better position to serve our clients. We also continue to make major investments in technology.”

During a recent visit to Vermont, Kathwari was reminded of the Company’s vibrant local history, which spans nearly 90 years. Ethan Allen is proud to be one of the Northeast Kingdom’s largest employers. “We’re named after one of Vermont’s most revered historical figures, and we started our business in Beecher Falls in 1932,” says Kathwari. “Many of the associates in our Vermont plants are from families that have worked with us for generations.”

Kathwari continued, “However, during the last twenty years our production in Vermont has had major declines due to a number of factors including the shortage of labor and the escalation of manufacturing costs. Our growth and future expansion depends on attracting and retaining strong talent while also controlling major costs of manufacturing in Vermont including escalating state income taxes, property taxes, and costs of electricity.”

As part of its strategy to attract and retain strong talent, the Company recently increased its starting wage to $16.00 an hour as well as provided increases for those more experienced associates, a move that Kathwari hopes will attract and retain a new generation of craftspeople to Ethan Allen’s team of artisans. “Competitive wages, along with our strong focus on safety, excellent medical benefits, steadfast environmental commitment, and unrivaled reputation for quality has always made our workshops an exceptional place to build a career,” Kathwari noted.

In addition to two manufacturing workshops in Vermont, Ethan Allen also operates a Design Center on the western side of the state in Shelburne. Ethan Allen values the contributions of its Vermont associates and looks forward to continued growth in the region.

“I am pleased that we have made the decision to add more associates and increase base wages in Vermont, and I am confident that this will help us attract additional talented people including those just getting started,” Kathwari concluded.

ABOUT ETHAN ALLEN
Ethan Allen Interiors Inc. (NYSE: ETD) is a leading interior design company, manufacturer, and retailer in the home furnishings marketplace. The Company is a global luxury home fashion brand that is vertically integrated from product design through home delivery, which offers its customers stylish product offerings, artisanal quality, and personalized service. The Company provides complimentary interior design service to its clients and sells a full range of home furnishings through a retail network of approximately 300 design centers in the U.S. and abroad as well as online at ethanallen.com. Ethan Allen owns and operates nine manufacturing facilities located in the U.S., Mexico, and Honduras, including one sawmill, one rough mill, and a lumberyard. Approximately 75% of its products are manufactured or assembled in these North American facilities. For more information on Ethan Allen's products and services, visit www.ethanallen.com.

Contact:
Geri Moran
VP, Marketing & PR
203.743.8374
geri.moran@ethanallen.com

FAQ

What is Ethan Allen's strategy for recruiting employees?

Ethan Allen has increased starting wages to $16.00 per hour and is actively recruiting in Vermont to attract new talent.

What challenges does Ethan Allen face in its Vermont manufacturing?

Ethan Allen faces labor shortages and increasing manufacturing costs, including state income and property taxes.

How is Ethan Allen investing in its operations?

Ethan Allen is investing in technology to enhance production and maintain its competitive edge.

What percentage of Ethan Allen's products are manufactured in North America?

Approximately 75% of Ethan Allen's products are manufactured or assembled in North American facilities.

How long has Ethan Allen been in operation?

Ethan Allen has been in operation for nearly 90 years, starting its business in 1932.