Moving Forward in Mississippi

Midwestern furniture maker finds its future in rural Pontotoc County

By Charles Dexter Ward

Want to know just how much a business location in the rural South can impact your bottom line? Then consider this story of Ashley Furniture Inc. and Ecru, Mississippi.

Since its founding in 1945, Ashley Furniture has grown from a sales organization with branches in Chicago, Illinois and Goshen, Indiana to become a the third-largest home- furniture producer in America with a core manufacturing and distribution center in Wisconsin.

Over the years, Ashley Furniture has moved from being a 'virtual unknown' to now being a significant force in its industry. On its path to success, one of the most fruitful associations has been the relationship the company began eight years ago with Ecru, Mississippi.

Situated 111 miles southeast of Memphis and 316 miles northwest of Atlanta, Ecru has a population just under one-third the size of Ashley's Wisconsin workforce. A total of 947 residents make Ecru the second largest city in Pontotoc County-a place steeped in upholstered-furniture manufacturing.

"This is a furniture-making area in a furniture-making state," said Bill Wardlaw, executive director, Pontotoc County Chamber of Commerce. "We may not be as well known for it as North Carolina, but in fact, Mississippi leads the nation in the production of upholstered furniture, manufacturing 54,000 pieces every day.

"In Pontotoc County, our five largest manufacturers employ a total of approximately 3,100 people in the production of furniture and fixtures, which is a sizeable amount of the county's total population of 26,726."

In less than a decade, Ashley Furniture has become the largest of those employers, drawing a workforce from Pontotoc and 14 surrounding counties. Wardlaw wasn't present in 1994 when the company originally put 194 area residents to work in an existing plant site it purchased. But, he has worked with company officials through ensuing expansions.

"Ashley came here from a rural area of western Wisconsin known for its outstanding work ethic," he noted, "so I think they had a keen appreciation for the quality character of our available workforce, especially its fundamental willingness and reliability."

He said Ashley had already spent more than $27 million to add nearly 960,000 square feet to the original 127,000 square-foot facility, while up fitting it with more than $11 million in equipment when a November 2001 expansion was announced.

In that announcement the company said that it planned to invest more than $2.2 million in building improvements and equipment and would create 40 more jobs.

Then in June 2002, Ashley President Ron Wanek told the Milwaukee Journal Sentinel that his company would spend $6 million on another expansion in Ecru involving another 500 jobs. And, that half of Ashley's fleet of 600 tractors and 1,200 trailers would also be moved to rural Mississippi.

Brent Koslo, executive vice president of operations at Ashley's Ecru plant has attributed "our company's growth to the strong desire and visionary support of our owners," adding that "we would not have been able to accomplish a fraction of what we have without the support of our local officials."

"Ashley Furniture is well known for its aggressive business plan," Wardlaw agreed, "and a significant part of the rationale for its continuing expansions in rural Mississippi has to be support and acceptance they've found in our community.

"The willingness of neighboring landowners to sell the adjacent acreage necessary for each expansion, for example. And, the cooperation of our city and county officials, the efficient work of our utility providers, and the quality of our work force-those are all factors that work to spur business growth," he said. "And that's as true for furniture manufacturing businesses as it is for the businesses we target in automotive parts, chemicals and plastics, electronics, metal fabrication, and telecommunications."

Wardlaw said the Pontotoc County Chamber of Commerce works closely with the Mississippi Economic Council, the state Manufacturers Association, the Mississippi Economic Development Council, and the Mississippi Development Authority.
"We also support and rely on the North Mississippi Industrial Development Association, our local Three Rivers Planning & Development District, the Create Foundation, and all the other area chambers and economic development organizations," he continued.

"Being a part of a team of cooperative leaders, has enabled us to pull together all the agencies necessary to meet the Ashley Company needs and requests. Support such as this is another important ingredient in maintaining a business environment conducive to the continued growth of companies that locate here.

"It positioned us to assist the owners of Ashley and the adjacent landowners in the negotiation of land purchases," Wardlaw explained, "and made us instrumental in the pursuit and receipt of local and state incentives awarded to the company for job creation and financial investment.

One of those-a $478,334 Community Development Block Grant for water and sewer improvements-was obtained on behalf of Ashley Furniture Industries Inc. in preparation for the company's 2001 expansion.

"When you add it all up," Wardlaw said, "businesses like Ashley Furniture succeed here because our community works together to help them succeed.

"Ours is a workforce that offers employers exceptional value and quality. And we understand the importance of quality education, especially in terms of graduating a well-educated worker who can enhance any company. Pontotoc's three school systems are accredited at the highest attainable level in Mississippi. And, we offer on-site worker training through our community college.

"Plus," he continued, "we're a TVA County, and we have a city-owned natural gas operation. That makes for very competitive utility rates that nicely complement the reasonable cost of industrial acreage in our county industrial park.

"Fast growing businesses can find a great deal of merit in locating in an area where values, family ties, and a good work ethic are still important. Our workers are not just "clock-punchers" -- they appreciate the value and meaning of a job well done. From our perspective, that has huge impact on a company's final decision."