We have the best infrastructure of any furniture company in America.
DAYTON, Tenn. - Calling La-Z-Boy's new $18 million innovation center "a labor of love," company Chief Executive Kurt Darrow took the wraps off the state-of-the-art facility on Thursday.
"We can do design, fashion and innovation," said Darrow about the 70,000-square-foot center that serves as the research and development hub for the Michigan-based furniture maker.
The modern-looking center here that employs 75 people is located next to La-Z-Boy's massive production plant, where more than 1,400 people work making the company's signature recliners and other furniture.
Darrow told a group of about 200 people that the new innovation center, on which work started about two years ago, is in addition to about $20 million in improvements La-Z-Boy is making to the factory and campus.
"Before the remodeling, it was who we used to be," he said. "We have the best infrastructure of any furniture company in America."
La-Z-Boy Vice President of Research and Development Gregg Schweir said the new innovation center, which houses activities which had been carried out in Monroe, Mich., takes products from design to commercialization.
"We design, build and test it," he said. "The building is phenomenal. This campus is incredibly important to us."
Sam Wills, the state Department of Economic and Community Development's regional director, termed the official opening of the center "a red-letter day."
Wills said the R&D facility "dreams what can be" and brings innovation to Rhea County.
"When you look at the new facade, new facilities, it makes a statement about who La-Z-Boy is," he said.
State Rep. Ron Travis, R-Dayton, recalled that in the 1970s and '80s he worked at the plant that is the company's biggest.
"There are a lot of communities across the state and country that would love to be doing what we're doing today," he said.
Dayton Mayor Gary Louallen said La-Z-Boy has been "our hub for many years."
The factory accounts for about 46% of all La-Z-Boy's branded business, according to the company.
Also at the gathering on Thursday were the largest 12 independent dealers of La-Z-Boy furniture, Darrow said, representing ownership of about 100 stores. He said the company owns about 160 units while 190 are independent.
Darrow said business across the company so far in 2019 is "pretty good." La-Z-Boy, which belongs to the Zacks Furniture industry, posted revenues of $413.6 million for the quarter ended July 30, up from the $384.70 million of revenues in the same period a year earlier.
While La-Z-Boy makes all its furniture in America, it does import raw materials. The tariff wars have hit the company like other businesses, Darrow said.
"It's a global economy," he said.
While "not a big believer in tariffs," the company CEO said China needs "to play by the same rules as the rest of the world."
Schweir said the innovation center already has hosted delegations from key universities in Tennessee and others outside the state.
The structure was constructed under what he termed "a garage concept" where different disciplines and tasks take place, he said.
Schweir said La-Z-Boy makes and designs 40 to 50 different styles annually.
In addition, product testing takes place at the innovation center, he said.
"We look at human dynamics and body mechanics," Schweir said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.