SC Craftsman plant Black & Decker bragged on is shutting down
It was just a couple years ago that toolmaker Stanley Black & Decker was touting its Cheraw factory in a Facebook video, proclaiming the plant employing 180 workers had put the tiny Pee Dee town on the map.
Last week, the New Britain, Conn.-based company said it will close the site that makes knives and portable storage units under the Craftsman brand name.
Stanley Black & Decker said it will move the operations to existing plants in Tennessee as it overhauls its production and distribution network. That move and a separate shutdown of a tool factory near Dallas is expected to save the company roughly $2 billion.
“These efforts will support and strengthen Stanley Black & Decker’s core business, drive financial performance, and enable investments to ensure sustainable future growth,” the company said in a written statement.
Layoffs are scheduled to begin no earlier than May 19 and will continue through the fall, according to a letter provided to employees.
“The company made this decision in an attempt to strategically consolidate our worldwide operations into fewer facilities,” the letter states, adding “it is possible that some employees will be offered transfers to another area.”
The shutdown came as a surprise to S.C. Rep. Richie Yow, who represents the Cheraw area. He said in a social media post that he had been hearing the plant might close starting in February, but when he asked Stanley Black & Decker about it the company dismissed the talk as rumors.
State Rep. Richie Yow, R-Chesterfield, said in a Facebook post that he was surprised by the closure of a Craftsman plant in his district. File/Staff
“Today I asked Stanley Government Relations why they did not reach out to South Carolina and I received no answer,” Yow said in the May 20 post. “I further asked could we discuss further. Could we put together an incentive package and start over. I could not get an answer.”
Stanley Black & Decker bought Craftsman from struggling retailer Sears in 2017 and onshored much of production back to the U.S. from China. The company’s products benefited from the pandemic as people worked on their homes instead of spending money on travel, restaurants and other services, according to a report in The Wall Street Journal.
“Since then, the company has dealt with rising costs and a shakier economic picture,” the report states, with CEO Donald Allen saying the companies that were acquired in the past 15 years had failed to take measures — like closing plants — to stave off financial problems.
“We’re taking that step now,” Allan told the Journal.
Plane talk
Boeing Co.‘s top financial boss points to the recent delivery pause for North Charleston-made 787 Dreamliner jets as an example of the aerospace firm’s new focus on transparency.
Speaking at last week’s Bank of America Global Industrials Conference, Brian West told investors the company was quick to report what it termed a supplier’s data analysis error to the Federal Aviation Administration, shutting down deliveries for about three weeks.
Brian West is Boeing Co.’s executive vice president and chief financial officer. Boeing/Provided
“An issue was identified. It was escalated quickly. It was reviewed with our regulator and ultimately resolved,” the Boeing CFO said. “That’s what we have to do, and I think that makes us better and it’s behind us and we’re moving forward.”
The issue was related to the forward pressure bulkhead, which is built by Wichita, Kan.-based Spirit Aerospace. The supplier has denied it was to blame for the problem. Deliveries were halted on Feb. 23 and resumed March 15 when German carrier Lufthansa flew a 787-9 wide-body from Paine Field in Seattle to its home hub in Frankfurt.
“Despite that pause, we still see a path to recover that pause and still get to 70 to 80 deliveries this year, and get to a five-per-month production rate as we exit the year,” West said.
West joined Boeing in August 2021. He said CEO Dave Calhoun stressed values like transparency as soon as he started his tenure.
“And I have learned over the last 18 months, how important that transparent culture is to our company and is to our industry,” West said. “And it’s not always easy. Sometimes it’s painful. … I will tell you, being transparent makes us stronger trust with our regulator, with our customers, with the flying public and with all of you.”
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This content was originally published here.