Tuesday, March 29, 2005

Bissell thrives after production moves overseas

Grand Rapids CEO says company picked right time to shift manufacturing site.

By James Prichard / Associated Press

Adam Bird / Associated Press Bissell Co., the cleaning appliance manufacturer based in Grand Rapids, produces a variety of floor-cleaning tools. Bissell Homecare • Founded: 1876 by Melville and Anna Bissell • First factory opened: 1883 in Grand Rapids • Corporate headquarters: Grand Rapids • Other U.S. sites: Neenah, Wis.; Butler, Pa.; McAllen, Texas • Other international sites: Mexico, South Korea, Hong Kong, China • Employees: About 1,500, including 350 in Grand Rapids • 2004 sales: $700 million • 2003 sales: $535 million Source: Bissell Homecare Inc. Comment on this story Send this story to a friend Get Home Delivery

GRAND RAPIDS -- It was a year ago this month that Bissell Homecare Inc.'s last domestically produced appliance rolled off the assembly line in Grand Rapids, where the company's first factory opened in 1883.

Mark Bissell, president and CEO of the family owned company, says the decision to move all manufacturing of Bissell Homecare's floor-cleaning machines overseas was the right one, just not an easy one. About 200 full-time employees lost their jobs.

"We did it at a time of strength, but we did it later than we probably would have otherwise done it if we had been struggling," Bissell says. "I think, for years we saw the opportunity to produce product or procure product cheaper and, really, because of the flexibility of our work force and the quality of our work force here, we really kept the jobs in Grand Rapids longer than we otherwise would have."

Bissell Homecare retains about 1,500 employees globally and still has a production operation in its hometown. About 50 hourly workers mix and bottle chemical formulas used in its floor-cleaning machines.

Another 300 employees work at Bissell Homecare's world headquarters in Grand Rapids. Many perform research and development for the company's increasingly high-tech product lineup. A key reason for Bissell Homecare's success has been its willingness to continue investing in R&D, market research and product innovation, Bissell says.

"I think what we've tried to do all along is be proactive on the front end of the business," he says. "What does our customer want? Who is our customer, what is she looking for and how can we best serve her? OK, once you know that, now, where are you going to get the product and who's going to make it?"

Among the Bissell Homecare appliances released during the past year are the Lift-Off, a bagless upright vacuum cleaner with a detachable, portable canister for cleaning hard-to-reach spaces, and Flip-!t, a hard-floor cleaner that operates as both a dry vacuum and, with a flip of the handle, a wet cleaner.

Bissell sold more vacuum cleaners in the United States in 2004 than any other brand, according to The NPD Group Inc., a consumer research group. Last year, $3.4 billion worth of vacuum cleaners were sold.