Smith Brothers moves to Fort Wayne
Smith Brothers of Berne, Inc. is moving to Fort Wayne. Its operations in Berne, however, will continue at its current site.
Smith Brothers, which began in Berne in 1926, will move into an existing building in Fort Wayne, an expansion that is expected to create 70 full-time jobs with an average salary of over $47,000 a year.
HDS LLC is currently remodeling the building – which has been unoccupied and unfinished since 2019 – at 9107 Yeager Lane.
In addition to the new jobs, the expansion will retain 20 employees, according to Smith Brothers president and part-owner Steve Lehman.
Fort Wayne City Council has approved a 10-year, $1.2 million personal-property improvements tax abatement for the Berne firm. It also approved HDS’ request for a 10-year abatement for $3.4 million in real property improvements.
According to a story in the Fort Wayne Journal Gazette, Lehman said the Berne operation will remain unchanged, but the second location will allow the company to have a larger pool of potential workers in Fort Wayne.
Smith said the COVID-19 pandemic led to people spending more money on home furnishings as people spent more time at home. The company typically has about 8,000 furniture pieces waiting to be made, but it currently has 46,000 items in the queue.
The abatements were approved by 6-3 votes, according to the JG story by Devin Filchak.
Councilwoman Sharon Tucker, D-6th, said she was initially impressed by the $47,000 average salary. However, Filchak wrote, her opinion changed when she found out many of the salaries are split between a base rate and a piece rate, which varies between employees based on how many products they make.
Councilman Paul Ensley, R-1st, and Jason Arp, R-4th, historically oppose most tax abatements, and they have brought legislation to the council twice that would eliminate business personal property taxes altogether, Filchak noted.
Ensley, Arp and Tucker voted against the abatements.