The roads around Hickory hint at its heritage. Signs promote furniture made by Broyhill, Bernhardt and other manufacturers that for decades were the economic engine of the region.

But many of the goods sold there are no longer made there. The area has lost almost 13,000 jobs in furniture manufacturing this decade amid an industry shift overseas, forcing a transition that has tested leaders and residents.

On Monday, they got a respite.

A subsidiary of Williams-Sonoma, a home furnishings retailer that also owns Pottery Barn, announced plans for an upholstered furniture manufacturing and distribution facility in Hickory that is to employ 820 over five years, some in product development.

To win the facility, state leaders on Monday approved a grant for Sutter Street Manufacturing, the name of the subsidiary, that could reach $8.96 million. Hickory and Catawba County officials are working on incentives that could push the total to $11 million.

Getting the company is "tremendous for us," said Andrea Surratt, an assistant city manager for Hickory. "It's a real morale booster for the community."

The state expects the jobs to pay average wages of $42,000 a year, which is about 26 percent more than the county average.

It's an understatement to say new jobs in furniture are unusual in North Carolina. The state has lost 30,000 of them this decade, prompting some to worry that the industry will die altogether.

But the expansion of Williams-Sonoma illustrates the complicated dynamics of the business.

Upholstery 'strong'

Much of the work that has moved offshore has been in production of tables, bookshelves, armoires and other wood products. Workers in low-wage countries such as China can build them and add intricate details at a fraction of the cost of workers here.

Upholstered furniture, though, is a different matter. Couches, chairs and such are often highly customized as consumers seek fabrics that match other decor.

And shoppers will not wait months for those products to be made half a world away and shipped across an ocean.

"We haven't lost our upholstery industry in the state," said Steve Walker, assistant director of the Furniture Manufacturing & Management Center at N.C. State University. "Upholstery is still strong."

Sutter Street opened a test facility in Hickory last year to determine whether it could make its own product in-house. It employs 50. The company considered several locations for its expansion, including Mississippi, state leaders said.

Williams-Sonoma chose North Carolina, and Hickory in particular, because of the skilled work force, CEO Howard Lester said in a prepared statement.

Company spokeswoman Emily Rohr declined further comment.

For North Carolina, the expansion not only gives a boost to an ailing industry but shows the state remains attractive amid a broader economic slowdown.

"It speaks to our competitiveness," Commerce Secretary Jim Fain said after a committee awarded the state incentive.

To get the full $8.96 million, Sutter Street must retain the existing positions in Hickory, create all the jobs promised and maintain them for 10 years.

(Hannah Mitchell of The Charlotte Observer contributed to this report.)