Vaughan-Bassett takes initiative with imports
By Jerry Epperson -- Furniture Today, September 3, 2001
Earlier this summer, Vaughan-Bassett gathered 200 suppliers for a frank discussion on what is happening in the wood furniture industry. The economy and retail distress were mentioned, but the focus was on imports.
First, some numbers. In 2000, imports, excluding components, accounted for 34% of all wood furniture sold in the United States. Through the first five months of 2001, domestic wood shipments are estimated to have declined 12.7% versus 2000, while all imports are up 4.5%. Imports from China are up 15.5%. Components from China have grown 45.7% in the first five months. Thanks to our strong dollar, U.S. furniture exports are down 5.8% through May.
One never doubts where John Bassett, Vaughan-Bassett's president, stands. He plans to compete in a global market and he despairs that so many appear to have given up. To keep his factories running, he has used three programs so far. V/B Express offers 22 bedrooms with 14-day guaranteed delivery. In an emergency, they can do it in seven days. Since the program began, 30 shipments out of 30,000 have been late.
Barnburners 1, 2 and 3, the second program, asked employees and key suppliers for help so the company could offer three $750 bedrooms for $599. These kept the plants running full workweeks through the spring. The third program, Gimme 5, started June 2 and ends Sept. 2. Retailers who meet or exceed quotas get a 5% rebate on Sept. 15. Vaughan-Bassett anticipates sending out more than $1 million to dealers. Who knows what John will do next?
We believe the gist of the meeting was:
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Suppliers plus transportation are 54% of Vaughan-Bassett's costs. If suppliers are not state-of-the-art competitive, then our factories can't be either. Bassett encouraged his audience to look for efficiencies and more productivity.
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Instead of reacting to importers, the U.S. industry needs to take the initiative and make importers react.
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Our industry needs to stop feeling sorry for itself and begin to compete on our strengths — service, design and quality.
The meeting was not import bashing, but more a rally to recognize what needs to be done if the U.S. wood industry is to survive. I was fortunate to be there. I wish others could have joined us.
The U.S. auto industry, for one, has learned to compete in a market it once dominated. I believe we can keep a U.S. furniture industry for decades to come, but we need to modify our thinking, like John Bassett suggests.
