Case goods importers evaluate shipping times for buyers
By Powell Slaughter -- Furniture Today, April 28, 2002
HIGH POINT — Several case goods importers said their buyers won't have to wait as long to receive shipments of the product they saw at the market here.
Other companies, however, said the shipping times may soon grow longer. Because so many major U.S. case goods companies have begun shipping from China in the past year and a half, however, import capacity is starting to dry up.
One company that has scheduled quick shipments is RiversEdge. The traditional La Cruz collection will ship in mid-July, and another introduction by mid-May.
"Most of the product we're showing is pre-sold and in manufacturing," said Mark Stubstad, managing partner. "We're able to give actual production dates."
Southwick and introduction by Fine Furniture Design & Marketing in swirl mahogany with ribbon-cut mahogany borders, ships in June, said Geoff Beaston, executive vice president.
"We're trying to stay in touch with retailers as we go along in the development process," Beaston said. "We also had a very good response to Southwick at premarket. If it's in our showroom at market, we're confident it's going to go well."
But the rapid growth in imports' popularity is having supply-and-demand consequences, some executives said.
"We're finding prices 10% to 15% higher than a year ago," said Ed Marshall, president and chief executive officer of Orleans, whose Magnolia Classics step-up import division accounts for about 60% of sales now. "A lot of domestic manufacturers are moving over there, and the factories are getting full. Lead times on existing lineups were running around 60 to 90 days. Those have stretched out to 90 to 150 days."
Relationships, always a key to getting a good place in line for overseas production, are more important than ever, said Legacy Classic President and CEO Kevin O'Connor.
"I don't think there's any question that sides are being chosen up overseas, and there are going to be winners and losers," he said.
The key to keeping product flowing at offshore plants is to focus on middle management in the factories, said Muhamad Amini, vice president of Lacquercraft, owner of Universal and also a major supplier for Legacy Classic and other companies.
"It won't take much of a hiccup to open capacity," he added. "A lot more capacity will be coming on line early next year."
Home Furnishings Inc., the marketing arm of an 800,000-square-foot Honduran plant that has been an OEM source for U.S. manufacturers and distributors for 19 years, found good clients for its own designs among independent retailers at its first show here.
"In addition to major dealers, there are a lot of smaller stores who are getting closed out of some manufacturers, who're saying they need to put in a gallery," said Terry Batka, Home Furnishings' director of sales and marketing for North America.
Bedroom importers also responded to dealer requests for wall systems — a good match in both production and delivery. Arbek, Magnussen Presidential RiversEdge and Samuel Lawrence (which mixes imports and domestic cases) did well here with new wall programs. Walls are a natural for importing, said O'Connor at Legacy Classic.
"For a smaller retailer, they eat a lot of cubes and help fill up a container without loading their inventory, and they get a price," he said. "It helps sell the occasional tables, too."
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