Upholstery mfrs. take Argentine crisis in stride
By Joan Gunin -- Furniture Today, February 3, 2002
HIGH POINT — Like their South American export partners, leather upholstery manufacturers who trade in Argentine hides express detachment over that country's currency crisis.
Manufacturers view leather as a global resource and feel free to skip to the next continent should a logjam arise in South America.
Gary Zuckerman, vice president of sales and marketing for Jaymar, was undeterred by Argentina's devalued peso. "Unless the problems explode across other borders (say, in Brazil or Venezuela) ... devaluation is no longer affecting pricing. It's all due to supply." Retail sales are down in Europe, he said, and "until the economy turns, there is enough leather inventory in the pipeline to keep the supply lines stable."
Peter Zolferino, vice president of sales and marketing for Omnia Leather, said leather pricing is lower than a year ago. "The quantity is there. The tanneries trade in U.S. dollars. Our relationships with the tanneries are unaffected. We haven't seen any delays."
"Our leather pricing is very sharp," Zolferino added. "A year ago, they would have been priced a grade higher."
At Flexsteel, Jim Richardson, senior vice president of marketing, said his concern over the Argentine peso was minimal because he has seen no disruption in supply or quality and if anything, a softening in pricing. But he said it has yet to be determined whether labor costs in Argentina will decrease due to devaluation.
"We should know by early February where it settles in," he said.
Scott Cohen, president of Intermountain Furniture, said the devaluation of the peso could prove advantageous to pricing. "Everyone, however, should be a little bit nervous because of the political situation. They are tied in together but the political conditions outweigh the monetary situation," he said.
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