Motion manufacturers add shifts to fill orders
By Larry Thomas -- Furniture Today, March 3, 2002
TUPELO , Miss. — While some in the industry focus on retail bankruptcies and factory downtime, motion upholstery producers have had little time to dwell on such negative events.
They've been too busy scheduling overtime, ordering raw materials, and making sure the recent influx of orders can be filled in a reasonable amount of time.
"Retail is really strong right now," said Vandy Baker, vice president of merchandising at PeopLoungers. "Dealers are telling us that people are getting their tax refunds and they're spending them."
Baker said PeopLoungers' factory in Nettleton, Miss., has been operating six days a week since late November. Even with the accelerated production schedule, the company is barely able to keep pace with incoming orders.
Much the same is true at recliner producer Catnapper, whose Cleveland, Tenn., factory has hired about 120 employees since early December to boost production.
"We're running the factory on Saturday and packing the trucks on Sunday," said Dennis Moody, regional vice president of sales.
Moody and other executives said retail business appeared to pick up smartly late last year, which drained stores' inventories to unsuitably low levels. As a result, orders surged in December and January, and the pace didn't let up in February.
"We're very, very pleased with the way this year has started out," said Gene Gathagan, national sales manager at Brooks Furniture, a glider rocker producer. "We hope it can continue this way for quite a while."
Tom Dieterich, chief executive officer of upholstery producer River Oaks, said the inventory crunch has been exacerbated because dealers were extremely cautious last year as the economy continued its downward spiral.
"If they needed (inventory) six months ago, they really need it now," said Dieterich, whose company generates about a third of its sales from motion upholstery. "We're very excited about this year and next year."
Tom Mehalko, vice president and general manager of glider rocker producer Town Square, said that while dealers are replenishing inventory, they don't appear to be buying in a manner that could lead to a glut later this year.
"It has been a good, steady increase the past few months, and that's good for us," Mehalko said.
| This contemporary/transitional motion sofa with a faux suede cover was a hit in PeopLoungers' Tupelo showroom. |
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