China BR sources set backup plans
Powell Slaughter -- Furniture Today, February 8, 2004
SAN FRANCISCO — SAN FRANCISCO — Companies importing bedroom from China are setting up contingency plans in case an antidumping petition filed by a group of U.S. companies is successful.
The earliest any preliminary duties would be imposed looks to be late April, but some exhibitors at market here said they already have plans in place.
"There isn't a person who walks in the showroom who doesn't ask what will happen if the petition is successful," said Greg Noe, chief operating officer of Lifestyle Enterprise, which imports half its goods from China. "We have contingency plans in place to shift to Malaysia, Indonesia and Vietnam if we have to."
Every product in Lifestyle's line is set up for production in another factory if necessary, he said.
"We've had two retailers ask us to give them a proactive plan for the groups on their floor — written plans on what our situation is; various what-ifs based on different rates of duties," said Don Mecke, senior vice president of sales and marketing at Standard. "They'll want us to, A, inventory stateside or, B, give them a price guarantee. One thing we do have is huge stateside inventories, around four months' inventory on an across-the-board basis."
The San Francisco market was the first time many people asked Mike Genrich, senior vice president of worldwide sales for APW Trade, about the petition.
"What amazes me is that we haven't heard a lot from our customers before now," he said. "We're trying to make sure the factories we're doing business with have responded to the (U.S. International Trade Commission) questionnaire. We might take our existing warehouse inventory and average the duty out over that. I don't think anyone can stretch it out for the year, but maybe half of the year."
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Antidumping issues aired at market
May 2, 2004 -
Petition syndrome clouds BR arena
Apr 18, 2004 -
Lower duties applauded
Aug 8, 2004 -
China decision looms
Jun 27, 2004
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