Imports rise 11% in '05, led by China
By Brian Carroll -- Furniture Today, April 23, 2006
High Point — In 2005, the United States galloped past the $20 billion threshold in imports, bringing in nearly $22 billion in furniture and furniture products, or 11% more than in 2004.
Chinese-made product led the way, with an 18% increase bringing its U.S. shipments to nearly $11 billion, enough to account for almost half of every dollar spent on imported furniture.
The country's growth rate has slowed from the 30%-plus rate of previous years, but its dominance continues to build.
China's total now dwarfs that of No. 2 Canada, which saw only a 1% increase from 2004 to 2005, sending $2.5 billion in furniture south.
Asia showed big gains last year. No. 5 Malaysia, which has made a concerted effort to diversify its furniture, both in design and by category, kept pace with China with 18% growth to $712 million.
Vietnam's numerous factory startups and expansions led to an eye-popping 85% jump in shipments last year, propelling that country past some longtime favorite U.S. source countries into the No. 6 position. Vietnam sent $670 million in furniture to the United States in 2005, up from $362 million in 2004.
The continued migration of upholstery production to China took another bite out of Italy's total. Italy's shipments fell to $1.1 billion from $1.3 billion, dropping it to the No. 4 source country. Mexico rose one peg to No. 3 with a 5% gain to $1.2 billion.
Italy's largest category of furniture sent to the United States, upholstered seating, shrank by 31% in 2005 to $233 million. China's total for the same category, meanwhile, jumped 42% to $609 million.
Other indications of China's emergence as an upholstery powerhouse, just as it has been for some time in case goods, are its 42% gain in shipments of upholstered chairs to the United States to $550 million last year, and a 61% jump in cut-and-sewn covers to $325 million.
New categories in the import numbers this year are mattresses and bedding parts. The United States imported $500.1 million in mattresses last year, a 30% increase over 2004. China accounted for two-thirds of the total, or $334.2 million, with its shipments in the category up more than one-fifth from 2004.
The No. 2 source for mattresses, Canada, shipped just $44.5 million in the category to the United States last year.
One surprise was No. 3 Denmark's more than six-fold increase in mattress shipments to this country, good for $29.2 million. A major contributor to that figure was Tempur, which relocated production to Denmark from the United States.
U.S. imports of bedding parts came to $180.6 million in 2005, with China accounting for 72% of the total, or $130.1 million.
China's import gains could add pressure on the country to act on its currency valuation. China's economy grew by more than 10.2% in this year's first quarter, according to the Chinese government, and its trade surplus for all goods surged in March to $11.9 billion, the second-highest monthly surplus in history.
U.S. critics have argued that a big reason for the trade surpluses and for China's white-hot economy is an undervalued yuan, which makes its exports artificially cheap. China revalued its yuan by 2.1% last July, but since then the currency has recaptured more than half of the adjustment. There has been little if any impact on trade.
Looking at the import totals by product category, the largest by a wide margin continues to be miscellaneous wood furniture, whose shipments grew 7% to $4.7 billion.
Wood bedroom, the second-largest category, jumped 13% to $2.1 billion.
Looking at the Top 10 source countries, Indonesia appears to be solidifying its importance while Thailand is struggling to remain on the list. No. 8 Indonesia's shipments to the United States grew 13% to nearly $600 million, while No. 10 Thailand's shrank by 9% to $418 million.
One reason for Thailand's slip is the strength of its currency. Many Thai furniture manufacturers lacking long-term contracts have suffered from the stronger baht, according to Paiboon Pinitkanchanapun, vice president of the Thai Furniture Inds. Assn., who said Thai producers are losing out to China and Vietnam.
"The baht is the only currency in the region showing great movement at the moment, so the situation is strengthening the competitiveness of other countries," he said.
After dropping out of the Top 10 two years ago for the first time in more than 15 years, Philippine producers are rebounding. Filipino-made furniture coming to the United States totaled $259 million in 2005, a 17% increase over 2004, but a strong peso is threatening export growth. The country remained the 11th-largest U.S. source.
The former Eastern Europe bloc is proving to be a growth area for U.S. companies sourcing furniture. Although their numbers still are modest relative to other countries, Poland, the Czech Republic and Romania each registered double-digit increases, and shipments from Bulgaria jumped 224%.
| U.S. furniture imports by Top 10 source countries | |||
|---|---|---|---|
| in millions of dollars | |||
| 2005 | 2004 (revised) | % change from 2004 | |
| Source: U.S. Customs Service, U.S. Census Bureau, U.S. International Trade Commission. |
|||
| China | $10,933.1 | $9,246.2 | 18% |
| Canada | 2,506.9 | 2,487.6 | 1 |
| Mexico | 1,184.2 | 1,131.6 | 5 |
| Italy | 1,148.1 | 1,300.2 | -12 |
| Malaysia | 712.0 | 603.8 | 18 |
| Vietnam | 669.9 | 361.6 | 85 |
| Taiwan | 608.0 | 626.7 | -3 |
| Indonesia | 598.2 | 530.7 | 13 |
| Brazil | 482.5 | 443.2 | 9 |
| Thailand | 418.1 | 457.6 | -9 |
| WORLD | $21,918.1 | $19,785.3 | 11% |
| U.S. furniture imports in top 10 product categories | |||
|---|---|---|---|
| in millions of dollars | |||
| 2005 | 2004 (revised) | % change from 2004 | |
| 1. A "seat" is any product for sitting that is not a "chair." Source: U.S. Customs Service, U.S. Census Bureau, U.S. International Trade Commission. |
|||
| Misc. wood furniture | $4,745.9 | $4,439.7 | 7% |
| Wood bedroom furniture | 2,118.9 | 1,883.4 | 13 |
| Metal furniture & parts | 1,672.0 | 1,538.8 | 9 |
| Upholstered seats, wood frame1 | 1,379.9 | 1,319.5 | 5 |
| Wood beds | 1,035.0 | 830.8 | 25 |
| Misc. furniture parts | 990.0 | 913.8 | 8 |
| Upholstered chairs, wood frame | 968.9 | 774.4 | 25 |
| Wood furniture parts | 897.5 | 758.2 | 18 |
| Metal outdoor seats with textile-covered cushions1 | 711.1 | 636.4 | 12 |
| Other seat parts | 680.4 | 663.1 | 3 |
| ALL PRODUCTS | $21,918.1 | $19,785.3 | 11% |
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Imports rise 11% in ‘05, led by China
Apr 25, 2006 -
Import growth slows to 2% in '07
May 4, 2008
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