H.P. ready for challenge
Market says it has money to spend
By Thomas Russell -- Furniture Today, August 29, 2005
High Point — The International Home Furnishings Market Authority, sponsor of the High Point market, says it's in good financial shape and will continue to spend money to meet the challenge of Las Vegas by improving transportation and other services.
At its quarterly meeting last week, the group reported it had net income of $137,000 and $573,000 in total assets for the fiscal year ended June 30.
Market Authority President Judy Mendenhall said that money typically is set aside for transportation, marketing and other expenses in the new fiscal year, ensuring there's enough money to cover transportation costs, which average around $600,000 each market.
"We have to have that in reserve until we find out what the (public) funding level will be," Mendenhall said.
On that note, the Market Authority learned it is likely to receive $1.2 million per year in state funding in the next two years for its transportation terminal. It also is slated to receive $750,000 per year for marketing expenses.
As part of its marketing efforts, the authority has printed 100,000 brochures with updated information on accommodations, transportation and shuttle schedules, to be distributed before and during the October market.
A major thrust has been to improve market transportation, from providing more free shuttle services to building a new transit terminal on Commerce Avenue, which could exceed $7 million in total construction costs.
Officials said the ground portion of that project will be completed Sept. 30. The entire project, funded largely by federal monies, should be completed in 2009.
In July, the Market Authority said it would offer free shuttle service from the Raleigh and Charlotte airports. The rides had cost $50 each way. In addition, the free shuttle from the Piedmont Triad International Airport to downtown High Point will be direct in October. It had stopped at several places to pick up riders.
The Market Authority invited U.S. Congressman Howard Coble to its meeting to acknowledge his role in helping secure federal money for the transportation terminal.
Coble, in turn, handed out a resolution he presented to members of Congress in support of the furniture market as a major economic event in North Carolina.
"I wanted to remind my colleagues that High Point is the home furnishings capital of the world and will continue to hold that mantle," he said. "I have never believed that Las Vegas will blow High Point out of the water."
His comments preceded a discussion of the Las Vegas market, which completed its first run July 29.
"We definitely are challenged, but I really believe it has presented an opportunity for High Point to rally," said board member and High Point Mayor Becky Smothers. "Our market is the place to come and do business.
"We also have to realize that it's easy to do it one time, but it's hard to do it for 100 years," a reference to the longevity of the High Point market. "The market is changing, and we will change with it."
Board member and International Home Furnishings Center President Tom Lindh said that while Las Vegas market officials were still working on their first building, High Point had a successful market this April, as evidenced by an increase in revenues from room taxes levied on area hotels and motels.
"We had to get better whether we had competition or not," Lindh said. "I respect the competition that is out there. They did have a very good market, but as the mayor said, we have done it for 100 years and I would say our batting average is very good."
Officials agreed that Las Vegas has spurred the effort to improve market services. But there were no specific measures mentioned at the meeting other than the transportation improvements and marketing efforts.
In other business, the group said it has promoted Tammy Covington to vice president of operations. She had served as director of operations since 2002. In her new role, she will manage operations related to the new transportation terminal and increase her role in budgeting, contracting and negotiating with market-related constituencies.
The authority also named Donna Gross as administrative assistant. She replaces Sara Leonard, who has retired.
