U.S. exports climb 13%, but it's unclear just why
By Brian Carroll -- Furniture Today, March 18, 2007
High Point — Are U.S. furniture manufacturers getting serious about selling the world, and therefore becoming more globally competitive? Or is the domestic furniture manufacturing scene transitioning from finished goods to merely supplying parts to other countries?
A rather dramatic 13% jump in furniture exports from 2005 to 2006 is surprising, and the reasons behind it are mysterious.
Totaling more than $2.2 billion, the export numbers include increases in miscellaneous wood (mainly occasional) furniture and upholstery, mostly shipped to Canada, Mexico and the United Kingdom. The gains offset a decrease in seat parts, the fourth-largest U.S. export category at $195.2 million.
The net result, then, is mixed.
Finished goods are on the rise, indicating that U.S. producers are approaching global markets with more sophistication. Four of the Top 10 product categories for exports, however, still are various furniture parts. So there still is much work to be done before the U.S. furniture industry can consider itself a player in global markets.
The overall export total still is a small fraction of the amount coming the other way, roughly one-tenth of the import total.
The largest furniture category exported by the United States last year once more was miscellaneous wood (mainly occasional) furniture, which grew by 14% last year on top of a 2% expansion in 2005. Exports in the category totaled $431.3 million in 2006.
Also fueling the double-digit export gain was upholstered furniture. Sofa exports grew 22% to reach $194 million, while upholstered chairs surged 47% to total $174 million. Who's buying? Canada, which accounted for more than half of all exports at $1.2 billion, sharply increased its demand for sofas. Canada bought $164.8 million in sofas last year, up 29% from $127.4 million the year before.
Of the Top 10 destination countries for U.S. goods, only Japan, which was flat, failed to show growth. No. 1 Canada's $1.2 billion total was a 14% year-over gain.
No. 2 Mexico imported 5% more from the United States, or $230.6 million, while No. 3 the United Kingdom took in nearly one-fourth more U.S.-made product, amounting to $103.8 million. Both are important success stories for U.S. manufacturers.
The total sold to Mexico follows a dramatic dropoff in demand for U.S.-made furniture and furniture parts in 2005. Mexico took in well over a third less product in 2005 than during the previous year, making last year's recovery all the more important.
The United Kingdom also represented a huge turnaround. The 22% increase last year reversed a 2% dip in 2005. The big increases by category were metal furniture, which more than doubled, and miscellaneous wood furniture, which grew by one-fourth.
Australia's increased demand was primarily for swivel seats, metal furniture, and furniture and seat parts. No. 6 Australia took in 41% more furniture from U.S. producers last year than in 2005, for a total of $36.5 million.
Europe proved an excellent export market last year as well, with France and Germany more than doubling their demand for U.S.-made furniture. No. 9 France imported 150% more from the United States last year, for a total of $22.1 million. No. 10 Germany bought $21 million, or 129% more than in 2005.
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