Industry worth $8.25B to HP
By Heath E. Combs -- Furniture Today, July 2, 2007
High Point — The home furnishings industry in and around High Point has an economic impact of $8.25 billion, according to a study released last week by High Point University.
The study said the industry employs 65,362 people including 34,000 in manufacturing in the region, defined as four North Carolina counties: Forsyth, Davidson, Guilford and Randolph.
It also reported that the industry produces $4.8 billion worth of furniture in the area.
In 2004, a separate study measured the area's economic effect from the High Point Market alone at $1.1 billion. That study was commissioned by the High Point Market Authority from the University of North Carolina at Greensboro.
Local officials consider the studies important because they provide data on what is sometimes seen as a diminishing industry in North Carolina. Market and local government officials have used such research in recent years to help sway state legislators to approve funds for the market.
"This data further validates what we've all known," said Brian Casey, president of the High Point Market Authority.
He added that the Market Authority is likely to receive $3.1 million from the state next year. That is short of the $5 million the organization was seeking, but slightly more than the $2.95 million approved for the current year.
High Point Mayor Becky Smothers said the industry has not been stagnant, and that local companies and their support networks have continued to transition and change.
The new study's results tally industry output and employment by manufacturers, suppliers, showrooms, colleges, commercial photography, design firms, trade publications, fabric and finishing companies and transportation and service companies. The furniture cluster includes furniture and related product manufacturing, support industries, furniture wholesale and retail, and the High Point Market.
The City of High Point commissioned the latest study, at a cost of $15,000, to measure the effect of furniture-related businesses and economic influence on the High Point area. When compiling information, researchers leaned toward conservative estimates of economic impact, according to HPU Professor Gerald T. Fox, who helped write the study.
The study concluded that the High Point region has the world's greatest concentration of home furnishings manufacturers and related businesses.
Data sources included state and county reports on industry, county and ZIP code business patterns and U.S. Economic Census, among others. Industry output includes expenditures, and employment is defined as jobs created by industry output.
The total impact of the furniture industry on North Carolina is close to $9 billion, the study said.
