Gain in fabric orders a good sign
By Gary Evans -- Furniture Today, December 14, 2009
HIGH POINT — With fabric sales on an upswing, exhibitors left the semiannual Showtime fabric show here last week with the feeling that the upholstery industry has stabilized and is heading for better times.
Fabric is the proverbial canary in the mineshaft, a harbinger of how the industry will do in the months ahead.
According to several fabric executives, the gradual increase in orders has led upholstered furniture manufacturers to be more confident in projecting their fabric needs and some are even launching new programs. Several mill execs said traffic was strong in their showrooms, ahead of the past few Showtimes.
Some mills are even beginning to accumulate backlogs and run-ons for certain goods that factories predict will be popular, a step that hasn't been taken in recent times.
There were words of caution, however.
“I think it's still choppy,” said Mark Kahan, chairman and CEO of Covington. “It's not where it was before.”
But Kahan said there is “no question” that optimism has increased over the last six months, and his company responded at Showtime with new product.
“We feel enough optimism in the market to have a very significant collection for December, which covers all the market segments Covington has been known for,” he said. “We're seeing traditional Covington customers who have reduced purchases Michael Shelton, president and CEO of Valdese Weavers, said, “Generally speaking, there has been a lift in business. But not everyone is happy yet.”
He said weakness in the market and the subsequent closure of other mills “has given us the opportunity to increase market share. We are providing appeal to people we might not have appealed to in the past. Our customers are validating us in each of our product lines.” Valdese brands include Circa 1801, Wesley Mancini and others.
“I think it's stabilized,” said Kiran Singh, president of upper-end fabric maker Laura & Kiran. “I've seen a lot more action lately. We've see it being very busy (in the past) — and then it stops. This time it keeps going.”
Regal Fabrics reported good traffic at Showtime. The company made it easier for customers to shop its line with a separate Quick View showroom adjacent to its main space. In the Quick View space, buyers could take an abbreviated look through fabric samples without making advance appointments and going through extended board presentations.
“The customers love it,” said Sue Patrolia, Regal's product manager, noting that Quick View included both new introductions and best-selling patterns.
She said that overall at Showtime, “People seem upbeat…. A lot of people need to get more fabrics in the pipeline.”
Patrolia said customers were focusing more on upper-end fabrics, “so there's not so much digging around in the lower price points — which is good. They're not battling it out for a nickel.”
Michael Durham, co-chairman and CEO of Burlington Technologies, whose companies include Se7en, said that growth will come from gaining market share and providing the market with sharply merchandised product that provide the incentive for factories to buy.
“I think we're all striving for optimism,” he said. What happens in the near future, he said, will depend on the confidence of Wall Street and a drop in unemployment to get consumer confidence on an upward track.
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