Mfrs. take close look at product safety
By Heath E. Combs -- Furniture Today, December 16, 2007
High Point — During the fall High Point Market, officials with Kathy Ireland Home by Martin were just receiving the results of lab tests conducted in Hong Kong on the lead content in the finishes on its Asian-made furniture.
They learned their products were well below the allowable U.S. limit, which was good news in a climate of heightened scrutiny of imported goods.
Weeks earlier, toymaker Mattel had reported that recalls — including 2.2 million China-produced items that were contaminated with lead paint, banned on toys in the United States since 1978 — had cost it $40 million.
The furniture industry also has had safety-related recalls of imports this year, although on a much smaller scale. Children's products resources like Land of Nod, Simplicity and BassettBaby have dealt with recalls involving between about 2,000 and 9,000 units.
Those items were among a rash of recalled goods, mostly made in China, that began in the spring — ranging from 60 million containers of contaminated pet food to children's jewelry and toys, Boy Scout badges and pajamas. The recalls raised a question: How well monitored are the more than $2 trillion worth of products, according to U.S. government statistics, that more than 800,000 importers bring in every year through 300 ports?
Southeast Asia, the source of most of the recalled goods, also is where much of the furniture reaching U.S. stores is made. Last year, China alone shipped about $12 billion worth of furniture to the United States.
Many furniture importers dedicate resources to control product quality and safety, but it is unclear how closely they monitor their supply chains.
The stakes are high: China risks injuring its reputation as workshop for the world, while importers face increased scrutiny on safety.
One reason businesses took notice of the recalls this year is that they showed that a company the size of Mattel ($5.65 billion in 2006 sales) had supply chain vulnerabilities, said Rountree Collett, executive vice president at Bernhardt Furniture.
Consumers who never thought about supply chains are realizing that U.S. importers don't completely control their Asian production, he said.
But China is realizing what's at stake. On a recent trip there, Collett witnessed a government official publicly acknowledge that faulty quality control is a serious problem — a significant admission, he said. However, Collett added, it's still not clear how Chinese manufacturers are reacting — especially in an industry like furniture, which hasn't been hit with a massive Mattel-sized recall.
"I don't think all China factories in all industries will now just 'do the right thing' because of the increased awareness due to recent troubles," he said. "Competition in our industry among those many suppliers is fierce and soft backlogs heighten the temptation for the factory to cut corners to hit a sharper price and win business. I believe this story will continue to develop for some time."
Just last week, China's state-run media agency Xinhua reported that the country will let the United States monitor several food and drug exports. It also said China will adopt new requirements to trace sources of production, and a system for manufacturers to notify each other of products that pose significant health risks. No timetable was given for implementation of the moves.
When executives at Magnussen Home Furnishings heard about the toy recalls, they e-mailed their finish suppliers and Asian factories to get written verification of the absence of lead, said Richard Magnussen, president and CEO. The company also sent its manufacturers a list of other chemicals of concern.
Retailers have raised the issue with Magnussen Home, he said.
"We have something prepared and in writing. It's good to have it ready to go," said Magnussen.
He said the action is just the company's latest move to protect its supply chain. Earlier this year, it gained certification with C-TPAT, or Customs Trade Partnership against Terrorism, a voluntary program created by U.S. Customs and Border Protection that helps ensure the physical safety of shipments.
For importers, Magnussen said, the question becomes: Is the quality control process in place at the source factories, and is the leadership there proactive? He said his company usually has two to six staffers auditing the quality control process at each of its source factories.
Martin, meanwhile, had an independent lab test paint and lacquer finishes and components from several collections in its warehouse in China. All surfaces were well below the 0.06% U.S. maximum for lead content, receiving the lab's highest lead-free rating of less than 0.005%.
The company is in the process of having its Mexico-made products tested as well. The impetus for the testing: retailers who had posed the lead question to Martin.
In a released statement, Gil Martin, president of Kathy Ireland Home by Martin, said the company had its Asian-made goods tested to reassure its customers and build confidence in its imported products.
"We encourage other furniture manufacturers to do the same," he said.
While it did not make officials available for comment, finish supplier Akzo Nobel issued a statement from Keith Estes, managing director, Wood Coatings Asia Pacific, saying the company doesn't specify any leaded raw materials in its industrial wood coatings products.
"Lead is a naturally occurring element and, as such, can be present in trace amounts in non-lead raw materials," it said. But Akzo said testing shows its products are well within the acceptable U.S. levels for lead.
Finish supplier Valspar did not respond to requests for comment.
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