China labor shortages could pose challenges for industry

As with any story, there are often two sides to report. The case is no different with recent news coming out of China.

Officials with furniture shows held in Shanghai and Dongguan earlier this month reported increases in both traffic and order writing activity. They interpret that as a sign that China’s furniture industry is seeing a rebound and are probably correct in that assumption.

That’s the good news. The bad news we’re hearing is that many Chinese manufacturers   are reportedly having spot labor shortages that could crimp their ability to deal with increases in orders.

These shortages are due largely to the fact that many workers returned to their homes in rural areas right before Chinese New Year and have yet to come back to urban coastal areas such as Dongguan, where much of the furniture has been produced over the past five to ten years. Factories looking to rehire these workers are also seeing competition from other industries that are hiring.

Importers and other industry officials say this could cause delays in shipments just as the consumer regains their appetite for furniture.

Many of those reading this know all too well the challenges associated with this labor situation. As always, we’d love to hear you. What are you seeing on the Chinese labor front and what do you see as the immediate implications for the U.S. furniture industry?