Made in USA gains in popularity, yet still faces challenges
Made in USA once again was one of the big stories here at last week's High Point Market. Some of this was on the upholstery side of the industry, but there also was a lot going on in the wood side too.
Well established companies like Vaughan-Bassett and newly formed ones like Lincolnton Furniture touted their domestic capabilities. Based on activity at market, Lincolnton Furniture President Bruce Cochrane was so confident of his prospects, he even turned away OEM business.
"I got written business," Cochrane told Furniture/Today. "If it wasn't a value, they wouldn't be buying it."
Value, of course, means a lot of things to a lot of different buyers. Some are gravitating to domestic wood resources because of their relative speed to market, while others like the custom nature of their business. In the case of a Lincolnton or Cambridge Mills, some particularly like their solid wood story.
But while many domestic producers seem to be gaining traction in the market, they still face formidable competition from overseas producers. Whether the product is coming from China, Vietnam, Malaysia or Indonesia, these countries are able to produce with far lower labor costs, even when inflationary pressures are driving up those costs.
The biggest question in the minds of buyers will likely be how much rising Asian labor costs and shifts in currency will continue to increase the value of domestically produced product. Add to that equation increases in transport costs and Made in USA could continue to gain in popularity.
The industry also should remember, too, that furniture has always chased the lowest cost producer. Thus, new source countries - or continents - may emerge as well, including India, Bangladesh and perhaps even Africa.
How do you think this will play out?
Robinson commented:
Stay with this guys, you're hlenipg a lot of people.
Ronalee commented:
Do you have more great artciles like this one?
anti garbage commented:
cheep is expensive
no class
no taste
bye bye china
long live america and italy
anti garbage commented:
cheep is expensive
no class
no taste
bye bye china
long live america and italy
Bill Muffi commented:
It's time we all started to buy all products that are American Made. Its good for our people and our Country. My family is trying to buy everything American .
Rene Fimbres commented:
One of the countries that is not mentioned in your article is Mexico. With close access to U.S. lumber and other materials, low labor and overhead costs and 0% U.S. duty on all or most furniture, landed prices of Mexican made furniture are very close to those of Asia, especially in bedroom and bulky items. EG assembled chairs. Not only prices are very competitive but transit times are measured in days not weeks. And with new U.S. trucking regulations for Mexican trucks Door to Door service from Mexico is easier than ever. I’ve been involved in furniture manufacturing and sourcing from Mexico since 1978 and I am seeing Mexico more competitive than ever. renefimbres@californiafurniture.biz
Albacheeser commented:
"Made in the USA" should be something the CONSUMER should be ABLE to easily and readily determine. In Grocery stores, the consumer can easily determine which produce is "organic" and which is not. Very few American consumers will buy American exclusively, however, they WANT to KNOW so they can buy USA by default if all other things are relatively equal. I work for an eTailer and I have been pushing mgt to have a category for Made in the USA.
bob urunkle commented:
now cancer treatment ads in furn tdy please stick with the furniture companies this is not very appealing .....drop the cancer advertising
grant wood commented:
dont eat steak at the mayors place ,boycott this jerks place
when visiting vegas shows he hates hp mkt and deserves to fail
THOM commented:
The bottom line is that the "CONSUMER" will ultimately decide if "MADE IN THE USA" is worth it. Beautiful, quality furniture is made throughout the world so just because it is made in our country ovs anothers does not make it a better value. This is a new world economy and we must all open our eyes to the reality.
All companies need to stop making junk, disposable, "land fill" type products no matter where it is produced. Then we might all make some money in this industry..
sdm commented:
bring it home .....if you add all costs up and are true to the dollar ,maybe 15-20% difference if all inland frht and costs are added in.
thats good enuf for most hi end players and this will happen soon ,maybe in the next 3 years.
