AT THE MARKET – Canadian upholstery and case goods resource Palliser has undergone a restructuring that divides its business into four brand channels and also re-aligns members of its executive leadership to support those individual channels.

The Palliser brand represents the core upholstery and case goods channels of the business that are part of its whole-home approach featuring a mix of styles and core price points. This also includes the licensed Sarah Richardson for Palliser partnership.

The company’s luxury residential segment, which highlights Palliser’s “design capabilities and craftsmanship,” will fall under the Pinnacle brand. The OEM and National Accounts segment will offer what the company calls “white label” opportunities and the development of exclusive product for national accounts.

The company said its Integrity upholstery line will focus on “value and volume while maintaining the highest levels of quality.” This channel also includes the Quantum chair line.

Continuing at the helm of the organization is Peter Tielmann, president and CEO.

“To keep pace with an ever-evolving global furniture industry, we are making these adjustments to our organizational structure, positioning our brands to best lead in their respective segments of the market,” Tielmann said.

The roles for its executive team are as follows:

Roger Friesen will serve as chief revenue officer. In this role, he will provide leadership to the sales and marketing teams and the new brand channels. He has held executive roles with Palliser since 2001 and also was president of Casana Furniture, which Palliser acquired in 2017.

Mike Hofman has been named chief operating officer. He will oversee both operations and financial areas of the organization, including procurement, manufacturing, logistics, customer service, product development and pricing. He joined Palliser in 2018 having previously held executive level positions at Beaulieu America, Serta Simmons Bedding and Sealy.

Wendy Ferris serves as chief culture and people officer. She will continue in her role providing leadership to human resources and also developing and implementing strategic initiatives.

Cary Benson, formerly president of Palliser, will continue in his role as president and CEO of Encore Seating, Palliser’s contract business.

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WASHINGTON — The U.S. Dept. of Commerce announced its final determination in its antidumping duty investigation of mattresses from China.

In that determination, DOC found that mattresses imported from China are being sold in the U.S. at dumped prices, the International Sleep Products Assn. said in a Member Alert it issued Friday.

DOC adjusted some of the dumping rates that it set in its preliminary antidumping determination, ISPA said.

It assigned final dumping rates of 57.03% to Healthcare and 192.04% to Zinus, the two mandatory respondents in the case. Healthcare’s preliminary rate was 69.3%, while Zinus had a preliminary rate of 84.64%.

DOC assigned a final dumping rate of 162.76% to other Chinese exporters that DOC found were eligible for a separate rate. It also assigned a final China-wide rate of 1,731.75% for all other producers and exporters that did not cooperate in the investigation.

ISPA noted that the China-wide rate in the case is the highest dumping rate that DOC has ever announced in an antidumping investigation.

Once these final rates are published in the Federal Register, which will take about five business days or longer, DOC will instruct U.S. Customs and Border Protection to collect on future entries of mattresses from China cash deposits of antidumping duties equal to the dumping rates that apply to the relevant companies, ISPA said.

Now that the DOC has issued its final determination finding that mattresses from China are being dumped in the U.S. market, the International Trade Commission will complete its final investigation into whether the U.S. industry has been materially injured or threatened with material injury by such imports, ISPA said.

The ITC held a public hearing in that investigation Oct. 11 and is expected to announce its final determination on or about Dec. 2, ISPA said. If the ITC finds that mattresses imported from China are materially injuring, or are threatening material injury to, the U.S. mattress industry, DOC will issue an antidumping order on mattresses from China, ISPA said.

If the ITC finds no injury or threat of injury, the investigation will be terminated, ISPA added.

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AT THE MARKET — As furniture importers look to diversify product sourcing in order to limit exposure to supply chain or pricing disruption through broadening their sourcing map, Eastern European manufacturers are at High Point Market in unprecedented numbers.

While they are showing a short range of goods in fairly small spaces, they are here to explore opportunities in the North American market and to discuss their capabilities both with retailers and vendors seeking supply partnership alternatives to Asia.

Poland, for example, is the third-largest exporter of furniture in the world, although most of that flows to European markets. While new in most cases to North America, the Polish and plants in places such as Ukraine and Romania do have experience refining their products to different markets, since European nations have different tastes despite those countries’ proximity.

Six Polish companies exhibited accessories, upholstery and occasional in reclaimed woods, as well as a sleeper-sofa maker currently supplying Ikea, at market in a Design Center showroom under the auspices of TATFA, supports Polish companies seeking to develop commercial partnerships in North America.

“Polish companies have long experience in exporting to European countries, where they have to adapt to a lot of different preferences,” said TATFA Managing Partner Michal Blonski. “Logistically, there’s shorter ocean shipping to the East Coast, where there also are lots of ports so there’s not so much congestion as on the West Coast.”

This sofa from Creadest has a washable linen slip cover.

One of the manufacturers at the TATFA showroom, upholstery maker Creadest, already does business in Canada, and showed goods in scales and styles familiar to North American buyers.

Blonski reported he’d seen some good prospective buyers through the TATFA presentation.

Style Home is a Polish producer of wood chairs for the contract market and upholstered residential seating as well as custom pieces that already has an international office in the U.K. handling sales there as well as Germany, France and Ireland.

“We also already have contract-market customers in New York and Canada,” said Dominika Lasek, international sales manager, who said the company looks to expand not only in Europe but also across the world. “We already have experience dealing with American and Canadian customers. Obviously, we looked at the global political situation and saw an opportunity for Eastern European companies to step in as an alternative” to Asia.

Style Home is aware one showing at High Point isn’t going to be enough.

“We understand you can’t have any effect in a market with just one show,” Lasek said. “We know that from showing in Europe.”

Husband and wife Sergii and Tatiana Savchenko own Blest, a manufacturer of Italian-design sofa beds with two plants in Ukraine. They’re here to look at how they might fill a need in the marketplace for convertible sofas in Belgian fabrics with unique mechanisms and storage.

While it’s their first time in High Point, they’ve checked out the Cologne and Milan shows to hone their product, which currently ships mostly to Europe and Russia.

Blest sees opportunity here in the need for space-friendly furniture, an area where it has long experience.

“In the Ukrainian market, you always need something extra in furniture,” Tatiana Savchenko said. “Apartments there are very small, so when family or friends come to visit, the sofa has to convert into a bed.”

While this is an exploratory showing at market, “we look to maintain a continuous presence in High Point,” Sergii said.

Marc Litterst, whose Euro Link is exclusive importer of motion from high-end German motion maker Himolla and several other non-competing companies, also brought four recliner and sofa styles, and three sofa beds from Romanian manufacturer Villa d’Este to High Point for the first time.

“This market is about showing the potential of Eastern Europe,” Litterst said. “We want to be a platform to offer a bridge to manufacturers there. … We’re showing top grain Italian leathers with Villa d’Este. We’re presenting American styles with some Italian spice.”

Major Polish RTA and upholstery manufacturer Szynaka — it has revenues around 250 million euros a year — wasn’t showing at October market, but the company’s leader and international sales executives were there exploring the potential of showing, as well as forming connections with stateside companies looking for sourcing alternatives. The company also is a significant supplier of product to Ikea.

“We have come to High Point several times,” said President Jan Szynaka through a translator. “We’re still considering whether and how to exhibit. We already have some relationships and customers established in the U.S.

“We’ve been investing in production capacity, and by year’s end we’ll open the expansion of our solid wood factory in Poland,” Szynaka said. “We’re also investing in a new 215,000-square-foot upholstery plant built from scratch … that will have a 40 million euro annual capacity” when in full production.

In addition, Szynaka is renovating an existing factory in Belarus scheduled to start production by the middle of next year.

“These developments are connected to supporting our business with major retailers,” Szynaka said. “We’re expecting 10% growth each of the next few years.

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AT THE MARKET — Mattress importers showing here said they moved quickly to diversify their sourcing structure as trade winds turned against Chinese imports.

The importers said they are now well positioned to withstand any changes that might occur on the global mattress sourcing scene.

The mattress importing landscape has changed rapidly in recent months, with Chinese imports, hammered by tariffs and stiff antidumping duties, falling sharply, and Vietnam taking over the No. 1 position, with a 31% share of imports in August, when China had a tiny 1% share.

But Indonesia, Cambodia and Serbia all posted significant shipment figures in August, and Indonesia moved into the No. 2 position that month with about 125,000 mattress imports, according to a Raymond James report.

Classic Brands, which began importing mattresses from China almost 20 years ago, has shifted that production to Vietnam, Malaysia and Thailand, said Mark Owen, executive vice president of sales and business development.

He said Classic began shifting its mattress production out of China in the third and fourth quarters of 2018.

Vietnam was a natural alternative because that country offers a “stable, strong workforce,” Owen said.

Ashley has made major commitments to mattress production in Vietnam and is seeing higher quality from the beds it is making there than beds it previously sourced from China, said Brad Rogers, senior vice president.

Ashley is serving the U.S. bedding market from its three Vietnamese plants and from a “super plant” in Mississippi, he added.

Asked for his assessment of the company’s Vietnamese workforce, Rogers said: “It’s been great. The whole workforce has been great. They want to do well.”

MLily USA, owned by a major Chinese bedding company, shifted its mattress production to major facilities in Thailand and Serbia, said Stephen Chen, president, and noted that the company is finishing a 650,000-square-foot facility in South Carolina.

“I think we are very well positioned for the future,” Chen said. In the next few years, he added, MLily will probably be looking at a manufacturing facility on the West Coast.

Enso Sleep Systems, a division of Klaussner, shifted its mattress production to Vietnam, said Mark Akerman, president, and is also looking into sourcing from Eastern Europe, which would offer freight savings for East Coast customers, he said.

It’s natural for Klaussner to consider new sourcing possibilities around the world, according to Akerman. “Klaussner is a global sourcing company,” he noted. “That’s our strength.”

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WASHINGTON – The U.S. Department of Commerce has ordered the continuation of antidumping duties on uncovered innerspring units from China, South Africa and Vietnam for another five years.

The decision follows a determination by both the DOC and the U.S. International Trade Commission that found revoking the orders on each country would likely lead to continued recurrence of dumping and material injury to domestic producers.

The second five-year sunset review began in early March. After seeking comments from interested parties, the DOC conducted an expedited 120 review of the antidumping order and notified the ITC of dumping margins that would occur should the order be revoked. Both the ITC and the DOC published the determination earlier this month.

The duties are assigned to factories, but paid by importers of record of the subject merchandise.

Leggett & Platt, the lead petitioner in the antidumping case, said that it was pleased with the latest development.

“We are pleased with the favorable determinations made by the U.S. International Trade Commission and the U.S. Department of Commerce in the sunset review of the antidumping orders on innerspring units from China, South Africa and Vietnam,” said Eric Rhea, Leggett & Platt vice president and president of the Bedding Group. “We advocated to maintain these orders to protect our operations and workers in the United States from being harmed by unfairly low-priced imports from these countries. This will allow all U.S. innerspring producers to compete in the U.S. market on a level playing field.”

The scope of the orders covers “uncovered innerspring units composed of a series of individual metal springs joined together in sizes corresponding to the sizes of adult mattresses (e.g., twin, twin long, full, full long, queen, California king and king) and units used in smaller constructions, such as crib and youth mattresses. All uncovered innerspring units are included in this scope regardless of width and length. Included within this definition are innersprings typically ranging from 30.5 inches to 76 inches in width and 68 inches to 84 inches in length. Innersprings for crib mattresses typically range from 25 inches to 27 inches in width and 50 inches to 52 inches in length.”

“Uncovered innerspring units,” the description continues, “are suitable for use as the innerspring component in the manufacture of innerspring mattresses, including mattresses that incorporate a foam encasement around the innerspring.” Pocketed and non-pocketed innerspring units are included in this definition, according to the DOC.

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WASHINGTON – The U.S. International Trade Commission has determined a schedule for the final phase of its antidumping and countervailing duty investigation that will determine whether the U.S. cabinet industry has been materially injured by imports of Chinese-made wooden cabinets and vanities.

The U.S. Department of Commerce has preliminarily determined that these items are being sold into the U.S. market at less than fair value, which is considered a violation of international trade laws.

The ITC is in the process of finalizing its material injury investigation to determine whether such imports have negatively affected the U.S. industry.

The commission will hold a hearing on the matter on Feb. 20, 2020, at the U.S. International Trade Commission building in Washington. Requests to appear at this hearing should be filed in writing with the Secretary to the Commission on or before Feb. 14. All parties wanting to attend and/or speak at the hearing should participate in a prehearing conference to be held Feb. 18, 2020, at the U.S. ITC building.

The deadline for prehearing briefs is Feb. 13, 2020, and the deadline for post hearing briefs is Feb. 27, 2020.

On March 18, 2020, the ITC will make available to all parties all information on which they have not had an opportunity to comment. Parties may submit final comments on this information on or before March 20, 2020, but such final comments may not include any new factual information.

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CHELSEA, Mass. – Mattress manufacturer Spring Air International has signed a licensing agreement with Vietnam-based LMG-World Luxury Mattress Gallery, a business unit of AmericanStar Group, one of the largest branded and OEM mattress producers in Southeast Asia.

Under terms of the agreement, LMG will produce and distribute all Spring Air brands, including its signature Back Supporter line and high-end Chattam & Wells line, throughout Vietnam, Laos and Cambodia.

The agreement marks the first time Spring Air has had a licensee in those three countries and makes the Spring Air brand available in more than 40 countries around the globe, officials said.

LMG will produce the goods at AmericanStar Group’s 1.2 million-square-foot complex near Ho Chi Minh City, a manufacturing site that includes foam-pouring and spring-making facilities.

​“This agreement helps us expand our international footprint in a key region that has become an important mattress manufacturing hub in recent years,” said Nick Bates, president of Spring Air International. “AmericanStar operates one of the largest mattress factories in the world and has been aggressively expanding in its home region and internationally. Their deep knowledge of the Southeast Asian market will be a tremendous asset to the Spring Air family.”

Spring Air products also will be sold in the company’s high-end retail store, LMG-World Luxury Mattress Gallery, which is located in Sala City, a relatively new upscale retail and residential hub in Ho Chi Minh City.

​“U.S. bedding brands carry a lot of clout with consumers throughout Southeast Asia, and Spring Air is an important addition to our portfolio,” said Lee Hinshaw, chief operating officer and sales director at LMG. “The history of the Spring Air company and the unique features and benefits of the Spring Air brands will resonate well with consumers in Vietnam, Laos and Cambodia.”

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Kevin O’Connor

HIGH POINT – The American Home Furnishings Alliance presented its Distinguished Service Award to Kevin O’Connor, former president and CEO of Samson Marketing/Samson Holding, at its 2019 Annual Meeting and CEO Conference held in Miami Oct. 31-Nov. 2.

Each year, the AHFA gives the award to an executive for his or her contributions to the home furnishings industry, to the AHFA and to their local community. O’Connor is the 53rd recipient of the award, which is presented with the distinction “Industry Patron.” The AHFA presented O’Connor the award during a dinner on Nov. 1.

In announcing the award, Rob Spilman, chairman, CEO and president of Bassett Furniture Inds., described O’Connor as compassionate, innovative and a “quiet giant.”

“He has served as an inspirational leader to hundreds around him,” Bassett said.

O’Connor started his career in the industry as a sales rep with Baumritter Corp., which later became Ethan Allen. After leaving Ethan Allen in 1981, he held management positions at Singer Furniture, Burlington Furniture and Lea Inds. He was named president of Hyundai Furniture in 1988.

During this period, he began traveling to Asia on a regular basis and within the next decade became president of Master Design. It was also during this period he developed a business relationship with Samuel and Grace Kuo, with whom he developed product for a startup factory in China called LacquerCraft Manufacturing.

In 1999, O’Connor and the Kuos founded case goods importer Legacy Classic Furniture, which created the direct consolidated container concept under his leadership. This expanded its direct importing from a few large retailers to hundreds of key accounts within a few years.

O’Connor was later named president and CEO of Samson Marketing when it was formed in 2007, which oversaw the management of Legacy Classic and Samson Holding’s other U.S. operating companies, including Universal Furniture and Samson International.

O’Connor has served on numerous boards and industry committees, including chairman of the High Point Market Authority board from 2008 through 2012. He also chaired the AHFA board of directors in 2016 and has chaired the City of Hope Spirit of Life Dinner since 2012.

He received the City of Hope Spirit of Life Award in 2007, the International Home Furnishings Representatives Pillar of the Industry Award in 2009 and was inducted into the American Furniture Industry Hall of Fame in 2012.

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KUALA LUMPUR, Malaysia – The 2020 edition of Export Furniture Exhibition Malaysia is planned for March 9-12 at the recently expanded Kuala Lumpur Convention Center.

Planned to take place in about 500,000 square feet of exhibition space – up from a previous 350,000 square feet in 2019 – the event is expected to attract more than 16,000 visitors from 140 countries. This is up from 13,837 visitors in 2019, which included 8,246 international buyers and 5,591 domestic buyers as reported by show officials.

The show is expected to feature more than 400 exhibitors, up from about 300 in 2019.

A highlight of the 2020 show is the Buyer Introduction program which invites buyers from around the world to participate in the show. Key benefits include:

• Complimentary four days and three nights hotel stay
• Free shuttle service from the Kuala Lumpur International Airport to the KLCC
• A free, one-day pass for a tour of Kuala Lumpur
• B2B business match services with exhibitors
• An invitation to Buyers’ Networking Night

For more information on the EFE show, visit www.efe.my.

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Wong Kah Cane

KUALA LUMPUR, Malaysia – The Malaysian Timber Council has named Wong Kah Cane as its new Deputy CEO, effective Nov. 1. Richard Yu, who has been CEO of the MTC since March 2018, continues in that role. He also has served as deputy CEO of the organization in the past.

The MTC was established in January 1992 to promote the development and growth of the Malaysian timber industry globally. It recently brought a group of Malaysian furniture manufacturers to the October High Point Market to both establish and solidify connections between these manufacturers and the U.S. furniture industry.

Since 2018, Wong has been a business coach with Vistage Malaysia, a role in which he provided training for CEOs. In August 2018, he became an independent member of the MTC’s board of trustees.

Before joining Vistage Malaysia, he was general manager at Everpro Sdn Bhd starting in 2016 and before that was senior general manager of Eu Yan Sang, a traditional Chinese medicine company. He first joined Eu Yan Sang in 2000 as an area sales manager and was appointed general manager in 2006, leading the company’s business development, sales and marketing operations in addition to branding.

“Wong has provided many effective management, marketing and branding strategies as well as training in his previous places of employment, which have turned these companies into amazingly successful businesses,” said MTC Chairman Dato’ Low Kian Chuan. “I believe he will be a great asset to MTC.”

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NAPLES, Fla. – The Appalachian Hardwood Manufacturers Inc. 2020 Annual Meeting takes place from Feb. 19-23 at the Naples Grand Beach Resort in Naples, Fla. The event kicks off on Feb. 19 with an early bird reception, which is followed the next day with a mid-afternoon AHMI Board of Trustees Meeting, registration and a welcome reception.

On Feb. 21, business presentations follow that include a discussion of World Markets for American Hardwoods presented by American Hardwood Export Council Executive Director Mike Snow who will discuss the AHEC’s promotional activities for 2020 in existing and new markets.

There also will be a discussion of the Market for American Lumber in China, presented by James Xu, founder of AM Forest Products China and a director of the China National Hardwood Council and the Shanghai Timber Trade Assn. He will share his perspective on the Chinese market for American hardwoods in 2020.

During the event, members of the Real American Hardwood Coalition also will discuss a new promotion to consumers titled “Real American Hardwood.” The goal of this promotion is to educate consumers about the benefits of solid hardwoods over substitutes.

For more information on the agenda or to register for the annual meeting, contact the AHMI at (336) 885-8315.

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WASHINGTON — China and the U.S. have agreed to a phased rollback of the punitive tariffs placed on each other’s goods, according to national reports. But a timetable for the gradual removal wasn’t disclosed.

A spokesman for China’s Ministry of Commerce said the two governments have had “serious and constructive discussions” over the past two weeks and that, in order to reach a “phase one” trade deal, the two would have to cancel some tariffs, Reuters reported Thursday.

An interim deal, it said, is expected to include a U.S. pledge to drop plans for a tariff on some $156 billion in imports that was slated for Dec. 15. Separately, China wants the U.S. to drop a 15% tariff on about $125 billion in goods that took effect Sept. 1, Reuters said, attributing the information to an unnamed source.

“They also sought relief from earlier 25% tariffs on about $250 billion of imports, ranging from machinery and semiconductors to furniture,” the news agency reported.

A deal may be signed this month by President Trump and Chinese President Xi Jinping at a yet to be agreed upon location.

The stock market jumped on the news. At midday, the Dow Jones Industrial Average was up about 0.9%, or 246 points.

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Karl Glassman

CARTHAGE, Mo. – Leggett and Platt has announced three executive promotions that are effective Jan. 1, 2020. Karl Glassman, president and CEO, will become chairman of the board. He also will maintain his role as CEO.

Glassman will succeed current board chair Ted Enloe, who will become lead director. Enloe first joined the board in 1969 and has been board chair since 2016.

Mitch Dolloff

Mitch Dolloff, currently chief operating officer, has been named president. In addition to maintaining his current position and serving as president, he will be president of the new Bedding Products segment until the company appoints a successor president of the segment. He also will join the board of directors.

Steven Henderson

Steve Henderson, vice president and president of Leggett & Platt’s Automotive Group, will become executive vice president and president of the Specialized Products Segment and the new Furniture, Flooring and Textile Products segment.

Glassman has been with the company since 1982 and has been on the board since 2002. He became president in 2013 and CEO in 2016.

Dolloff joined the company in 2000 and became senior vice president and president of the Specialized Products Segment in 2016. He was appointed executive vice president and president of the Specialized Products and Furniture Products segment in 2017 and became chief operating officer earlier this year.

Henderson joined the company in 2017 and serves as vice president and president of the Automotive Group. He has more than 30 years in a variety of leadership positions at Dow Automotive Systems, most recently as Business President- Automotive Systems, a role he held since 2009.

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SAN PEDRO, Calif. – While there are signs of potential resolution of the trade conflict between the United States and China, the dispute’s effect on trade was apparent in October activity at the Port of Los Angeles.

The port moved 770,189 20-foot equivalent units in October, a 19.1% decrease compared with 2018’s record-breaking October. After 10 months of 2019, total volumes have increased 1.8% compared to last year, which was the busiest year ever at America’s busiest port.

“With 25% fewer ship calls, 12 consecutive months of declining exports and now decreasing imports, we’re beginning to feel the far-reaching effects of the U.S.-China trade war on American exporters and manufacturers,” said Port of Los Angeles Executive Director Gene Seroka. “We expect soft volumes in the months ahead, and with the holiday season upon us, less cargo means fewer jobs for American workers. We need a negotiated settlement and the tariffs lifted.”

In October 2018, cargo owners were importing cargo at a record pace to get ahead of expected tariffs. This October, imports decreased 19.1% to 392,768 TEUs compared with the previous year. Exports declined 19.3% to 140,332 TEUs, the 12th consecutive monthly decline of exports. Empty containers also declined 19% to 237,088 TEUs. Combined, October volumes were 770,189 TEUs.

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HIGH POINT — U.S. furniture imports fell in the first half, a result of a double-digit drop in shipments from China due to tariffs on finished goods including wood furniture and upholstery.

Imports fell to $11.67 billion from $12.14 billion, in the first half of 2018, a 4% drop. This was fueled by a 17% decrease in shipments from China, which totaled $5.6 billion in the first half, compared with $6.7 billion the year before.

China fell in each of the top five product categories: miscellaneous wood furniture, down 19%; upholstered wood seats, down 21%; upholstered wood chairs, down 13%; outdoor seats with textile covered cushions, down 22%; and furniture of other materials, down 19%.

Double-digit increases from source countries such as Vietnam and Malaysia failed to stem those losses, which were further heightened due to decreased shipments from Italy and Poland.

Vietnam’s shipments rose 29% during the period to $2.47 billion from $1.91 billion, which helped retain its No. 2 spot on the list of top 10 source countries. This figure included wood furniture shipments, but also upholstery shipments in both stationary and motion furniture as resources have shifted those categories from China.

For example, Vietnam’s shipments of wooden bedroom furniture rose 13%, while its shipments of miscellaneous wood furniture — including occasional and home entertainment — rose 36%. Shipments of wood beds rose 16%, and shipments of upholstered chairs with wooden frames rose 67%. Shipments of wood dining tables rose 24% during the period.

Malaysia also became more important as a furniture resource. Holding the No. 5 spot on the list, its shipments rose 13% to $409.6 million from $362.8 million. This was partly fueled by enhancements in the RTA category, including bedroom made with high quality laminates.

Malaysia’s top five categories included: wood furniture, up 52%; upholstered household seating with wood frames, up 20%; wood kitchen furniture, up 39%; wood dining tables, up 11%; and miscellaneous wood furniture, up 165% to $1.8 million, from $668,639.

Shipments from Canada totaled $642.3 million, up 2% from $630.5 million last year, while shipments from Mexico totaled nearly $572 million, up 4% from $547.5 million last year.

In the No. 6 spot after Malaysia was Italy. Its shipments totaled $401.6 million, down 5% from

$421.6 million in the first half of 2018, while shipments from Indonesia (at No. 7) rose 5% to $369.4, from $353 million.

India, meanwhile shipped $176.8 million in furniture to the U.S. market in the first half, a 5% increase

from $168.3 million in 2018, while Poland’s shipments fell 19% to $140.4 million, from $172.6 million in

2018.

Taiwan’s shipments rose 8% to $105.9 million, from $98.3 million in 2018. This is due largely to its expertise in metal and glass furniture, including dining and occasional tables and consoles with glass tops and stainless steel bases.

While it tends to be more expensive than China, Taiwan’s capabilities with such materials has made it a viable alternative to China as countries such as Vietnam and Malaysia have not yet gotten up to speed in these categories.

Despite the tariffs, China has retained some of that business as sources have been reluctant to move products that might experience quality issues and shipping delays that would negate the benefit of any cost savings.

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HIGH POINT — U.S. furniture exports fell in the first half of 2019, a situation fueled largely by Chinese retaliatory tariffs, but also softening demand in other major markets including Canada, Japan and the Middle East.

During that period, overall shipments fell to $1.08 billion from $1.16 billion in the first half of 2018, just over a 7% drop.

China shipments were among the hardest hit, due not only to the retaliatory tariffs, but also softening consumer demand, observers note. According to government figures compiled by Furniture Today, shipments there fell to $26.9 million from $46.1 million, a nearly 42% drop.

This shift largely affected the upper end, which still produces a lion’s share of the upholstery and case goods in the United States, some of which gets exported around the world. While China has long been a growth market for these producers, observers note that other producers such as Italy have gained market share thanks in large part to the tariffs and the perceived quality of Italian-made goods.

But China was not the only country where exports fell. With the exception of South Korea, shipments to each of the other major export markets also fell, signifying a major shift in global demand.

Shipments to South Korea rose to $21 million, from $18.6 million, a nearly 13% increase. This made it the fifth largest market for U.S.-made furniture in the first half.

Canada remained the top market, but shipments there fell to $646.6 million, from $657.7 million, a 1.7% drop. It was followed by Mexico, where shipments fell to $60.1 million, from $75 million, a nearly 20% drop. Shipments to the United Kingdom, the third largest market, fell to $33.6 million, from $35.5 million, a 5.3% drop.

After South Korea, the next largest market for U.S. made furniture and bedding was the Bahamas, an emerging customer for U.S. exports. However, shipments there also fell to $18.9 million, from $19.1 million, a 1% drop, while shipments to Saudi Arabia fell to $17.8 million, from $23.7 million, a drop of nearly 25%.

Shipments to Japan, meanwhile, fell to $14.7 million from $19 million, a 22.6% drop, while shipments to Australia fell to $12.9 million from $13.9 million, a drop of 7.2%.

Shipments to the United Arab Emirates, also a major Middle East economy considered a growth area for U.S. furniture exports, also fell. Shipments there totaled $12.1 million in the first half of 2019, compared to shipments of $15.1 million in the first half of 2018, a drop of nearly 20%.

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HIGH POINT – A report from market research firm Fact.MR predicts some changes in the global finishing market as applications in furniture, automotive and architectural industries creases future growth opportunities. One of the biggest shifts occurring in the industry, the report notes, is increasing demand for water-based lacquer finishes vs. more traditional solvent based finishes.

End users, the report said, continue to prefer solvent – or petroleum based – lacquers due to their performance advantages. This is due to a range of features such as easy blending, competitive pricing and quick drying the report said.

“On account of these factors, nitrocellulose will maintain its lead as the preferred product type…with polyurethane lacquers closing in on the second spot,” the report said, noting that lacquer applications continue to remain concentrated in furniture, architectural and automotive industries, which collectively accounted for 80% volume share of the market. The report added that the furniture industry is the biggest end use industry for lacquers globally and that it will continue to be the “biggest demand center in the near future.”

However, researchers noted that concerns over VOC (volatile organic compound) emissions and more stringent regulations are driving the demand for water-based lacquers.

“The lower growth doesn’t undermine the fact that interest in water-based solvents is gaining ground, as compliance advising costs and evolving preference fuel demand,” Fact.MR said.

Excluding Japan, the report said, the Asia Pacific market is the largest market for lacquers, followed by Europe and North America. In addition to being a major consumer of lacquers, the region also has been a prominent exporter to North America and Europe.

Yet the report also notes that heightened regulations, combined with increasing labor costs in emerging countries, have led to a steady decline of exports of late. End-user demand for high-quality, water-based solvents, it added, also has led Asian manufacturers to change their “suite of offerings.”

While woodworking is considered the leading application segment for lacquers globally, metal and plastics are other prominent application areas for lacquers, the report concluded.

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KUALA LUMPUR, Malaysia – The 25th anniversary edition of the Malaysian International Furniture Fair broke the billion dollar sales mark for the first time in its 25-year history, show officials reported.

Exhibitors at the March 8-11 event generated just over $1 billion in sales during the show, a 3% increase from the previous record of $984 million in 2018.

The show also attracted 20,478 visitors, an increase of 4% from 2018. This figure included some 6,112 international buyers from 130 countries and regions. Show officials said that traffic was significantly higher from North America and the Far East, while attendance from South East Asia, Australia, Europe, Africa and South America was stable.

The show featured some 600 exhibitors from 14 countries including 346 Malaysian and 254 foreign manufacturers of case goods, upholstery and living room furniture and office furniture. Together they showcased new products and collections under the theme “Design Connects People.”

The show also featured a promotion of the Muar region of Malaysia, which has been recognized as the “Furniture City of Malaysia.” The show said it has strong ties with manufacturers in this region, which has been further strengthened by a strategic partnership between MIFF and the Muar Furniture Assn. that dates back to 2013.

“Celebrating our 25th anniversary with a milestone like this is certainly something that we are proud of,” said Karen Goi, general manager of MIFF. “It is the best endorsement of MIFF by the markets, but what makes us most proud is that we are continuing to place our customers and their business priorities first even as we are on a strong growth path.”

For more information on the show, visit www.miff.com.my

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KUALA LUMPUR – The 2020 edition of the Malaysian Furniture Fair has been set for March 6-9, 2020, at the Malaysia International Trade and Exhibition Center and the Putra World Trade Center.

Spread over more than 1 million square feet in the two venues, the event will showcase new product from more than 600 furniture suppliers from Malaysia and at least a dozen more international countries that ship product to the United States and other markets around the world. The show is expected to draw traffic from as many as 140 countries and regions. This year’s event drew 20,478 visitors, including some 6,112 international buyers.

“The MIFF brand and experience is very compelling,” said Karen Goi, MIFF general manager. “It has proven again and again how relevant it is in global furniture commerce. The trade show has taken a huge step forward after its expansion and design transformation in 2018. The product showcases and quality of design has become much better. Modern day buyers are very discerning and well-informed, and so are exhibitors. They like the value, the business opportunities and experience here because we keep pushing the boundaries to make it better every time.”

For more information on the show, visit www.miff.com.my

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ST. PETERSBURG, Fla. — After three months of declines, mattress imports were basically flat in September, an industry report says.

Reporting on September import figures released by the U.S. International Trade Commission, St. Petersburg, Fla.-based Raymond James said Chinese mattress imports are minimal, but other countries have accelerated their mattress imports.

“The recent data over the past few months indicates that a meaningful portion of the China mattress production that negatively impacted the U.S. industry in 2017, 2018 and early 2019 is shifting to other countries besides the U.S.,” Raymond James wrote.

“In addition, what is equally concerning is that the imported prices of the recent surge of non-China mattresses are very similar to the pricing of the China mattresses that created a headwind for the industry in 2017/2018.”

Overall mattress import units were down 27% in June, 22% in July and 5% in August.

While Chinese mattress imports have declined sharply in recent months, mattress imports from Vietnam have been on the upswing. Vietnam’s mattress import share in units was just 3% in January but 28% in September, a decline from Vietnam’s 31% share in August, Raymond James said.

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