CHICAGO — Skyline Furniture is looking to Poland as a mainstay of its international sourcing to support and complement its own domestic manufacturing operation.
In addition to manufacturing custom-order upholstery with a focus on e-commerce in Illinois, Skyline also sources finished upholstery and case goods, as well as components and raw materials to feed its own production.
For the past 10 years, the company has sourced upholstery and case pieces in China, and case goods from Mexico, but Poland will play a larger role for those categories as well as components as Skyline seeks more stable sourcing from manufacturers that are farther along the “learning curve” than those in some alternative source countries.
Skyline’s move to Poland, where three source factories are now shipping finished upholstery, cases and components to the U.S. market, began in support of major customers who looked to expand their business in Europe and looked production to offer quick service in those markets.
“A year ago, we started looking at Eastern Europe,” said President Meganne Wecker. “Our factory in Chicago focuses on e-commerce, and we were seeing a lot of our major e-commerce customers opening dot.com operations in Europe, where online sales of furniture are still in their infancy. We looked at Eastern European manufacturers to teach them what we’d been doing in Chicago so we could serve the European market.”
Tariffs on Chinese goods and resulting supply chain strains in alternative source countries in Asia ramped up Skyline’s interest in European production.
“We’re looking at transitioning our efforts in China and fast-tracking that to Poland,” Wecker said. “There’s still a piece that’s there for China in the near future, but we see the growth opportunity happening in Poland right now.”
Skyline CEO Ted Wecker, Meganne’s father, said the company explored other options in Europe.
“We looked at Spain, but it was a lot harder to find suppliers there that understand and want to do business in the U.S. market,” he said. “The political situation there is unstable as well, and unemployment is at 25%.”
Meganne Wecker followed up on that, saying Polish manufacturers are farther along the “learning curve” than many in other potential source countries when it comes to serving export markets. Right now, the focus is on adapting their capability to serving the pipeline to U.S. customers.
“Poland has been manufacturing furniture for many years, but they didn’t know the U.S. market,” she said. “A big focus right now for us is laying the foundation for their manufacturers to serve retailers here the way they need to. … It’s more about teaching them to make furniture for the U.S. market, not teaching them to make furniture.”
Ted Wecker noted in addition to their access to a solid transportation infrastructure in Europe, Polish manufacturers already are U.S.-market ready in many ways.
“They have to conform to Carb2 regulations,” he said by way of example. “Germany (where Poland does major business) just passed an even more stringent emissions law. If their product has to conform to Germany, it will conform to U.S. law.”
Meganne Wecker said other new sources had problems in that regard. “We went to Vietnam and felt it would be eight months before we could dream of shipping to retailers here with all the manufacturing and social audits we required.”
She added that Polish manufacturers are in better shape to address trending styles.
“In design, they’re way ahead of a lot of places we import from, because Europe is father ahead in fashion,” she said. Polish manufacturers are “far more advanced for what we’re looking for than any of the other countries we’ve dealt with.”
Beyond Skyline’s optimism about Polish manufacturers’ ability to play a major role in its international operations, the company has family ties to the country.
Meganne Wecker’s great-grandfather immigrated to the United States in 1898, where he founded a furniture business in Chicago. That business closed during the Great Depression, but her grandfather and Ted’s father, Norman Wecker, returned from World War II to found the company that became Skyline Furniture.
Skyline’s move to Poland “closes the circle” of the family’s presence in the furniture industry, according to Meganne Wecker.
“The irony of ironies is that one of the factories we’re dealing with is about five minutes from where my great-grandfather immigrated from,” she said.