As the furniture industry continues to navigate the realm of global sourcing, many of the most obvious source countries are in the Eastern hemisphere, where a worker’s monthly wages might equal what a U.S. factory worker makes in a week.
Yet, the United States remains a key part of this sourcing equation. And that’s not just in upholstery — most of which is still made in the U.S. — but also in case goods, a category beleaguered by imports for nearly 20 years.
At the recent High Point Market, it was obvious that wood product still made in America covers a wide mix of price points. This ranges from RTA from resources such as Sauder and Ashley to mid/upper-middle-priced wood bedrooms seen at resources such as Vaughan-Bassett and some of its Amish competitors.
Of course, the high end, too, remains a viable realm with wood product using a mix of materials from both domestic and overseas resources.
Across these price points, however, imports remain a noteworthy competitor. This is particularly due not only to low prices gained from inexpensive labor, but also to investments in new equipment and facilities. Indeed, based on observations from my recent trip to Vietnam, the size and capacity of many Asian factories alone dwarfs U.S. plants, making economies of scale part of the DNA of those facilities.
At a glance, such huge capacity — along with built-in price advantages — might cause many domestic producers to shudder.
But realize that price, while important, may not be the most important thing, particularly for a new breed of educated, socially and environmentally conscious consumers. And we’re not just talking about Millennials. These consumers span all age groups, particularly those who are raising children and grandchildren in today’s complex and, some might add, challenged world.
Domestic producers, while smaller than many Asian counterparts, have a story to tell that includes several key advantages.
+ Ability to customize product not only in terms of finish, but also size and scale of product. This may result in smaller lot sizes. But it also will allow them to produce exactly what the customer wants when they want it.
+ Speed to market. This results from U.S. producers’ proximity to U.S. consumers. Manufacturers’ ability to inventory stateside can also help get the product to the customer even quicker.
+ A green story thanks to their proximity to regional wood resources, such as Appalachian hardwood chain. Many domestic resources, Amish included, are lowering their carbon footprint by making the goods stateside vs. having the materials shipped overseas and then having them shipped back as finished product.
+ Employing U.S. workers to build the product. If U.S.-made still means something in overseas markets such as China, Japan and even Russia, then shouldn’t it mean something here, too?
+ The ability to innovate within a specific category. A good example of this was Vaughan-Bassett’s Push to Open technology seen on drawers of case pieces in its new Touché collection. Borrowing a page from the playbook of premium kitchen cabinets, a slight touch of the mechanism effortlessly opens each drawer on chests, dressers and nightstands.
These are just several domestic advantages that might resonate with many of today’s consumers. But is the story being told at retail? It seems that the ability to communicate the story to consumers is just as important as the selling points themselves. Therein may lie the success of U.S. furniture producers over the long term.
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