In today’s global economy, it’s rare to pick up an item and find a Made-in-the-U.S.A tag.
Practically everything, from apparel to electronics, is sourced from other parts of the world. Even the American icon Levi’s shifted its production of those famous San Francisco blue jeans out of the country a few years back.
The furniture industry is little different, save the few manufacturers that still produce domestically.
Domestic producers, however, continue to dwindle.
Just last month, Cresent Fine Furniture announced plans to shutter production at its Gallatin, Tenn., factory and shift its business to an import platform. By no means is Cresent alone in its move—they're just the latest example.
In fact, according to the latest numbers compiled by Mann, Armistead & Epperson in its year-end Flash Report, consumer purchases of imported wood furniture has increased at a rate of 10.6 percent compared to 3.7 percent for domestic-made goods. On the upholstery side, purchases of domestic goods fell .3 percent and imported product upholstery jumped 12.2 percent.
The firm goes on to report that imported product represents just over half—50.7 percent of all wood household furniture sold last year. In upholstery, imported goods made up 19.5 percent of sales.
Companies like Vaughan-Bassett, Stanley Furniture Co., Kindel and Stickley continue to produce the majority of their products in U.S. plants. Ashley Furniture takes about a half-and-half approach by blending product made in its domestic factories with those sourced offshore.
For upper-end producer Kindel Furniture, it’s an all-domestic approach to manufacturing. To ensure its Grand Rapids, Mich., operation remains in business, the company converted to a lean manufacturing model.
Last summer, Kindel consolidated production of chairs and occasional tables into its main factory. Transition of upholstery production followed in the fall.
Paula Fogarty, president, proudly points out that the company retained its 136-person work force.
The changes—implemented to remain competitive—netted another result. Kudos from the company’s customers on maintaining its approach to manufacturing domestically.
“We get a lot of credit for being crafted in the United States,” she said.
In the consumer mind, Bob Fogarty, chief executive officer, said made in America tends to mean something, especially at the high-end prices where Kindel’s line falls.
At the middle to lower price points, Vaughan-Bassett has staked its business on its domestic product.
More than 97 percent of the company’s line is made in the company’s factories in Galax, Va., and Elkin, N.C., said Wyatt Bassett, executive vice president. In addition to those two plants, the company runs a dimension plant for processing lumber in Atkins, Va.
The strategy has not always been an easy one for the company.
“The environment that we’ve had to compete in at our price points over the last few years has been like being in the eye of the hurricane,” Bassett said. “We’ve been at the center of the storm, and it’s made it extremely difficult for all of us.”
Bassett points to several factors to the company’s success, including the fact that it continually invests in its factories with upgrades to equipment and by making other capital expenditures.
“We’ve made a conscious decision on the path for our company, and part of that is to make sure our plants are capable of doing what we need them to do,” he said.
Stickley, known for its collector’s furniture—most notably its Mission and Arts & Crafts lines—boasts more than 90 percent domestic production.
Last year, the company caused a few ripples in the industry with its opening of a 187,000-square-foot plant in Vietnam.
The company currently produces its Antiquities by Stickley in the factory, and the balance of the company’s line remains at the Stickley facility in Manlius, N.Y.
In addition to maintaining its Mission and Arts & Crafts collections domestically, the company’s licensed reproduction Colonial Williamsburg is manufactured in New York.
Stanley’s current business model has it producing 70 percent of its product in four plants in Stanleytown, Va., Martinsville, Va., Robbinsville, N.C., and Lexington, N.C., and the balance being sourced from about a dozen factories in China, Eastern Europe and the Philippines.
“We try to make what makes sense here,” said Phil Haney, executive vice president. “The larger pieces that would cost too much to ship over are perfect in our factories.”
The company, which stuck its toe into the importing arena in 2002, started slow with accent pieces and a variety of occasional tables.
So far, the strategy is working.
The company has continued to post increases in its business. Haney said by blending the imported goods with its domestic product Stanley can maintain more control over the look, feel and design integrity of a collection.
So how and why do the few domestic producers still exist?
Vaughan-Bassett’s Bassett said two key components keep his business humming—product that retailers can have delivered in 10 days and the gross margin return on investment that the product nets.
“Our customers don’t have to warehouse the product because they can get it so fast,” he said. “Our dealers tell us our GMROI is the highest on their floors.”
Moving forward, the company plans to stick with its domestic strategy. It is, afterall, what’s kept the company in business for this long.
“We’re entrenched,” Bassett said. “When we go through product, we stay focused on what we’re doing, and that we’ve decided, is to distinguish ourselves as the best manufacturer in our category. There are hundreds and hundreds of importers our there, but very few domestic manufacturers in our price range.” HFB
Practically everything, from apparel to electronics, is sourced from other parts of the world. Even the American icon Levi’s shifted its production of those famous San Francisco blue jeans out of the country a few years back.
The furniture industry is little different, save the few manufacturers that still produce domestically.
Domestic producers, however, continue to dwindle.
Just last month, Cresent Fine Furniture announced plans to shutter production at its Gallatin, Tenn., factory and shift its business to an import platform. By no means is Cresent alone in its move—they're just the latest example.
In fact, according to the latest numbers compiled by Mann, Armistead & Epperson in its year-end Flash Report, consumer purchases of imported wood furniture has increased at a rate of 10.6 percent compared to 3.7 percent for domestic-made goods. On the upholstery side, purchases of domestic goods fell .3 percent and imported product upholstery jumped 12.2 percent.
The firm goes on to report that imported product represents just over half—50.7 percent of all wood household furniture sold last year. In upholstery, imported goods made up 19.5 percent of sales.
Companies like Vaughan-Bassett, Stanley Furniture Co., Kindel and Stickley continue to produce the majority of their products in U.S. plants. Ashley Furniture takes about a half-and-half approach by blending product made in its domestic factories with those sourced offshore.
For upper-end producer Kindel Furniture, it’s an all-domestic approach to manufacturing. To ensure its Grand Rapids, Mich., operation remains in business, the company converted to a lean manufacturing model.
Last summer, Kindel consolidated production of chairs and occasional tables into its main factory. Transition of upholstery production followed in the fall.
Paula Fogarty, president, proudly points out that the company retained its 136-person work force.
The changes—implemented to remain competitive—netted another result. Kudos from the company’s customers on maintaining its approach to manufacturing domestically.
“We get a lot of credit for being crafted in the United States,” she said.
In the consumer mind, Bob Fogarty, chief executive officer, said made in America tends to mean something, especially at the high-end prices where Kindel’s line falls.
At the middle to lower price points, Vaughan-Bassett has staked its business on its domestic product.
More than 97 percent of the company’s line is made in the company’s factories in Galax, Va., and Elkin, N.C., said Wyatt Bassett, executive vice president. In addition to those two plants, the company runs a dimension plant for processing lumber in Atkins, Va.
The strategy has not always been an easy one for the company.
“The environment that we’ve had to compete in at our price points over the last few years has been like being in the eye of the hurricane,” Bassett said. “We’ve been at the center of the storm, and it’s made it extremely difficult for all of us.”
Bassett points to several factors to the company’s success, including the fact that it continually invests in its factories with upgrades to equipment and by making other capital expenditures.
“We’ve made a conscious decision on the path for our company, and part of that is to make sure our plants are capable of doing what we need them to do,” he said.
Stickley, known for its collector’s furniture—most notably its Mission and Arts & Crafts lines—boasts more than 90 percent domestic production.
Last year, the company caused a few ripples in the industry with its opening of a 187,000-square-foot plant in Vietnam.
The company currently produces its Antiquities by Stickley in the factory, and the balance of the company’s line remains at the Stickley facility in Manlius, N.Y.
In addition to maintaining its Mission and Arts & Crafts collections domestically, the company’s licensed reproduction Colonial Williamsburg is manufactured in New York.
Stanley’s current business model has it producing 70 percent of its product in four plants in Stanleytown, Va., Martinsville, Va., Robbinsville, N.C., and Lexington, N.C., and the balance being sourced from about a dozen factories in China, Eastern Europe and the Philippines.
“We try to make what makes sense here,” said Phil Haney, executive vice president. “The larger pieces that would cost too much to ship over are perfect in our factories.”
The company, which stuck its toe into the importing arena in 2002, started slow with accent pieces and a variety of occasional tables.
So far, the strategy is working.
The company has continued to post increases in its business. Haney said by blending the imported goods with its domestic product Stanley can maintain more control over the look, feel and design integrity of a collection.
So how and why do the few domestic producers still exist?
Vaughan-Bassett’s Bassett said two key components keep his business humming—product that retailers can have delivered in 10 days and the gross margin return on investment that the product nets.
“Our customers don’t have to warehouse the product because they can get it so fast,” he said. “Our dealers tell us our GMROI is the highest on their floors.”
Moving forward, the company plans to stick with its domestic strategy. It is, afterall, what’s kept the company in business for this long.
“We’re entrenched,” Bassett said. “When we go through product, we stay focused on what we’re doing, and that we’ve decided, is to distinguish ourselves as the best manufacturer in our category. There are hundreds and hundreds of importers our there, but very few domestic manufacturers in our price range.” HFB
Companies Mentioned:
 |
|
|
