The Globalization of the American Furniture Industry
American furniture manufacturers have struggled with making cost-competitive products over the past decade. Several have closed U.S. facilities and built plants overseas or hired companies to make the goods in foreign countries and ship them here. Many factors have influenced the decision to move production over seas including, labor costs, price of materials, freight costs, time in transit, overall time to make a product and get it to market, and the amount of training needed for employees. “A decade ago, nearly 100 percent of the dinette sets, cabinets, dressers, armoires and other wooden pieces sold in the United States were produced here. Today, 75 percent to 80 percent is made in China, Taiwan, Vietnam and other Asian countries.” (Chavez) In addition to production, many companies are also outsourcing their human resource functions. "Many companies today view human resource outsourcing as one of the most viable options to save money and improve services while also making a strategic contribution to the business." (Clinton)
High Point, North Carolina is often regarded as the furniture capital of the world. Every six months High Point hosts The International Home Furnishing Market, which is the centerpiece to city’s economy. Thousands of sales representatives, buyers, and designers attend the event. The massive trade show is the largest, most well-known, and most important furnishings industry trade show in the world. But, a new study shows that North Carolina has lost nearly 80,000 jobs to China since 2001. (Associated Press) Economist Michael Walden recently said, “There is no question that North Carolina has lost jobs - particularly in textiles and furniture manufacturing - due to international trade agreements signed during the last 15 years. Prior to the World Trade Agreement, North Carolina's textile and apparel jobs were protected from lower cost foreign producers.” (Associated Press)
To compete some companies are looking to sell their
High Point, North Carolina is often regarded as the furniture capital of the world. Every six months High Point hosts The International Home Furnishing Market, which is the centerpiece to city’s economy. Thousands of sales representatives, buyers, and designers attend the event. The massive trade show is the largest, most well-known, and most important furnishings industry trade show in the world. But, a new study shows that North Carolina has lost nearly 80,000 jobs to China since 2001. (Associated Press) Economist Michael Walden recently said, “There is no question that North Carolina has lost jobs - particularly in textiles and furniture manufacturing - due to international trade agreements signed during the last 15 years. Prior to the World Trade Agreement, North Carolina's textile and apparel jobs were protected from lower cost foreign producers.” (Associated Press)
To compete some companies are looking to sell their
Cited: Ayers, Jeff. "Manufacturing Takes Hit." 19 Oct. 2008. Clarion Ledger. 24 Nov. 2008 . Caplan, Jeremy. "Ikea CEO Anders Dahlvig on Surviving a Bad Economy." 18 Nov. 2008. TIME Magazine. 23 Nov. 2008 . Chavez, Jon. "Overseas competition challenges furniture industry." 22 Mar. 2007. Toledo Blade. 17 Oct. 2008 . Clinton, David. "Study: 76% Of Major North American Companies Outsource One Or More HR Functions." 15 Apr. 2006. Rent To Own. 23 Nov. 2008 . Gunin, Joan. "N.C.-based American Furniture Exporters makes progress." 19 Nov. 2008. Furniture Today. 24 Nov. 2008 . Hall, Robert A. "Who sent American jobs overseas?" 11 Nov. 2008. American Chronicle. 24 Nov. 2008 . La-Z-Boy Furniture. "LA-Z-BOY ANNOUNCES MOVES TO STRENGTHEN ITS NORTH AMERICAN OPERATIONS." Press release. 2 Apr. 2008. 24 Nov. 2008 . Maltey, Emily. "Overseas outsourcing heats up again." CNN Money. 11 Nov. 2008. 11 Nov. 2008 . McCormack, Richard. "The Free-Trade Debacle: Domestic Manufacturers Vs. Multinationals." Manufacturing and Technology News 15 (2008).