Competitiveness of U.S. wood furniture manufcturers

The furniture industry in the US has been losing market share to imports for the past two decades. The important wood household (non-upholstered) sector is the market segment where most of the loss has occurred. In the upholstered furniture sector, exports are still larger than imports. But the wood...

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Bibliographic Details
Published in:Forest products journal 2001-07, Vol.51 (7/8), p.14
Main Authors: Schuler, Al, Taylor, Russ, Araman, Phil
Format: Article
Language:English
Subjects:
American dollar
Balance of trade
Canadian dollar
Currencies
Economic growth
Environmental policy
Foreign exchange rates
Forest products industry
Furniture industry
GDP
Gross Domestic Product
Households
Housing
Industrywide conditions
International trade
Manufacturers
Market shares
Prices
Statistical data
Upholstery
US exports
US imports
Wood
Wood products
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Summary:The furniture industry in the US has been losing market share to imports for the past two decades. The important wood household (non-upholstered) sector is the market segment where most of the loss has occurred. In the upholstered furniture sector, exports are still larger than imports. But the wood household furniture sector is the largest sector in the furniture industry. Domestic furniture manufacturers are losing market share despite one of the best housing markets in over 20 years. The US trade imbalance for the wood household furniture (non-upholstered) sector increased by nearly 400% during the 1990s, from -$1.9 billion in 1990 to -$7.3 billion in 2000. A natural outcome of this unbalanced growth is a strong currency, which results in cheaper imports and more expensive US exports. This "double whammy" for domestic furniture producers is particularly vexing because one can do little about exchange rates. To capitalize on the projected increase in demand, the domestic wood household furniture industry must look for ways to capture a greater market share.
ISSN:0015-7473
2376-9637