Archive for May, 2006
New Delhi: Fancy having furniture made of sea grass and mats using tree roots? ‘Rama and Shinta(Sita)’ doors from Bali, ‘Loro Blonyo’ artifacts of Ganesha, Arjuna and even Ravana capture the rich tradition of craftsmanship and diverse natural resources of the world’s biggest archipelago. Made in Indonesia, the furniture is set to woo the Indian buyers.
“What is unique about the country’s workforce is craftmanship and the raw material used to manufacture them.
Most of the products are hand-made and take anywhere between one to three months for making the finished product,” says Rizali W Indrakesuma, Minister Counsellor, Embassy of the Republic of Indonesia.
Rizali points out that carpentary, craftworks and designing are traditional occupations of the country. The governmental efforts are to help this lot by extending financial assistance through co-operatives, he says.
The raw-materials used in furniture make it distinct than the Indian products, Rizali says.
“Rattan - the raw material used is flexible in nature besides longlasting. It allows the ‘tukang kayu’(carpenter) to craft new designs and shapes to the product. Though rattan is found in tropical countries, it’s scarce in South East Asian regions” he adds.
© Copyright 2006 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
May 31st, 2006
A breakthrough, patented technology recently introduced to market has been shown to provide textiles, including those for home furnishings, with a long-lasting, non-leaching shield against microbial contamination.
This unique antimicrobial can be applied to any textile or existing furniture and it will dramatically reduce the presence of bacteria and fungi, such as mold and
mildew, and those organisms which cause odor and staining, according to NBS Technology, LLC, of Locust Valley, New York, which owns an exclusive long-term global license for the technology.
The technology, which NBS is marketing under the trade name Goldshield™, is the world’s first water-stabilized antimicrobial formulation providing a long-term residual disinfecting action. Goldshield™ is the first commercial application of technology developed at Emory University which received three U.S. and several International patents.
While NBS will be seeking to introduce its products to a wide array of industries, the company is placing special emphasis on the textile and home furnishing market, according to President/CEO Tom Higgins. “There is significant opportunity for textile and furniture manufacturers to create products with enhanced value using this antimicrobial technology,” he said. “For example, carpets, drapes, furniture fabrics, linens, beddings and towels could be developed with built-in, long-term protection against bacteria which causes odor and staining. Furthermore, it will mitigate the mold and mildew associated with textiles. From a commercial perspective, it will also be helpful in preventing cross contamination of these microbes and some viruses.”
Goldshield™ formulas are easy to apply to textiles, either by padding or exhausting on to the material during the finishing stage of production. In addition, the formula can be sold as a spray to be applied to textile products as an after-market application. Once it dries, it becomes permanently affixed and begins its protective activities. There is no visible change in the fabric appearance or hand-feel. It is also not limited to interior design as it can be applied to out-door furniture, and umbrellas to prevent the growth of mold and algae fungi.
Based on a variety of testing, Goldshield™ technology has been demonstrated to be a broad-spectrum algaecide, bactericide and fungicide; specifically, it has shown to be effective against Staphylococcus aureus, MRSA, Salmonella, E.coli and other hardy bacteria such as those which cause odor and staining of textiles. In the case of textiles, Goldshield™ formulas have demonstrated continued effectiveness after 50 washings.
Goldshield™ bonds covalently with virtually any organic and inorganic surfaces. Once bonded, it will not leach off or migrate, rendering the surfaces inhospitable to microbes for a long period of time. In addition, because it is aqueous-based - unlike other antimicrobial agents that modify surfaces – it is non-toxic, non-flammable and otherwise environmentally benign.
Another significant advantage of Goldshield™ over conventional disinfectants and antimicrobials is that there is no known or anticipated risk for pathogens to genetically adapt.
“This technology represents a significant step forward,” Mr. Higgins said. “It can revolutionize the approach to disinfection and the prevention of cross-contamination in numerous industrial sectors.”
NBS is seeking to develop relationships with users and distributors of its products worldwide. For more information, contact: NBS Technology email: enbst@optonline.net.
May 31st, 2006
— Casual Living,
Launches furniture liquidation sale
After filing for Chapter 11 bankruptcy reorganization in early May, Connecticut Porch & Patio launched a furniture liquidation sale at one of its remaining two stores in Orange and Wethersfield, Conn.
Founded in 1951, Porch & Patio had closed locations over the past year but hoped to reopen one or both of its remaining stores as part of the reorganization, a company spokesman said.
The decision to file for Chapter 11 came after the company recently discovered “substantial cash flow and management breakdown problems,” according to a company news release. Ben Fronsaglia, president, Porch & Patio, did not comment on company plans.
Among its 20 largest unsecured creditors were outdoor furniture manufacturers Winston Furniture, nearly $107,000; Tropitone, about $95,500; Outdoor Lifestyle, nearly $52,000; Woodard, more than $46,500; Brown Jordan Companies, nearly $45,000; Cebu Imports, nearly $41,000; Panacea Products, nearly $33,000; Whitecraft, nearly $25,000, and umbrella maker Treasure Garden, nearly $57,000. Vendors of fireplaces, gas logs and hearth accessories also were among the largest creditors.
May 31st, 2006
The new AsiaWorld-Expo near the Hong Kong International Airport is the perfect venue for the debut of Hong Kong International Furniture Fair, which is scheduled to run from October 27 – 30, 2006.
Co-organised by the Hong Kong Trade Development Council and Kenfair International Limited, and supported by Hong Kong Furniture & Decorative Trade
Association Ltd and International Furniture & Decoration (Hong Kong) Association, the Hong Kong International Furniture Fair is the first-ever trade fair in Hong Kong that features the widest selection of high-end furniture.
The furniture and furnishing industry is a manufacturing sector with a long history in Hong Kong, and local companies are known for their strong design capability. This new furniture exposition will help to promote Hong Kong furniture companies to worldwide markets, enabling international furniture dealers and suppliers to get to know Hong Kong’s strengths in this arena.
Commenting on the launch of this new fair, Mr Benjamin Chau, Assistant Executive Director of the Hong Kong Trade Development Council (HKTDC), said, “Due to limited space available in the Hong Kong Convention and Exhibition Centre, we are happy to be able to take advantage of the facilities made available by AsiaWorld-Expo where we can develop shows with new concepts. The Hong Kong International Furniture Fair is just one of six new shows that HKTDC plans to launch in 2006.”
The Hong Kong International Furniture Fair is also one of the new shows of Kenfair International. Mr Herbert Ip, Chairman of Kenfair International, said, “We are pleased to co-operate with HKTDC in launching the Hong Kong International Furniture Fair. With HKTDC’s and Kenfair International’s profound experience in organising world-class trade exhibitions in Hong Kong and overseas, I am highly confident that the fair will be a great success and will quickly become one of the most important trading platforms for the furniture industry.”
The Hong Kong International Furniture Fair is introduced with the vision to become one of Asia’s premier furniture trade events. Innovative ideas as well as elegant furniture designs will be presented to meet the high level of quality demanded by today’s discerning and affluent consumers. The complete spectrum of high-end furniture – branded, decorative, intelligent, classic, ethnic and occasional – will be shown to an international audience. It will also serve as a melting pot for the latest ideas from across the globe.
Blessed with a strategic location between East and West, no import taxes, free currency control and easy access, Hong Kong is an ideal place for exhibitions — no wonder it has become the trade fair capital of Asia. With regard to this particular fair, demand for furniture in the region is higher than ever before, sparked off by of a large number of real-estate projects in the Chinese mainland and Macau, to mention just two areas. This is coupled with the general growth of tourism, including the rise of boutique hotels, in the region. Given strong economic indicators, the potential for future growth seems assured.
Backed by these favourable factors, the Hong Kong International Furniture Fair has all the potential to stand out as a prominent sourcing event for the industry. It is anticipated that the fair will bring in around 250 exhibitors from Hong Kong, the Chinese mainland, Australia, Indonesia, Italy, Malaysia, Philippines, Taiwan and more, filling up Halls 7 & 9 of AsiaWorld-Expo. The fair will amass a comprehensive array of furniture for buyers’ sourcing, including indoor, outdoor, office, parts and accessories, contract business, smart-home/smart-office solutions, style design, ethnic, antique and publications.
Enquiry Hotline: (852) 1830668
Email: exhibitions@tdc.org.hk
Website: http://hkfurniturefair.com
May 31st, 2006
Carole Sloan —
Will focus on relaunch of May stores
CINCINNATI — While furniture is “a big and important business,” Federated Department Stores doesn’t plan more freestanding home stores anytime soon.
“We have other priorities now,” said Terry Lundgren, chairman, president and CEO of the biggest U.S. department store company.
The top priority is the massive relaunch of the recently acquired May Department Stores units, integrating them into the Federated merchandise, presentation and systems mix under the Macy’s banner, beginning with a national kickoff in September.
At a press conference after Federated’s shareholders meeting here, Lundgren admitted that Macy’s Home Store, the merchandising and buying operation for furniture and all other home goods, has been struggling.
“But we now have two of the best leaders in Tim (Adams, chairman) and Mike (Osborn, president). We have been cross-populating the Home Store with non-home furnishings people, and we’re now filling the business with the best people,” he said.
That includes Jeff Kantor, who most recently was president and CEO of May’s Hecht’s/Strawbridge division and is president, furniture for Macy’s Home Store.
“I feel great about where home is headed,” Lundgren said. He pointed to the scheduled fall 2007 launch of the Martha Stewart Home Collection across home, which is projected to do “several hundred million in the first year.”
May 31st, 2006
World Market Center has developed a new online exhibitor education series called “Plan Your Way to a Successful Market” designed to help returning and first-time exhibitors plan ahead for July’s Las Vegas Market taking place July 24-28 at World Market Center and the Pavilions, and starting July 25 at Las Vegas Convention Center.
The series will feature four informational topics presented in two web-based education sessions.
The purpose of the series is to educate temporary exhibitors who will be showing at Las Vegas Convention Center and Pavilions with all necessary show information, and provide additional tools to ensure an efficient and well-planned Market experience. The sessions are free and open to all exhibiting companies.
“With so many new companies joining Las Vegas Market each show, we wanted to create a conduit for exhibitors well in advance so they can manage their market-planning efficiently and effectively. We believe that the content of these programs will help enhance the information contained in the Exhibitor Service Manuals and highlight the key question areas for many exhibitors. There are many factors involved in exhibiting and our focus is to save them time and money,” said Briana Mackey, Show Director for Las Vegas Market.
The first session will take place Wed. June 7, 2006 at 10:00 a.m. (Pacific) and will cover registration, badges, housing information, shipping, drayage, material handling and target move-in. The second session will take place Wed. June 14, 2006 at 10:00 a.m. (Pacific) and will cover electrical, electrical labor, booth display labor and related contractor issues. For more information, exhibitors can contact Pedro Garcia, Show Operations Assistant Manager, at pgarcia@lasvegasmarket.com.
The programs will be facilitated by World Market Center’s operations team and presented by voice over the web. Questions will be submitted and also answered through the web. This is the first-time Las Vegas Market has utilized this highly unique and interactive meeting format and plans to further the use of such technologies for other large format educational programs in the future.
Market registration and hotel bookings for all attendees are encouraged early and should be done on-line at: www.LasVegasMarket.com or by calling 888-WMC-SHOW (962-7469).
Las Vegas Market takes place July 24-28 at World Market Center and Pavilions; the Temporaries will be held at the Las Vegas Convention Center and open on July 25. In all the July 2006 Market will be the largest Las Vegas Market yet with more than 2.6 million square feet of permanent showrooms and temporary exhibits.
May 31st, 2006
Furniture Today,
COLUMBIA, Miss. — Promotional bedroom and curio maker Orleans Furniture has hired Tom Stumpf as national accounts manager.
Stumpf will report to Ed Marshall, president and CEO of Orleans. For the past two years, Stumpf has been serving as a sales representative for Lea Inds. He also has served as a sales representative with Bassett and American Drew.
At Orleans, Stumpf will be responsible for working with national accounts. He also will be involved in the launch of Orleans’ new youth line at the Las Vegas furniture market in July.
He replaces Dan Ide, who left Orleans earlier this year to join Progressive Furniture as vice president of sales for the eastern region.
May 31st, 2006
As the only official Survivor 14 TV Casting Call in Minnesota, individuals interested in applying will have the opportunity to come to Becker Furniture World on Friday, June 9th, 2006 between Noon and 3 p.m. and submit their completed SURVIVOR application and let WCCO-TV videotape their SURVIVOR audition.
With one chance and no second takes, individuals auditioning will need to be prepared to be in front of a camera for up to two minutes, convincing the producers of Survivor why they should be chosen to be on Survivor.
Katie Knutson, WCCO spokesperson for the casting, says people should bring their supporting documents with them. For those individuals that already have a produced audition tape and application materials, WCCO will mail those in if dropped off with a completed application at this casting call, as well.
Those applying must have a completed application form and a copy of a valid U.S. passport (or proof of having applied for issuance or renewal of such) along with a passport-sized photo. For more details and rules visit www.beckerfurnitureworld.com.
Knutson adds, “People tend to think they’ll be meeting with a producer at this event. There are no Survivor reps at the event. That occurs in later rounds of auditions. However this is the first step in the process for those with a strong desire to get on the show, a chance to make it happen.“
“At our last Survivor Casting Call in January, everything ran smoothly, we had 304 people videotaped and 34 guests dropping off their own tapes”, says Doug Huseby, owner and founder of Becker Furniture World. Huseby adds, “It’s nice to know that with a showroom over a quarter million square-feet in size, we can offer this exciting event while not disrupting our normal shopping environment.”
About Becker Furniture World: Founded in 1978 with a mere 500 square-feet of retail space, Becker Furniture World, Inc. has grown into one of the largest, most innovative, privately owned companies in the furniture industry. Becker Furniture World currently features the largest showroom in Minnesota with a facility about 300,000 square-feet in size. With the latest expansion in 2003, Becker Furniture World has become a destination location in Becker, Minnesota. The store includes concept galleries, a Thomasville store, a Brunswick Pavilion, a restaurant, a 900 square-foot kid’s play area, an attached 45,000 square-foot outlet store, a 115,000 square-foot off-site distribution center and employs nearly 300 people. To learn more about Becker Furniture World, visit www.beckerfurnitureworld.com.
May 31st, 2006
Clint Engel -
Eyes small, midsized markets in N.C., Va.
MULBERRY, Fla. – W.S. Badcock is seeking existing furniture dealers in North Carolina and Virginia who are interested in converting to Badcock Home Furniture & more stores.
That’s a broadening of the Top 100 company’s strategy as it looks to accelerate expansion and crank up store count to the capacity of its newest distribution center in Mebane, N.C.
The promotional to midpriced chain typically enters new markets with new dealers developing new locations, said Mike Whitten, director of dealer development for the 329-store, Mulberry-based Badcock.
He said the company has never really approached existing retailers.
“We’ve taken a number of Heilig-Meyers people, and even some of their locations,” he said. “But we have not actually gone in and converted an existing independent local furniture store to a Badcock store.”
The new strategy is tailored to small and midsized markets in North Carolina and Virginia, which would be served by the $10 million, 200,000-square-foot Mebane facility, opened early last year.
Today, 40 of Badcock’s stores are supplied through Mebane, which Whitten said could service about 100 stores. Next month, the Southeast chain will open its first store in Virginia, in Danville. It’s looking to add 35 to 40 more in that state and another 20 to 25 stores in North Carolina, where it has about 28 stores.
Markets it’s targeting include Winston-Salem, Durham, Statesville, Taylorsville, greater Raleigh and Fayetteville in North Carolina; and Martinsville, Petersburg, Norfolk, Virginia Beach, Newport News and the Richmond area in Virginia.
Whitten said many independent store owners are facing supply chain issues; higher costs of operation, advertising and merchandising; and increased competition from such big players as Room To Go and Ashley Furniture HomeStores.
Badcock, he said, eases expenses by supplying inventory to dealers on consignment, with some 4,000 SKUs to choose from. It delivers to stores twice a week and shares advertisings costs, Whitten said.
He believes Badcock stacks up well with the competition, and offers dealer strong non-furniture categories such as electronics, appliances and floor coverings.
The new effort, about a month old, includes advertising in local newspapers and business journals, and sending out recruiting teams. Whitten said dealer response is encouraging, but he wouldn’t identify prospective dealers yet.
The investment needed to open a Badcock store varies widely by market and other circumstances. Badcock generally looks for people with $150,000 to $250,000 in net worth and about $100,000 to $150,000 in liquidity. With existing dealers, the company believes the investment would be at the low end of that general range.
“We’re willing to help candidates with conversion materials and help with some of the conversion costs,” Whitten said. “We’re going to make it pretty easy for them.”
He said Badcock is “looking for well-run, financially secure businesses that see an opportunity to increase business substantially by converting to a regional brand.”
Badcock’s goal with the new strategy is 12 to 15 stores or so over the next two to three years, supplementing its normal expansion.
As the company rolled out the Badcock Home Furniture & more format in recent years, its store count decreased slightly as it also closed unprofitable units, Whitten said. Today, 210 of the stores have the new format, and the rest will be converted over the next three or four years. Most poorer-performing stores already have been closed, he said.
Badcock had estimated 2005 furniture, bedding and accessory sales of $492.7 million.
May 31st, 2006
By: Furniture World Magazine
New orders in March 2006 rose 3 percent over March 2005 levels according to our most recent survey of residential furniture manufacturers and distributors. New orders were 8 percent higher than February levels. March order rates historically are higher than February.
Just less than one-half (48 percent) of the participants reported increased order rates in March compared to 53 percent in February and 58 percent in January.
There were several though that reported a very small decline in March.
Year-to-date, new orders were 5 percent higher than the first quarter of last year; down slightly from the 6 percent increase after February’s report. Some 51 percent of the participants reported increases in new orders for the first quarter, down slightly from 57 percent in February.
Shipments and Backlogs
Shipments in March increased 3 percent over March 2005 and were up 17 percent over February. As with orders, March shipments are usually substantially higher than February, with more shipping days, as well as the seasonal effect. As with new orders, approximately 48 percent of the participants reported increased shipments in March, compared to 50 percent for February.
Year-to-date, shipments are up just slightly less than 2 percent. Only 42 percent of the participants reported increases for the full quarter. In looking at the percentages, it appears that shipments are lagging behind orders, but that is somewhat misleading as year-to-date in dollars, shipments are at 99 percent of the new orders.
Backlogs increased 2 percent over last year after a 6 percent increase in February, but fell 2 percent from February 2006 levels. Last month, backlogs rose 2 percent in February over January 2006 levels.
Receivables and Inventories
Receivables levels increased 4 percent in March over March 2005, tracking somewhat the 3 percent increase in shipments. Receivables were 5 percent higher than February, again reflecting the increased shipments in March over February.
Inventories were flat compared to March 2005 after falling 2 percent in February compared to February 2005. Inventory levels rose 1 percent over February 2006 levels. Overall, inventory and receivables levels remain in decent shape compared to orders and shipments.
Factory Payrolls and Employment
Factory payrolls fell 2 percent in March 2006 versus March 2005—consistent with the 2 percent decline in February over February comparisons. Factory payrolls in March were 13 percent higher than February—consistent with the increase in shipments and more working days. Year-to-date, factory payrolls declined 5 percent for the quarter compared to the first quarter of last year.
The number of factory employees was about equal to the numbers in February. Compared to March 2005, the number of employees fell 4 percent, slightly less than the 5 percent reported in February comparing to February 2005.
National
The preliminary report from the Bureau of Economic Analysis indicated that the real gross domestic product (GDP)—the output of goods and services produced by labor and property located in the United States—increased at an annual rate of 5.3 percent in the first quarter of 2006. This compares to a 1.7 percent increase in the fourth quarter of 2005.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures, exports, equipment and software, and federal government spending. Imports, which subtract from GDP, increased as well.
Leading Economic Indicators
The conference Board reported that the U.S. leading index decreased 0.1 percent, the coincident index increased 0.2 percent and the lagging index increased 0.3 percent in April.
Three of the ten indicators, making up the leading index, increased in April. The positive contributors—beginning with the largest—were vendor performance, stock prices and interest rate spread. The six other indicators declined with only average weekly manufacturing hours holding steady. During the six-month span ending in April, the leading index increased 1.5 percent with eight out of ten indicators advancing.
All four indicators in the coincident index increased in April led by industrial production and employees on nonagricultural payrolls. Five of the seven indicators in the lagging index rose—led by commercial and industrial loans and average prime rate charged by banks.
Consumer Confidence
The Conference Board Consumer Confidence Index, which increased in April, declined somewhat in May. The index fell to 103.2, down from 109.8 in April. The Present Situation Index decreased to 132.5 from 136.2 while the Expectations Index fell to 83.7 from 92.3.
“Consumer Confidence, which reached a four-year high in April, lost ground in May,” says Lynn Franco, Director of the Conference Board Consumer Research Center. “Apprehension about the short-term outlook for the economy, the labor market and consumers’ earning potential has driven the Expectations Index down to levels not seen since the aftermath of the hurricanes last summer. In sharp contrast, consumers continue to rate current conditions favorably, although the Present Situation Index also lost ground this month. Looking ahead, the Expectations Index bears close watching, as it is often a harbinger of times to come.”
Housing
According to the National Association of Realtors (NAR), total existing home sales fell 2 percent in April from March, and were 5.7 percent below April 2005’s seasonally adjusted annual rate. The seasonally adjusted annual rate in April was reported to be 6.76 million units.
David Lereah, NAR’s chief economist, said the decline was expected. “Our leading indicator for pending home sales was trending lower, and our forecast model is showing a modest decline for the second quarter with sales leveling out before rising in the fourth quarter,” he said. “Higher interest rates are slowing home sales, but we see this as another sign of a soft landing for the housing sector which remains at historically high levels.”
The decline in existing home sales was evident in all regions of the country, with the West having the largest decline compared to last year—a 13 percent decline.
The national median existing home price for all housing types was $223,000 in April, up 4.2 percent from April 2005.
Sales of new one-family homes in April 2006 rose 4.9 percent over March levels to a seasonally adjusted rate of 1,198,000, according to the U.S. Census Bureau. This rate was 5.7 percent below the revised April 2005 rate. The median price for new houses sold in April 2006 was $238,500.
Privately owned housing starts were at a seasonally adjusted rate of 1,849,000 with single-family housing starts at a rate of 1,535,000. The single-family starts were 5.6 percent below March 2006.
Employment
Non-farm employment increased by 138,000 in April 2006 according to the Bureau of Labor Statistics. The unemployment rate was unchanged at 4.7 percent. Industries with notable job gains over the month included financial activities, health care and manufacturing. The Bureau reported that average hourly earnings rose by 9 cents in April. The number of unemployed persons (7.1 million) was essentially unchanged in April.
Retail Sales and Consumer Prices
The U.S. Census Bureau reported that advance estimates for U.S. retail and food services sales, adjusted for seasonal variation and holiday and trading day differences, indicated an increase of 0.5 percent from March and were up 6.6 percent over April 2005. Total sales for the three-month period ending in April were up 7.3 percent from the same period a year ago.
Retail trade sales were up 0.5 percent from March and were up 6.6 percent over April 2005. Gasoline station sales were up 17.4 percent from a year ago due to higher fuel prices and sale of non-store retailers were up 13.3 percent from last year.
Sales at auto and other vehicle dealers were off 0.4 percent from March and 0.6 percent from April 2005 after a 1.1 percent increase in March compared to February and 2 percent compared to March 2005.
Sales at furniture and home furnishings stores fell 0.1 percent in April compared to March, but was 8.1 percent ahead of April 2005. In March, sales at these stores were reportedly up 9.6 percent over March 2005. For the three months ended April 2006, sales at these stores were 8.9 percent higher than the same period a year ago. Year-to-date, sales at these stores were up 9 percent over the first four months of last year.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in April before seasonal adjustment and increased 0.6 percent on a seasonally adjusted basis. The April level was 3.5 percent higher than the level in April 2005, according to the Bureau of Labor Statistics.
Energy costs, up 1.3 percent in March, increased 3.9 percent in April. Within energy, the index for petroleum-based energy increased 8.5 percent. Food prices remained stable. The index for all items, less food and energy, rose 0.3 percent in April, the same as March.
Durable Goods Orders and Factory Shipments
According to advance reports from the U.S. Census Bureau, new orders for manufactured durable goods in April decreased 4.8 percent after two consecutive monthly increases including a 6.6 percent increase in March. Excluding transportation, new orders decreased 1.1 percent. Excluding defense, new orders decreased 3.8 percent.
Shipments of manufactured durable goods decreased 0.9 percent in April following a 0.3 percent increase in March. Year-to-date, shipments of durable goods were estimated to be 6.9 percent ahead of last year with new orders up 11 percent.
The final March report indicated that shipments in the furniture and related products category increased 9.3 percent for the quarter while March shipments were 9 percent higher than March 2005.
Summary
In our recent conversations with industry people, the best description of business both at retail and with suppliers is that business is “spotty.” While business is being done and the mood at Market seemed better than expected, there is just no real consistency to current business conditions.
One interesting report out from the Federal Reserve reported that consumer credit outstanding at the end of March 2006 was $2,161.4 billion. This compares to $1,842.3 billion at the end of 2001, or a 17.3 percent increase over 2001 levels. That to us is a lot of debt. Of this debt, most of the increase has been in non-revolving loans, which indicates that monthly payments must be substantially higher than they were in 2001.
Couple that with the things we have talked about before—that being monthly payments for cable, Internet, cell phones, satellite radio, etc…and most consumers, while making more, are committed to higher monthly payments than ever before. That only leaves us so much for discretionary spending, especially for items such as furniture, which is considered a deferrable purchase.
The good news is, that even with these negatives, there is still a lot of furniture being sold. We heard some good reports from Market and hope that business continues to come your way. The key, as we have said over and over, is to make sure you are getting your share. That will only come through innovation, quality and great performances by your people.
BDO Seidman serves clients through more than 35 offices and 250 independent alliance firm locations nationwide. Their Furniture Industry Services practice publishes Furniture Insights®. For more information go to http://www.bdo.com.
May 31st, 2006
Previous Posts