Jerry Epperson
\nIn case you\u00e2\u20ac\u2122re feeling alone in wondering what happened to consumer spending, look at the auto sector.
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\nGM is offering zero percent financing for up to 60 months and up to $5,000 cash on some models.<\/p>\n
Ford has big rebates on 2013 models and Chrysler, in addition to all this, is giving purchasers a prepaid credit card with $1,000 for gasoline. The word is that \u00e2\u20ac\u0153employee pricing,\u00e2\u20ac\u009d whatever that really is, will be back soon.<\/p>\n
Somehow, knowing auto dealers are suffering along with many of us does not make us more comfortable. But suffering with us this time are many of the offshore factories.<\/p>\n
This extended weakness at retail has created inventory gluts on every level, and because of the four- to five-month lead time to source containers, some retailers and importers are running out of space to put the furniture as it arrives. In addition, this has to be sold before we can buy more.<\/p>\n
By the time the autumn selling season arrives \u00e2\u20ac\u201d and it can\u00e2\u20ac\u2122t get here soon enough \u00e2\u20ac\u201d we expect to see some interesting deals. Quick delivery? Is yesterday too soon? Extended terms? Discounts?<\/p>\n
Between today\u00e2\u20ac\u2122s weak business and some currency changes, the import scene is almost violent.<\/p>\n
In the March quarter of this year, wood residential furniture imports grew 6.9%, well below trend. The strong continued to grow at double-digit rates, including China, 17.5%; Malaysia, 12.7%; Vietnam, 24.5%; and the rebounding Philippines, 12.8%.<\/p>\n
But take a look at those losing share in wood, like Brazil, down 30.9%; Taiwan, off 25.4%; and Hong Kong, which sunk 41.6%. Currency issues and pricing are all but eliminating Europe from competing in the U.S. wood arena, as seen in the negative numbers for Italy, 24.9%; Poland, 14.8%; France, 23.6%; Germany, 10.0%; and Slovenia, 15.9%.<\/p>\n
There are parallels in upholstery imports. Italy shipped more upholstery to the United States than anyone else in 2003, but in the first quarter of 2013, China imported five times more than Italy. Total upholstery imports grew 6.6% in the March quarter.<\/p>\n
In that quarter, upholstery imports from China, Malaysia and Vietnam grew 38.8%, 31.7% and 19.3%, respectively. Elsewhere, many experienced a severe decline, as seen by Italy, down 40.3%; Canada, off 21.5%; and Thailand, down 16.0%. Upholstery declines for Germany, France and Denmark were all greater than 20%.<\/p>\n
For those of you who love trivia, the 25th largest importer of upholstery, the Dominican Republic, was off 64%. They apparently shipped only one sofa this year.<\/p>\n
And for those of you holding a grudge because of the World Cup, Ghana didn\u00e2\u20ac\u2122t even make the list.<\/p>\n","protected":false},"excerpt":{"rendered":"
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