U.S. exports jump 14%
By Brian Carroll -- Furniture Today, December 31, 2005
HIGH POINT — HIGH POINT— U.S. furniture exports showed surprising resilience in 2003, jumping 14% to $1.7 billion. The healthy gain followed a 10% decline in 2002.
The increase does little to offset the still-yawning trade deficit in furniture, however, with the U.S. export total remaining less than 11% of the dollar value of furniture brought into the country.
Fueling the export growth was No. 2 Mexico, which more than doubled its purchase of U.S.-made furniture, buying 132% more last year than in 2002 for a total of $339 million.
Although it's unclear why, seating parts represent the bulk of Mexico's increased appetite in 2003. The category grew 529% to $223 million last year, accounting for 66% of Mexico's total furniture imports from the United States.
It's likely that many of these parts are used in seating that re-enters the United States as finished goods.
Last year perhaps will be remembered as the year China broke into the top 10 of U.S. export customers. By buying $13.8 million in U.S.-made furniture, a 1% gain, China became the No. 10 destination country.
China is by far the world's biggest untapped market for U.S. furniture. When combined with No. 9 Hong Kong, which bought almost 50% more U.S.-made furniture in 2003 than it did the year before, China would rank No. 6 with about $30 million.
Italy rose from No. 9 in 2002 to No. 7 in 2003 with $17.8 million in U.S. furniture purchased, representing a 41% gain. Italy chalked up a nearly five-fold increase in its purchases of U.S. wood bedroom furniture, and also bought more parts.
Perhaps most important for U.S. furniture exports was the turnaround of Canada, which remained the No. 1 U.S. furniture export market with a 6% increase last year, compensating for an 8% drop in 2002.
In East Asia, Korea's rise offset Japan's continued decline. Japan bought 14% less U.S. furniture last year, following a 16% drop in 2002. Korea, meanwhile, followed up 2002's 111% spike with a 2003 increase of 22% to a total of $29 million, making it the sixth most important export market after Saudi Arabia.
Perhaps because of unrest in the Middle East, Saudi Arabia imported 23% less furniture from the United States last year than in 2002, the second consecutive 20%-plus annual decline.
Coupled with No. 8 Kuwait's 7% drop, the Middle East is a market of diminishing importance to U.S. producers.
The United Kingdom, by contrast, distanced itself further from the rest of the pack with a 15% growth in imported U.S. furniture, good for a $79 million total in 2003.
After Germany's decline in 2002, the United Kingdom is the only European country in the Top 10. Germany bought 9% more U.S.-made furniture in 2003, putting it at No. 12.
| U.S. furniture exports by major destination countries, Jan.-Dec. 2003 | |||
|---|---|---|---|
| in millions of dollars | |||
| 2003 | 2002 revised | % change from 2002 | |
| Canada | $797.6 | $754.0 | 6% |
| Mexico | 339.3 | 146.4 | 132 |
| United Kingdom | 78.8 | 68.7 | 15 |
| Japan | 49.3 | 57.3 | -14 |
| Saudi Arabia | 40.0 | 51.8 | -23 |
| Korea | 29.3 | 24.0 | 22 |
| Italy | 17.8 | 12.7 | 41 |
| Kuwait | 17.4 | 18.7 | -7 |
| Hong Kong | 16.6 | 11.1 | 49 |
| China | 13.8 | 13.6 | 1 |
| WORLD | $1,724.2 | $1,513.4 | 14% |
| Source: U.S. Customs Service, U.S. Census Bureau, U.S. International Trade Commission. | |||
