La-Z-Boy wood companies support antidumping effort
Powell Slaughter -- Furniture Today, August 18, 2003
Monroe, Mich. — Add several of La-Z-Boy's case goods divisions to the companies supporting the antidumping petition targeting wood bedroom furniture from China.
Jerry Kiser, president and chief executive officer, said several La-Z-Boy wood divisions will join the American Furniture Manufacturers Committee for Legal Trade's petition effort. La-Z-Boy's Case Goods Group includes American Drew, American of Martinsville, Hammary, Kincaid/Alexvale, Lea Inds. and Pennsylvania House.
American of Martinsville, a contract division, and Hammary, primarily imported occasional and accents, won't sign the petition, nor will parent company La-Z-Boy Inc.
"We believe in, and support, free and fair trade," Kiser said. "We feel it should be both fair and legal."
He said La-Z-Boy examined information from the Committee for Legal Trade and did research on its own.
"After careful consideration ... we got the indication that, at least in some instances, fair and legal may not be the case," Kiser said.
In fiscal 2003, which ended April 30, La-Z-Boy companies imported about $160 million worth of case goods, about 40% of La-Z-Boy's total case goods sales. That's up from $120 million in the previous fiscal year. Kiser believes the number could reach $200 million to $210 million in fiscal 2004.
The company imports about 5,500 containers annually from 13 countries, with the most significant volume from China. La-Z-Boy has nine domestic case goods plants.
The case goods divisions weighed the possibility of their support for the petition causing problems with source plants, and Kiser said such a far-reaching decision always involves risk.
The good news for the petitioners is that the inclusion of American Drew, Lea, Kincaid and Pennsylvania House likely allows the Committee for Legal Trade to reach its goal of having the participation of producers accounting for at least 50% of domestic wood bedroom capacity.
"I don't think there's any question they've reached over 50% of domestic capacity," said industry analyst Jerry Epperson of Mann, Armistead & Epperson. Reaching the mark would speed up the petition process by reducing the time the government would require to conduct a survey to determine whether there was at least 50% support.
