Fabric converters face a different set of challenges
By Furniture Today Staff -- Furniture Today, June 2, 2003
High Point — In addition to buying from fabric mills, furniture manufacturers also source upholstery cover fabrics from converters, who typically buy greige goods, then print, dye or otherwise finish them for sale to home furnishings manufacturers, home textiles manufacturers, designers and retail stores.
Converters have their own set of challenges, including increasing freight rates and higher prices for the goods they buy, but under current economic conditions, a ten-cent per yard price increase or $1,000-per-container freight increase cannot be passed along to their customers.
The best known of the converters that supply furniture manufacturers are four New York-based companies — Richloom, P/Kaufmann, Swavelle/Mill Creek and Covington Inds.
Richloom is at the top of this list, with about $200 million in interior fabric shipments in 2002, according to Furniture/Today estimates. The company sells more to furniture manufacturers than is typical for a converter. Furniture/Today estimates the company's sales of its Richloom Fabrics, John Wolf Fabrics and Berkshire Weaving lines to furniture manufacturers in 2002 at about $70 million.
P/Kaufmann, which includes the P. Kaufmann, Bloomcraft, Braemore and Western divisions, among others, also is estimated at about $200 million in interior fabric shipments for 2002, which represents a 14% increase over the $175 million it reported in 2001.
Swavelle/Mill Creek, selling Swavelle/Mill Creek Fabrics, Piermont Fabrics and Lodovici USA, had 2002 interior fabric shipments of about $85 million, up 6% from its 2001 figure of $80 million.
Covington Inds., which includes Covington Fabrics, Fifth Avenue Designs, Covington Inds. Contract, Covington Upholstery Fabrics and Spectrum Designer Gallery, is estimated to have had 2002 interior fabric shipments of $60 million, down about 14% from its estimated $70 million in 2001.
Another important source is Merrimac Textile, a division of Barrow Inds. based in Norwood, Mass., that had estimated 2002 interior fabric shipments of about $78 million. The bulk of Merrimac's product line comes from China, along with high-end product from Italy.
Z-Tex, a Chicago company that specializes in cotton fabrics and does about 70% of its business in residential upholstery fabrics, had estimated interior fabric shipments in 2002 of $65 million, up 225% from its 2001 estimated shipments of $20 million. The dramatic increase came largely from the company's acquisition last year of King America Finishing. Other divisions include R-Five, Westex and Western Piece Dyers.
The Robert Allen Group, although doing more business as a jobber than as a converter, is nevertheless a significant supplier to the furniture industry. Furniture/Today estimates the company's 2002 interior fabric revenues at about $50 million.
The company converts prints and wovens under several banners. Ametex, the name traditionally most familiar to the furniture industry, is the starting price point, from about $3 to $7. Robert Allen @ Home is the stepup line, and most resembles the other converter lines such as Richloom and P/Kaufmann. That line ranges from about $8 to about $10. After that come Robert Allen and Beacon Hill, high-end goods that range from $10 to $100 per yard.
Peachtree Fabrics is an example of a new type of hybrid fabric source that is emerging.
"I believe the terms importer, converter and distributor are taking on new meanings," said Steve Dutson, chief executive officer. "We perform all of those functions, but I think there probably is a simple, one-word answer that is better. At Peachtree, we refer to our effort as 'producer.' All aspects of the finished upholstery line are within the scope of our responsibility."
Peachtree uses the "ability of strong, qualified, exclusive Chinese partners to weave our product to our specifications, Dutson added. "Further, we have our own design and manufacturing team in China to assist our merchandising and manufacturing groups here in the United States. Everything, from design creativity to finished product and distribution, remains in our control throughout."
