Import growth slows to 2% in '07
By Thomas Russell -- Furniture Today, May 5, 2008
High Point — The weak dollar and slow U.S. economy appeared to have dampened the rise in furniture imports last year, according to U.S. government figures compiled by Furniture/Today.
Imports rose just 2% in 2007 to $24 billion, a slowdown from gains of 6% in 2006 and 11% in 2005.
China retained its No. 1 spot in furniture shipments to the U.S. in 2007, accounting for 55% of all imports at $13.3 billion. Still, the growth rate slowed amid an environment of rising materials costs and other pricing pressures, with shipments rising just 6% after growth of 15% and 18% the previous two years.
Canada remained a distant second as a source country, although its 2007 shipments were down 7% from the previous year to $2.3 billion. It was the second down year after a 4% decline in 2006, following a 1% increase in 2005.
Vietnam had by far the fastest growth among the top 10 sources, jumping 36% to nearly $1.2 billion. It moved to third place on the list from fifth in 2006, leapfrogging Mexico and Italy.
Shipments from Mexico declined 9% last year to $1.1 billion, while Italy slipped 3% to $962.1 million.
Meanwhile, shipments from Thailand and Brazil each fell 10%, placing them in the 9 and 10 spots, respectively. Thailand's 2007 shipments totaled $329.5 million and Brazil's came to $321 million. The declines largely related to the dollar's weakness against those countries' currencies, which makes their goods more expensive for U.S. buyers. In 2007, the Thai currency gained 16.5% on the dollar and Brazil's rose 16.9%.
Pricing pressures around the world, underscored by the weaker dollar, have made imported goods more expensive in the United States.
China is a case in point. Factories there had absorbed much of the increased expense related to rising raw materials costs and the appreciation of the yuan against the dollar. But in recent months the pressures have mounted as the Chinese government has reduced tax rebates for exporters. In the past, a number of Chinese companies counted on those rebates to earn a profit.
Such issues, as well as a slowdown in the U.S. economy, have caused some Chinese manufacturers to shift their emphasis to Europe, the Middle East and the domestic China market.
Despite its 6% gain in total imports, Chinese shipments to the United States last year declined in certain product categories. Bedroom and wood chairs were down 14% and wood dining tables slipped 5%, while wood-framed upholstery shipments grew 18% and mattress shipments rose 3%.
Vietnam has posted strong gains for the past several years. In 2004, the Asian nation ranked as the 10th largest source country with $364 million in shipments, but by last year the volume had more than tripled. Many importers have shifted sourcing to Vietnam to avoid the antidumping duties on Chinese wood bedroom furniture.
Magnussen Home, Broyhill, Wynwood, Hammary, Klaussner and Ferguson Copeland are among the importers that have either established or increased their sourcing of Vietnamese case goods in recent years. Theodore Alexander and Stickley have their own manufacturing plants there.
In 2007, wood bedroom furniture shipments from Vietnam rose 40% to $418 million. Dining tables and wood chair shipments from Vietnam rose 35% and 25% respectively, while miscellaneous wood furniture, which includes accent and occasional furniture, rose 28%.
Worldwide wood bedroom furniture shipments to the United States fell 7% to $2 billion, while wood-framed upholstered seat shipments rose 6% to $1.67 billion.
Miscellaneous wood furniture imports, including accent and occasional furniture, declined 1% to $4.8 billion and mattress shipments fell 7% to $521.2 million.
| 10 Largest Source Countries of U.S. Furniture Imports, 2007 | |||
|---|---|---|---|
| In Millions of Dollars | |||
| 2007 | 2006 revised | % change from 2006 | |
| Source: U.S. Customs Service, U.S. Census Bureau, U.S. International Trade Commission. | |||
| China | $13,294.5 | $12,592.0 | 6% |
| Canada | 2,263.7 | 2,431.5 | -7 |
| Vietnam | 1,175.7 | 866.1 | 36 |
| Mexico | 1,136.0 | 1,245.6 | -9 |
| Italy | 962.1 | 993.9 | -3 |
| Malaysia | 760.7 | 770.1 | -1 |
| Indonesia | 606.2 | 565.2 | 7 |
| Taiwan | 550.1 | 559.7 | -2 |
| Thailand | 329.5 | 367.5 | -10 |
| Brazil | 321.0 | 357.1 | -10 |
| WORLD TOTAL | $24,037.4 | $23,577.2 | 2% |
| Top 10 furniture products shipped to the United States, 2007 | |||
|---|---|---|---|
| In Millions of Dollars | |||
| 2007 | 2006 revised | % change from 2006 | |
| 1. A "seat" is any product for sitting that is not a "chair." 2. Other seat parts may include some seat parts for autos and medical office furniture. Source: U.S. Customs Service, U.S. Census Bureau, U.S. International Trade Commission. |
|||
| Misc. wood furniture | $4,839.9 | $4,907.8 | -1% |
| Wood bedroom furniture | 1,987.0 | 2,147.4 | -7 |
| Metal furniture & parts | 1,965.4 | 1,781.7 | 10 |
| Upholstered seats, wood frame1 | 1,672.8 | 1,574.2 | 6 |
| Misc. furniture parts | 1,247.6 | 1,247.1 | 0 |
| Upholstered chairs, wood frame | 1,109.1 | 1,103.8 | 0 |
| Wood furniture parts | 1,093.9 | 1,009.4 | 8 |
| Wood beds | 1,076.9 | 1,058.3 | 2 |
| Metal outdoor seats with textile covered cushions1 | 883.8 | 839.3 | 5 |
| Other seat parts1 2 | 803.2 | 744.7 | 8 |
| WORLD TOTAL | $24,037.4 | $23,577.2 | 2% |
