Weak dollar contributes to 6% rise in U.S. exports
By Thomas Russell -- Furniture Today, May 5, 2008
High Point — A weak dollar may be putting a strain on furniture imports, but it is having the opposite effect on exports.
U.S. furniture shipments to other countries rose 6% in 2007, to $2.37 billion from $2.23 billion in 2006. The growth rate is slower than 2006 and 2005, when exports rose 13% and 11%, respectively.
Still, the 2007 figure shows that U.S. producers continue to see opportunity overseas and are effectively selling their goods to those markets.
Canada remained the largest foreign buyer of U.S. furniture, buying $1.3 billion worth or 9% more than in 2006. Mexico was No. 2, although its purchases fell 9% to $202.9 million.
Sales to the United Kingdom rose 21% to $112.5 million, earning it a No. 3 spot on the list. China, meanwhile, bought 68% more U.S. furniture for a total of $53.3 million and sales to Japan rose 7% to $49.1 million.
Century Furniture is among those benefiting from the export growth, reporting gains in sales abroad, although it did not reveal what percentage of its sales was exported. Ed Tashjian, vice president of marketing, said key markets include China, Russia and the Middle East. The company also sells product to Central and South America.
Tashjian attributed the rise in export activity to favorable currency rates coupled with rising affluence in developing countries such as China, where it is a key supplier to stores being opened by manufacturer Alexandre International.
"People who are buying our product are buying it because they perceive it to be the best," he said.
Wood-frame upholstered seats and wood bedroom furniture were among the most popular items for overseas buyers, with seat exports rising 11% in 2007 to $216.2 million and bedroom shipments climbing 10% to $108.6 million.
| 10 largest buyers of U.S. furniture exports, 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. | |||
| Canada | $1,296.0 | $1,190.1 | 9% |
| Mexico | 202.9 | 222.8 | -9 |
| United Kingdom | 112.5 | 93.1 | 21 |
| China | 53.3 | 31.8 | 68 |
| Japan | 49.1 | 46.1 | 7 |
| Australia | 37.5 | 30.7 | 22 |
| Saudi Arabia | 29.1 | 32.9 | -11 |
| Bahamas | 27.3 | 20.7 | 32 |
| France | 25.7 | 22.4 | 14 |
| United Arab Emirates | 24.0 | 11.0 | 119 |
| WORLD TOTAL | $2,367.8 | $2,233.9 | 6% |
