As the world’s biggest furniture market starts this weekend, it will be all about the haves and have-nots.
When the furniture industry gathers in High Point, NC, over the next ten days for its spring market, it will be with the dark cloud of tariffs hanging over it, creating possible opportunities for vendors who either manufacture domestically or have stockpiled inventory at pre-tariff prices.
With the vast majority of furniture sold in the U.S. manufactured in Asia – Vietnam is now the largest source but China remains key for many categories – whatever finally happens with trade duties, the industry is front and center on the issue.
Domestic companies produce about ten percent of all wooden furniture, primarily on the higher end, though some moderate-priced resources continue to manufacture here. For upholstered products, a higher percentage – as much as a third – of the sofas and chairs bought by Americans are made here, though often with fabrics and other components supplied by overseas vendors.
Industry observers are expecting domestic furniture brands to gain market share in the short term, good news for the companies that supply them with wood and other materials. Indeed, one manufacturer, Vaughan Bassett, with factories in Virginia, promoted itself to its customers as an alternative to imports: “We’re risk-free. We’re tariff-free. We have $25 million in finished goods inventory available to ship today. And we ship most orders within three days.”
For furniture producers that depend on imports, their best hope if these tariffs stick is their existing inventory. Gary Friedman, president of RH (once known as Restoration Hardware and now a retailer of luxury furnishings) recently said on an analyst’s call, “Inventory is your friend,” indicating that vendors and retailers with pre-tariff goods would be competitive right now. Whatever happens with tariffs, the subject will no doubt be the center of attention this month in High Point – and for wood producers who supply the industry.
Image: High Point Market
