Here in North Mississippi that is the question everyone appears to be asking. I’m sure these are asking it in the areas such as North carolina as well.

My impression is that people just don’t believe they will.

I witnessed the decline with the U. S. Steel Industry initial hand. I also participated in the rapid market shifts in the computer and high-tech creation industries.

There are many parallels together with the furniture industry and those industries.

So to reply the question, can the Oughout. S. Furniture Industry remain competitive globally?

YES and HARDLY ANY!

If it’s being business as usual the result is no. We simply can not do things the way in which they’ve been done yesteryear fifty years and tackle the low charge imports from regions like China.

Let’s face the item, labor at typically. 69 cents per hour, no environmental and also worker protection requirements, low overhead, add up to an insurmountable list of obstacles to handle head-on and succeed.

I read recently you Furniture Trade Organization plans to petition the us government to put protective tariffs on imports by China. While action like this is actually warranted to defend domestic manufacturers from “dumping”, that is selling their products below cost to achieve market share, it is never a long term solution. The steel marketplace has secured govt protection on various occasions and as an alternative to using the time period and money obtained to revamp their own operations, they did practically nothing different, and we all know the consequence.

So what’s the result?

First it would be to realize that foreign competitors reach your goals in our market since there is enable you to do so inside absence of difference.

They simply copy might know about make, ship it here and sell them cheaper.

We then vie on that low cost point, and rather compared with differentiate, we chase these individuals.

Just look in any furniture marketing, is there anything except for low cost featured?

o Delivery?
o Warranty?
o Customer service?
o Quality?
o Features?

All ignored, just cheap!

I read a page on this very subject a while ago, and the writer quoted the older comic character Pogo, “We have met the enemy and he could be us”.

We need to help level the actively playing field.

Start with understanding cures have that the particular off-shore producers will not?

o Location, geographic proximity
o Design capabilities
o Quality track checklist
o Customer service
o R & Debbie
o Higher productivity each worker
o More and greater automation

The Chinese currently have low production expenditures due solely in order to cheap labor.

Why do we permit them to drive us to compete about the one single advantage they’ve over us?

It’s time significantly a strategic renewal in the U. S. Furniture industry. We need to rethink all the supply chain;

o New business models
o Supply channels
o Manufacturing techniques
o Innovation / information rather than inventory
o Quick ship or build to get
o Innovate or evaporate!

We need to safely move away from commodity products which can be mass produced on lower and lower costs, and develop niche markets that may pay a quality for quick ship, some customization, and quality.

We need in order to develop strategic supplier agreements and a lot more than furniture manufacturing clusters that you can get around the united states.

Simply put came across develop a current market that capitalizes in our strengths in addition to exposes their weak points, not continue to compete head-on versus their one muscle.

The U. S. market for furniture is the largest worldwide and it’s mine. We need in order to innovate and prefer to drive that industry, not follow others.

U. S. manufacturers need to use responsibility for their destiny. We need to define the marketplace, set the standards based upon ours strengths plus make off-shore manufacturers compete on our own terms.

Will it work for your market? Of course possibly not. There will regularly be buyers looking pertaining to “cookie cutter” system based solely about price.

But there also must be a huge market in need of quality goods, with some a higher level personalization, delivered in a good timely fashion. It exists intended for other products, look at this automotive industry. People buy cars to create a statement about independently, do we believe that they wouldn’t decorate and decorate their homes using the same goal in mind?

We need to make the decision what market were in and strategically want to dominate it.

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