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USA:Tariff or no – Chinese furniture imports remain unchallenged |
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2005-4-12
Bring in anti-dumping duties or trade barriers; nothing can stop the Chinese from entering the US shores and marring the business prospects of American manufacturers and retailers. The duties are a means to ensure local manufacturing remains competitive against imports and allow fair competition within the industry giving level playing fields for all concerned.
However, studies for the past six month have showed to little effect, affecting imports, after all the increase in the import duties being levied on Chinese furniture on an average 6.6 percent dashing hopes of American manufacturers who sought more than 14 percent of it.
The situation has turned to worse for the Americans who have resigned to import Chinese furniture rather than manufacture within and lose money on stocks piling at their showrooms due to high costs.
Besides, manufacturing jobs seems to be dwindling as imports continue to dominate the markets.
Next week at the biennial International Home Furnishings Market in High Point, pro and anti lobbies among the divided American manufacturers and suppliers will come together yet again, forgetting the thorny issue to conduct business.
As the industries adjust to the barrage of imports, managements and workers ponder over the future prospects in all anxiety as manufacturing jobs move out of the USA.
Now, where do retailers go for sourcing and selling furniture, even while manufacturers decide whether to import or manufacture furniture like before, is the question!
Industry observers argue that mere 6-7 percent duties do not affect the Chinese furniture imports.
Figuratively speaking, in 2000, Chinese factories exported $359 million worth furniture to the US retailers, which has gone up thrice that amount to $1.2 billion in the year 2003.
Experts from the industry deem the lower labour costs for Chinese furniture to cost less.
Sadly for the local manufacturing companies, following a strategy one way or the other, has not really helped as the US Commerce Department reportedly provided statistics of about 73,000 American furniture jobs losses during 2000 and end 2002 period.
And that’s not the end, as major companies announce layoffs like Thomasville Furniture Industries Inc, a division of Furniture Brands in St. Louis, said 110 jobs would go at its Thomasville plant. Lexington Home Brands, another industry leader has already announced 65 layoffs with another 90 to follow.
All major centre of furniture production have seen a trend wherein jobs have declined and companies calling off operations unable to face overseas competition.
Companies that worked over two or three shifts catering faraway customers within American continent are today craving for orders or already closed.
For the workers, searching alternate jobs is a difficult task after having put in 5-10 years at a stretch in the company that has announced closure or curtailment of operations.
Some putting a brave face say, diversifying product range, offering quality and timely delivery could upset the Chinese ‘a(chǎn)pplecart.’
But when, how, why and what time it would take for the positive turnaround, is anybody’s guess!
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