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U.S.A:Buyer Interest High At Spring IHFM
¡¾2002.05.12¡¿

Buyer Interest High At Spring IHFM
HMR Custom News

Low Retail Inventories Boost Interest
In Spring Furniture Market

For immediate release
Contact: Tom Inman (336) 885-8315
Appalachian Hardwood Manufacturers, Inc.

HIGH POINT, NC (May 1, 2002) - Furniture retailers came to the Spring 2002 International Home Furnishings Market seeking a fresh look for their showroom floors.

They found it and bought it, according to a survey of furniture manufacturers at the April 18-25 market. The bright news for the industry comes as other signs point to a rebound in the U.S. economy in the second half of 2002.

¡°The report from furniture market was very positive in April,¡± said Mark A. Barford, executive vice president of Appalachian Hardwood Manufacturers, Inc. The High Point, NC-based trade association represents more than 200 lumber producers, distributors and consumers in the 12-state Appalachian Mountain region promoting their products around the world. Each furniture market, AHMI surveys its furniture company members on their use of hardwoods and results at market.

¡°Certainly there was not a record crowd in attendance but people were pleased with the volume of buyers who were here and what they were ready to do,¡± Barford said. ¡°The manufacturers say furniture retailers are ready to rebuild store inventories and bring a new look to their stores.¡±

For the past year, many furniture retailers have been taking a ¡°let¡¯s sell what we have first¡± approach in their stores, reports Keith Meriweather, vice president of sales for Keller Manufacturing Inc. The Corydon, IN company produces bedroom, dining room, and casegoods from solid wood.

¡°I believe retail inventories have never been leaner and these people are ready to change that,¡± he said. ¡°The economy has been sluggish and retailers really have not done anything in a year.

¡°They came to market looking for something fresh that they could get their sales staff excited about,¡± Meriweather said. ¡°They found it at Keller.¡±

Known for its solid oak furniture made in America, Keller received strong business for its existing lines and a new group, Synergy, made from sycamore. Meriweather said retailers liked the design and production begins in May.

Bernhardt Furniture Inc. offered new looks in four collections at market produced in oak, cherry and cherry veneers, mahogany and a combination of wood and upholstery. The Lenoir, NC-based company offered dozens of pieces in English styling with medium and dark tone finishes. Response to all of the new pieces was positive, officials reported.

Unique styling allowed Kincaid Furniture to utilize character-marked lumber in two new groups in cherry and oak. Its ¡°Brookside Cherry brings to life the unique and naturally flowing grain characteristics of Appalachian Mountain cherry¡± lumber, reported Steve Kincaid, president of the Hudson, NC company.

¡°The buyers really liked the lodge look we were offering this time, a variation for us,¡± he said. ¡°If you have the right style, you are able to use different grades of lumber. In these designs, we are using 2 common lumber. The casual lines and overall distress of the finish were very well received.¡±

The company also offered a 37-piece group, ¡°Sierra Country,¡± in solid oak with a rustic style and finish. Orders were written for this group, too.

¡°I think retailers are back and everyone is optimistic about the second half of this year,¡± Kincaid said. ¡°We are focused on that and I believe we will see consumers back in the stores and more business for everyone.¡±

Century Furniture offered European styling in a new group named ¡°Consulate.¡± The French inspired group centers on the relationship between Napoleon Bonaparte and Josephine. The 60-piece collection has bedroom, dining room and occasional tables. Bill Hayes, senior vice president, said the group is produced from walnut and other hardwood solids and veneers with seven multi-layer finishes.

The European theme was also found at Thomasville Furniture in two introductions in the bedroom category, four new groups in occasional tables and additions to its popular ¡°British Gentry¡± collection. The new pieces are produced from combination of hardwood solids and veneers.

Patriotic theme
¡°The consumer is asking now if items are American made and we fill that need for retailers,¡± said Keller¡¯s Meriweather. ¡°We have a niche because we are one of the few who truly is ¡®made in America¡¯.¡±

Keller offered banners, table tents and other promotions touting ¡°Made in America.¡± Meriweather forecast sales over the next quarter to remain steady but expects the last six months of the year to see dramatic growth in sales.

Stanley Furniture Company used a patriotic title for its main introduction this market, American View. The 50-piece collection is crafted from cherry veneers and solids.

¡°American View was our biggest success this market and we were placing orders,¡± said Bill Sibbick, Stanley vice president of marketing. ¡°Of course, we had a very good market overall with positive responses for all of our collections, youth, home entertainment and home office.¡±

These categories took a larger portion of Stanley¡¯s showroom with more than a dozen introductions for market. Home theater was an emphasis as consumers spend more time at home entertaining.

¡°We have grown faster than anyone else in these areas and expect to sell a lot of these units this year,¡± Sibbick said. The units were produced in cherry, oak and maple hardwood solids and veneers.

Stanley also introduced a 25-piece collection in cherry, another 17-piece group in cherry and a 30-piece group in maple and other hardwoods.

¡°We found most of our retailers need inventory and are getting ready for the rest of this year,¡± he said. ¡°That should help the furniture industry get back to work.¡±

Other introductions at the Spring market:
Broyhill Furniture: The company introduced two 100-plus whole home collections in oak, cherry and maple solids and veneers. Other new groups included the 35-piece ¡°Mirabella¡± produced in ash burls and pecan veneers.

Lexington Furniture: The company introduced its Susan Sargent licensed group made from maple solids and the Tommy Bahama collection in solid hardwoods and hand-woven materials. The Lexington, NC-based manufacturer offered more than 40 new pieces in wood for its existing lines.

The continued increase in imports to the furniture industry was evident at market. Forty-three percent of casegoods bought in the U.S. in 2001 were imported. The majority of furniture manufacturers have groups or components that are produced internationally and the trend is expected to continue.

¡°The bad news for our industry is the loss of jobs, but the good news is the value this gives to the consumer in lowering the cost of our product,¡± said Alex Bernhardt, president of Bernhardt Furniture Inc., Lenoir, NC. ¡°We have been importing for 20 years and have maintained price levels by finding new sources.¡±

The furniture industry is looking for the best product for the best price from customers who can deliver and provide the service, Barford said. ¡°That really has never changed and as suppliers to the industry, we have to remain focused on delivering the best lumber, Appalachian hardwoods, to the manufacturer whether it is in the United States or around the world.¡±

The American Furniture Manufacturers Association reported at market that residential furniture shipments are expected to climb 4.3 percent to $23.94 billion in 2002. The industry anticipates another 5.2 percent growth in 2003 to $25.19 billion.

¡°The news from the furniture industry continues to be extremely positive,¡± Barford said. ¡°That translates into good news for lumber suppliers throughout the Appalachian region who provide these companies with the world¡¯s finest resource, Appalachian hardwoods.¡±

To learn more about Appalachian hardwood lumber and AHMI, visit the AHMI website at www.appalachianwood.org.