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The US furniture industry is in the midst of a slump in the collapse of some companies
It is reported that due to the sluggish US real estate industry, the desire for American furniture purchase is reduced, and the current US consumer demand for furniture is in a very weak state. In the first quarter of 2012, American furniture consumption was US$94, down 18.2% from US$115 in the same period last year. This is the largest decline in American furniture consumption since 1982. At the same time, US furniture imports have also fallen sharply. Since the third quarter of 2011, US furniture imports have fallen by 25%. The shipments of residential furniture manufacturers were also not satisfactory, down 10% from the same period last year. Orders from January to July 2012 were down 10% from the same period in 2011, and shipments were down 8%. Eighty-three percent of the factories indicated that orders have declined, and most of them have experienced double-digit declines. The president of Asri, the largest importer of furniture in the United States, said: "This is the most serious inflation in the US furniture industry in 20 years." He believes that the current inflation situation is not artificially controllable, and companies can only control costs as much as possible. The collapse of the subprime crisis in a large number of enterprises will bring cleaning of the industry to the US furniture industry. A large number of furniture companies have declared bankruptcy. At present, about 30% of companies in the US furniture industry file for bankruptcy protection or bankruptcy, and many companies close their stores and are in a state of loss. American Lanjixing Furniture Co., Ltd. is a large enterprise engaged in furniture and bedding. It has 500 chain stores in 47 states and filed for bankruptcy protection in May 2008. International brand companies announced at the end of 2007 that they would close their 400 stores in the United States. The US furniture industry is heading for a depression. New York's largest furniture chain, "Simans", has 100 stores and was closed in 2007. Five companies in the US warehouse retail store closed down. The famous sofa company Klausler shut down 23 unprofitable chains, which is equivalent to one-third of their total stores. In addition to the subprime mortgage crisis, the impact of Asian furniture is also a more important factor in the decline of American furniture. In fact, under the impact of strong furniture in Asia, especially China, American furniture companies have long had many examples of bankruptcy and bankruptcy. Among the top ten US importers, the ninth Mumbai Furniture Company and the tenth Lavitz Furniture Company have filed for bankruptcy protection last year. The well-known retail chain Mumbai has been operating very well. In 2003, when they were the most brilliant, they had a turnover of 600 million US dollars and a profit of more than 9 million US dollars. It will not work in 2004. Although the turnover has not decreased, it has lost $12 million. By 2006, the loss had reached 50 million US dollars. Production was shrinking two years ago and the company’s CEO stepped down. Mumbai company has been in a three-year decline in sales and losses, and finally filed for bankruptcy protection in September 2007. Its 50 chain stores in Canada were taken over by a local company, and 384 stores in the United States were taken over by three US companies. Lavitz Furniture, which used to be the Big Mac in the US industry, has applied for three bankruptcies in the past 10 years, most recently on November 8, 2007. Two years ago, the company filed for bankruptcy, but at the time it attracted investment, and invested $200 million before and after, but it was still a little lost. The company’s annual financial report in May 2007 showed that the company’s total sales were $511.3 million and liabilities were $152.5 million. Transferring large furniture manufacturers overseas has abandoned the United States and began to transport large quantities of logs overseas for processing. The industry has been around for more than a decade when American furniture manufacturers began to leave Carolina to move to overseas locations where labor and operating costs were lower. A professor at Virginia Ligong University said, “Now, the manufacturing industry is moving to China, Vietnam and other places, you will see a depressed industry.†Because labor costs remain high (about 40% of the total cost of furniture) %) For more than 10 years, the US furniture manufacturing industry has begun to move to countries such as China, Vietnam, India and Mexico. Most of them were transferred to China. And they are all large American companies. For example, Raz Boys United, the second-largest US furniture manufacturer with annual sales of $2.1 billion, shut down its 13 factories in China and transferred production to China. Jianwei Group, one of the top five furniture companies in the United States, moved its production base to Jiangmen City in Guangdong in 1998. Today, it has a plant of 55,000 square meters, employs 2,500 people and has an annual sales of 130 million US dollars. Aifudi has six production bases in China and sold $260 million in 2006. Asri, the largest US company, has annual sales of US$3 billion and has a base of 110,000 square meters and 5,000 employees in Kunshan, China. There are no accurate information on the number of US companies transferred to China, but there are data on capacity. 60% of US imports are products of US companies in China. Up to now, the production capacity of American furniture companies in China has reached 8 billion US dollars, and it is expected to reach 10 billion US dollars by 2010. (Editor: JN103)