Decline in the U.S. Furniture Industry: A Case Study of the Impacts to the Hardwood Lumber Supply Chain
Keywords:
Furniture industry, hardwood marketsAbstract
Traditionally, the wood household furniture industry has accounted for a sizeable portion of total hardwood lumber use in the United States. However, for more than a decade, imports have gained an increasing share of the hardwood furniture market, and lumber consumption by this industry has declined dramatically in the last 5 years. We used a case study methodology to investigate the impacts of this decline on the hardwood lumber supply chain. Eleven companies within the hardwood lumber supply chain were chosen as cases: 3 furniture manufacturers, 5 primary producers, and 3 components manufacturers. Seven core questions were asked during each interview and primary producers were asked two additional questions. Questions ranged from the impact of lean manufacturing techniques to the effects "green" certification may have on the industry. Furniture manufacturers appeared to be more optimistic regarding the future of the domestic furniture industry compared to the primary and components manufacturers. Furniture market declines have been quickly replaced by the cabinet and solid wood flooring sectors; however, the supply chain must continue to strategically develop new markets in the event of a housing sector slow down.References
Anonymous. 2000. Hardwood Market Report: Lumber Newsletter, January 8, 2000. 78(2).nAnonymous. 2004a. Flimsy foundations—the global housing market. The Economist. London, UK. Dec. 11, 2004. 373(8405):71-72.nAnonymous. 2004b. The sun also sets—global house prices. The Economist. London, UK. Sept. 11, 2004. 372(8392):67-68.nAnonymous. 2004c. High Stakes for Alan Greenspan. Business Week, New York, July 5, 2004. 3890:108.nAnonymous. 2005a. 2004: The year at a glance. Hardwood Market Report's 8th Annual Statistical Analysis of the North American Hardwood Marketplace.nAnonymous. 2005b. Hardwood imports—imports are playing a more important role. Hardwood Review.21:(23).nAnonymous. 2005c. Hardwood Market Report: Lumber Newsletter, January 8, 2005. 83(2).nBeckner, S. K. 2004. Clear signals from the Fed. Futures, Chicago, IL, October 2004. 33(13):23.nBowe, S. A., R. L. Smith, and P. A. Araman. 2001. A national profile of the U.S. hardwood sawmill industry. Forest Prod. J.51(10):25-31.nBuehlmann U. 2004. Editorial—Furniture manufacturing revisited. IMS SMART-fm Newsletter. AIDIMA, Valencia, Spain. No. 6, September 2004. P. 1.nBuehlmann U. 2005. The wood products and furniture steering committee (WPFSC). IMS SMART-fm Newsletter. AIDIMA, Valencia, Spain. No. 8. (in press).nBuehlmann U., and A. Schuler. 2002. Benchmarking the wood household furniture industry in a global market. Wood Digest, November 2002. Pp. 52-57.nBuehlmann U., and A. Schuler. 2004. Chercher-innover-réussir [Researching-innovating-suceeding]. Keynote presentation. Association des fabricants de meubles du Québec (AFMQ) [Furniture Association of Québec]. Bromont, QC. September 2004.nBuehlmann U., A. Schuler, and D. Merz. 2004. Reinventing the U.S. Furniture Industry—Facts and ideas. Proc. Keynote Presentation at the Annual Meeting of the Forest Products Society—Industry Day. Forest Products Society, Madison, WI.nBumgardner, M. S., R. J. Bush, and C. D. West. 2000. Beyond yield improvement: Selected marketing aspects of character-marked furniture. Forest Prod. J.50(9):51-58.nBumgardner, M. S., U. Buehlmann, A. Schuler, and R. Christianson. 2004. Domestic competitiveness in secondary wood industries. Forest Prod. J.54(10):21-28.nBush, R. J., S. A. Sinclair, and P. A. Araman. 1991. A qualitative investigation of competition in the U.S. hardwood lumber industry. Forest Prod. J.41(11/12):43-49.nFisher, M. as cited in Agnes T. Crane. 2005. Quarterly Mutual Funds Review; What's Ahead for Bond Funds; Fixed Income Beat the Odds Last Year, but the Dollar and Economic Worries Give Investors Pause. Wall Street Journal (Eastern edition), New York, N.Y. Jan 6, 2005. P. R.1.nGoldenhar, L. M., and M. H. Sweeney. 1996. Tradeswomen's perspectives on occupational health and safety: A qualitative investigation. Am. J. Industr. Med.29:516-520.nHoff, K., N. Fisher, S. Miller, and A. Webb. 1997. Sources of competitiveness for secondary wood products firms: A review of literature and research issues. Forest Prod. J.47(2):31-37.nLorimor, S. and R. Christianson. 2003. Furniture manufacturers and retailers face off. Wood & Wood Products. http://www.iswonline.com/wwp/200312/antidumping.htm'>http://www.iswonline.com/wwp/200312/antidumping.htmnLuppold, W. G. 1995. Regional differences in the eastern hardwood sawmilling industry. Forest Prod. J.45(10): 39-43.nLuppold, W. G. 1996. Structural changes in the central Applachian hardwood sawmilling industry. Wood Fiber Sci.28(3): 346-355.nMeyer, C. J., J. H. Michael, S. A. Sinclair, and W. G. Luppold. 1992. Wood material use in the U.S. wood furniture industry. Forest Prod. J.42(5):28-30.nMorse, D. 2002. Tennessee producer tries new tactic in sofas: speed. The Wall Street Journal. November 19:A1, A20.nPatton, M. Q. 1990. Qualitative evaluation and research methods. Sage Publications. Newberry Park, CA.nSchuler, A., and U. Buehlmann. 2003. Benchmarking the Wood Household Furniture Industry: A Basis for Identifying Competitive Business Strategies for Today's Global Economy. USDA Forest Service General Technical Report. GTR-NE-304. 18 pp.nSchuler, A., R. Tayor, and P. A. Araman. 2001. Competitiveness of the U.S. wood furniture manufacturers: Lessons learned from softwood moulding industry. Forest Prod. J.51(7/8):14-20.nWiedenbeck, J., J. Brown, N. Bennett, and E. Rast. 2003. Hardwood lumber widths and grades used by the furniture and cabinet industries: Results of a 14-mill survey. Forest Prod. J.53(4):72-80.n
Downloads
Published
Issue
Section
License
The copyright of an article published in Wood and Fiber Science is transferred to the Society of Wood Science and Technology (for U. S. Government employees: to the extent transferable), effective if and when the article is accepted for publication. This transfer grants the Society of Wood Science and Technology permission to republish all or any part of the article in any form, e.g., reprints for sale, microfiche, proceedings, etc. However, the authors reserve the following as set forth in the Copyright Law:
1. All proprietary rights other than copyright, such as patent rights.
2. The right to grant or refuse permission to third parties to republish all or part of the article or translations thereof. In the case of whole articles, such third parties must obtain Society of Wood Science and Technology written permission as well. However, the Society may grant rights with respect to Journal issues as a whole.
3. The right to use all or part of this article in future works of their own, such as lectures, press releases, reviews, text books, or reprint books.