The upcoming High Point market will be pivotal in how the import business settles in to something factories and retailers can count on. All reports are that the shifts to other southeast Asia countries is fraught with logistical and personnel issues.
Reports of delays of up to 3 months from Vietnam because of these issues has confronted those who were late to the party there. In addition, many of the Vietnam factories were originally bedroom factories. When purchasing occasional or accent pieces from them, expect delays since bedroom comes first, being higher ticket item. There still is no one who does metal, glass and power motion like China!
Tariffs of 30% is stiff but delayed shipments and shady quality are factories in getting out of China. One thing that seems logical is that consumer prices have to rise. Between China and Ashley, our industry has been in a deflationary cycle for the last few years.
Prices have to rise to allow for reasonable returns for retailers, manufacturers and reps. Every one of us has a stake in having prices rise like cars, appliances, travel, housing etc. We as an industry are selling ourselves short!
Hopefully this southern market will begin the conversation to make our work profitable.
