Furniture

Production

Data related to the production and export of furniture are varied, but production trends can still be analyzed. Since the production of furniture became global, Asian countries such as China, Taiwan, Malaysia, and Indonesia have become the dominant producers and exporters. Raw materials and cheap labor forces make these countries very competitive, attracting foreign investment. During the 1990s, a number of U.S. and European companies started moving their production to these countries and to China in particular. According to the China [Page 287]Building Decorator Association, in 2006, Chinese furniture exports reached $17.4 billion, ranking it first in the world; exports for 2010 are expected to reach $48 billion. China competes fiercely with both Western countries such as Canada, Germany, and Italy, and Asian countries such as Thailand, Taiwan, and Malaysia. During the first decade of the 21st century, China overtook Canada as the largest exporter to the United States, providing more than half of the furniture consumed by Americans. In 2000, China became the largest supplier of furniture to Japan, overtaking Thailand. Besides the U.S. and Japanese markets, China's export targets are Europe, Hong Kong, and the Middle East. According to the Statistical Office of the European Community (Eurostat), in 2005, China supplied almost half of the furniture consumed in European Union countries. Although China leads the export of furniture, countries such as Indonesia, Malaysia, and Thailand are aggressive competitors. In fact, in these countries, the cost of labor is cheaper than in China, causing Chinese companies to move their production to these countries.

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