Analyst Stump Shares Observations from BDNY 2019
Charlotte, NC, November 14, 2019-Stump released its reflection on the 2019 BDNY show, which took place November 10 and 11 in New York City.
“Exhibitors were busy, attitudes upbeat, and both buyers and sellers seemed to enjoy themselves at the sleek Javits Center. As a favorite long-time client put it, ‘This show is the best. It’s finite [only 2 days], with qualified buyers, in a city people want to visit.’ We couldn’t agree more.
“We met with over 80 CEOs and key decision makers over our three days in the city. Key observations:
* Tariffs continue to be a major factor. We continue to see supply chains shift-to Vietnam, the Philippines, and Indonesia-and the capacity constraint repercussions. There is also significant interest toward North American manufacturing. We have been to Mexico several times in the past few months and believe there is great opportunity there. This is a trend we anticipate will persevere regardless of any short-term political pacts.
* Sales pipelines remain full and strong heading into 2020 after what several executives noted was a bumpy back half to ′18 and early ′19 as major hotel chains shifted their furniture designs for new fresh looks. Domestic upholstery capacity dropped over $80 million given recent exits from the industry and we are already seeing players eagerly attempting to fill this gap.
* Hospi-dential/Resimercial trends continue as the channels blur and product offerings move far beyond traditional silos. We saw many friends from the residential industry showing for the first time at BDNY. What once would only be considered in-home furniture is now populating common areas and guest rooms in the hospitality sector.
* The concept of a ‘Whole Room Solution’ has emerged as a key strategic goal for many hospitality players. The ability to fulfil orders for entire guest rooms with case goods and upholstery as well as lighting and ancillary furnishings has emerged as an enticing proposition for many industry players.
In summary, the hospitality sector remains robust and competitive with plenty of compelling projects to go around.”