Analyst Stump Shares Observations of Fall High Point Market
High Point, NC, October 21, 2020-Furniture industry analyst Stump shared the following observations after attending the fall High Point Market, which ends today in High Point, North Carolina.
“Inventory & Lead Times: Nearly across the board, wholesalers and manufacturers are working through inventory quicker than ever. As retailers and e-commerce channels demand more goods for eager consumers, importers that once struggled with bloated balance sheets and dangerously dated goods are now sitting on a mountain of cash and re-stocked warehouses/factories. This increase in demand has likewise stretched lead times – several clients that typically ship in just 3-4 weeks mentioned 6-8+ week lead times. And backlogs remain at record highs.
“North American Capacity: Correlated with increased consumer demand and longer lead times, many larger importers are looking to enter the domestic manufacturing business to quickly boost capacity and reduce lead times. Likewise, legacy manufacturers are eyeing domestic add-ons to increase capacity and expand labor and talent. We are marketing several excellent facilities in Mexico and the United States to address this demand.
“2021+ Economic Outlook: While most agree this level of consumer spending on the home cannot continue indefinitely, there was near consensus that this increase has been overdue and unlikely to abate any time soon. With the gloomy winter months fast approaching and no short-term COVID solution in sight, consumers appear to have many months left spending greater time at home, both working and living. This trend should continue to benefit the residential furniture industry.