M&A Analyst Stump Reports Positively on Hospitality Sector
New York, NY, November 19, 2021-Stump, a furniture industry analyst, attended the 2021 BDNY show in New York at the Javits Center and reported the following key topics of conversation as it spoke with hospitality industry CEOs:
“Supply chain struggles continue as lead times are still stretched, with no end in sight for a return to ‘normal’.
“Price increases continue as raw material and freight costs rise.
“Reshoring to North America is being explored. With Asian supply chains painfully stretched many companies are looking for alternative production locations closer to home (particularly for upholstery) in the US, Canada, and Mexico. We heard a lot about Mexico and our recent trip to Tijuana highlights some of the benefits we see in Mexico manufacturing opportunities. See Tim Stump's article in Home News Now.
“Business is rebounding with model room rates up and backlogs growing. New hotels and full hotel renovations are underway again. Visibility has always been a hallmark of the hospitality industry, and all indications are pointing to a vibrant 2022 and even better 2023.
“Domestic labor continues to be a struggle, and constraint, as demand ramps up. Wage increases are helping, but not enough.
“The network of procurement players for hotels are looking for one-stop shopping and companies that offer a full suite of products from upholstery to casegoods to metal accent pieces from the guest room to the public areas to the restaurants and bars. We anticipate this will drive a wave of acquisition activity.
“Mergers & Acquisitions were also a hot topic as strong players are gearing up to grow again and are seeking capacity, products, customers, and new channels of distribution.”