HIGH POINT — Although the vitality of the furniture industry ebbs and flows in response to numerous factors including materials, logistics and housing, among others, many domestic manufacturers say they are optimistic about the prospects for their companies in the near future.
Acknowledging that consumer behavior is shifting, executives stress the importance of a flexible business strategy, one that allows quick pivots and targeted product development with new end goals in mind.
Domestic production a bedrock
With earliest beginnings as a textile manufacturer in 1947, the Rock House Family of Brands now includes seven active brands, nine factories, and 1,900 employees. Described as a company with a core ethos of “upper-end luxury brands” by President and CEO Alex Shuford III, Rock House includes upholstery and case goods manufacturer Century Furniture under the corporate umbrella, a factory and operation that has evolved through technology, innovation and strategy.
“A bedrock piece of who we are is being the operator of factories in this area,” said Shuford. “We continue to make investments in our factories, from deciding what roof to replace every year to acquiring new fabric-cutting machines and CNC equipment that helps us future-proof our business.
“We also invest locally in community colleges to paint a path of what a career looks like in domestic manufacturing.”
Noting that the demand for “high optionality” has increased, Shuford explains that companies such as Century can only remain viable and successful in the long term if the customer, current and future, is interested in the product and options.
“We have to give an abundance of choice and make that choice easy to navigate, and we have to give the consumer a product she can feel good about a long time,” he said. “The idea of disposability has started to wane, and post-pandemic, people are settling in more, moving a little less and investing in higher quality items.
“In our world, we’re making product built to last, something that will stay out of the landfill and maybe even be a gift to your children.”
Like many higher-end home furnishings companies, Century Furniture’s end consumer demographic is higher income and attracting the next generation of retail customers is top of mind. Shuford said that one of the challenges upper-end brands face is how to create a new audience of “fans of the brand” when access to the price point might be more difficult.
“Younger consumers have a lot of options with companies that spend a lot more money on marketing while we spend more of our money on production and product. So how do we get them to be more aware? We rely on word of mouth — generational and peer group — and one of the nice things for us is the rise of social media as a tool to get access to people to put our message out there and educate them.”
Social media allows Century to award attention to people who are using the company’s products and to educate potential customers about options within the brand. In what could easily become one of the company’s tag lines, Shuford said that it supports a process where “inspiration becomes reality,” a nod to the journey between awareness, education and purchase.
“Each generation of home décor consumer evolves more than the generation before, and the opportunity today to create something tailored to your specific style is significant. Individualism is rampant, and companies like ours give consumers all the options to create something that is uniquely theirs.”
Supporting local community
Since 1962, hundreds of local families in the Catawba County area have relied on furniture manufacturers for jobs, and some 200 of those households are part of the Temple Furniture/Parker Southern/Mantle Furniture factories today.
According to President and CEO Adrian Parker, making furniture is just one part of the third generation’s mission, along with supporting the local community and maintaining a strong U.S.-manufacturing base.
“We’re here to run American factories and make American jobs,” Parker said. “Even in 2008, the furniture families here in our county stuck it out. We fought, and we started customizing and changing things around and kept ourselves alive. Catawba County is the place for high-end furniture, and we’re not going away.”
The 2008 downturn prompted many domestic manufacturers to reexamine the way they were doing business, according to Parker. When business conditions worsened during that financial crash, furniture manufacturers expanded their capabilities to support a broad customer base, and the changes were part of a permanent transformation.
“When we got an order, we said ‘yes’,” Parker explained. “To me, a special order can include three seat depths, 12 arms, 12 cushions, three different back heights, and 60, 70, 80, 90 or 100 inches for a sofa. But that’s just a special order; we don’t even call that custom.”
Technology enabled factories like Temple/Parker Southern to embrace innovation and bring special orders together in two days, and Parker noted that what transpired in the past 10 years allows his team to navigate the current business environment.
Additionally, the creation of Mantle Furniture, an e-commerce brand separate from the wholesale lines, provides a complementary production channel that also keeps the factory floor humming with activity.
“We were already building for e-comm businesses before, and they taught us how it worked,” Parker said. “After we watched it work for them, we thought, ‘We have a factory; why don’t we do that?
“Our reps and dealers saw that the product was nothing like Temple or Parker Southern, and now we’re one of our own top five accounts. You can walk down the line and see the difference.”
How to excite the customer
“Challenging consumer demand for custom-order stationary is the biggest challenge we’re facing in domestic manufacturing right now,” said David Crimmins, vice president sales and product management for Flexsteel. “Consumer expectations continue to evolve, and domestic upholstery can be a difficult category in which to incorporate new innovations that excite the consumer.”
Crimmins said that growth for domestic furniture will be closely tied to improved housing activity and overall improved consumer confidence. Until the metrics for those factors shift, he believes the domestic market will remain challenging, but he adds that Flexsteel continues to prepare for stronger consumer demand.
“We believe the biggest opportunities in domestic manufacturing are continuing to offer the level of choices that consumers desire while also simplifying the research and buying process,” Crimmins said. “Comfort is always the key to success for Flexsteel, and our retailers do an exceptional job at helping the consumer make final selections.
“However, researching purchase options online is challenging for customer order projects, so we continue to invest in content and visualization tools to help the consumer.”
‘Promoting our heritage’
Skyline Furniture President Meganne Wecker sees increased retailer interest in relocating supply chains back to North America.
She added that Skyline’s clients are interested in “promoting our heritage” as end consumers increasingly favor locally made products and said that retailers are realizing that for a slightly higher price point, they can offer their customers high-quality, eco-certified products with expedited deliver times.
“My colleagues in the industry are facing issues with labor shortages and rising material costs, especially when sourcing internationally,” Wecker said. “At Skyline, we fortunately haven’t experienced these pressures. Our strong company culture has shielded us from the labor shortages affecting many other companies, and we have been able to expand our workforce when necessary.
“In recent years, we have also actively sourced key raw materials domestically, including partnering with U.S. metal component suppliers and establishing domestic fabric programs. This strategy has protected us from these challenges, allowing us to hold costs and maintain strong sales.”
At Skyline, the “efficient supply chain and speed to market is opening up many opportunities in today’s economic environment,” according to Wecker, who noted that Skyline can react to trends without the worry of inventory commitments.
“We provide a viable solution to many problems retailers face, such as increased freight costs from overseas and tariffs,” she said. “With a volatile market, retailers fear inventory issues, so we enable them to take design risks without the burden of holding excess inventory.
“While we already have an established trade business, there is significant potential for growth. We have seen an increase in our trade client base from our new website and expect that to continue to grow. We are also seeing ethically made, eco-friendly products growing in popularity as consumers increasingly want to buy products that align with their beliefs. Skyline is committed to sustainability, and it encompasses every aspect of our operations, including manufacturing processes and environmental stewardship.”
Diversifications offers insulation
For more than 100 years, Valdese Weavers has been producing made-in-America textiles, and today the company includes more than 700 employees in four different facilities that support vertical manufacturing processes including warping, weaving and finishing, among others.
During a recent visit to Valdese, President Blake Millinor told Furniture Today that, like many domestic manufacturers, Valdese has faced challenges including volatile business conditions and labor market difficulties, but diversification across product types and across markets has helped insulate the company.
“We strive to be innovative with new products that always represent value, and more recently, we also focus on building products that have a story,” said Millinor. “Our customers can then take these stories to their customers.”
Valdese’s diversification between residential and contract markets allows the company to weather economic storms, and Millinor said that the design team does a “phenomenal job at creating a broad range of products.” He notes that the way customers buy products has changed and that Valdese has adapted at many different levels.
“Being a domestic manufacturer is harder today than it has ever been, and you still have to provide value to your customers,” he said. “Working with furniture manufacturers in this area is core to who we are, and we’re constantly on the lookout for advances in technology. As those advances are made, we make investments; from the IT side, you have to optimize and lead on systems.
“I’m optimistic about the future,” Millinor concluded. “You have to approach it with an open mind, and it’s going to take creativity and a willingness to be bold.”
Family-centered culture
A 50-year-old family company that is “family cultured and family centered,” Culp Inc. is a public company that can pivot to meet demand, according to President and CEO Iv Culp.
An upholstery and mattress textile operation, Culp has a history of generational families in management and on the factory floor and serves as a community hub.
“When I think about how much the business has changed, there have always been high highs and low lows,” said Culp. “Today, unit demand in the business is tight, and we’re adjusting.”
Culp said that strategies for right-sizing production to meet low unit demand includes staggering processes and schedules while also preparing for an eventual anticipated shift.
“There is a lot of opportunity (for domestic manufacturers) so while we are right sizing today, we are in no way limiting our future,” he said. “From the domestic standpoint, there is a thirst for new product, and we are quick to market in innovation, … We’re getting the business ready to flex so we can attack the market, and our product innovation and design is as strong as we’ve ever had.”
Demonstrating the value
Demonstrating the value between domestic products and direct imports is a key challenge for domestic manufacturers, according to Donnie Lesley, senior vice president, operations at Braxton Culler.
With a nod to the “recent downturn in business across the industry,” Lesley said that one challenge is to right size the company to the demand without giving up the integrity of the company structure or level of quality.
“As part of demonstrating our value, we’re building partner programs for our larger retailers with support, to make it easy for their customers to recognize the value we offer and to visualize a” frame with any of the 600 fabrics we offer and all the configurations that are available to them,” Lesley said. “This means implementing draping software on as many of models as we can. It’s also strengthening our relationships with these retailers to help them stand out in their marketplaces with exclusive product that their customers can’t find anywhere else.”
Braxton Culler is planning a “robust” market launch at October High Point Market, and the company is planning to ship “looks that people don’t necessarily associate with us,” Lesley said. He added that the new looks will have “a little bit broader appeal and a little more pizzazz, not only in upholstery, but also bedroom and dining room.”
“I think the perception that domestically upholstered product is a better product is still there, it still resonates with consumers,” he said. “I think the key is that we as domestic manufacturers have to do a better job explaining the value and telling the story.
“For us, it’s not just a product-build story. It’s the fact that we’re able to keep 125 people in Randolph County, N.C., employed. There is a value to that, and I do think people recognize it.”
Optimistic despite challenges
Inflation and labor costs are top of mind for Marcus Bontrager, president at Fusion Designs based in Goshen, Ind. He explained that while both have significantly decreased, his team is still watching suppliers and vendors increase costs as they try to right-size their businesses in the current environment.
“Many of these increases are obviously related to shipping and fuel prices, and in that respect, all manufacturers, whether domestic maker or importer, are facing the same issues,” said Bontrager. “That said, costs have always been a greater challenge for domestic makers because labor is naturally higher for us, which is why so many went overseas in the first place. To effectively compete, we have to be on the leading edge of design, technology and service to our customers at all times, and as a custom order manufacturer, we have to manage all of that without raising our prices.”
He says nobody is willing to take price increases now, but the demand remains for new product, exemplary customer service and innovation. He said that Fusion Designs’ strategy is to help retailers solve their problems “whatever that may look like,” adding that the commitment includes offering the newest styles and providing needed price points, then winning the speed-to-market time frame versus importers.
Despite challenges in today’s environment, Bontrager remains cautiously optimistic about future growth.
“I believe growth is possible, although it will require companies to pivot quicker on both style and cost since the consumer changes their mind quicker than ever before,” he said. “It will also take manufacturers adapting to the younger generations in terms of marketing and what’s important to them, such as sustainability and responsibly made products. We will grow, but it won’t be easy or the same as it has been.
“Younger buyers simply view things differently, and once something is established as a priority for them, they will continue to look at it, even if only subconsciously,” Bontrager continued. “They have a lot of choices, and they use their purchasing power to support companies, causes, products and people they feel are doing the right thing. …
“I believe this positions Fusions Designs for the future very well because our executive team is younger, and we’ve been focused on designing for younger consumers and issues like sustainability for years.”