HIGH POINT — Until they work, tariffs are a challenging way to do business, said Jerry Epperson, managing director at Mann, Armistead & Epperson Ltd., during his State of the Industry talk.
Epperson, who was attending his 100th High Point Market, spoke on behalf of the Home Furnishings Association at its Retail Resource Center. Noting that there was never a more important time for the industry to gather, Epperson said the global nature of the home furnishings industry has put the negotiations over tariffs front and center for market attendees.
“Other countries have been taking advantage of us and have been for years,” he said. In his prepared remarks, Epperson said the greatest concerns are around Vietnam and Cambodia, “which often seem like proxies for China.”
While China “is clearly the largest target for trade issues … there is a widespread belief that you can source through Vietnam and Cambodia for less.”
When asked about Vietnam, Epperson said he believed as much as 60% of the items Vietnam is shipping originate from China. Vietnam, which was hit with a 46% tariff in early April that has been paused for three months, is going “to do a major reversal and make up to the U.S.,” said Epperson. “I think Vietnam has to build up trust with us,” he said.
Epperson said he expects more than 50 trading partners to reach out, seeking an agreement over tariffs.
And while President Donald Trump has taken on the role of “ringmaster” in the tariff negotiations, a year from now, said Epperson, “we’ll not be talking about tariffs.”
The next biggest disruptor to the industry, he said, is likely to be logistics. The consolidation of control within shipping, trucking and other modes of distribution is worrying, he said, as is the lack of manpower to get products to stores and customers.
On a more optimistic note, Epperson forecast a much stronger housing market later in the year. “2025 will be the start of the next seven-to-10-year housing boom,” he said.
He also said to opportunities exist for tapping into the next generation of furniture shoppers — those in the late teens and 20s — as well as long-time Baby Boomers customers.
Baby Boomers are downsizing, he said, which presents a chance to sell them new products to fit a more streamlined household. Citing his own situation, Epperson recalled how many of the large pieces of furniture in his home didn’t make the transition to a smaller condo.
“We’re not as frisky,” he said of Boomers, “but we have more money. And money makes up for frisky sometimes.”
Younger people, meanwhile, are driving the market for second-hand furniture, which allows them to get more for their money, he said. But the older cohort shouldn’t count on their children to take their cast offs. “Whatever Boomers have in their house isn’t what their children want in their homes.”
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