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Abstract
This chapter is excerpted from ‘A Profile of the Furniture Manufacturing Industry: Global Restructuring'. The furniture industry (NAICS 337) plays an important role in the US economy as a bellwether for manufacturing through its utilization of a global production network. Types of furniture range from household to institutional, with particular growth in firms supplying medical and government- related commodities. The industry is highly responsive to fashion trends, but is partitioned into high, medium, and low cost segments that reveal different locational and market responses to changes. Recent developments indicate that the post-1980s migration of furniture manufacturing to offshore, low labor cost countries has stabilized and shows some faint signs of reshoring in the United States for high end customized and technologically intensive products utilizing the remaining embedded skilled labor and locally clustered industry components. Businesses that survived the recessionary 'creative destruction' largely adopted lean manufacturing processes and took advantage of available lower cost equipment and buildings to upgrade their production practices, absorbing market from former competitors. New partnerships occurred with branch and headquarter relocations in Asia, along with cooperative supplier relationships with former US and new foreign companies. Industry survivors adopted practices that could be highly instructive for other manufacturers challenged by globalization to grow stronger by increasing their adaptive capacity. An overview of the industry and its global production network includes the manufacturing technologies of each sector. Case studies of major US manufacturers utilize site visits and interviews with representatives from these firms. Assessment of global competitors illustrate opportunities and challenges in these locations; lean manufacturing practices utilized by US survivors show diversity and key components. Regulations impacting the industry include environmental protection restrictions and trade infringement. The conclusion considers the future of the industry in regional clusters.
About
Abstract
This chapter is excerpted from ‘A Profile of the Furniture Manufacturing Industry: Global Restructuring'. The furniture industry (NAICS 337) plays an important role in the US economy as a bellwether for manufacturing through its utilization of a global production network. Types of furniture range from household to institutional, with particular growth in firms supplying medical and government- related commodities. The industry is highly responsive to fashion trends, but is partitioned into high, medium, and low cost segments that reveal different locational and market responses to changes. Recent developments indicate that the post-1980s migration of furniture manufacturing to offshore, low labor cost countries has stabilized and shows some faint signs of reshoring in the United States for high end customized and technologically intensive products utilizing the remaining embedded skilled labor and locally clustered industry components. Businesses that survived the recessionary 'creative destruction' largely adopted lean manufacturing processes and took advantage of available lower cost equipment and buildings to upgrade their production practices, absorbing market from former competitors. New partnerships occurred with branch and headquarter relocations in Asia, along with cooperative supplier relationships with former US and new foreign companies. Industry survivors adopted practices that could be highly instructive for other manufacturers challenged by globalization to grow stronger by increasing their adaptive capacity. An overview of the industry and its global production network includes the manufacturing technologies of each sector. Case studies of major US manufacturers utilize site visits and interviews with representatives from these firms. Assessment of global competitors illustrate opportunities and challenges in these locations; lean manufacturing practices utilized by US survivors show diversity and key components. Regulations impacting the industry include environmental protection restrictions and trade infringement. The conclusion considers the future of the industry in regional clusters.