16 May 2008
More gloomy news for the furniture industry in China
Posted by Roger under: Furniture; Industry Trends .
China’s Factory Blues
http://www.spiegel.de/international/business/0,1518,543929,00.html
Hsu’s new factory, it turns out, is running at just 60 percent of capacity, and he predicts that half of China’s lighting factories — almost all based in Guangdong — will have to close their doors this year.
When more than a hundred South Korean-owned factories closed over the Chinese New Year in the eastern province of Shandong, 1,200 miles from the Pearl River Delta, thousands of workers were left without jobs — and with unpaid wages.
Distressing time for furniture retailers
http://www.latimes.com/business/la-fi-furniture14-2008may14,0,6770934.story
“This is one of the toughest periods we have seen in the last 30 or 40 years,” Farooq Kathwari, chief executive of Ethan Allen Interiors Inc., told Wall Street analysts in a conference call a few weeks ago. “A lot of our business has been diverted to these going-out-of-business sales.”
Along with the housing crash and rising fuel costs, Caffaro said, her business has been hammered by the falling dollar. The wholesale prices of furniture she imports from China and India have gone up 10% to 14% in recent months.
Related posts:
- Three and a Half Kinds of Factories: Chinese factory profiles
- Will there be a furniture downturn in this ‘cautious environment?’
- Furniture company - or hedge fund?
- Housing crisis hits furniture industry hard
- Furniture Today - China faces labor shortage, rising wages
