Our position is:Fighting a defensive battle won't
be enough if Hoosier furniture makers are to survive Chinese
competition.
Indiana's hardwood industry -- a $3 billion enterprise that
employs 50,000 furniture makers, veneer producers, sawmill operators and
loggers -- is under attack.
In recent years, competition from China has cost the jobs of
68,000 U.S. furniture workers, especially in places such as North Carolina
and Virginia. Indiana woodworkers, who specialize in office furniture and
veneer, are starting to feel the lash of competition as China turns its
attention to those segments of the industry.
A two-fold battle is going to have to be waged if Indiana is
to remain a top producer of finished wood products: Indiana companies have
to join the fight to ensure a level playing field in the marketplace and
learn to operate much smarter.
Earlier this month, the American Furniture Manufacturers
Committee for Legal Trade petitioned federal officials to impose duties on
some Chinese furniture imports. They claim the Chinese are engaging in
various forms of "dumping" in violation of international trade laws.
Sen. Elizabeth Dole, R-North Carolina, also has accused
China of artificially undervaluing its currency to lower the price of
furniture exports to a level that makes it impossible for U.S.
manufacturers to compete.
But attacking the problem defensively isn't enough.
China unquestionably benefits from currency manipulation,
low wages and lax environmental laws. But it also operates state-of-the
art plants that are highly efficient at turning out quality products.
Meanwhile, too many American manufacturers have resisted change.
Star business writer Norm Heikens reported in a recent
article that this business-as-usual approach is changing. Executives of
Indiana wood products recently had a summit that involved loggers, sawmill
operators and manufacturers to look at ways to create efficiencies. They
also are working with the Indiana Business Modernization and Technology
Corp. to increase productivity.
Indiana's furniture makers need to find niche markets, and
compete on quality, not just price. And, as wood products consultant
Arthur Raymond Jr. suggests, the industry must figure out how to "create
demand rather than just fill it."
