Las Vegas Market Update
August 2011 - Charlotte, NC
Our days in Las Vegas for the market this week were active, with healthy discussions of deals, US government debt reduction, the furniture economy and global shifting trends.
This was the first market of the unified Las Vegas / High Point International Market Center, and the key leaders were front and center proclaiming the new vision for moving our industry forward. The IMC has brought a renewed focus to furniture markets, and we felt there was positive energy for getting more density in the building, more staff welcoming and accommodating attitudes, and even better logistics and amenities. We'll expect to see this same positive trend in High Point in October.
Strong companies are on the move, with a keen desire to grow above the anemic 2-3% industry growth forecasts. Acquisitions, plant expansions, asset purchases are on the forefront of aggressive-minded corporations. Taking market share, seizing opportunities from weak companies and exploiting openings in new channels of distribution are the hot topics of today. The Internet is increasingly on people's mind for developing new revenues.
With the business slowdown these past 60 days, rising raw material costs, and still tight credit/capital availability, weak companies are increasingly looking for a way to survive.
And with Asian costs going up, many domestic and international factories are re-thinking US/North American manufacturing, particularly in upholstery.
So amidst all these issues and challenges, merger and acquisition talks are reaching the 2006-2007 go-go days level. Expect more mergers, plant closures, marketing alliances and partnerships to join marketing and manufacturing capabilities.
Quote of the Market: "The retailers here at the market are buying. The ones not here are not buying."
Let us know how we can be of help as you confront these issues.