After 10 Years Of Free Trade, The Canadian Furniture Industry Exports Top $1 Billion Mark.

Furniture World Magazine

Export figures for the Canadian furniture industry have more than quadrupled since the North American Free Trade Agreement (NAFTA) was signed 10 years ago. When all the figures for 1997 are in, exports to the United States should top the billion-dollar mark. And that strong performance has given the furniture industry the confidence to break into new markets around the world. Canadian manufacturers anticipating the shock effects of NAFTA applied all their ingenuity to fully exploiting the many pluses of the new partnership. This involved rationalizing operations, modernizing production equipment, targeting production to penetrate newly identified market niches, shortening delivery times, and offering impeccable after-sales service - all strategies that have proved extremely fruitful. Today, many manufacturers export up to 80% of production, and are now thoughtfully planning to diversify their export market into Asia, the Near East, Latin America, and Europe. Some, of course, are already old hands in these markets, with a sterling track record. According to a recent study by economists at CIBC Wood Gundy, unlike most manufacturing sectors in this country, the Canadian furniture trade has consistently boosted productivity in recent years, which provides a measure of protection against potential fluctuations in the value of the Canadian dollar. In 1996, Canadian residential furniture shipments topped $1.9 billion. Although the final figures are not yet in for 1997, all indicators point to total shipments topping the $2-billion mark. Every year, the Toronto International Home Furnishings Market brings together a substantial number of these highly successful manufacturers, who are helping the industry expand in terms of quality and variety. The show, which is open to domestic and foreign manufacturers alike, is on at the International Centre from January 10 to 13, 1998. For more information e-mail QFMA at: info@qfma.com.