Fabric, leather and near-shoring

by admin on August 11, 2016

LAS VEGAS — No conversation about the off-shore production of upholstered goods would be complete without examining the mills and tanneries that supply the textiles to cover them.

On the textile side, Robert Gorman, vice president of merchandising for Advantage International Fabrics, said that Advantage utilizes a global network that has resulted in significant increases to the customer base.

“Advantage Fabrics is part of Global Enterprise, and we have utilized many tools to create, design, color and innovate from global sources and influences,” Gorman said. “If China were compromised, we could continue to innovate wherever we could find suitable, qualified and approved supply partners.

“As you know, we are currently in partnership with one of the finest mills in Italy, and we are open and willing to speak with any and all global suppliers,” Gorman said. “Our owners have many years of experience, not only in running their own operations, but sourcing globally as well.”

South America is a strong partner for leather suppliers and new opportunities are emerging, according to industry sources. Bill Martin, director of Franklin Furniture Institute, said he thinks near shoring will become a key strategy for many companies.

“I’ve heard one or two companies say they’re looking at Argentina for supply of leather,” Martin said. “South America and Mexico are good options to increase speed to market. From Mexico through a Gulf of Mexico port, it takes four to five days. Some companies have said that they could have product shipping by rail with a three-to four-day delivery.

“Near-shoring in the Americas will probably be more prevalent than reshoring, as the U.S. is continuing to work on replenishing the labor pool with the skills needed,” Martin said. “Reshorenow. org has a total cost of ownership (TCO) calculator to help companies take into account over 30 relevant cost and risk factors in making a sourcing decision.”

Cary Benson, CEO of Palliser Furniture, said that Mexico is an important source for his company, citing 15 years of production experience there. Its proximity to the company’s customer base enhances delivery reliability and speed.

“The ability to take advantage of all three countries in the North America Free Trade Agreement provides us with the ability to offer a large variety of choice and to produce the orders quickly so we can deliver to our retailers in four weeks or less,” Benson said. “Mexico manufacturing allows us to be competitive with Asian producers yet provides us with the ability to deliver products much quicker.”

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