Thursday, April 16, 2009

Major Exporters

There is a handful of large-scale furniture exporting countries in the developing world. China’s exports have been growing 20-30% per year and it is passing Italy as the world’s biggest exporter. China’s export value reached US$12 billion in 2005. The largest European countries (Germany, France, Spain) and Canada are major exporters to their neighboring countries and to the United States.

Other Asian countries like Indonesia (exports US$1.3 billion), Malaysia (US$1.45 billion), Thailand (US$1.0 billion) and the Philippines (US$0.3 billion) have been able to create significant export industries, but have more recently become suppressed by China’s dominant supply position. Vietnam (US$1.15 billion), on the other hand, is increasingly challenging even China in labor cost comparisons, and it has seen its furniture exports surge in the past five years. On the long term, China will champion the mass furniture segment with the help of the abundant labor reserves. However, the availability of wood poses a major challenge to China.

From Latin America, Brazil is the biggest exporter with US$0.78 billion furniture deliveries. Mexico was the second supplier with US$0.68 billion. Both countries benefit from proximity with the United States market. African countries are insignificant in international furniture trade.

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