Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 15, 1993 TAG: 9304150131
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: Associated Press
DATELINE: HIGH POINT, N.C. LENGTH: Medium
FURNITURE MARKET OPENS TODAY
Higher prices caused by the lumber shortage shouldn't stop furniture retailers from placing orders at the wholesale furniture market, which opens today."The story of this market will be price increases of between 4 and 7 percent," said analyst Jerry Epperson, who follows the furniture industry for Interstate-Johnson Lane.
"It's because of the increase in lumber prices," he said Wednesday. "It's not just affecting the cost of solid wood, but everything from that to particle board. Everything's up."
According to Appalachian Hardwood Manufacturers Inc., a trade group representing sawmills and distributors in 12 states, the lumber shortage plaguing the industry won't end soon.
"It took us more than four years to get into the supply problem in which we find ourselves today," said Wendell Cramer, the group's president, who owns a lumber company in Hickory, N.C. "I don't think it's reasonable to think we can pull out of this situation in a few short months."
However, higher lumber prices shouldn't be enough of a reason to stop retail buyers from writing orders, Epperson said.
"There will be a lot of refurbishing of retail floors because they need to build up their inventories," he said. "We're seeing stores doing things like spending money to advertise. If they are doing that, they better have stock on hand."
As he spoke, the streets of High Point were already jammed with early arrivals for the nine-day show. Twice a year, the small North Carolina city is transformed into the mecca of the world's furniture industry.
The market pumps about $219 million into the area's economy, as buyers, dealers and other visitors frequent area hotels, restaurants, shows and shops.
Each April and October, nearly 70,000 people from all over the United States and more than 75 foreign countries come to High Point to view the latest wares of 1,900 manufacturers. The International Home Furnishings Market is the largest furniture show in the world.
The nine-day show runs through April 23. Orders placed during the market are considered a good barometer of the mood of retailers because they are for shipments several months down the road.