Imports Still Growing as China Devalues Yuan: Imports of Household Furniture, Imports of Wood and Upholstery, U.S. Exports by Top 3 Countries 2002 to 2015Q2
November 25,
2015 by in General 
Total U.S. Imports of Household Furniture by Country 2002 to 2015 YTD
While the furniture industry in China has been threatened over the past few years due to rising labor costs and labor shortages, U.S imports continue to increase from China alongside a growing Vietnam Wood manufacturing presence. The recent devaluing of the Yuan could go a long way to strengthen China’s hold on U.S.
China’s exports to the U.S. have grown to over 60 percent of total U.S. imports – up 20.6 points from 2002 to 2015 Q2. Since the peak of the recession in 2009, the value of imports from China has grown 52.4 percent to $14 billion.
Most noticeable is Canada’s decline alongside Vietnam’s rise. Vietnam jumped from a half percent to over 10 percent of U.S. imports in the past 13 years while Canada has dropped from 18.3 percent in 2002 down to 5.5 percent in 2015 Q2 – a decline of 12.8 points. As the fourth largest importer, Mexico accounts for 4.8 percent of total imports in 2015 Q2 – 0.8 points shy of 2002.
Imports of Wood and Upholstery Household Furniture by Country in Selected Years (Top 4 Countries)
While the furniture industry in China has been threatened over the past few years due to rising labor costs and labor shortages, U.S imports continue to increase from China alongside a growing Vietnam Wood manufacturing presence. The recent devaluing of the Yuan could go a long way to strengthen China’s hold on U.S.
Wood household furniture imports totaled $9.8 billion in 2014 and are up 10 percent in the second quarter of this year compared to 2014. China still commands the Wood category at $3.7 billion wholesale in 2014, but has lost significant share over the last ten years to Vietnam.
Vietnam’s 2014 imports have grown to $2.2 billion, up from only $60 million in 2002. Through the second quarter of this year, China’s Wood imports have grown only 7.0 percent compared to Vietnam’s 23.9 percent, closing the gap even further. Malaysia continues a steady Wood niche but controls less than 6 percent of Wood imports.
Unlike the Wood category, China has virtually no competitors in Upholstered goods in the U.S. marketplace. In the early 2000s China began to make its move with Upholstery imports of only $543 million in 2002 and grew to $3.9 billion by 2014. Essentially China has taken market share from U.S. producers as the secondary countries – Mexico and Canada – have struggled just to maintain shipment levels. Through the second quarter of this year, China upholstery imports are up another 15.2 percent over the same period last year. Vietnam has slowly tried to enter the U.S. Upholstery market, but had only grown to $293 million in 2014.
Source: U.S. Census Bureau, Foreign Trade
Total U.S. Exports by Top 3 Countries 2002 to 2015Q2
Although the United States exports a fraction of furniture compared to imported goods, exports have continued to rise since 2009 and surpass the peak highs of 2007. Well over half of the $3.4 billion in U.S. exports are to Canada. Mexico has steadily increased as the second largest importer of U.S. furniture – up 92% from 2002 to 2014. In the last 13 years, China has gone from 0.7% of total U.S. furniture exports to 3.6% in 2015Q2.
Although exports have been growing, they are not approaching the growth in imports being fueled by China. And while the furniture industry in China has been threatened over the past few years due to rising labor costs and labor shortages, U.S imports continue to increase from China alongside a growing Vietnam Wood manufacturing presence. The recent devaluing of the Yuan could go a long way to strengthen China’s hold on U.S.
Source: U.S. Census Bureau, Foreign Trade