FURNITURE MANUFACTURERS IN THE EAST FEEL THE COOL WINTER CHILL AS JOB LOSSES AND CLOSURES MOUNT UP

29th October | imports | Furniture manufacturers in the Far East are facing their biggest ever crisis as Western buyers shun imports following the global financial meltdown. Suppliers across Asia are either closing or laying off staff as export figures drop, with China, Indonesia, Vietnam and Thailand among the nations to express serious concerns.

More than 9,000 factories in China’s Guangdong district, home to many major furniture manufacturers, are expected to close, while suppliers in Indonesia have reported a 40-60% fall in export orders from Western countries. The Government in Vietnam, one of the fastest growing economies of the past decade, has downgraded its expectations for exports of furniture over the next 12 months, while in Thailand, the Federation of Thai Industries has warned that up to 20% of its manufacturing workforce may have to be laid off as export orders fall.

The problems of these emerging manufacturing nations are not confined to the macro-economic climate alone – China has also been hit by a number of product safety related issues. These include the well-documented problems of sofa suppliers Linkwise and Eurosofa – which are at the heart of a group litigation case accusing the Chinese firms of causing ‘sofa burns’ due to a mould-preventing sachet inserted into the body of their upholstered furniture.

The lawyers leading the case have just completed a major marketing campaign aiming to round-up affected consumers in advance of the next hearing in December. More than 3,500 consumers are understood to have been confirmed so far, with Land of Leather, Argos and Walmsleys among the UK retailers to have been named as selling the affected suites.