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Report
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North America
More on antidumping duties on Chinese flooring
The US Department of Commerce announced on May 20
its decision to place preliminary anti-dumping duties on
multilayer (engineered) wood flooring from China.
The anti-dumping duties are in addition to preliminary
countervailing duties of 27.01% for most Chinese
manufacturers. The anti-dumping rates were set at 10.88%
for 74 manufacturers, 0% for two manufacturers and
82.65% for over 100 manufacturers.
The Department’s decisions to put countervailing and antidumping
duties on multilayer wood flooring from China
were based on preliminary findings that found most
Chinese manufacturers received financial government
assistance in 2010 and that exports to the US are prices
below their cost of production.
The combined preliminary duties range from about 13% to
almost 110%. The final rates will be released later this
year after Department officials verify data provided by
Chinese producers.
USDA to promote wood as green building material
The US Department of Agriculture (USDA) has directed
its agencies to select wood over other building materials in
new building construction and commit to green building
certification.
The Department is also expanding to all its agencies the
policy of the US Forest Service of using locally produced
wood products as the preferred building material.
Of perhaps greater impact is the Department’s direction to
the US Forest Service to expand research and development
projects with green building materials, including nonresidential
construction projects that use wood as a
building material.
High unemployment a drag on the economy
Labour market data released by the US government in
early June disappointed the timber industry. While the
labour market improved at the start of the year, the US
economy added only 54,000 jobs in May. This was the
lowest number in eight months and the unemployment rate
went up from 9.0% in April to 9.1% in May.
The economy needs to add at least 100,000 jobs per month
just to keep up with population growth and at least double
that to reduce unemployment. While employment in the
private sector rose, budget cuts at the state and local
government level contribute to the stubbornly high
unemployment figures.
Local governments have cut almost 500,000 jobs since
2008. Government job losses are not only due to
rationalisation efforts but also because federal aid to states
has not been extended.
High unemployment is a drag on the economy as is the
hung federal budget debate. In early June the ratings
agency Moody’s threatened to downgrade the US’ debt
rating if the country’s statutory limit on borrowing is not
raised by July.
A number of external factors had a negative impact on the
US economy this year (snowstorms, the natural disasters
in Japan, floods and tornadoes), but they are probably not
the main cause of the weak economy.
The rise in gasoline prices in recent months was an
important factor in reduced consumer spending. Consumer
spending accounts for about 70% of the US economy.
US consumer confidence fell in May
Consumer confidence fell in May to a level below that of
November 2010 according to the monthly survey by the
Conference Board. Americans are still worried about the
economy, the housing market and now about high gasoline
prices.
Inflation has gone up but Americans do not expect their
income to rise accordingly so they curb spending. The
consumer confidence index is still below the level at the
start of the recession in December 2007.
For retailers, consumer confidence is less of an issue than
consumer demand and interest rates according to the 2011
BDO Risk Factor Report for Retail Businesses.
Furniture orders up but retail turnover remains slow
The first quarter of 2011 was positive for many furniture
manufacturers and distributors in the US with orders and
shipments outpacing that in the first quarter of 2011.
According to government figures, however, retail sales of
furniture and home furnishing declined in April although
sales are still slightly higher than last April.
Of all retail categories tracked, furniture and home
furnishing came in last. The Furniture Buying Index
dropped in May back to March levels because consumers
remain concerned about the economy and gasoline prices,
according to America’s Research Group who compiles the
index each month from interviews with 5,000-8,000
consumers across the country.
Orders for residential furniture increased by 14% from
February to March 2011 according to the Smith Leonard
survey of manufacturers and distributors.
New orders were also higher this year compared to March
2010 (+11%). Furniture shipments were also up compared
to March 2010 (+7%). Furniture inventories remain high at
16% above March 2010 levels.
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