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Villa Hallmark

Challenges Facing Today’s U.S. Furniture Manufacturers

Post by Chris Dominguez

 

The past 18 months have been challenging in so many ways, affecting every area of the world, every business, and every individual differently. As we all move towards a post-pandemic world, the challenges persist and are extremely nuanced. Here at Villa Hallmark, and in the broader U.S. furniture industry, we face an ever changing market environment manifesting in a few ways.

– Supply Chain Shortages & Bottlenecks: our vendors have notified us of both supply shortages and bottlenecks. This challenge has broadly affected our ability to procure lumber, fabric, metal, and foam, all of which are critical in our manufacturing processes. The reason for these shortages vary widely, from regulatory and trade tariffs, increased commercial and retail demand for raw materials and staffing challenges producing these materials.

– Increased Commercial and Retail Demand: as the country collectively moves toward both life and business as usual, demand for furniture has increased steadily month after month. Although we do not service retail customers here at Villa Hallmark, we often compete for the same raw materials with retail furniture companies; which have had increased volume while many American’s remodeled their homes during the pandemic. As many of the pandemic restrictions are being lifted throughout the country, we have had a surge of new orders destined for senior living facilities, hotels, and restaurants alike.

– Labor Challenges: with quality at the forefront of our production priorities, we have faced challenges in hiring and retaining staff during the pandemic. Most of our positions often require years of relevant experience and skills, which has been hard to find in this market. In response to this complex situation, we have began cross training many of our team members, allowing them to take training and mentorship from both our experienced management and senior staff members. Many of our vendors have also reported similar staffing issues, contributing to longer lead times.

The above listed challenges have increased our overall costs of doing business as well as our average lead times from 6 weeks to 8-10 weeks in some cases. These issues carry with them a compounded effect on all parties. We will continue to be communicative and transparent about these changing market conditions. As we carry on our tradition and commitment of quality, U.S. made furniture we appreciate your understanding and your business.

Tagged as challenges, demand, labor, supply chain

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Villa Hallmark
6077 Rickenbacker Rd.
Commerce, CA 90040

  • Phone: 800.773.5880
  • Phone: 562.926.5885
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