Free Newsletter
HIGH POINT – Over the pandemic, an influx of furniture suppliers sought to set up sourcing in Mexico. They wanted to avoid the severe supply delays and disruptions seen at the time, as well as ocean container rates that had soared nearly 10 times higher than their historic average.
Mexico was obviously a strong option, as it allowed suppliers to avoid ocean travel altogether, while still allowing for cheaper labor costs.
Four furniture suppliers – Legends Furniture, A-America, New Classic and American Woodcrafters – were just some of those to set up operations there, successfully launching new collections sourced from the country. The country represented a strong value proposition at first, but each began to wane their operations there as supply issues eased overseas and container rates plummeted. As of last April market, all four had either paused all operations there or had slowed down significantly.
This market, however, one of those companies – American Woodcrafters – returned to the region with a new collection: Santa Cruz.
“We did some scouting and found a factory that was run by a younger guy, and we liked him,” said Rusty Morris, vice president of sales and marketing. “We originally developed Santa Cruz for Indonesia, but we didn’t like it with the finish.”
But why the return?
“One advantage Mexico offers is better SKU management,” Morris said. “Minimum order requirements (MOQs) are larger for overseas and Indonesia. In Mexico, it’s more manageable to do smaller cuttings and with less of an investment.”
The initiative back to Mexico was largely led by Smith Foster, son of company president, Chuck Foster. The 23-year-old Smith is third generation and is being groomed to lead the company one day, Morris said.
“We’re really excited about the youthful presence in this partnership,” he said. “Smith worked with the factory in person and helped develop the line.”
The new collection includes all the categories offered by American Woodcrafters: bedroom, dining, entertainment and occasional. It also represents the first time a collection has featured all categories from the get-go. Features include solid pine construction, a rustic wood finish and natural distressing. In bedroom, a low-profile platform bed is offered, while dining options include a solid wood top table, upholstered side chairs and a server with four drawers.
The collection will be stocked in the company’s High Point warehouse, with an option to purchase by truckload. Pricing is in the company’s usual mid-range, with a bed retailing between $899 to $1,299.
Speaking about business overall, Morris said the company is up from a year ago, but just slightly. It continues to see more business from bigger retailers. Morris also believes the company is picking up some market share due to closures of its competitors, notably Klaussner.
