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The
supply chain for more and more lines of furniture begins in Latin America
these days, where an ample supply of raw materials and competitive pricing
have become a significant advantage for many U.S. based resellers of office
furniture. Right now Brazil and Mexico are leading the pack in furniture
manufacturing for the United States markets, although many other countries
are jumping on board in the production of office and other furniture.
Guatemala, for example, has 4.4 million hectares (almost 11 million acres)
of forest in areas ranging from the cloudforests
of Alta Verapaz to the tropical hardwoods of the coastal regions.
All of these areas are home to precious woods and supply the raw materials
to a healthy furniture industry.
Brazil, by comparison, boasts single sections of protected forests
as large as 15 million hectares (that’s over 37 million acres) each. For
this reason, Brazil remains strong in its top furniture exporting position
above all other Latin American regions.
Generally speaking, the quality and craftsmanship of Latin American produced
office furniture can be extremely high, and the cost of goods as compared
to Asia can be quite a bit less simply due to the proximity of the geographies.
Various areas are also known for specific strengths and styles of furniture
production. Mexico, for example, is extremely well known for producing
rustico style furniture and heavy pines, while office and other furniture
manufacturers in Guatemala’s Coban
and the Verapaces are well known in the export market for high quality
furniture made of extremely fine woods. Chile and Brazil are now manufacturing
all sorts of furniture styles, from desks and chairs to bedroom sets and
armoires from various materials.
The logistics of a supply chain beginning in Latin America can be a challenge,
as shipments of furniture are almost always dependent upon shipping and
full containers. Desks and bookcases may sit at a port for weeks while
they wait for a container that can be filled with them that’s heading
to a final U.S. destination, and that can cause delays in getting furniture
to the retailer and finally into the home office of the customer. Because
Latin American locations are closer to the U.S., it is not uncommon for
Latin American producers to ship certain pieces by air, which, although
more expensive, IS a viable option in the case of a rush order.
Man Mexico furniture producers and many Central American production sites
are very close to United States shipping locations – a trip
to Guatemala or Southern Mexico can be just a few hours flight from
the United States.
The future looks good for Latin American furniture production, as many
United States based retailers and furniture resellers are looking to expand
the lines and percentages of office and other furniture offerings that
are sourced in Latin America. As the various countries begin to explore
the increasing economic importance of the furniture industry, they are
refining their production and delivery processes and turning the furniture
markets into viable business opportunities. While larger countries like
Brazil and Mexico are investing in production facilities, shipping and
logistics, there are a number of other areas of investment potential in
the Latin American furniture industry. In Central America, for example,
there is a growing number of opportunities in reforestation. Recently,
official economic data on the annual growth of pines has become available
in various regions of Guatemala.
Wherever it is made and wherever it is sold, furniture and office furniture
is sure to be enjoyed and appreciated all over the world for years and
years to come.
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