Singapore furniture firms to conduct business mission to US

Aims to boost business with world's largest furniture importer as firms capitalise on US economic rebound.

International Enterprise (IE) Singapore and the Singapore Furniture Industries Council (SFIC) will be leading the first-ever business mission for Singapore-based furniture companies to seek growth opportunities in the contract hospitality furniture and furnishing sector from 13 to 21 May. This marks a new thrust by IE Singapore and SFIC to open new channels for Singapore furniture players overseas.

While previous efforts have focused on the promotion of overseas sales of residential furniture pieces, IE Singapore and SFIC will also be helping Singapore furniture players gain greater mindshare among hotel owners and operators based in the United States of America (USA), according to an IE and SFIC report.

Despite the economic downturn in 2009, the USA remained the global furniture trade's growth driver and world's largest furniture importer, with imports valued at US$32 billion. Particularly as the US economy recovers, and consumer and business confidence start to rise, there will be a corresponding increase in furniture demand from the USA. Singapore furniture companies who have established footprints in the USA include Cheng Meng Furniture Co, Design Studio and HTL Holdings. Eurosa Furniture Co, Unicane Furniture, Falcon Incorporation and MLC Marketing are some of the Singapore furniture companies who are seeking growth opportunities in the country. As the third most popular market for Singapore furniture players after Europe and Malaysia, there is much room for more Singapore furniture players to grow within USA, particularly in the hospitality contract furniture segments, which stand at about US$10 billion in 2008. In addition, as of March 2010, there were a total of 3,399 active USA hotel developments in the pipeline, comprising over 354,000 rooms.

Fourteen representatives from 10 local furniture companies are joining IE Singapore and SFIC on this business mission to the USA. The companies are Cheng Meng Furniture Co, Customised Inc, Eurosa Furniture Co, Ewins, Falcon Incorporation, Kawashi Intl Singapore, Getz Bros & Co, Unicane Furniture, Nobel Design Holdings and V-Mark Woodcraft.

The delegation, led by Mr Andrew Ng, President of SFIC, will first visit the renowned global furniture design summit at the International Contemporary Furniture Fair 2010 (ICFF) in New York City. The group will then proceed to Washington DC where they will attend a briefing session by the US General Services Administration Integrated Workplace Acquisition Centre to learn about the requirements and procedures to earn government business contracts. The mission will wrap up their 10 day visit with business appointments at the Hospitality Design Expo in Las Vegas, and attending Hospitality Design Green Day, a global conference dedicated to sustainable hospitality design.

Mr Ng said: "This mission is a very important one for the Singapore furniture industry. The involvement of SFIC members in the recent construction of the two Integrated Resorts in Singapore will boost their portfolios, giving them added leverage in the US government and private sector market while reinforcing our industry’s world-class reputation for being reliable and trustworthy. Securing a foothold in the US government and private sector will also see more business opportunities opening up for other companies in various furniture-related sectors such as lightings, furnishings, carpeting, flooring, and maybe even office electronics."

Adding on, Mr Tan Soon Kim, IE Singapore's Lifestyle Business Group Director elaborated, "In Washington DC, we would be introducing companies to relevant multipliers to learn how to tap on the US government procurement market, and in New York and Las Vegas, IE Singapore will be matching our companies to buyers in the hospitality contract sector to source for opportunities. Headquartered in Singapore with factories diversified across Asia, our furniture companies can help buyers mitigate sourcing risks and lower production costs whilst maintaining the quality output that Singapore-managed companies are known for. They have also built up a good track record of supplying to customers worldwide. These qualities stand our companies in good stead to supply to new and refurbishment works in the USA, Asia and the Middle East. IE Singapore will continue to work closely with SFIC to drive the promotion of this sector to international buyers in the USA and around the world."