Mexico Now Fastest Growing Furniture Exporter to U.S.

New numbers put Mexico as the third largest exporter of furniture to the U.S., behind only Vietnam and China.

Exports of furniture to the United States from Mexico have grown more than 65 percent over the past five years, accelerated by the pandemic that motivated domestic companies to look for reliable sourcing partners closer to home, new research shows. With ocean-going freight rates exploding over the past few years and supply chains getting increasingly stressed by political and economic factors, Mexico has increasingly gained market share in the U.S. market.

According to published reports, Mexico outpaced the growth of its Asian rivals in China, Malaysia and Indonesia. The country’s share of the U.S. market even grew faster than Vietnam, the second biggest gainer, by almost 25 percentage points.

Asia.

“I think there’s going to be a place for Mexico longer term for furniture,” Bill Smith, vice president of business development and ales for CV International, a global logistics supplier, told the Furniture Today business publication. “Even Chinese companies have set up shop in Mexico.

“The container rates certainly did exacerbate the situation, but people wanted closer to home anyway. For those that are finding success there, lead times are much shorter, as in days, not weeks. It gives them greater flexibility. Labor rates are favorable; it’s as cheap or cheaper than in China.

Flexsteel, the case goods and upholstery supplier, told the publication it has been doing business in Mexico for two decades, with about half of its upholstered product sourced there. “We’ve been there for 20 years, and we continue to make investments there,” said David Crimmins, vice president of sales. “We have everything established there and a strong supply chain to support. Labor availability is great. The market we’re in, unemployment is relatively low (and) the dedicated workforce is very attractive. Focusing on Mexico allows us to consolidate and have greater efficiency and speed.”

Some vendors said Mexico must continue to improve its infrastructure and U.S. companies should be looking further into the country, not just focusing on resources closer to the border. They also said the workforce will continue to improve, the standard set by the Chinese labor pool will take some time to catch up with. But most continued to believe in Mexico as a real alternative to China, Vietnam and other Asian suppliers.