Stiles' executive conference explores U.S. competitiveness. (Trends & News).

Approximately 100 industry executives from around the country attended "Visions for the Future of Woodworking," an executive briefing held June 20-2 1 in Grand Rapids, MI. The event was cosponsored by Stiles Education and Grand Valley State University.

Peter Kleinschmidt, president of Stiles Machinery, said the conference was designed to expose U.S. wood products manufacturers to strategies and technologies that can make their operations more competitive, particularly in view of soaring wood furniture imports entering the country from China.

Noting that the U.S. is rich in wood resources, skilled workers and technological know-how, Kleinschmidt, said, "I think (traditional U.S. residential furniture makers) have made a very clear and serious mistake in having their products made in China. I believe the U.S. can be the world leader in furniture manufacturing, but our products cannot be cheap. We have to make unique, higher-quality products" that take advantage of new technologies to more effectively compete, he said.

Kleinschmidt said it is important that U.S. wood product manufacturers who want to stay in business begin taking the necessary actions to invest in their futures or suffer the consequences. "I will make the prediction that we will see Chinese furniture factories here in the U.S. within five to 10 years," he said.

Consultant Art Raymond, the leadoff speaker on June 21, concurred with Kleinschmidt's sentiments. He noted that the annual rate of U.S. home furniture sales from foreign sources has gone from 20 percent in 1990 to 50 percent in 2001. He predicted that Chinese and other foreign manufacturers of furniture will ultimately sell direct to U.S. retailers, cutting out many of the U.S. furniture makers that are currently partnering with them.

Raymond said fundamental problems with the U.S. furniture industry is that companies build too low of volumes of too many products, and incur high labor content and low profitability, In addition, he said furniture companies spread their capital investments too thin by trying to do everything by themselves. He suggested that furniture companies standardize parts when possible and outsource more components so that they can more strategically utilize their limited capital investment budgets. "If you don't continue to invest in your operations year after year, you're going to die," Raymond said.

Keynote speaker Joyce Giola, president of the Herman Group, said the furniture companies are acting like "ostriches with their heads in the sand. Everyone is afraid to be the first to take risk, to make a mistake. They need to look for way to use technology to work with fewer people."

Gioia added that as baby boomers begin to retire, a massive manpower shortage will occur. "By 2010 there will be a 10.3 million shortfall of workers," she said.

Some of the other topics covered by the conference included benefiting from manufacturing information data, maximizing automated production technology and lean manufacturing.

Stiles Machinery plans to make the conference an annual event that travels to a different city each year.