VISION FURNITURE NEWS & INFORMATION

Chiavari Chair Industry Outlook / Furniture Outlook for 2008

In 2008, the event products industry should see general pricing increases due to Chinese inflation with increasing cost of goods and raw materials and also the effects of the strengthening Chinese RMB Currency.

In fact, 2008 will be a year of higher prices for Chiavari Ballroom Chairs and other high quality event seating products.

In the last year, the Chinese RMB has strengthened almost 10% with the US Dollar. For many years, the RMB had been pegged at 8.28 RMB / 1 USD. In 2005, the currency was deregulated and now left to market forces. As demand for Chinese goods increase, so does the strength of the Chinese currency. The USD to RMB is currently at 7.15RMB/USD, which is a 13.6% decline in the USD value since the deregulation 2 years ago. In the last 12 months, the RMB has strengthened by 8.44% and, it has strengthened 2.17% year since January 1st, 2008. Bank analysts believe that the RMB will be under the 7RMB/USD by the end of the year.

Therefore, a change in exchange rate has a great effect on Chiavari Chair prices. If the RMB strengthens by 8.44%, then it takes 8.44% more US Dollars to procure products and raw materials.

High quality Chiavari Chairs will cost more to produce because of increased costs of high quality raw materials and also the effects of the exchange rate.

Cheap priced Chiavari Chairs will still exist as some factories choose cheaper grade raw materials and inferior practices to save on costs. However, most producers will be forced to raise prices in order to survive.

However, the good news is that High Quality Chiavari Chairs will still be available at a great value from China.

But, customers should expect to pay more in 2008.

Any customers that are intending to place large volume orders soon, should contact our office immediately.

Anthony Tokarchyk
President

Vision Furniture Int’l

Philadelphia, PA