
The report says that some retrenchment in consumer spending will slow gains. Continued strong increases in imports, particularly inexpensive products from low-cost countries, will limit value gains. Both the grill and furniture segments will match the industry’s overall pace. Grill sales will be supported by demand for premium, highly featured grills and furniture sales bolstered by solid gains in metal furniture and cushion and covers. Imports have had a significant share of the U.S. outdoor furniture/grill market. With double-digit increases in the past decade, imports now account for more than three-fifths of total outdoor furniture and grill demand in 2008. Much of this growth comes from Chinese suppliers increasing their penetration of the U.S. market. Chinese imports rose fivefold between 1998 - 2008, from 14% of total U.S. demand to 43%. The report says Chinese suppliers have taken significant market share from U.S. producers as well as taking share from other suppliers throughout Asia. Some imports increases are the result of U.S. companies shifting production to China. Many leading retailers of outdoor furniture and grills source at least some private label products from Chinese suppliers, often on a short-term contract manufacturing basis.
Source: The Freedonia Group |
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