Canadian Furniture Industry Research Report North America & Global Economy CPL2-561-781 - 3536 CANADIAN FURNITURE INDUSTRY RESEARCH REPORT Yan WANG Yixiong CAO #260057671 #260044885 March 1, 2004 1 Canadian Furniture Industry Research Report CONTENTS 1. Foreword………………………………………………………………………………3 2. Executive Summary………………………………………………………………….4 3. Introduction …………………………………………………………………………...5 4. Structure and Performance 1) Global Market ……………………………………………………………………7 2) Domestic Market ………………………………………………………………. .8 3) Performance ……………………………………………………………………10 a) Growth of Canadian Manufacturing Shipment………………...............12 b) The increasing of the labor force…………. …………………………….12 c) Net Revenues in Principal Establishments .…………………………….14 d) Economic factors…………………………… …………………………….14 5. NAFTA and Restructuring 1) Export and Import with NAFTA number ……………………………………..16 2) Consolidation and restructuring ……………………………………………...17 4) The large establishments increased their market share………………….. 18 5) Workers’ productivity…………………………………………………………. 19 6) Domestic production and Employment ……………………………………...20 6. Competition from the Emerging Market 1) Exports and Imports……………………………………………………………21 2) Impact on Canadian Firms…………………………………………………… 23 7. Conclusion …………………………………………………………………………..24 8. Tables ……………………………………………………………………………….25 9. Industry Associations……………………………………………………………….36 10. Reference ………………………………………………………………………….37 2 Canadian Furniture Industry Research Report FOREWORD The structure of the world economy has been fundamentally transformed over the last several decades. In a rapidly changing global trade environment, the international competitiveness of Canada industry is the key to growth and prosperity. This report offers a comprehensive picture of the furniture sector in Canada, including furniture industry structure, global Market, domestic market and performance, providing trends in furniture production and consumption, furniture imports and exports, establishments, intensity, employment, wages, industry net revenue, furniture distribution and industry performance in Canada for the ten more recent years. Industries are defined according to the North American Industry Classification System (NAICS). This report also analyses the implementation of the Canada–US Free Trade Agreement (FTA) in 1989 and the North American Free Trade Agreement (NAFTA), which paved the way for the strong growth of the Furniture Industry trade in North American. Canada has been a full participant in, and beneficiary of these developments, due in large part to its strengthening economic linkages with other North American economies. We also address the competition from the emerging market, especially from mainland China. In our conclusion part, we briefly generate the strength, weakness, opportunity and threat faced by Canadian furniture industry. 3 Canadian Furniture Industry Research Report Executive Summary of Canadian Furniture Industry Research Report Definition of furniture industry: The Canadian furniture manufacturing is made up of the household and institutional furniture & kitchen cabinet manufacturing, the office furniture (including fixtures) manufacturing, and other furniture-related product manufacturing according to the North American Industry Classification System (NAICS 1997). Structure and Performance: Global Market: Canada is the 2nd largest exporter of furniture in the world and the number one exporter of furniture to the United States. The United States was the main export and import market. Providing details in market share by provinces. Domestic: Canadian domestic production of furniture expands in recent years, including the market share by provinces. Providing details in number and size of establishments and employees, the total wages and salaries in Canadian local market. Performance: Historically, industry growth has been steady. Production, shipment, intensity, employment and net revenue all increase in recent years. NAFTA and Restructuring Since NAFTA has been implemented in 1994, it dramatically extended the export of Canadian furniture industry. Most of the trades are conducted within the NAFTA numbers. Furniture industry went through the profound structure after NAFTA. Large player expand their market share and become more and more competitive while the small ones lost their market shares, merged by larger ones or disappeared. As a result, the productivity and the employment increased after NAFTA. Competition From the Emerging Market Like their brethren south of the border, Canadian manufacturers are facing stiff competition from lower-cost producers in China. The more and more importation from emerging market is not trade diversion. Furthermore, according to the comparative advantage theory, Canada gets benefits from importing some low priced furniture from emerging markets while they direct more resource to develop and manufacture higher value-added products to export. Moreover, because the furniture from emerging market do not have the advantage of a 0 tariff, Canadian sovereignty is not damaged. Conclusion In general, Canada get benefit from NAFTA and Canadian competitive edge will be kept for a long time. Canadian furniture has some strength while having some weakness at the same. Currently, Canadian furniture faces some good opportunity from the restoring of US economy and the huge market volume of the emerging market such as China and India. But Canadian furniture is facing some competition from the emerging market. 4 Canadian Furniture Industry Research Report Introduction The Canadian furniture manufacturing is made up of the household and institutional furniture & kitchen cabinet manufacturing, the office furniture (including fixtures) manufacturing, and other furniture-related product manufacturing (Table 1), according to the North American Industry Classification System (NAICS 1997). “The household and institutional furniture & kitchen cabinet manufacturing consists of establishments primarily engaged in manufacturing furniture designed for use in households; institutions such as schools, churches, restaurants and other public buildings; and wood kitchen cabinets, bathroom vanities, and counters. The office furniture (including fixtures) manufacturing comprises establishments primarily engaged in manufacturing furniture designed for office use, such as office chairs and desks; and office and store fixtures, such as showcases. Establishments primarily engaged in manufacturing furniture parts and frames, for all types of furniture, are also included. Other furniture-related product manufacturing, this industry group comprises establishments, not classified to any other industry group, primarily engaged in manufacturing furniture-related products, such as mattress manufacturing and blind & shade manufacturing.” 1 Canadian Furniture and Related Product Manufacturing industry division 2001 (NAICS) Manufacturing Shipment (% of Total Furniture Industries) ---Data source from Statistic Canada Household and Institutional Furniture and Kitchen Cabinet Manufacturing 9% Office Furniture (including Fixtures) Manufacturing 54% 37% Other Furniture-Related Product Manufacturing 5 Canadian Furniture Industry Research Report In 2001, the household and institutional furniture & kitchen cabinet manufacturing accounted for 54 percent of total furniture shipments, while the office furniture (including fixtures) manufacturing contributed to 37 percent. In addition, 9 percent of total furniture manufacturing fell into the “other” category, which includes mattress manufacturing and blind & shade manufacturing, etc (Figure 1). In 2003, the Canadian Furniture Industry Overview 2: The 2nd largest exporter of furniture in the world. Globally competitive. A major contributor to the Canadian economy, employing 103,000 people. Export-oriented with 56% of the production being shipped outside of Canada, mostly to the U.S. 1 Source from Statistic Canada, Canadian Industry Statistics, NAICS 337-Furniture and Related Product Manufacturing Notes: The North American Industry Classification System (NAICS 1997), has replaced the separate standard classification systems, Standard Industrial Classification (SIC 1980), previously used by Canada, the United States, and Mexico. 2 Source from Statistic Canada 6 Canadian Furniture Industry Research Report Structure and Performance Global Market In 2002, the Canadian furniture manufacturing shipped products worth nearly $13.4 billion (Figure 2). Export played a significant role; they amounted to $7,487 million, or 56 percent of furniture industry shipments. In the same year, the Canadian market for furniture was $9.7 billion of which 61.6% was supplied by the domestic industry and the balance by imports. Import worth $3,726 million. Canadian production comprises 37% household furniture (including mattresses), 44% office and institutional furniture, 16% wood kitchen cabinets and counter tops, and 3% other manufactured products (blinds and shades). Figure 2 - Canadian Import, Exports and Domestic Shipments,2002 ($ millions) ---Data source from Statistic Canada 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Exports Dometic shipments Imports Canada is the 2nd largest exporter of furniture in the world and the number one exporter of furniture to the United States. The United States was the main export market, absorbing $7,230 million, or 96.57 percent of Canadian furniture exports (Figure 3). The second exports market is Mexico, which absorbed $33 million, or 0.44 percent of Canadian furniture exports. The following 1.52 percent of Canadian furniture exports was absorbed by China, U.K., France, Japan, Taiwan, Netherlands, Thailand and Bermuda. The remaining 1.47 percent fell into others countries. Although there are furniture manufacturers across the country, the majority of this sector’s activity is in Quebec and Ontario. In fact, 84.73% of 7 Canadian Furniture Industry Research Report furniture manufacturing exports originate in these two provinces or $ 6,343 million in total furniture exports (Figure 4). Most imports come mainly from the United States (50.57 percent, or $1884 million) as well as China (18.06 percent, or $673million) and Mexico (10.17 percent, or $379 million) (Figure 5). The following big markers are Italy, Taiwan, Malaysia and Thailand. The majority of this sector’s activity is in Ontario, British Columbia and Quebec. 63.18% of furniture manufacturing was imported to Ontario at about $2,425 million (Figure 6). 26.82% of furniture manufacturing was imported to British Columbia and Quebec at about $3,358 million. These three provinces import 90 percent of total furniture imports in 2002. Figure 4- Exports Distribution by Province, 2002 ( % of total Exports) Figure 3 - Market Share of Exports 2002 ---Data source from Statistic Canada ---Data source from Statistic Canada 1% 2% 0% 16% United States Mexico Outside NAFTA (top 8) Others 25% Quebec Ontario Others 59% 97% Figure 5 - Market Share of Imports, 2002 Figure 6 - Imports Distribution by Province,2002 (% of total Imports) ---Data source from Statistic Canada ---Data source from Statistic Canada 8% 13% 10% 12% 51% 10% United States China 15% Mexico 63% Ontario British Columbia Quebec Others Outside NAFTA (top 7) 18% Others Domestic Market In 2002, the total capital investment of the Canadian furniture and related product manufacturing is $3.1 billions, which can be divided into $1.7 billions in machinery and equipment and $1.4 billions in construction. It was 8.9% increasing from 1993 to 2002, and 5.8% increasing of last year (Table 2). 8 Canadian Furniture Industry Research Report In 2002, the Canadian furniture and related product manufacturing industry was comprised of 7,695 establishments that shipped goods of own manufacture valued at $13.4 billion. Looking at the number of establishment in Canada by employment size, category and province, there are 41.1% of establishments have no employees, and 51% of establishments have employees from 1 to 100 (Table 3). 39.4% of total establishments are from Quebec, and 33.7% of total establishments are from Ontario (Table 4). In 2001, the total number of employees is 103,609, increased from 54,976 workers in 1992 (Figure 7). Production employees are 86% of total employees, and 14% of total employees are Administrative employees. By comparison, there are 63,114 employees in Household and institutional furniture and kitchen cabinet manufacturing, and 33,416 employees in office furniture, and 7,079 in other furniture-related product manufacturing. There also was an increase in employment between 2002 and 2003. The total wages and salaries paid by principal establishments is $3.1 billions, including $2.4 billions from production establishments, or 76.8% of total, and $0.7 billions from administrative, or 23.2% of total (Table 5). It was increased 9.1% from 1992 to 2001. Furniture consumption depends on disposable income and construction of dwellings, which depend on the country’s economic growth. In spite of a slowed economy, Canada’s housing market continues to remain surprisingly strong. “According to the Canadian Mortgage and Housing Corp. domestic housing stats for 2002 were the highest since 1989. An estimated 204,857 homes broke ground last year, representing a 25.9% increase over 2001. In October 2002, housing stats hit a 12-year high, reaching a seasonally adjusted rate of 220,000 units, according to the Canadian Mortgage and Housing Corp.” 3 There are some increases in the residential side of the picture picking up the slack for a faltering office and institutional furniture market (Table 6). If we break down home furniture/kitchen cabinet and office furniture spending by each 3 Source from the Canadian Mortgage and Housing Corp. 9 Canadian Furniture Industry Research Report of Canada’s 10 provinces for 2001, Ontario and Quebec combine to represent more than 60% of demand in each of these two categories (Table 7). Figure 8 - Canadian Total Exports and Imports,1994-2003 9,000 8,000 $ Millions 7,000 6,000 5,000 Total Imports Total Exports 4,000 3,000 2,000 1,000 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 0 Figure 7: Number of Employees by Type Principal Establishments, 1992-2001 (NAICS 337) ---Data source from Statistic Canada ---Source from Statistic Canada Performance Historically, industry growth has been steady. Canada exported $7.5 billion worth of furniture in 2002 - growing at a compound average annual growth of 17.3% since 1992 (Figure 8). “The U.S. continues to represent Canada's single largest export market, accounting for about 96% in 2002. Between 1992 and 2002, exports of Canadian furniture were increased by 394.6%. The export orientation of Canadian furniture firms (exports as a percentage of shipments) increased from 32.1% in 1992 to an estimated 56% in 2002. The trade balance in Furniture and Fixtures steadily improved, year after year, from a surplus of $668 million in 1993 to a surplus of $3.8 billion in 2002.”4 Trends and cyclical variations in the furniture industry shipments have paralleled to those of the domestic market, although a loss of market share to imports has resulted in slightly less overall growth (Figure 9). The increase in imports has been offset to a large extent by increase in exports. 4 Source from Statistic Canada, Industry Strategis.gc.ca 10 Canadian Furniture Industry Research Report Figre 9 - Canadian Furniture Industry Market,1994-2002 12,000 $ Millions 10,000 8,000 Exports($ millons) Imports($ millons) Domestic shipments($ millons) Canadian market($ millons) 6,000 4,000 2,000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 “Canada produces a wide array of furniture products for the world market. In 2002, Canada exported $3.7 billon worth of residential, office and institutional furniture to the United States. The Canadian furniture industry has undergone substantial consolidation during the past 10 years. The number of furniture manufacturing plants was decreased by 32 percent between 1990 and 1999, from an increase of 2,571 to 1,748. However, total employment and average establishment size grew from 56 percent and 69 percent respectively. Production is composed of household furniture (including mattresses), office and institutional furniture, kitchen cabinets, counter tops and other manufactured products. Exports have been an engine for growth as Canadian furniture exports increased by 383 percent between 1992 and 2001, including substantial export growth to the United States. The province of Quebec has a vibrant hardwood lumber and processing industry using both domestic and imported woods. In 1999, Quebec furniture industry shipments amounted to $2.0 billion. Approximately half of that was destined for export. Canadian furniture manufacturers export most of their products to the United States and the European Union. Quebec’s furniture industry export orientation increased dramatically between 1991 and 1999.” 5 5 Source from Statistic Canada, Industry Strategis.gc.ca 11 Canadian Furniture Industry Research Report Growth of Canadian Manufacturing Shipment: Between 1992 and 2001, Canadian furniture and related product manufacturing shipment increased so quickly, from $4,712 million to $13.1 billion (Figure 10) or from 1.7 percent to 2.4 percent of total manufacturing industries. In 2002, the total shipment in this industry is keeping on growth to $13.4 billion (Table 8). Figure 10: Canadian Furniture Industry Shipments (1992-2001) Figure 11: Canadian Furniture Industry Export Intensity (1992-2001) ---Data source from Statistic Canada ---Data source from Statistic Canada Between 1992 and 1999, Canadian furniture and related product manufacturing export intensity increased from 31 percent to 67 percent of total manufacturing industries (Table 9). As a result, the export intensity decreased by 60% in 2000 and 54% in 2001(Figure 11). The increasing of the labor force: From 1992 to 2001, there is an increase of 2.2% per annum and a decrease of -0.7% between 2000 and 2001. The number of production employees in the Furniture and Related Product Manufacturing (NAICS 337) sub-sector increased from 44,353 workers in 1992 to 89,053 workers in 2001. Correspondingly, the number of administrative employees in the Furniture and Related Product Manufacturing sub-sector 12 Canadian Furniture Industry Research Report increased from 10,623 workers in 1992 to 14,556 workers in 2001. There was an increase of 6.4% over the course of the most recent year. Analyzing manufacturing shipments per employee over time, this can be calculated by counting all employees or only production workers. Manufacturing shipments per production worker for furniture and related product manufacturing were increased from $106.2 thousand in 1992 to $147.3 thousand in 2001 (Figure 12). From 1990 to 1999, the labor productivity in Canadian furniture industry was increased about $20 per hour (Figure 13). Figure 12: Manufacturing Shipments per Employee Principal Establishments,1992-2001( NAICS 337) Source: Statistic Canada, Employment Figure 13: Labor Productivity_ Output Per Hour Principal Establishments,1990-99 Source: Statistic Canada, Labor (NAICS337) “If one also counts administrative workers, the growth rate over this time span was 4.4%. Manufacturing value added per production worker for the Canadian furniture industry increased by $55.8 thousand in 1992 to $76.4 thousand in 2001, or at average compound annual rate of 3.6% per year. If one also counts administrative workers, the growth rate over this time span was 4.3%.”6 6 Source from Statistic Canada, Industry Strategis.gc.ca 13 Canadian Furniture Industry Research Report Net Revenues in Principal Establishments7: “Total revenues in Canadian Furniture and Related Product Manufacturing have increased from $5.0 billion in 1992 to $14.0 billion in 2001 or by 12.1% per annum on average. In the latest year, the growth rate was 3.2%. Over the 1992-2001 period, manufacturing shipments increased by 12.1% on average, while revenues from non-manufacturing activities increased by 13.0% during the same time span (Table 10).” “Net Furniture revenues and in Related Canadian Product Manufacturing have increased from $1.1 billion in 1992 to $3.9 billion in 2001 or by 15.3% per annum on average. In the latest year the growth rate was 11.0% (Figure 14). “ Figure 14: Net Revenues Principal Establishments,1992-2001(NAICS 337) Source: Statistic Canada, Industry Economic factors: In 2002, 97% of Canadian total furniture exports is export to U.S. Some of economic factors have permitted establishments to benefit from an environment that favors expansion, for example, low interest rates, and the weak Canadian dollar compared to the U.S. dollar, and strong demand in North America, help to explain the exceptional results furniture industries have had in the past ten years. Businesses in the furniture industries are vulnerable to a stronger currency because it can be hit both by export impediments resulting from a stronger 7 Source from Canadian Industry Strategis.gc.ca, NAICS-337_Net Revenues. 14 Canadian Furniture Industry Research Report loonie and the corresponding high rate of imports for cheaper foreign goods. Canadian dollar appreciated for 20% against U.S dollar from 2001 (figure 15). The long lasting strong Canadian dollar value would effect on the export of furniture. After 2000, the decreasing of export of Canadian furniture is partially related with the stronger Canadian dollar value. But, we believe that the Canadian dollar will be weak in future, and the furniture export will be promoted, because of the independence of Canadian economy on the export to U.S. Figure 15: Exchange rates between Canada and U.S, 1986-2004 (CAD$/US$) 15 Canadian Furniture Industry Research Report NAFTA and Restructuring Export and Import with NAFTA number Since NAFTA has been implemented in 1994, it dramatically extended the export of Canadian furniture industry. Most of the trades are conducted within the NAFTA numbers, and only four percent of this business is conducted with the countries outside the continental, although in recent years Imports from China’s mainland and India have increased significantly. Exports to United States reached its peak in 2000, which is 7,394,991,000 USD compared with 2,326,922,000 USD in 1994 (Table 11). The export to Mexico steadily increased since 1994, from 1,834,000 USD in 1994 to 29,014,000 USD in 2003. The growth rate is 185.8% for USA and 1482% for Mexico from 1994 to 2003 (Figure 16). After 2000, the export to United States decreased because of the mini depression of the States’ economy. Exports to United States basically remained the same portion, which is nearly 96% (Table 12), while the portion to Mexico increased from 0.08% in 1994 to 0.42% in 2003. The remaining 4 percent is conducted with other countries outside NAFTA. Figure 16: Canadian Export to USA & Mexico Figure 17: Canadian Import from USA & Mexico Source: Statistic Canada Source: Statistic Canada 16 Canadian Furniture Industry Research Report Imports of furniture from the NAFTA signatories also increased. In 1994, Canada imported 1,099,773,000 USD from the United States and 6,990,000 from Mexico (Table 13).These numbers increased to 1,660,859,000 from United States and 378,466,000 from Mexico in 2003. The increase rates are 64.48% for USA and 4,414.4% for Mexico (Figure 17). The peak of imports from USA also happened in 2000. The import from Mexico increased steadily since 1994. Imports from the United States decreased from 73.13% in 1994 to 45.01% in 2003, while imports from Mexico increased from 0.46% to 10.26% respectively (Table 14). The remaining 4 percent is conducted with other countries outside NAFTA. Consolidation and restructuring After NAFTA, most of the companies in the industry relocated as to define themselves as the North American operations rather than Canadian domestic companies, like 10 years ago. “In order to compete with furniture manufacturers in the United States, on both the American and domestic markets, Canadian manufacturers had to invest in new machinery, develop new products, lower their production costs, expand or build new plants and increase their production capacity.”* There fore, there has been a restructuring in Canadian furniture industry. “The low interest rates in recent years helped promote the investment spending necessary to penetrate the American market. Capital expenditures in the furniture sector came to $262 million in 1998. The rate of growth of these expenditures in these furniture industries clearly exceeded that of the manufacturing sector (increasing 221% between 1993 and 1998, versus 41% for all manufacturing industries). After 1998, capital expenditure declined, but it is still higher than that of other manufacturing sub-sectors.”* 17 Canadian Furniture Industry Research Report “By investing in equipment that relies on more advanced technologies, it is possible to achieve the same production levels as at the start of the decade with fewer workers. It should be pointed out, however, that the furniture and fixture industries remain labor-intensive.”* “Few industries in the manufacturing sector have undergone such profound structural change as the furniture and fixture industries. Among furniture manufacturers, a number of them have been unable to adapt to the new trade context resulting from free trade and the stagnation of Canadian demand.”* The large establishments increased their market share “One of the aspects of structural changes in the Furniture and Fixture Industries is reflected in the increase in market share of large establishments. It seems that they have more easily adapted to the new trading environment that has developed as a result of the Free Trade Agreement. As for the small establishments, some of them could not adapt and had to shut down whereas others grew to satisfy increased demand (the number of establishments with fewer than 100 employees decreased from 1,819 to 1,298 between 1990 and 1996). “ “While the market share of medium-sized establishments remained relatively constant since 1990, that of larger establishments (500 employees and more) rose from 11% to 22%. This increase occurred to the detriment of smaller establishments (fewer than 100 employees) whose share of manufacturing shipments of furniture and fixtures dropped from 55% to 44% (Table 15 – Market Share by Size of Establishment (by number of employees). With additional resources for research and the development of new products, for investment in improved machinery, to attract the best workers and to get information, it is understandable that the large establishments had a greater impact on market globalization than the smaller establishments.” 18 Canadian Furniture Industry Research Report “There are fewer establishments than at the beginning of the decade before NAFTA was implanted, but those that remained have grown. The value of shipments outside Canada has now surpassed the value of domestic shipments. Those establishments that did not restructure to move towards exporting or to increase their efficiency have known more difficult times and some of the previous weak companies disappeared in the market.”* “Having superior resources for developing new products or manufacturing processes that enabled them to lower production costs is plausible as the large establishments have been able to benefit more from the globalization of markets than the small establishments in the furniture and fixture industries”. For the smallest establishments, the conquest of foreign markets may be hindered by certain obstacles: "The main obstacles to the expansion of the activities of small and medium-sized establishments at the world level are lack of information, certain problems of marketing, regulation and market access, difficulty in finding managerial and financial skills, as well as experience" (Table 15).* While much of Canada’s furniture manufacturing is done by small shops, the country also has its share of major manufacturing corporations. There are profiles of some of Canada’s largest players, such as The Global Group, Dorel Industries Inc., OSF (Ontario Store Fixtures) Inc., Teknion Corp., Alexandria Moulding, Shermag Inc., Palliser, and so on (Table 16). Workers’ productivity “A direct consequence of the increase in investments is the increase in productivity of production workers. Apart from a slight decrease in 1993, the productivity of production workers has not stopped growing since the beginning of this decade. In fact, productivity has evolved at the same rate as salaries, which means that labor costs (measured as the ratio of the productivity of these workers to the salary of these same workers) has 19 Canadian Furniture Industry Research Report remained stable. In fact, labor costs have even decreased slightly. For every dollar paid in salary in 1996, every worker produced $2.73 of value added, an increase from $2.67 in 1991. The Furniture and Fixture Industries controlled their labor costs in 1996 even more than the manufacturing sector as a whole. Whereas for every dollar paid in salary the value added was similar in 1995 and 1996 in the furniture industries, the increase in salaries was not offset by a similar increase in value added in the manufacturing sector as a whole in 1996. The value added per dollar paid in salary decreased by 5% in the manufacturing sector as a whole in 1996.” “Controlling labor costs is important to ensure the competitiveness of the Furniture and Fixture Industries. The high level of investment in 1997 and the intentions for 1998, which foresee an increase similar to that in 1997, lead us to believe that the productivity of workers will continue to increase and the cost of labor will continue to decrease.”* Domestic production and Employment After NAFTA, production of the domestic Canadian furniture industry boomed and reached its peak at 2000. After downsized 2000, as the the production result of the regression of US economy. With the now-coming extension of US economy, Canadian furniture production will increase (Figure 18). Figure 18: Canadian firms’ production and administration Source: Statistic Canada 20 Canadian Furniture Industry Research Report NAFTA also bring more job opportunities to Canadian people. We got the data from 1992 to 2001. According to these data, “The total number of employees for the Furniture and Related Product Manufacturing sub-sector increased from 54,976 workers in 1992 to 103,609 workers in 2001, or at a compound annual growth rate of 7.3% over this time span. There was an increase in employment between 2000 and 2001(Table 17). By comparison, total employment in the Manufacturing sector showed an increase of by 2.2% per annum over the 1992-2001 periods and a decrease of -0.7% between 2000 and 2001(Table 18). The industry groups forming the Furniture and Related Product Manufacturing sub-sector can be examined to see what are their share of total sub-sector employment and how the number of employees in each industry groups has changed since 1992. “* Competition From The Emerging Market Exports and Imports Figure 19: Canadian Import from China Figure 20: Canadian deficit with China 21 Canadian Furniture Industry Research Report Like their brethren south of the border, Canadian manufacturers are facing stiff competition from lower-cost producers in China. In 2001, China surpassed Canada as the U.S.'s leading source of foreign furniture and components. Many of Canada’s largest furniture manufacturers have embarked on programs to source furniture and parts from China and elsewhere. Since 1994, exports to China increased from 2,922,498 USD in 1994 to 22,931,537 USD in 2003. A portion was increased of 0.12% in 1994 to 0.33%. At the same time, imports from China increased much faster than the export. In 1994, US$72,620,733 furniture was imported from China (Figure 19), which account for 4.8%, while in 2003 the number is 79,500,000 USD, which accounts for 21.55%. The trade balance with China in this industry always remained at a deficit. The deficit magnified from 1994’s -7,000,000USD to current -77,000,000 USD, which is 11 times as that of 10 years ago (Figure 20). Figure 21: Canadian Import from India Figure 22: Canadian deficit with India 22 Canadian Furniture Industry Research Report This situation is the same when we look at the other major emerging markets, such as India. Since 1994, exports to India increased from 160,821 USD in 1994 to 1022695 USD in 2003(Figure 21). A portion increases from 0.007% in 1994 to 0.15%. At the same time, imports from India increased much faster than the exports. In 1994, 1,948,428 USD furniture was imported from India, which account for 0.13%, while in 2003 the number is 9,973, 827 USD, which accounts for 0.27%. The trade balance with India in this industry always remained at a deficit. The deficit magnified from 1994’s -1,787,607 USD to current -8,951,132 USD is 5 times larger as that of 10 years ago (Figure 22). Impact on Canadian Firms Confronting more and more competition from the emerging market countries, the export of Canadian furniture is still extending. The export structure of the furniture industry does not change, 96% of export is concentrated within NAFTA countries, and only 4% is conducted with countries outside NAFTA. However, the structure of import has changed a lot, as more and more import now come from emerging market, especially from China’s mainland. Currently, the totality of import from China’s mainland accounts for about 25% of Canadian total import. What cause contributes to Canada importing more and more furniture from China, is the relatively low price of items and better quality of the product. However, the import would not increase so much that can impact Canadian domestic furniture industry because the trade between Canada and China is not free trade and Canada can use tariff and other governmental regulation to limit the quantity of furniture imported from China. For example, another NAFTA signatory, the United States now is accused of dumping the Chinese furniture industry. If this anti-dumping accusation is approved by congress of the United States, a 441% tariff rate will be imposed to the furniture imported 23 Canadian Furniture Industry Research Report from China to the States. Thus, because Canadian domestic furniture can be protected by the tariff and other governmental regulation, the competition from China’s mainland does not lead to profound restructuring in this industry as NAFTA did. The more and more importation from emerging market is not trade diversion. Furthermore, according to the comparative advantage theory, Canada gets benefits from importing some low priced furniture from emerging markets while they direct more resource to develop and manufacture higher value-added products to export. Moreover, because the furniture from emerging market does not have the advantage of a 0 tariff, Canadian sovereignty is not damaged. Conclusion In general, Canada get benefit from NAFTA and Canadian competitive edge will be kept for a long time. The strength of Canadian furniture industry are technology, high productivity, the success of earlier restructuring, and the north America free trade agreement. However, Canadian furniture industry still has some weakness, such as its higher wage than the emerging market, too much dependence on US economy and so on. The opportunity that Canadian furniture industry is facing now is the restoring of US economy and the huge market volume of the emerging market such as China and India. Within the NAFTA area, Canadian furniture industry holds the position that is stable and not easily to lost. But this industry is challenged by USA and European furniture industry outside the NAFTA. * Manufacturing, Construction and Energy Division, EXPANSION, FREE TRADE AND SIZE OF ESTABLISHMENTS, Saint-Pierre, August 1999 http://www.statcan.ca/english/freepub/35-251-XIE/1999/35-251.htm 24 Canadian Furniture Industry Research Report Tables Table 1: Major Group-26: Furniture and Fixture Industries, (1980) SIC Title 2610 Household Furniture Industries 2640 Office Furniture Industries 2691 Bed Spring and Mattress Industries 2692 Hotel, Restaurant and Institutional Furniture and Fixture Industries Major Group-337: Furniture and Related Product Manufacturing, (1997) NAICS Title 3371 Household and Institutional Furniture and Kitchen Cabinet Manufacturing 337110 Wood Kitchen Cabinet and Counter Top Manufacturing 337121 Upholstered Household Furniture Manufacturing 337126 Household Furniture (except Wood and Upholstered) Manufacturing 337127 Institutional Furniture Manufacturing 3372 Office Furniture (including Fixtures) Manufacturing 337213 Wood Office Furniture, including Custom Architectural Woodwork, Manufacturing 337214 Office Furniture (except Wood) Manufacturing 337215 Showcase, Partition, Shelving and Locker Manufacturing 3379 Other Furniture-Related Product Manufacturing 33791 Mattress Manufacturing 33792 Blind and Shade Manufacturing Notes: The North American Industry Classification System (NAICS 1997), has replaced the separate standard classification systems, Standard Industrial Classification (SIC 1980), previously used by Canada, the United States, and Mexico. It provides a common standard framework for the collection of economic and financial data for all three nations. NAICS Canada, the Canadian version of the classification, groups economic activity into 20 sectors and 925 industries, superseding the 1980 Standard Industrial Classification (SIC-E), which had 18 divisions and 860 industries as well as contained the Canadian Standard Industrial Classification for Companies and Enterprises, 1980 (SIC-C). Source: Statistics Canada 25 Canadian Furniture Industry Research Report Table 2: Accumulated Capital Investment* By Type of Asset Furniture and Related Product Manufacturing Subsector (NAICS 337) Value in $billions Type of Asset 1993 2002 CAGR** % Change 1993-2002 2001-2002 Machinery and Equipment 0.6 1.7 11.6 7.1 Construction 0.8 1.4 6.1 4.3 Total 1.4 3.1 8.9 5.8 Notes: Totals may not add up perfectly due to rounding * Year-End Gross Capital Stock (not depreciated) ** Compound annual growth rate Source : Statistics Canada, Capital and Repair Expenditures Survey 26 Canadian Furniture Industry Research Report Table 3: Number of Establishment in Canada (Active and Inactive - 2002) by Employment Size, Category and Province Furniture and Related Product Manufacturing (NAICS 337) Province/Territory Size Category (Number of employees) 0** 1-4 5 - 9 10 - 19 20 - 49 50 - 99 100 - 199 200 - 499 500+ Alberta 211 132 47 38 50 27 8 2 4 British Columbia 361 288 87 91 63 23 12 1 0 Manitoba 75 33 16 21 11 8 6 7 2 New Brunswick 43 42 15 7 11 5 5 1 0 Newfoundland and Labrador 18 25 5 3 1 1 0 0 0 0 1 0 0 0 0 0 0 0 51 53 5 6 5 2 1 0 0 0 0 0 0 0 0 0 0 0 1,027 607 229 240 218 137 84 43 8 4 8 4 0 1 1 0 0 0 1,317 914 269 190 170 97 51 20 2 Saskatchewan 51 30 13 11 7 5 1 0 0 Yukon Territory 3 0 2 1 0 0 0 0 0 3,161 2,133 692 608 537 306 168 74 16 41.1% 27.7% 9.0% 7.9% 7.0% 4.0% 2.2% Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec CANADA Percent Distribution* Notes: * May not add up perfectly due to rounding ** No employees or inderminate number of employees Source: Canadian Strategis.gc.ca 27 1.0% 0.2% Canadian Furniture Industry Research Report Table 4: Number of Establishment in Canada (Active and Inactive - 2002) by Type and Province Furniture and Related Product Manufacturing (NAICS 337) Province/Territory Non-Employers Employers Total % of Canada * Alberta 211 308 519 6.7% British Columbia 361 565 926 12.0% Manitoba 75 104 179 2.3% New Brunswick 43 86 129 1.7% Newfoundland and Labrador 18 35 53 0.7% 0 1 1 0.0% 51 72 123 1.6% 0 0 0 0.0% 1,027 1,566 2,593 33.7% 4 14 18 0.2% 1,317 1,713 3,030 39.4% Saskatchewan 51 67 118 1.5% Yukon Territory 3 3 6 0.1% 3,161 4,534 7,695 100% 41.1% 58.9% 100% Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec CANADA Percent Distribution Notes: * May not add up perfectly due to rounding Source: Canadian Strategis.gc.ca 28 Canadian Furniture Industry Research Report Table 5: Wages and Salaries Paid by Type of Employee Principal Establishments** 1992-2001 Furniture and Related Product Manufacturing (NAICS 337) Type of Value in % of Total CAGR* % Change Employee $billions 2001 1992-2001 2000-2001 1992 2001 Production 1.0 2.4 76.8% 9.9% 6.2% Administrative 0.4 0.7 23.2% 7.0% 7.7% Total 1.4 3.1 100% 9.1% 6.6% Notes: Totals may not add up perfectly due to rounding * Compound annual growth rate ** Incorporated establishments with employees, primarily engaged in manufacturing and with sales of manufactured goods equal or greater than $30,000 Table 6: Canadian Office Furniture Demand (in billions of dollars) Canadian Household Furniture Spending (in billions of dollars) Year Demand Year Spending 1999 4.3 1999 6.4 2000 5.1 2000 7.0 2001 5.1 2001 7.4 2002 (proj) 4.7 2002(proj) 7.7 2003 (proj) 4.9 2003(proj) 7.9 Source: Statistics Canada and Strategic Projections Inc 29 Canadian Furniture Industry Research Report Table 7: Canadian Furniture Consumption by Province in 2001 Home Province Ontario Office Percentage Furniture Percentage Furniture Percentage Population of Country Spending of Country Spending of Country Quebec B.C. Alberta Manitoba Saskatchewan Nova Scotia New Brunswick Newfoundland PEI 11.82m 37.0 3.09b 41.5 1.98b 39.0 7.41m 24.0 1.64b 22.0 1.16b 22.7 4.09m 13.2 949m 12.7 683m 13.4 3.01m 9.7 782m 10.5 556m 10.9 1.15m 3.7 264m 3.5 194m 3.8 1.02m 3.3 216m 2.9 168m 3.3 948t 3.1 209m 2.8 143m 2.8 759t 2.5 164m 2.2 112m 2.2 534t 1.7 106m 1.4 66m 1.3 143t 0.5 29m 0.4 20m 0.4 (t = thousand; m = million; b = billion) Source: Strategic Projections Inc., Statistics Canada and AKTRIN Note: consumption data for the Yukon Territory, Northwest Territories and Nunavit not available. Table 8: Canadian Manufacturing Shipment _ Furniture and Related Product Manufacturing, 1992-2001 (Value in Millions of Canadian Dollars) 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 12,622 13,118 NAICS 337 - Furniture and Related Product Manufacturing 4,712 5,034 5,665 6,140 6,840 7,893 9,013 9,708 OTHERS 275,806 298,907 341,276 383,639 393,245 418,628 432,129 478,926 549,628 530,915 TOTAL (MANUFACTURING INDUSTRIES) 280,518 303,942 346,941 389,779 400,085 426,521 441,142 488,634 562,249 544,032 Source of data: Statistics Canada Table 9: Canadian Export Intensity _ Furniture and Related Product Manufacturing, 1992-2001 (% of Manufacturing Shipment Exported) 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 NAICS 337 - Furniture and Related Product Manufacturing 31.44% 39.28% 42.56% 50.63% 55.53% 59.48% 64.19% 67.36% 59.55% 54.48% OTHERS 43.46% 47.50% 50.05% 52.34% 52.77% 53.33% 55.88% 56.51% 54.61% 54.06% AVERAGE (MANUFACTURING INDUSTRIES) 43.26% 47.37% 49.93% 52.31% 52.81% 53.45% 56.05% 56.72% 54.72% 54.07% Source of data: Statistics Canada Table 10: 30 Canadian Furniture Industry Research Report Total Revenue Principal Establishments** Manufacturing vs Non-Manufacturing Activity, 1992-2001 Furniture and Related Product Manufacturing Subsector (NAICS 337) Type of Value in % of Total CAGR* % Change Output $billions 2001 1992-2001 2000-2001 1992 2001 Manufacturing Shipments 4.7 13.1 93.5% 12.1% 3.9% Other Revenues 0.3 0.9 6.5% 13.0% -5.9% Total 5.0 14.0 100% 12.1% 3.2% Notes: * Compound annual growth rate ** Incorporated establishments with employees, primarily engaged in manufacturing and with sales of manufactured goods equal or greater than $30,000 Source: Statistics Canada Table 11: Canadian Furniture Industry Exports (millions of Canadian Dollars) Source: industry Canada 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 United States (U.S.) 2,326,922 2,993,588 3,651,715 4,548,001 5,631,661 6,445,226 7,394,991 7,064,298 7,229,561 6,651,150 Mexico 1,834 1,007 1,198 2,411 6,568 3,346 25,194 28,291 32,977 29,014 SUB-TOTAL 2,328,757 2,994,595 3,652,912 4,550,412 5,638,230 6,448,571 7,420,186 7,092,589 7,262,538 6,680,164 OTHERS 116,618 150,248 188,331 192,219 227,107 200,629 220,489 210,526 224,115 209,906 TOTAL (ALL COUNTRIES) 2,445,375 3,144,843 3,841,243 4,742,631 5,865,337 6,649,200 7,640,675 7,303,115 7,486,653 6,890,071 Table 12: Canadian Furniture Industry Exports, Top 10 (%) 31 Canadian Furniture Industry Research Report 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 95.16% 95.19% 95.07% 95.90% 96.02% 96.93% 96.78% 96.73% 96.57% 96.53% Mexico 0.08% 0.03% 0.03% 0.05% 0.11% 0.05% 0.33% 0.39% 0.44% 0.42% China 0.12% 0.06% 0.07% 0.10% 0.06% 0.02% 0.04% 0.19% 0.31% 0.33% United Kingdom (U.K.) 0.62% 0.64% 0.76% 0.61% 0.56% 0.53% 0.51% 0.37% 0.33% 0.31% Antilles) 0.14% 0.13% 0.18% 0.17% 0.13% 0.12% 0.10% 0.15% 0.20% 0.22% Japan 0.41% 0.58% 0.55% 0.52% 0.27% 0.23% 0.24% 0.20% 0.20% 0.20% Taiwan (Taipei) 0.05% 0.05% 0.06% 0.09% 0.06% 0.03% 0.03% 0.02% 0.07% 0.13% Netherlands 0.25% 0.17% 0.18% 0.12% 0.12% 0.14% 0.14% 0.14% 0.24% 0.13% Thailand 0.02% 0.01% 0.01% 0.04% -- -- -- 0.02% 0.10% 0.10% Bermuda 0.07% 0.06% 0.06% 0.06% 0.07% 0.05% 0.04% 0.04% 0.06% 0.10% SUB-TOTAL 96.91% 96.93% 96.96% 97.66% 97.39% 98.11% 98.21% 98.25% 98.53% 98.47% OTHERS 3.09% 3.07% 3.04% 2.34% 2.61% 1.89% 1.79% 1.75% 1.47% 1.53% United States (U.S.) France (incl. Monaco, French TOTAL (ALL COUNTRIES) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Source of data: Statistics Canada Table 13: Canadian Furniture Industry Imports (millions of Canadian Dollars) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 United States (U.S.) 1,099,773 1,377,777 1,298,675 1,550,434 1,985,967 2,263,014 2,418,259 2,057,357 1,884,360 1,660,859 Mexico 6,990 231,329 231,718 301,309 324,126 437,342 465,770 405,466 378,899 378,466 SUB-TOTAL 1,106,763 1,609,106 1,530,393 1,851,744 2,310,092 2,700,356 2,884,028 2,462,823 2,263,259 2,039,325 OTHERS 397,086 432,657 419,104 531,538 647,676 772,968 992,826 1,173,289 1,463,003 1,650,490 TOTAL (ALL COUNTRIES) 1,503,849 2,041,763 1,949,497 2,383,282 2,957,768 3,473,323 3,876,854 3,636,112 3,726,262 3,689,815 Source: Statistics Canada Table 14: Canadian Furniture Industry Imports, Top 10 (%) United States (U.S.) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 73.13% 67.48% 66.62% 65.05% 67.14% 65.15% 62.38% 56.58% 50.57% 45.01% 32 Canadian Furniture Industry Research Report 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 China 4.83% 4.26% 5.03% 5.89% 6.00% 7.05% 9.52% 13.60% 18.06% 21.55% Mexico 0.46% 11.33% 11.89% 12.64% 10.96% 12.59% 12.01% 11.15% 10.17% 10.26% State) 4.58% 3.26% 3.46% 3.32% 2.97% 2.68% 3.06% 3.84% 3.86% 4.11% Taiwan (Taipei) 6.28% 4.04% 3.22% 3.13% 3.08% 2.64% 2.90% 3.09% 2.33% 2.21% Malaysia 1.28% 1.05% 1.57% 1.62% 1.54% 1.49% 1.52% 1.85% 2.45% 2.10% Thailand 0.63% 0.54% 0.46% 0.59% 0.81% 0.92% 1.12% 1.32% 1.77% 2.01% Poland 0.17% 0.18% 0.26% 0.31% 0.32% 0.33% 0.45% 0.58% 0.79% 1.33% Timor) 0.76% 0.61% 0.59% 0.58% 0.60% 0.73% 0.83% 1.03% 1.23% 1.30% Germany 0.91% 0.80% 0.70% 0.69% 0.74% 0.73% 0.71% 0.68% 0.76% 0.85% SUB-TOTAL 93.03% 93.55% 93.80% 93.82% 94.15% 94.31% 94.51% 93.74% 91.98% 90.74% OTHERS 6.97% 6.45% 6.20% 6.18% 5.85% 5.69% 5.49% 6.26% 8.02% 9.26% Italy (includes Vatican City Indonesia (includes East TOTAL (ALL COUNTRIES) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Source of data: Statistics Canada Table 15: Selected Principal Statistic By Size of Establishment, 1990 - 1997 Establishments Production Workers Manufacturing % of total shipments Shipments ('000$) Size 0-49 Employees 1990 1997 1990 1997 1990 1997 1990 1997 1,599 1,024 18,115 12,925 1,336,475 1,189,273 28.7 18.4 220 154 13,667 9,335 1,236,926 1,148,863 26.5 17.8 100-199 Employees 84 92 9,503 10,808 880,824 1,409,995 18.9 21.8 200+ Employees 36 45 10,094 16,370 1,207,641 2,716,472 25.9 42.0 1,939 1,315 51,379 49,438 4,661,866 6,464,603 100.0 100.0 50-99 Employees TOTAL Source: Statistics Canada, Annual Survey of Manufactures, 1990 and 1997 Table 16: Source: industry Canada 33 Canadian Furniture Industry Research Report Major Canadian Secondary Wood Product Manufacturers Location CDN$ of Millions (in Sales, 2001) Downsview, Ontario 1,450 Montreal, Quebec 1,430 Toronto, Ontario 770 Winnipeg, Manitoba 500 OSF (Ontario Store Fixtures) Inc Weston, Ontario 250 SMED International Calgary, Alberta 200 Winnipeg, Manitoba 170 Thornhill, Ontario 170 Alexandria, Ontario 165 Shermag Inc. Sherbrooke, Quebec 165 Inscape Corp. Holland Landing, Ontario 135 Louiseville, Quebec 128 The Global Group Dorel Industries Inc. Teknion Corp. Palliser Kitchen Craft of Canada Canac Kitchens Alexandria Moulding Canadel Furniture Table 17: employment in furniture and related product manufacturing Employment by Type Principal Establishments** ,1992-2001 Furniture and Related Product Manufacturing (NAICS 337) Type Number of % of of Employee Employees Total 1992-2001 1992 Production 2001 CAGR* % Change 2000-2001 2001 44,353 89,053 86.0% 8.1% 5.8% Administrative 10,623 14,556 14.0% 3.6% 6.4% 7.3% 5.9% Total 54,976 103,609 100% Notes: * Compound Annual Growth Rate ** Incorporated establishments with employees, primarily engaged in manufacturing and with sales of manufactured goods equal or greater than $30,000 Source: Statistics Canada Table 18: 34 Canadian Furniture Industry Research Report Total Employment Principal Establishments** Industry Groups forming the Furniture and Related Product Manufacturing Subsector (NAICS 337) NAICS Industry Group Number of Code Employees 3371 Household and Institutional Furniture and Kitchen Cabinet CAGR* % Change 1992-2001 2000-2001 1992 2001 34,643 63,114 6.9% 7.7% 14,820 33,416 9.5% 2.0% 5,513 7,079 2.8% 8.5% 54,976 103,609 7.3% 5.9% 1,622,184 1,976,105 2.2% -0.7% Manufacturing 3372 Office Furniture (including Fixtures) Manufacturing 3379 Other Furniture-Related Product Manufacturing 337 Furniture and Related Product Manufacturing 31-33 All Manufacturing Notes: * Compound Annual Growth Rate ** Incorporated establishments with employees, primarily engaged in manufacturing and with sales of manufactured goods equal or greater than $30,000 Source: Statistics Canada INDUSTRY ASSOCIATIONS 35 Canadian Furniture Industry Research Report Canadian Furniture Manufacturers Associations: Business and Institutional Furniture Manufacturers Association (BIFMA) 2680 Horizon Drive, SE / Suite A-1, Grand Rapids, MI 49546-7500 U.S.A. Tel.: (616) 285-3963 Fax: (616) 285-3765 E-mail: email@bifma.org Canadian Council of Furniture Manufacturers Terry Clark, Acting President,c/o Accro Furniture Industries 305 Mckay Ave,Winnipeg MB R2G 0N5 Tel.: (204) 654-1114 Fax: (204) 654-2792 E-mail: tjclark@accro-acmechrome.com Furniture West Joe Malko, President,1873 Inkster Blvd,Winnipeg MB R2R 2A6 Tel.: (204) 632-5529 Fax: (204) 694-1281 Toll Free: (800) 665-7390 E-mail: info@furniturewest.ca Wood Manufacturing Council Richard Lipman, President, 130 Albert Street,Suite 514, Ottawa, ON K1P 5G4 Tel: (613) 567-5511 Fax: (613) 567-5411 E-mail: wmc@wmc-cfb.ca Ontario Furniture Manufacturers Association J. David Hanna, Executive Vice-president,6900 Airport Road, Suite 200,Box 85, Mississauga ON L4V 1E8 Tel.: (905) 677-6561 Fax: (905) 677-5212 E-mail: d.hanna@ofma.ca Quebec Furniture Manufacturers Association Jean François Michaud, President and CEO,1111, St-Urbain St., Suite 101,Montreal QC H2Z 1Y6 Tel.: (514) 866-3631 Fax: (514) 871-9900 E-mail: info@afmq.com Reference 36 Canadian Furniture Industry Research Report Statistic Canada,Industry Statistics, NAICS 337-Furniture and Related Product Manufacturing Canadian Mortgage and Housing Corp. Statistic Canada,Industry Statistics, NAICS 337-Furniture and Related Product Manufacturing_Net Revenues Statistic Canada,Industry Statistics, Manufacturing, Construction and Energy Division, EXPANSION, FREE TRADE AND SIZE OF ESTABLISHMENTS, Saint-Pierre, August 1999 http://www.statcan.ca/english/freepub/35-251-XIE/1999/35-251.htm 37