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Thread: Shortages and Delays

  1. #1
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    Default Shortages and Delays

    This from Century and Rock House Brands today. Now we have foam shortages in addition to recliner mechanism shorages.

    Folks, if you order furniture, don't expect to get an accurate date or even a really good guess on when things will be completed. The answer is "no one really knows", and patience is the key. If you don't have that patience, or need something by a specific date, don't order - buy a piece off the floor. In normal times, a dealer can make a phone call and ask for a time to be improved upon for a client. These are not normal times and there is no way to speed up an order. This applies equally to the transportation network after a piece has shipped as well. I can't tell you the number of upset customers I have right now who *think* their order should have arrived and are telling me there is something I need to do about it. Not happening, sorry. I have no way to do that for you.

    Heck, even regular 1st Class US Mail is taking a month to arrive in some cases. We live in difficult times right now, and it will get better - but we are not yet there.

    *********************

    February 26, 2021


    To our most valued partners,

    These last months have seen us riding an unbelievable wave of business demand. None of us could have predicted this incredible surge nor what it would do to our supply chains. Recently, our factories had regained much of the efficiencies which had previously been lost from Covid-19 illnesses and quarantines. Unfortunately, we have just learned of a serious supply chain issue impacting the industry’s foam and cushion fabricators.

    This supply chain disruption is a repercussion of the recent ice storms and power outages in Texas which took much of the country’s petrochemical capacity offline. In most cases these facilities are still unable to produce and may be slow to return to full capacity even after they restart.

    Because of this “upstream disruption” and effective immediately, our cushion suppliers have notified us of a significant reduction in their ability to fulfill our normal weekly foam and cushion orders. Century has analyzed our backlog and forecasted how this will impact orders already in our system.

    Please see below for how we expect order cycle times to be impacted given current information:
    Any Acknowledged Order “In Production” (released and on the production floor) should be unaffected. The required foam should already be in-house for your order. No additional cycle time calculated.
    Orders Acknowledged but “Not Released into Production” can expect an additional 10-day cycle time from the original completion date acknowledged. The updated cycle time will be calculated and reflected for each order on “Designer Studio” by 3/1/21.
    “New Orders” received on 3/1/21 and later will incorporate the adjusted cycle time in the estimated ship date acknowledged on the order.

    We have been told this supply chain shortage could persist for up to two months. We are of course considering all methods to improve this delay and will communicate updates to our partners on our Designer Studio. We are also adjusting our predicted lead times noted on Designer Studio so that this new variable is incorporated. Our focus, as always, is to provide timely and accurate information to our community.

    We remain grateful for your support of our companies and industry. These times continue to be unprecedented. Rest assured, we are agile and vigilant and are working hard to overcome these obstacles. Century, Hancock & Moore, Hickory Chair, Highland House, Jessica Charles, Maitland Smith, and Cabot Wrenn are built on a foundation of the world’s finest associates and customers. This is just one more step in our journey together.


    Most sincerely,

    Alex Shuford III
    President and CEO
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  2. #2
    Join Date
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    595

    Default Re: Shortages and Delays

    I hope people understand and lay off requests for replacement cushions until this is over. Demanding freebees at this time could just push them over the edge into saying, "no more". Once things return to more "normal" in several months I think the danger of that will go down. But being demanding about something that was being done at no charge is a sure way to get them to stop doing it at all.

  3. #3
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    Default Re: Shortages and Delays

    Things like cushion core replacements, customization of items and special wishes are all going by the wayside at this time. Right now ALL the companies are focused on getting main-line order product out the door - a few have stopped taking new orders as their backlogs are too high. And forget about expedited orders, that's not going to happen AT ALL. I can't even get replacement stock for items sold off my sales floor in a timely manner. I've had a one or two upset customers cancel their order and say "It should not take this long!" and I explain to them it's like waiting in line at the DMV.. You've been in the lobby for two hours already and you're number will be called in 10 more minutes - do you really want to get out of line now? If you do, you go all the way to the back and start over.

    It's the times we live in.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  4. #4
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    Default Re: Shortages and Delays

    Due to Foam Shortages, build times now are up to 22 weeks (5 1/2 months) at many of the North Carolina builders.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  5. #5
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    Default Re: Shortages and Delays

    Today from Taylor King to it's dealers. If you want something between now (early March) and July for your home, suggest you buy a floor model from a store.


    Business Update

    MARCH 3, 2021

    Dear Taylor King customers and friends,

    These are surely most unprecedented times for those of us who have had a lifelong career in the home furnishings industry. Since July of 2020, we have witnessed a demand for our products like no other time in company history. This demand, while challenging even in normal times to predict, fueled an increase in our backlog of orders. We’ve experienced disruptions in our workforce due to Covid-19 illnesses, but fortunately, that challenge has subsided. This demand for product is very true with other upholstery companies in Alexander County and other nearby counties in our area. The net effect is extremely low unemployment resulting in a shortage of qualified individuals needed to grow our workforce.

    We’ve also experienced some material delays that would have negated any ability to grow our business even if we could hire new associates. The latest and most significant supply chain disruption is a repercussion of the record cold weather and power outages in Texas. Many of the chemicals needed to produce polyurethane foam for our cushioning and frame padding are formulated in the state of Texas. These facilities were forced to close for several weeks due to unprecedented power demands. The net result is a significant reduction in supply from our local fabricators and cushion suppliers. Taylor King, as well as our industry, has been notified that we will see a reduction in our weekly supply. We have been informed by our suppliers that this reduction will occur over the next four to six weeks.

    Prior to this situation, our incoming orders continued to outpace our shipments, resulting in shipments 18 weeks from date of order. Our backlog is now at 20 weeks, and could grow to as much as 22 weeks due to this crisis. If you do not see a published date for your order, please email or call customer service for an update.

    We do not take this situation lightly, and we understand how frustrating this is for you and your clients. We are extremely grateful for your understanding, and are so thankful for your support. Please know we are doing everything possible to increase production. We will continue to provide updates through our message bar at the top of the Taylor King website and through periodic email blasts.

    Sincerely,

    Del Starnes
    President and COO, Taylor King Furniture
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  6. #6

    Default Re: Shortages and Delays


  7. #7
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    Default Re: Shortages and Delays

    It's all true. I'm not even quoting delivery estimates with any confidence in accuracy right now.

    "When will I get my new furniture?"

    "It will get there when it gets there" is the current correct response from ANY dealer.

    If you need something by a certain date, then buy off the floor of your local dealer. It does no good to call your dealer and say "It shouldn't take this long, how can you get this going?" All that is going to do is frustrate you and and the merchant. There are certain people who think the more pressure they apply they can influence the build. Not in this environment. Patience is the key here, it will eventually arrive. Otherwise just cancel your order and get a refund. Then you get to get in the back of that very long line somewhere else and wait all over again.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  8. #8
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    Default Re: Shortages and Delays

    More on foam issues, from the CEO of all Rock House Brands (Century, Hancock & Moore, Jessica Charles, Hickory Chair, Pearson, Highland House, etc). Sobering reality.


    3/22/2021


    To Our Friends and Valued Partners,


    I believe we can all agree that we would prefer to not be operating in “unprecedented times”… an often overused but unquestionably appropriate description of our current environment.

    By now, all of you are certainly familiar with the acute shortage of flexible foam caused by the late February weather and power disaster in Texas. For those of you who have not had a chance to dig into this topic in detail, I would like to provide a few key data points below:

    Our industry’s foam is dependent on key chemical components primarily sourced from a small number of companies (count 3-4) who possess between them only a small number of facilities dedicated to these chemicals (count 5-6). Most of those facilities are located in Texas and Louisiana

    The Ice Storm and subsequent freezing weather coupled with the loss of power from the February 13-17th storm caused all of the Texas facilities to close… many stayed closed for 3-4 weeks

    As these facilities began to re-start, damage from the freezing event surfaced and complicated the re-starting process Most are now in some diminished state of production, but nearly none are back to full production

    Coupled with the issues above, there exists a constraint in the rail tanker cars used to move these chemicals to the foam production facilities

    Most foam production facilities (foam “bun” pouring companies) had some buffer inventory of chemicals on hand at the start of this crisis, but nearly all have now depleted their inventory reserves

    Most cushion and foam “fabricators” (companies that convert buns into usable foam parts) also had a buffer of foam “bun” inventory on hand which is now nearly completely depleted

    Many of the foam production facilities have been working to source the necessary chemicals from other countries (as far away as Asia) but the global supply chain for these chemicals was already stressed by Covid disruptions and historical demand surges with very little relief expected in the near term from these work-around solutions.

    For the last 5-6 weeks the various “reserves” of inventory within the supply-chain have allowed many furniture producers to continue operations at reduced capacity from 40% to 60% of normal
    Unfortunately, the inventory reserves present in the supply chain are rapidly depleting to zero and various links in that chain are having to shut down

    We expect the worst to crest in the last week of March and the first two weeks of April. By mid-April, we expect a slow and steady “ramping back up” of the supply availability that may not achieve pre-crisis levels until late May

    Here are a few links to articles and information you might find illustrative if researching this situation further (note that the automotive industry is also impacted as with many plastics industries):

    Seat-Foam Shortage May Force Car Production Cuts; Texas …

    Furniture industry 'decimated' by foam shortage after Texas

    Foam shortage affecting furniture, automotive industries

    My goal in providing these details is to better arm you in communicating with your clients so that they might better understand our industry’s situation. The production lead times for my companies and the industry in general are currently extended beyond what most of us have ever experienced nor find comfortable. Prior to this Foam Crisis, nearly every industry factory was working overtime in order to try and provide our consumers with better deliveries. We don’t take their orders for granted and, as an industry, we know that patience is not infinite.

    This is why the Foam Crisis is particularly onerous. We now are forced to stand idle much of the production capacity that is so sorely needed by you, our partners, and your clients. There will be a desire by many of our partners to push for better delivery date promises because your clients are demanding the same from you… unfortunately, with a supply shortage such as we are facing, there is just no ability to produce such promises. An added insult to this injury is the fact that many upholstery production employees and those from supporting suppliers, will face short work weeks and lost hours because of the crisis.

    It is too often said that we are “all in this together”, but this truth is very evident today. Know that very many are working hard to get the industry back to stable footing and that our company, as with many others, is preparing to work holidays and overtime to satisfy the consumer orders that we have been fortunate to have received during this Covid recovery.

    Your friend and partner,

    Alex Shuford III, CEO RHF
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  9. #9
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    Default Re: Shortages and Delays

    Today a customer cancelled his Hancock and Moore chair he had on order, he was upset it hasn't arrived yet and didn't want to hear that it was due to supply chain issues and ultimately Covid's impact on the industry as well as foam shortages. Yes, he has been waiting since October, and I am just getting in many of the October orders roll in now. I simply refunded his deposit as per his request, not much else I can do about it.

    The irony of it all is that particular chair & leather has increased in price $ 1,011 since October when he ordered it. If he decides he wants to order one again from my store or another dealer, he's going to have a bit of sticker shock and get back in line as well.

    Believe me when I tell you that if you want something for fall - September / October / or even November you should consider ordering it before the end of this month.
    Last edited by drcollie; 04-09-2021 at 10:49 AM.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  10. #10

    Default Re: Shortages and Delays

    I can understand that in some case this appears to be a perfect storm. We were originally told 14 weeks.

    I have been waiting six full months on furniture that was ordered in November. This order and the materials have been in their pipeline 24 weeks now. I find the excuses and delays inexcusable at this point and my local retailer has basically given up and told me to contact the manufacture if I want answers. I told them that was YOUR job, I'm YOUR customer.

    As the OP has mentioned, I'm held hostage at this point. No sense going to the back of the line.

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