Furniture Manufacturing – An Excellent Example of a Chaotic Industry

If you read previous blog entries, you know the Federal Reserve of Richmond produces wonderful data, analysis, reports, and articles.  This is an outstanding example of the latter.  It includes two links.

The first link is a story about the furniture manufacturing industry in North Carolina.  The author is Mr. John Mullen and is part of the economic history.

As you read the piece, you will see the growth of the furniture industry in NC from a cottage industry to a powerhouse.  This was due mainly to raw materials and lower costs.  Then the impact of the World Trade Organization and automation that cost approximately 60,000 jobs over 20 years.  And finally, the steps NC took to restore some of the glory of this industry.

Link:  https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2020/q4/economic_history.pdf

The second part is commentary by the Richmond Fed president, Tom Barkin.  He does an excellent job noting the various mismatches based on a video roundtable with key industry leaders and stakeholders.  It is worth a read and certainly compliments Mr. Mullen’s story.

Link:  https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2020/q4/presidents_message.pdf