Panels & Furniture Asia January/February 2024

MARKET REPORT
with the roads and site surface paved
and should have no standing water.
They should have a reasonable plant
layout, raw materials storage areas,
with the packaging and finished
product storage area divided.
Second, there should be adequate
pest control measures to control,
manage, minimise or completely
remove undesirable insects and
other pests from the furniture
products. This includes pesticide
treatment that uses poisonous
gas to kill pests inside the wood.
The minimum temperature of the
fumigation should not be lower than
5 ̊C.
Third, there should be a traceability
system that ensures the production
batch of finished products can
be traced back to the quarantine
treatment facility. This includes the
registration number of production
company and product batch.
Lacey act: Administered by the
USDA APHIS, the US Fish and
Wildlife Service, and the National
Marine Fisheries Service, this
act assesses whether the plant
products, which include timber, are
illegally possessed, sold, taken or
transported. The manufacturer has
to submit a Lacey act declaration
that determines the origin and the
legitimacy of their products.
TSCA: This act is administered by
the US Environmental Protection
Agency (EPA) that places restrictions
on formaldehyde emissions and
certification requirements for
composite wood products. The
emission restrictions vary according
to the panel type. For example,
hardwood plywood, its veneer and
composite cores, should be less
than 0.05ppm; medium-density
fibreboard (MDF) less than 0.11ppm,
thin MDF less than 0.13ppm, and
particleboard less than 0.09ppm.
To obtain the TSCA certification,
manufacturers need to provide
importer contact information, quality
control manual as well as their test
reports.
Law labels: Law labels are used to
inform consumers about the kinds of
filling materials inside their bedding,
stuffed products, and upholstered
furniture. Although they are not a
federal requirement, most US states
however require a law label, and
every state has their own label. For
instance, manufacturers looking to
export into California, US, will need
to get a label specific to California,
and cannot use this label in other
states.
DOS AND DON’TS
Truc emphasised again that
communication is key when it comes
to project management. Clients in
the US require constant updates
and communication, whether it is
through email, text, phone call. And
they typically want it fast: A photo or
a video of a product-in-progress will
usually satisfy the client.
“Put yourself in your client’s shoes,”
Truc warned. “If, as a client, you
do not hear anything from the
manufacturer for a week, you would
probably get worried and anxious.
Because not only have you spent
a lot of money, but you also have
a deadline to meet. Whatever the
deadline may be, you do not want to
postpone it.”
He added: “When there is a mistake,
please let the client know as soon
as possible. Be transparent. Let
them know a mistake has happened,
explain what happened, how long it
will take to fix, and that you are in the
process of fixing it. Let them know as
well how you will avoid the mistake in
the future.”
This would allow the client to
be more prepared rather than
expecting the product to be done
on a particular day; the client would
rather to see a problem weeks
before the deadline rather than two
days before, so that both parties can
come up with a solution together.
Another thing that Truc cautioned
against is the bait-and-switch
tactic. This happens when a
manufacturer uses an alternative
option that can imitate the design
intent of the project to save money.
For instance, the manufacturer
uses a local laminate instead of a
laminate brand stipulated by the
client to save costs and increase
profits. “This is unethical because
it is the same as tricking the client,”
said Truc.
Consequences of such a tactic
might result in more than just
the loss of a client: There might
be potential lawsuits, and the
manufacturer’s brand image might
be affected as well. It is difficult for
manufacturers to get another client
in the US if they acquired a bad
reputation.
What manufacturers should do
instead, in collaboration with the
client, is value engineering. This is
when the manufacturer discusses
with the client an alternative option,
propose another material with a
sample available, and have them
approve it. “The client will be very
happy with the cut in budget,” said
Truc.
Quality control (QC) at the end of the
project is also equally important.
Manufacturers should try to provide
internal QC reports to the client,
allowing minor issues to be picked
up during production. In doing so,
fixes will be easier and less timeconsuming.
Sometimes, clients
might hire a third-party QC team to
check the production as well. P
*For more details on the regulations, it is
advised to visit the relevant websites and
stay up-to-date on them.
Part A of this article was published in
the September/October issue of Panels
& Furniture Asia, and discussed market
trends that have affected the US trends
of late.
20 PANELS & FURNITURE ASIA | JANUARY / FEBRUARY 2024