The Urethane Blog

Furniture makers see a boom in business, and team up to find workers to meet the demand

Key Points
  • U.S. furniture makers are up against a unique challenge — finding skilled workers to keep up with demand.
  • To solve the labor problems, furniture manufacturers in North Carolina founded an academy to train workers and guarantee them jobs at high wages.
  • Still, companies continue to battle the public perception that manufacturing jobs are low tech and unreliable.

In the face of an ongoing trade war and a historically tight labor market, furniture makers in America are up against a unique challenge — finding skilled workers to keep up with demand.

Interest in certain products, like upholstered sofas and armchairs, made in the U.S. is on the rise, but the number of workers with the skills and experience needed to meet increased demand seems out of reach.

In January 2000, more than 670,000 workers were employed in furniture manufacturing but that plummeted to just 360,000 in 2010. Numbers have risen slightly in recent years, however, hovering closer to the 400,000-employee mark.

In North Carolina, furniture companies have turned to the Catawba Valley Furniture Academy in Hickory. Catawba Valley Community College had a furniture manufacturing course for 40 years, but as graduates struggled to find work upon completing the program and the curriculum failed to keep up with changing technology, its relevancy waned. To help bring it back to life, the college teamed up with five local furniture makers in the area — founding partners are Century Furniture, Lee Industries, Lexington Home Brands, Sherrill Furniture and Vanguard Furniture.

Students like Casey Pennington study for up to nine months at the academy and then are guaranteed a job at one of the participating companies. Pennington’s husband is an instructor at the academy and a fifth-generation furniture maker.

“There’s definitely an art to it,” Pennington, 27, said. “It’s not something you can just sit down and know how to do.”

Beyond that, the pay available can reach up to $30 an hour for those with experience, offering a life-changing raise for students.

CNBC: Casey Pennington working at furniture factory
Casey Pennington practices sewing upholstery as a student at the Catawba Valley Furniture Academy in Newton, North Carolina.
Source: CNBC

“It’s in high demand,” Pennington said. “I’ll have less worry and more money in my pocket. It would definitely be beneficial to us.”

The program started in January 2014 and takes place four days a week in the evenings over the course of six to nine months. Students learn different disciplines from sewing to upholstery and tuition is $600. Since its inception, 320 students have graduated and the program has a 100% hiring rate — a welcome statistic for both workers and companies alike.

For Bassett Furniture, which has an upholstery manufacturing facility in Newton, North Carolina, the competition is steep in this tight job market.

“We’re all fighting for the same pool of workers, and there’s not a large pool of workers out there that actually want to come and work here. There’s still, in a lot of parts of the county in the area, the thought process that the manufacturers are not stable, because the furniture industry’s had its highs and lows,” said Mike Kreidler, vice president of upholstery at Bassett Furniture. “The furniture industry is extremely stable.”

CNBC: Mike Kreidler at furniture factory - 106379493
Mike Kreidler, Bassett Furniture’s vice president of upholstery, works with the Catawba Valley Furniture Academy to find skilled workers.
Source: CNBC

On its recent earnings call, the company’s CEO, Rob Spillman, said both the “tight labor market and the aging of the core baby boomer workforce are factors that must be dealt with, both today and for the future.”

Companies and the academy are reaching out to younger students in high school to try to pique their interest in potential careers early on, and potentially begin training them earlier. This is something the National Association of Manufacturers is also leaning heavily into, to help fill a broader gap in the sector. Manufacturing has nearly half a million open positions industrywide. Part of that is changing public perception about the industry, and showing that it’s a more high-tech and steady career than many had previously believed.

“People are our greatest challenge, because they are our greatest asset,” Kreidler said. “Skilled workers are hard to come by and it’s hard to bring people in and train them from the ground up.”

CNBC: Madison Lawe working at furniture factory - 106379494
Madison Laws recently joined Bassett Furniture in Newton, North Carolina, as a sewer.
Source: CNBC

That’s where academy students like Madison Laws come into play. The soon-to-be graduate has already landed a job at Bassett as a sewer.

“I honestly didn’t think I would get this job as soon as I did, so I’m really lucky,” Laws, 18, said.

— CNBC’s Nick Wells contributed to this report.

https://www.cnbc.com/2020/02/07/furniture-makers-see-a-boom-in-business-and-team-up-to-find-workers-to-meet-the-demand.html

Furniture makers see a boom in business, and team up to find workers to meet the demand

Key Points
  • U.S. furniture makers are up against a unique challenge — finding skilled workers to keep up with demand.
  • To solve the labor problems, furniture manufacturers in North Carolina founded an academy to train workers and guarantee them jobs at high wages.
  • Still, companies continue to battle the public perception that manufacturing jobs are low tech and unreliable.

In the face of an ongoing trade war and a historically tight labor market, furniture makers in America are up against a unique challenge — finding skilled workers to keep up with demand.

Interest in certain products, like upholstered sofas and armchairs, made in the U.S. is on the rise, but the number of workers with the skills and experience needed to meet increased demand seems out of reach.

In January 2000, more than 670,000 workers were employed in furniture manufacturing but that plummeted to just 360,000 in 2010. Numbers have risen slightly in recent years, however, hovering closer to the 400,000-employee mark.

In North Carolina, furniture companies have turned to the Catawba Valley Furniture Academy in Hickory. Catawba Valley Community College had a furniture manufacturing course for 40 years, but as graduates struggled to find work upon completing the program and the curriculum failed to keep up with changing technology, its relevancy waned. To help bring it back to life, the college teamed up with five local furniture makers in the area — founding partners are Century Furniture, Lee Industries, Lexington Home Brands, Sherrill Furniture and Vanguard Furniture.

Students like Casey Pennington study for up to nine months at the academy and then are guaranteed a job at one of the participating companies. Pennington’s husband is an instructor at the academy and a fifth-generation furniture maker.

“There’s definitely an art to it,” Pennington, 27, said. “It’s not something you can just sit down and know how to do.”

Beyond that, the pay available can reach up to $30 an hour for those with experience, offering a life-changing raise for students.

CNBC: Casey Pennington working at furniture factory
Casey Pennington practices sewing upholstery as a student at the Catawba Valley Furniture Academy in Newton, North Carolina.
Source: CNBC

“It’s in high demand,” Pennington said. “I’ll have less worry and more money in my pocket. It would definitely be beneficial to us.”

The program started in January 2014 and takes place four days a week in the evenings over the course of six to nine months. Students learn different disciplines from sewing to upholstery and tuition is $600. Since its inception, 320 students have graduated and the program has a 100% hiring rate — a welcome statistic for both workers and companies alike.

For Bassett Furniture, which has an upholstery manufacturing facility in Newton, North Carolina, the competition is steep in this tight job market.

“We’re all fighting for the same pool of workers, and there’s not a large pool of workers out there that actually want to come and work here. There’s still, in a lot of parts of the county in the area, the thought process that the manufacturers are not stable, because the furniture industry’s had its highs and lows,” said Mike Kreidler, vice president of upholstery at Bassett Furniture. “The furniture industry is extremely stable.”

CNBC: Mike Kreidler at furniture factory - 106379493
Mike Kreidler, Bassett Furniture’s vice president of upholstery, works with the Catawba Valley Furniture Academy to find skilled workers.
Source: CNBC

On its recent earnings call, the company’s CEO, Rob Spillman, said both the “tight labor market and the aging of the core baby boomer workforce are factors that must be dealt with, both today and for the future.”

Companies and the academy are reaching out to younger students in high school to try to pique their interest in potential careers early on, and potentially begin training them earlier. This is something the National Association of Manufacturers is also leaning heavily into, to help fill a broader gap in the sector. Manufacturing has nearly half a million open positions industrywide. Part of that is changing public perception about the industry, and showing that it’s a more high-tech and steady career than many had previously believed.

“People are our greatest challenge, because they are our greatest asset,” Kreidler said. “Skilled workers are hard to come by and it’s hard to bring people in and train them from the ground up.”

CNBC: Madison Lawe working at furniture factory - 106379494
Madison Laws recently joined Bassett Furniture in Newton, North Carolina, as a sewer.
Source: CNBC

That’s where academy students like Madison Laws come into play. The soon-to-be graduate has already landed a job at Bassett as a sewer.

“I honestly didn’t think I would get this job as soon as I did, so I’m really lucky,” Laws, 18, said.

— CNBC’s Nick Wells contributed to this report.

https://www.cnbc.com/2020/02/07/furniture-makers-see-a-boom-in-business-and-team-up-to-find-workers-to-meet-the-demand.html

February 11, 2020

February Benzene Pricing

US February benzene contract price settles 11 cents higher at 264 cents/gal: sources

Houston —
The February US benzene contract on Friday settled at 264 cents/gal, 11 cents higher than January’s contract , multiple sources told S&P Global Platts.

The increase was in line with market expectations, as early indications from sources put a potential settlement at 265 cents/gal.

The February contract price settled at a atypical premium to the spot price. Prompt-month benzene was assessed Friday at 251 cents/gal DDP USG, 13 cents/gal below the price players buying benzene under contract will pay in February.

After a 10-cent day-on-day in prompt-month benzene prices on Tuesday to 249 cents/gal DDP USG from 259 cents/gal, market participants shied away from conducting any further trades until Thursday, when the window for contract price-eligible trades closed.

Pricing saw support from an uptick in activity during the latter half of January as well as ongoing tightness.

Benzene from South have waned significantly since the fourth quarter of 2019. Just 8,000 mt of benzene was shipped from South to the US during the first 20 days of January, statistics from the Korean International Trade Association show.

Derivative demand remained soft this week as a major styrene producer was heard to be undertaking maintenance from late January and into March, while sources said a second styrene producer would begin planned work in March.

Demand from styrene has also been trimmed by poor as recent declines in spot values have put pricing below break-even levels, leading some participants to suggest potential rate . The February US styrene price was assessed Friday at $805/mt FOB USG.

Source: Platts

https://globalrubbermarkets.com/195982/us-february-benzene-contract-price-settles-11-cents-higher-at-264-cents-gal-sources.html

February 11, 2020

February Benzene Pricing

US February benzene contract price settles 11 cents higher at 264 cents/gal: sources

Houston —
The February US benzene contract on Friday settled at 264 cents/gal, 11 cents higher than January’s contract , multiple sources told S&P Global Platts.

The increase was in line with market expectations, as early indications from sources put a potential settlement at 265 cents/gal.

The February contract price settled at a atypical premium to the spot price. Prompt-month benzene was assessed Friday at 251 cents/gal DDP USG, 13 cents/gal below the price players buying benzene under contract will pay in February.

After a 10-cent day-on-day in prompt-month benzene prices on Tuesday to 249 cents/gal DDP USG from 259 cents/gal, market participants shied away from conducting any further trades until Thursday, when the window for contract price-eligible trades closed.

Pricing saw support from an uptick in activity during the latter half of January as well as ongoing tightness.

Benzene from South have waned significantly since the fourth quarter of 2019. Just 8,000 mt of benzene was shipped from South to the US during the first 20 days of January, statistics from the Korean International Trade Association show.

Derivative demand remained soft this week as a major styrene producer was heard to be undertaking maintenance from late January and into March, while sources said a second styrene producer would begin planned work in March.

Demand from styrene has also been trimmed by poor as recent declines in spot values have put pricing below break-even levels, leading some participants to suggest potential rate . The February US styrene price was assessed Friday at $805/mt FOB USG.

Source: Platts

https://globalrubbermarkets.com/195982/us-february-benzene-contract-price-settles-11-cents-higher-at-264-cents-gal-sources.html

China chemical production curtailed amid Coronavirus restrictions

Author: Will Beacham

2020/02/04

BARCELONA (ICIS)–Disruption in China caused by the coronavirus is hitting domestic chemical production as the Lunar New Year break is extended amid restrictions on movement of goods and people.

As the government battles to contain the spread of the virus, there are reports that logistical problems, staffing shortages, and rising inventories are forcing chemical companies to cut production.

Demand is also being hit as economic activity is curtailed in some areas and downstream industries delay post-holiday restarts.

China is hugely important as a global chemical producer, with new analysis by ICIS (see bottom graph) showing that it accounts for more than half of global capacity for several product groups, including the polyester chain, purified terephthalic acid (PTA), polyvinyl chloride (PVC), methanol, and methyl tertiary butyl ether (MTBE).

Any widespread restrictions on output from plants would disrupt domestic and export markets, though downstream domestic demand is also likely to be lower if customer industries face similar disruption.

This week ICIS has reported disruption to chemical production across several value chains.

POLYOLEFINS CUT
China’s polyolefin suppliers have cut their post-holiday production due to logistics restrictions amid authorities’ efforts to contain the coronavirus outbreak.

Domestic inventories are high as the plants did not stop production during the Lunar New Year holiday period, which started on 24 January, with most storage warehouses now full.

Some are being forced to rent warehouses as the resins could not be delivered to other provinces amid restrictions on domestic transportation, as well as reduced manpower as the holiday was extended in various provinces.

Downstream enterprises could take longer to resume operations amid the outbreak, raising the possibility that some polyolefin plants will have to shut down, a Sinopec source said.

Jiangsu Sanmu Group has delayed a post-maintenance restart at its 280,000 tonne/year epoxy resins plant at Yixing. This is to comply with a directive from Jiangsu provincial authorities that businesses should not resume operations before 10 February.

Zhejiang Weitai Rubber Company has delayed restart of its 100,000 tonnes/year styrene butadiene rubber (SBR) plant at Zhejiang, also until 10 February.

Production of methyl isobutyl ketone (MIBK) has been curtailed in China, with plants extending their holiday shutdown.

Restrictions on road transport have affected delivery to customers for Sanjiang Fine Chemical which has taken one of two lines at its 60,000 tonnes/year ethylene oxide plant offline in Zhejiang.

Around 500,000 tonnes/year of epoxy resin capacity remains offline  in Jiangsu province amid the extended holiday shutdown, creating opportunities for exporters.

China styrene monomer prices fell sharply this week amid delays to downstream plants restarting post-holidays and ample supply.

Isopropanol (IPA) production has been delayed at Shandong Dadi Supu Chemical (Super Chemical)’s 100,000 tonne/year plant in Jiangsu.

METHANOL, PTA FUTURES PLUNGE
China’s methanol futures slumped on 4 February due to the bearish market sentiment on the coronavirus outbreak.

Futures values plunged and reached the daily movement limit before noon, which is 7%.

Contract prices of purified terephthalic acid (PTA) futures on the Zhengzhou Commodity Exchange plunged by the daily limit to yuan (CNY) 4,470/tonne on 3 February, the first trading day after the extended Lunar New Year holiday.

REFINERIES CUT RATES
Chinese refineries are lowering their operating rates sharply as fuel demand takes a hit from the coronavirus outbreak.

Official data shows an 84% drop in travel during this year’s Lunar New Year.

Sinopec has implemented 10-35% production cuts on refineries in Shandong, Guangdong, and Hubei, depending on local demand and logistics, according to refinery sources.

According to John Richardson, ICIS senior consultant, Asia, China polyethylene (PE) plants might run at lower rates but probably would not shut altogether as closing associated crackers entirely is very costly.

Lower China production is not going to lead to more imports because of:

– Insufficient demand
– High PE inventories
– Reported shortages of customs officers and stevedores at ports in China because of the restrictions on travel

“The refinery cuts will, in turn, mean less feedstock for the petrochemical plants but downstream the petrochemical plants will lack demand because a lot of the workers won’t be at work running the plastic processing plants,” said Richardson.

“So petrochemical plants will be squeezed both by lack of feedstock and by lack of demand.”

In a blog post, Richardson also points out that the impact on global markets of any fall in China’s economic growth will be much more severe than during the SARS virus of 2003.

Back then, China accounted for just 4% of the global economy compared with 17% in 2019.

–
China’s consumption of polymers has grown from 22% of global demand in 2003 to reach 43% this year, according to the ICIS Supply & Demand database.

As of 3 February, China has more than 20,000 of confirmed 2019-nCoV cases, with the death toll at 425.

Twenty-four other countries have confirmed cases of infection, including Japan, Germany and the US.

https://www.icis.com/explore/resources/news/2020/02/04/10462921/china-chemical-production-curtailed-amid-coronavirus-restrictions?cmpid=SOC%7CRSS%7Ctwitter%7CFreeChemNewsFeed