Console tables

	Model AC-311Bfrom Ator has a tempered glass top and a chrome-plated steel frame.

Makers are investing in steps aimed at reduced wastage, better management and the vertical integration of processes.

China’s console and coffee table suppliers see strategic changes as vital in dealing with higher production outlay. Such endeavors are being undertaken after costs drove product prices up by as much as 20 percent in 2008.

Material expenditure was considered the primary cause of the upsurge. Spending on steel, for instance, escalated 50 percent from 2007 levels. The metal, which is often used for the frame or base, now ranges from $695 to $1,043 per ton, depending on the grade.

MDF and glass that are commonly adopted for the tabletop have also increased 20 and 10 percent, respectively.

In addition, labor expenditure rose 20 percent after the implementation of the new labor contract law in January last year.

Given this situation, many suppliers are taking measures to trim down manufacturing costs. One of these is the reduction of material wastage. Scrap wood planks, for example, are being reprocessed and glued together to create panels for tabletop and leg construction.

Most makers are also investing in management system upgrades, automation of processes for greater production capacity, and vertical integration of workflow. While such steps entail substantial initial outlay, operating costs are projected to go down in the long run.

Moreover, a few suppliers are farming out noncore processes to minimize expenses. Ator Furniture Co. Ltd, one of the companies interviewed for this report, performs glass cutting in-house but subcontracts tempering. This saves funds that would otherwise go to large-scale machine procurement for the latter procedure.

These strategies, together with anticipation that material costs will start declining and the recent tax rebate jump from 9 to 11 percent, are forecast to curb Updateprice increases in the months ahead.

Makers expect the slower yuan appreciation to also contribute to quote stability.

	Dongguan Sincere offers model 3818, which features a veneered MDFtop.

Coffee tables usually have rectangular, square and round shapes, while consoles are available in more sizes and forms but are often smaller. Value add-ons include multiple storage shelves, racks and drawers. The simple four-leg style with one lower shelf, however, dominates output.

Wooden low-end models are priced between $20 and $60. These are made of particleboard or softwood such as pine and willow, and covered with particleboard featuring a wood grain pattern.

Midrange designs have wooden bases and tabletops in glass, MDF or softwood such as oak, rubber or pine with hardwood veneer. Prices extend to $200.

For glass tabletops, models that come with tempered, transparent panels with a beveled edge are at the upper portion of the price scale.

High-end console and coffee tables are usually made of hardwood such as birch, maple, zelkova and cherry. They are often equipped with lacquered, screwed and corner-blocked frames, and dovetail drawers.

The legs come in iron, steel or stainless steel. Steel and iron hardware can be powder coated, chrome plated or painted. Some models have bases made of less-costly rattan.

Particularly for consoles, the legs, drawers, shelves or racks feature handcarved patterns.

Models with an antique finish also fall in the high end. To achieve this look, wooden tables are handhammered or filed to create small scars or nicks, making the surface appear moth-eaten. Some suppliers also adopt fuscous stains as opposed to undertones to achieve this. Such models are priced above $200.

The majority of output in the glass and metal line consists of coffee tables. Low-end designs have a 5mm-thick tempered glass top and a steel frame, and are between $20 and $35.

Priced from $35 to $45, midrange models come with an 8 to 10mm beveled tempered glass top and an MDF or zinc alloy base.

High-end designs are fitted with a 10 to 15mm beveled tempered glass top and a polished stainless steel, aluminum alloy or solid wood frame. Quotes are from $46 to more than $100.

Prices of China-made console and coffee tables will remain stable in the months ahead as pressure from challenges begins to ease.

As regards product development, efforts will focus on models with an expandable structure for greater storage space.

To keep abreast of industry trends, suppliers such as Forworld Industrial Co. Ltd attend trade shows regularly. The company sends representatives periodically to Interiors Birmingham in the UK and the High Point Furniture Show in the US.

Under efforts to ensure quality, Forworld purchases wood from suppliers that are members ofthe US National Hardwood Lumber Association.

Likewise, Tradewinds Furniture Ltd sources paint directly from the Guangdong province factories of Netherlands-based AkzoNobel and Valzpar of the US.

China’s console and coffee table industry has a supplier base consisting of more than 5,000 companies. They produce the line usually together with dining sets, bedroom dressers, bookcases, curio cabinets and bar stools, among other types of furniture.

Like most businesses in the country, the sector is fairly fragmented and dominated by small and midsize makers, often locally owned and with a workforce of about 300. Annual sales are between $1 million and $10 million.

Large manufacturers, on the other hand, are mostly Hong Kong-, Taiwan-, Japan- and US-invested. Fully automated facilities and specialized testing laboratories are commonly found in these factories. ODM models make up the majority of output.

Coffee and console tables are produced mostly in Guangdong and Zhejiang province.

For the former, plants are located in the cities of Dongguan, Foshan, Shenzhen and Guangzhou. Suppliers there typically have more than 20 years of experience in furniture manufacture.

About 2,000 console and coffee table makers are located in Dongguan, the majority of which are Taiwan-invested. They usually target the midrange and high end.

In Foshan, manufacturing is concentrated in Shunde, where another 2,000 companies are situated.

Catering to the low end and midrange, most Shunde companies have started their export business only recently.

Wenzhou in Zhejiang is another manufacturing hub that yields mostly low-end and midrange console and coffee tables.