Jan. 31, 2017

Winter Las Vegas Market - January 2017

The Las Vegas Market continues to be an important market. The crowds were good and most exhibitors and visitors were optimistic about the coming year. After a year of relatively flat growth and negative political noise, people seemed ready to hit the ground running this year.

We spoke with over 100 industry CEOs during our visit and there were several topics that were top of mind, but the new President Donald J. Trump and his impact on the economy and trade was the hot topic of the market. We heard a broad range of perspectives, everything from:

“Trump is a deal guy. He will make a few illustrative trade deals to demonstrate his follow-through on campaign promises but he won’t disrupt current business workings. And I don’t think furniture will be on his radar.”

to

Trump is going to put a 25% tariff on everything coming in from China: big change is coming. The U.S. will thrive.”
                                                            to
“Policy change may be coming, but it won’t change much for me. There are not enough factories in the U.S. that can produce the case goods we make overseas, so all my competition will be struggling too. We’re all playing on the same field with the same rules.”

Other topics that frequently came up included: 

  • The currency advantages and disadvantages of the RMB, Mexican Peso, Euro, and Canadian Dollar, which are impacting sourcing and shipping decisions.
  • E-commerce and internet behemoths are here to stay, and furniture companies are settling into their relationships with these game changing influences. Ignoring this portion of the market seems no longer to be an option. 
  • The continued blend of residential with hospitality companies. Large companies in both sectors are exploring and executing methods of entering the other. Most believe this is a positive influence for the industry that provides more diversification of customers and different sale cycles.

The Mergers & Acquisition business is brisk in the furniture industry as many companies and their owners are seeking an exit or sale. This mirrors the broader public capital markets, as 2014 to 2017 has recorded consistently high M&A activity. Strong consumer confidence, low interest rates, and high public stock prices are adding fuel to this robust M&A climate. 2016 was a big year for M&A, and we foresee a very strong 2017.

We were honored to represent Lexington Home Brands in their sale to international player Yaxing Capital. 

We have several new transactions in the market and expect to have another great year. Call us and let us help you value your business and navigate our ever-changing industry.

Quotes of the market:
“Donald Trump is using filet mignon and bazooka, instead of a carrot and stick.”

“Businesses are defined by the handful of moments where you strike at opportunity like a cobra. We may be approaching another one of those moments.”

Related News

HD Vegas Market Update - May 2016
Market

HD Vegas Market Update - May 2016

The Stump & Company team feels the merger market remains vibrant with a strong balance of buyers and sellers. One public announcement in particular is worth noting: LacquerCraft's purchase of Grand Manor is a signal that the market is open, and indicates the attractiveness of domestic upholstery.

HD Vegas Market Update - May 2016

The Stump & Company team feels the merger market remains vibrant with a strong balance of buyers and sellers. One public announcement in particular is worth noting: LacquerCraft's purchase of Grand Manor is a signal that the market is open, and indicates the attractiveness of domestic upholstery.
Spring High Point Market - April 2018
Market

June High Point Market Recap

The Spring, rescheduled to Summer, High Point market has now concluded and in our view it was a SUCCESS!
Spring High Point Market - April 2018

June High Point Market Recap

The Spring, rescheduled to Summer, High Point market has now concluded and in our view it was a SUCCESS!
Spring High Point Market - April 2016
Market

Spring High Point Market - April 2016

The High Point Market continues to be a “can’t miss” show for residential furnishings. This year was no exception, and exhibitors felt that traffic was good and order writing was consistent with prior years. Positivity prevailed and exhibitors and attendees alike were upbeat in this economic climate, despite the noise and confusion of state and national politics.

Spring High Point Market - April 2016

The High Point Market continues to be a “can’t miss” show for residential furnishings. This year was no exception, and exhibitors felt that traffic was good and order writing was consistent with prior years. Positivity prevailed and exhibitors and attendees alike were upbeat in this economic climate, despite the noise and confusion of state and national politics.
High Point 2017
Market

High Point - Confidence, Energy, Strong Capital Flow

The attitude among high-end companies in particular was upbeat. The CEOs we spoke with were enjoying robust traffic and business in this strong economic climate.
High Point 2017

High Point - Confidence, Energy, Strong Capital Flow

The attitude among high-end companies in particular was upbeat. The CEOs we spoke with were enjoying robust traffic and business in this strong economic climate.