U.S. furniture exporters – mostly domestic upholstery, but also some wood furniture manufacturers - have undoubtedly been reading about Britain’s planned exit from the European Union with some concern.

That’s largely thanks to the ongoing strengthening of the dollar against the pound. While this is not necessarily new – the dollar has been strengthening against the pound steadily over the past year – the shift was nowhere near as dramatic as since the June 23 vote to exit the EU.

This obviously makes goods in Britain – such as travel – less expensive to American consumers, but makes it more expensive for exporters – including furniture producers to sell into the market.

And considering the fact that the U.K. market is the fourth most important furniture export market, this could have some short and long-term effects.

“International business is tough right now with the strength of the dollar,” said John Jokinen, president of high end upholstery and case goods resource E.J. Victor, particularly related to the British pound. “I can’t ever remember when it has been this low. It makes buying U.S. goods more expensive. There obviously will be a potential hiatus until that recovers.”

For E.J. Victor the U.K. market remains important, particular with its popular Kelly Wearstler and Ralph Lauren lines. But the company also does good business in Asia, the Middle East and Russia to name a few.

As this historic decision continues to unfold other exporters also will have to weigh how much they focus on these other markets, not to mention Canada, Mexico, China, Korea, Australia and Japan, which also fall in the top 10 most important export markets. Currency shifts in these and other areas too could also have an impact on business, although perhaps not as dramatic as what’s happening in the U.K.

(Source: Furniture Today  Author: Thomas Russell)