Palliser Background Information.
Palliser Furniture Ltd is a Canadian caller-up created in 1944. Started by A. Defehr with the money he made selling his car, the caller-up is currently the largest piece of furniture manufacturer in Canada. By 1964 Palliser had a 45,000 sq ft operation with 50 employees and $1 Million CND in sales. The Canadian furniture industry is hol down(p) intensive, and employs mostly immigrants who atomic number 18 skilled and semi-skilled workers. The industry is becoming more high-tech and at that place is going to be a shortage of qualified labour supply. The wage costs in Canada are much high then they are in the U.S., which is another reason for the company to look at going international. The Canadian industry is for the most part focussed on product quality, quick delivery, innovative design, client service, and price. The U.S. market on the other hand is more cerebrate towards the quality of raw materials, product design, location, quality of showrooms, extent of merchandise activity, and price. It seems the Canadian market has reached its potential as seen by a much lower harvest than the rest of Canadian goods (1.5%) as well as a much, much lower growth than the furniture industry in the U.S. (3%). Another comparison indicating a lack of international competitiveness is that of the two main furniture companies in Canada.
Palliser generates 85 percent of its revenues in Canada, a low growth and mature market, whereas Dorel Industries, Ltd., its rivals, generates over 80 percent of their revenues internationally, in which a much higher growth exists. Asia and Europe likewise were going to have an advantage in terms of importing furniture parts, etc., because of the expected reduction in tariffs in the not-so-distant future. In 1996, there were 1406 firms that made up the furniture industry with an rate product output of over 5.6...
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