Global Demand Boosts Chinese Door Exports by 50 Percent in Early 2006

Exports from Chinese door manufacturers reached $447 million in the first five months of 2006, up 50 percent from the same period last year, according to a recent report from Global Sources of Singapore.

The 161-page report, China Sourcing Report: Doors, was published Aug. 6 and is based on a survey of 79 Chinese door manufacturers.

Exports have ballooned as Chinese door manufacturers concentrate “more on the overseas markets to minimize their dependence on the domestic market where competition is, at present, fierce because of the ongoing construction boom,” says Meghla Bhardwaj, managing editor for China Sourcing Reports Consumer Products Group, a division of Global Sources.

“Exports are increasing as suppliers respond to the growing overseas demand specifically for security doors, which have emerged as lower-priced alternatives to solid-wood doors for external applications,” Bhardwaj says.

Overseas demand also has driven growth for engineered wood doors, used mostly indoors, Bhardwaj says.

Source: China Sourcing Reports

The manufacturers reported increasing their export prices in response to the domestic construction boom and the global increase in raw material prices.

Five percent of the manufacturers surveyed expect to increase export prices more than 10 percent, while 60 percent project price hikes of 5 to 10 percent. Thirty-five percent of manufactures say they will limit price increases to 5 percent, according to the report.

However, “despite rising raw material costs that have hit the entire international door-making industry, China is still able to offer prices at lower levels,” Bhardwaj says.

Most manufacturers also reported plans to increase their production capacity. Almost half said they plan to add a new factory, while 42 percent reported they will upgrade existing facilities, according to the report.

Source: China Sourcing Reports

Five percent of those surveyed said they have plans to increase subcontracting, and 4 percent will likely expand through mergers and acquisitions, according to the report.

Bhardwaj predicts the increase in Chinese exports will intensify competition between companies globally, “especially in the mid-range and high-end areas where previously Chinese makers were not that competitive.”
Companies included in the survey manufacturer entire doors with hardware and frames. The report focused on security, engineered-wood and solid-wood doors, Bhardwaj says.

“Security doors account for an estimated 55 percent of Chinese door exports,” Bhardwaj says. “Products usually have cold-rolled steel door faces and frames. Stainless steel is used for high-end products, aluminum and copper for low-end models.”

The report excludes patio or screen doors, cabinet and furniture doors and screened security doors, because they constitute only a small portion of door exports.

No U.S. door manufacturers contacted would comment on the results of the study.

The entire report is available for $445.