Looking Forward

There is no doubt that we are operating in a challenging business environment. From shutdowns to labor shortages to inflation, the hits just keep on coming. Despite this, there is still significant optimism in the market. The most recent Economic Impact Report from the World Travel and Tourism Council suggests that the next 10 years will see a marked increase in the travel industry. In total, it is projecting growth up to $3.1 Trillion by 2032. And that growth is starting now.

A sunny future still doesn’t make the present problems go away. Material prices are stabilizing but there are still increases happening. And lead times are still extended. Hence the present moment calls for forward thinking and action. Economic forecasting firms like ITR Economics make good points about pessimistic decision makers who keep their powder dry for too long and thereby lose valuable position in the market. Investing in your business now can give you a leading edge against your competition and position you to take advantage of the next 10 years of forecasted growth.

Right now, time can be your enemy or your friend. At Northland, we like to plan and think ahead. We are urging customers to place orders now that will ship in December or Q1 2023. This will lock in your pricing now and ensure on time delivery. Customers who need things ASAP and for a bargain price typically get neither.

Northland is a leading contract furniture manufacturer in the Pacific Northwest. Our products are proudly made in the USA with locally sourced materials and carry a 10 year manufacturer’s warranty. You can view some of the beautiful projects we’ve worked on at www.northlandfurniture.com/projects/

Call us at 800-497-7591 or email at sales@northlandfurniture.com. Let Northland Furniture help distinguish your property and elevate your guest’s experience.

Safe Clean Travel

The current economic climate for the hospitality industry is still very challenging. Hotels are competing for a smaller share of travelers and only certain types of hotels are really benefiting. No doubt by now you have heard that domestic car travel and the markets that serve those customers will be the first to rebound. So, what are other hotels to do in order to entice those customers back? The answer is not the most obvious one.

Price discounts will not save you. A recent report from McKinsey & Company states most US leisure travelers are looking for increased health and safety measures to the exclusion of all other factors. Guests want to feel safe and secure and trust their hotel to keep them that way. Incredible efforts have been made by all the major flags to institute elaborate cleaning regiments meant to reassure their guests. But the average traveler can’t necessarily see that when they are booking a room on line.  What they respond to is what they can see. And that is the room. Is it dated? Does it look old and tired? Or, is it refreshed with clean, new, modern looking casegoods that make a favorable impression on your guest.

Fresh,new hotel furniture is the most effective way to communicate that your hotel is clean, safe and can be trusted. Customers consume with their eyes first. Will they see hotel furniture with crisp clean lines that are easy to wipe down? Will they see modern color schemes that make the room seem fresh and airy? Differences like this help hotel owners capture the attention of what is now still a limited pool of travelers.  A hotel that looks and feels clean will earn more attention and money from guests who value trust and safety. This is critical as most returning travel will be close to home.  Conventional wisdom right now says that US leisure travel is going to be the first to rebound, as many hotels in local destination spots are currently seeing. Travelocity notes that most hotel bookings are within 100 miles of where the guest lives. In short trips like that, word can travel fast about whether or not your hotel is worth staying at.

Fall and winter months are the regular time for hotels to renovate and replace casegoods. Maintaining that normal schedule is important to ensure that your hotel truly reflects the new preferences of travelers and to differentiate your hotel from the competition; to be trusted, clean and safe. Worn out rooms typically do not inspire confidence in the guest.

This year has been challenging for everyone in our industry. But sometimes opportunity comes in strange packaging.  If you are ready to invest in your property, Northland can help. Contact us today at sales@northlandfurniture.com.

The High Cost of Low Prices

While the bottom line price is important, knowing what you are going to get when your hotel furniture arrives is more important. And sometimes, what you get is what you paid for. Last year, Northland lost out on a bid for a local Oregon project when the customer decided to opt for the lowest price competitor bid. Almost a year later, we had a chance to learn how things turned out. And, it wasn’t pretty.

First, the lowest cost supplier in many cases is selling overseas product as was the case here. This comes with a host of risks. First and foremost, will the hotel be ready when delivery time comes? The furniture takes a long time to get to you and when it does, you get all of it, whether you’re ready or not. Construction delays? Don’t care. Sign here. In this case, the customer had to receive the product, even though they didn’t need it for another 6 months. So, for 6 months, the customer had to pay storage costs for a hotel’s worth of furniture. I’m no math major, but that sounds expensive. How much does that add to the bottom line?

Second, after sitting boxed in storage for 6 months, numerous items had hidden damage that was only discovered upon opening and had to be fixed! Rather than moving the furniture into the rooms and moving on to better things, the customer had to keep rooms out of rotation while the supplier sent people to fix what never should have been broken in the first place. Weeks of work were required. And even then, after installation was completed, there was more fixing to do. How much does that add to the bottom line not only in terms of costs, but stress and lost revenue?

These types of situations are all too common when purchasing decisions are based solely on the bottom line number. Hidden costs are real and they are expensive. Northland avoids that. We work with you. We can adjust our shipping schedule or even delay production to stay in line with your schedule. Being an American manufacture that actually makes product in the US, we have the ability to adapt and be flexible when you need it. Rather than spending an additional $20,000 to $50,000 on storage, repairs and lost room revenue, you get the furniture you need, when you need it.

When Northland Furniture delivers, our product comes blanket wrapped. When its unloaded off the truck, you can see, you can touch it and, if there is damage, you can make a note of it in real time. You won’t find out about it 6 months later when the truck is long gone and the supplier says, “Oh yeah. We’ll see about sending someone out”. What is the cost for these kind of surprises? Again, these are costs that weren’t factored into your budget. Did that low cost quote come with a line item for damaged goods?

Lastly, Northland builds your furniture to a 10 year manufacturer’s warranty. You can rest easier knowing that the price we give you is going to be the price you pay. Other vendors give you a price but then its costs more, and then it costs more again. And then you’ve spent $60,000 to $100,000 that wasn’t in the budget. If you want to get it right the first time, call Northland Furniture. We are American made hotel furniture. Designed for you. Built for you to Stay with you.

Contact us at sales@northlandfurniture.com
www.northlandfurniture.com

Stay the Course

Fall and winter months are the regular time for hotels to renovate and take care of lingering casegood replacements. Maintaining that normal schedule is important to ensure that your hotel truly reflects the new preferences of travelers and to differentiate your hotel from the competition.

McKinsey & Company has issued a report that states most US leisure travelers are looking for increased health and safety measures. The hospitality industry has responded effectively to this with numerous programs and cleaning regiments that have been heavily promoted. But, to the average traveler, that is essentially unseen and has to be taken on faith. What the average traveler responds to is what they can see. Is the room dated? Does it have rundown furniture? Or, is it refreshed with clean, new, modern looking casegoods that make an impression on the guest.

New hotel furniture is what communicates to the guest that the room is safe and clean. Differences like this help hotel owners capture the attention of what is now still a limited pool of customers. This will help them pull ahead of their competitors and stay established as a trusted hotel in this era of Covid and the new normal. This is critical as most returning travel will be close to home.

Conventional wisdom right now says that US leisure travel is going to be the first to rebound, as many hotels in local destination spots are currently seeing. Travelocity notes that most hotel bookings are within 100 miles of where the guest lives. In short trips like that, word can travel fast about whether or not your hotel is to be trusted, clean and safe. Worn out rooms typically do not inspire confidence in the guest.

This year has been challenging for everyone in our industry. But sometimes opportunity comes is strange packaging. If you are ready to invest in your property, Northland can help. Contact us today at sales@northlandfurniture.com.

Northland Public Statement regarding Oregon’s “Stay at Home” Orders

Like many states, Oregon is grappling with how to respond to the threat posed by COVID-19. As of Monday, March 24th, the state’s manufacturing sector is remaining open. Northland Furniture will continue to operate, receive orders and ship product while working closely with our customers to determine any potential impacts or delays to their project. We are also communicating with our vendors to ensure a consistent supply of domestically sourced material for our factory. Northland has been, and will remain, a reliable partner to the hospitality and senior living industry, offering high quality, US manufactured casegoods. That work will continue.

  • Clearly, Northland will proceed with caution. Safety measures will remain in place to ensure the health and well-being of our employees as well as our customers. This will include such actions as:
  • Distancing – this includes both on the work floor and any other areas
  • Cleanliness – Employees will ensure a clean workstation and regular use of hand sanitizer and hand washing
  • Lunch and breaks – Employees will eat their lunch and take their breaks in their cars or their work stations and not socialize until such time that distancing is no longer required
  • Any sign of illness…the employee will be sent home immediately or asked not to come to work

Northland is full of tough and intelligent people. We take seriously the threat posed by the coronavirus to vulnerable members of our community. We also recognize that we cannot be dominated by fear. Through smart, rational and disciplined actions, Northland will continue to offer creative and innovative solutions to all our colleagues and customers despite our current challenges.

Sincerely,

Northland Furniture

Join Us and Stay Connected

Working from home. Working remotely. Social Distancing. This is part of a new reality for many of us. Staying connected will be critical from a family perspective, a community perspective and a business perspective.

If you aren’t already following Northland Furniture on social media, please consider clicking clicking on the appropriate links. We strive to provide updates not only on what we are doing, but on the hospitality and travel industry in general. Hopefully you will find it interesting, entertaining and informative. We look forward to the future as each day is one step closer to a better and more normal tomorrow.

Supply Challenges

Your biggest benefit is closer than you think

First, there were tariffs to deal with. Now, there is Coronavirus. The result is a supply chain out of China that continues to present challenge after challenge to the hospitality industry in the US. While these may not be permanent obstacles, they could last longer than we would like them to. One has to wonder what the next problem will be. Many hotel projects looking for furniture opt to use companies that source from China because of the price. And that is a perfectly reasonable decision. However, the money you save on that furniture evaporates rapidly when that 14-16 week lead time suddenly bumps up to 18-20 or more. Those savings continue to evaporate when those containers are stuck in customs for 2, 3 or 4 weeks. What happens to your build schedule when the major items that you need to complete your hotel don’t arrive on time? What is the cost of pushing out your opening date? What is the cost of letting 100 rooms sit empty because you wanted to save a few thousand dollars on casegoods?

In light of this, now is the time to look toward domestic US manufacturers that have some of the best lead times, that deliver high level customer service and deliver quality product with a meaningful warranty. Northland Furniture consistently delivers product in 6-8 weeks from receipt of an PO and deposit. Northland is a company that you can call and reach someone who is ready and willing to help you. And, Northland offers the best manufacturer’s warranty in the industry at 10 years.