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As late as 1996, a total of 1406 firms comprised the furniture industry at a value of over 5.6 billion dollars. Household furniture warehouse sales totalled 2.1 billion dollars in 1997, and is expected to increase at 1 percent annually into the next century. This figure, however, is lower than the overall goods increase, which is expected to be 1.5 percent annualy, and also much lower than the 3 percent annual increase which is expected in the U.S. household furniture market. Canada makes up only 2 percent of the world furniture market, compared to 28 percent in the U.S., 15 percent in Japan, and 10 percent in Germany. 95 percent of Canadian exports ended up in the U.S., which was 15 percent of their total imports. On the contrary, Canada imported $816 million of furniture, 60 percent of which came from the U.S. The Canadian market is definately reached it's potential as seen by a much lower growth 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 it's revenues in Canada, a low growth and mature market, whereas Dorel Industries, Ltd., it's rivals, generates over 80 percent of their revenues internationally, in which a much higher growth exists. Asia and Europe also were going to have an advantage in terms of importing furniture parts, etc., becuase of the expected reduction in tariffs in the not-so-distant future. The Canadian furniture industry is labour intensive, and employs mostly immigrants who are skilled and semi-skilled workers. The industry is becoming more high-tech and there is going to be a shortage of qualified labour supply. The wage costs in Canada are much higher then they are in the U.S., which is another reason for the company to look at going international. The...