XN000022-1974-06-06 — Page 7

THURSDAY, JUNE 6, 1974

-6.

IN 1970, HE SAID, THE INDUSTRY PROVIDED EMPLOYMENT TO OVER 4,000 WORKERS AND PRODUCED FURNITURE WORTH ABOUT $172 MILLION, OF WHICH $87 MILLION REPRESENTED EXPORTS TO VARIOUS OVERSEAS MARKETS.

AT THE END OF 1973, ONLY THREE YEARS AFTERWARDS, EMPLOYMENT IN THE INDUSTRY EXCEEDED 6,000 WORKERS, AN INCREASE OF 50 PER CENT.

+ALTHOUGH THERE ARE NO READILY AVAILABLE PRODUCTION FIGURES FOR 1973, I KNOW THAT IT HAS EXPANDED CONSIDERABLY IN REAL TERMS WITH ANNUAL EXPORTS NEARLY DOUBLED OVER THE THREE YEAR PERIOD TO $151 MILLION IN 1973,+ SAID MR. MCGREGOR.

THIS SUGGESTED A TOTAL PRODUCTION VALUED AT OVER $300 MILL MILLION.

+THESE ARE IMPRESSIVE FIGURES AND THERE IS ONE PARTICULARLY INTERESTING FEATURE WHICH EMERGES FROM THEM, HE ADDED.

+THIS IS THAT THE FURNITURE INDUSTRY RELIES TO A CONSIDERABLE EXTENT ON A STRONG DOMESTIC MARKET, WHICH IS QUITE AN UNUSUAL SITUATION FOR A SUBSTANTIAL HONG KONG INDUSTRY

+FORTY TO FIFTY PER CENT OF PRODUCTION IS SOLD LOCALLY. MOST OTHER MANUFACTURING INDUSTRIES SELL LESS THAN 20 PER CENT IN THE DOMESTIC MARKET.+

MR. MCGREGOR SAID THAT THE VALUE OF THE DOMESTIC MARKET IN 1970 WAS IN THE REGION OF $124 MILLION. IMPORTS ACCOUNTED FOR $39 MILLION, OR ROUGHLY 30 PER CENT OF THIS.

#

BY 1973, IMPORTS HAD TRIPLED TO ABOUT $120 MILLION AND IT WAS CLEAR THAT IMPORTS WERE GENERALLY AIMED TO MEET THE HIGHER QUALITY DEMAND.

+THE FACT THAT SUCH IMPORTS ARE MADE SUGGESTS A PARTICULAR DEMAND WHICH THE LOCAL INDUSTRY HAS NOT SO FAR BEEN ABLE TO MEET,+ SAID MR. MCGREGOR.

+HOWEVER IMPORTS DO HAVE TO OVERCOME HIGH FREIGHT COSTS IN ORDER TO COMPETE WITH LOCALLY PRODUCED FURNITURE AND, PROVIDED THE HONG KONG FURNITURE INDUSTRY CONTINUES TO IMPROVE ITS QUALITIES, STYLING AND DESIGNS AT THE RATE WE HAVE SEEN IN THE PAST FEW YEARS, THERE IS NO REASON WHY IT CANNOT REDUCE THE IMPACT OF THE IMPORTED ITEM.+

EMPLOYMENTCGREGOAL-TRAINED DESIGNERS ABLE TO PRODUCE

MCGREGOR CONTINUED : +THIS MEANS, OF COURSE, THE

CREATIVE DESIGNS. IT MEANS GREAT ATTENTION TO MARKET TRENDS AND TO CHANGES IN INTERNATIONAL CONSUMER DEMAND PATTERNS, MANY OF WHICH, OF COURSE, ARE BROUGHT ABOUT BY DESIGNERS THEMSELVES WITH THE RIGHT KIND OF PUBLICITY.

+IT MEANS IMPROVING INDUSTRIAL PRODUCTIVITY AND UP-DATING PRODUCTION TERMINOLOGY. AND IT MEANS. AN INCREASING KNOWLEDGE OF MATERIALS, ERGONOMICS AND APPLICABILITY OF DESIGN TO HONG KONG'S CIRCUMSTANCES AND ENVIRONMENT.+

MR. MCGREGOR