The First Canadian Furniture Company

2170 Words9 Pages
IE6560 – Deterministic Optimization
Project report
Instructor: Dr.Evrim Dalkiran Submitted by: Group 10

Background:
The first Canadian furniture company was established in Berlin (Kitchner), Ontario in 1830 and the next in Toronto in 1834. The industry developed considerably in the latter half of 19thcentury, mainly in Ontario. There were a few factories in Quebec before 1900 but the industry primarily developed after WWII.
Furniture is considered in economic terms as an ‘elastic commodity’ and is very sensitive to economic changes. It is an export oriented industry with 53% of production being shipped outside Canada and 95% of exports going to the US. Canada is the 5th largest exporter of furniture in the world operating at various levels like manufacturers, distributors and retailers.
The Canadian furniture industry is 97% Canadian owned and consists mainly of small or medium-sized family-owned and -operated firms. It is an important contributor to the Canadian economy, employing more than 100 000 people in total across all levels.
At present there are 8410 manufacturing establishments directly employing 50,000 people. Annual sales exceed $11 billion. Quebec accounts for almost 50% of the production.
The Canadian furniture industry finds it difficult to compete with other countries because labor costs are much higher in Canada and Canadian companies have high transportation costs. Finally, Canada 's mostly small- and medium-sized companies have difficulty
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