In the good years, MDC UM took up to eight booths to exhibit its furniture at the Trade and Investment Convention. The economic downturn has changed that. "Eight booths, as you can imagine, can get expensive, year after year," said Anthony Farah, business development and marketing manager. Farah, who has a degree in business administration, said while TIC is a good marketing opportunity, he has instructions to keep costs reasonable.
"We stayed at a modest four booths this year. We're going to try a slightly different layout and see if we can pull it off with the number of booths. "I would say immediately after the show and during the show, we tend to get a lot of, what we call, retail business of small to medium purchases: $5,000-$10,000. You can buy a chair that costs $5,000 or 20,000," said Farah, in an interview at the T&T Manufacturers Association (TTMA), Barataria, last week Wednesday.
Outfitting the Waterfront Towers
MDC UM's biggest contract so far has been installing furniture in the Waterfront Towers next to the Hyatt Regency Trinidad hotel. According to the Web site, http://tt.linkedin.com/pub/anthony-farah/14/758/925, Farah wrote: "I have been involved in the office furniture industry for over six years now and have recently broken the annual sales record for my current employer (and with the help of the HNI corporation), by closing of the Waterfront Towers furniture contract in T&T. "I also planned the logistics and ran the installation (10 months) of 52 floors of office furniture, meeting rooms and commercial kitchens, using mostly local labour (special thanks to OMNI and MDI of the USA)."
Farah was reluctant to release the cost of that contract.
"You get a lot of follow-up business from a project that size," he said. "That's actually the largest project completed in the Caribbean, so we're very proud of it." Farah said planning, design work, purchasing and manufacturing time for a big project can take a few months to a year. MDC UM outfitted both Waterfront Towers. He declined to give the size of that contract. Faraj said the company used the outfitting of the Waterfront Towers as an advertising point at the 2009 TIC to let people know local manufacturers' capability, that a local supplier can actually outfit a project of international scope.
"In that particular project, we competed against all other firms that were outside of T&T. We competed against international firms in the United States, Guatemala and Mexico. We prevailed in the actual project and we completed it on time," Farah said. What gave MDC UM the edge? "Experience. We're also, unlike most of the suppliers in our industry, a full-fledged manufacturer. That capability, when we brought in the construction firms and so on, we took them up to our manufacturers in the United States so they can see the quality of product that we partner with. We also took them out to the factory. The factory is something most people don't see. Most people never see the dirty end of it.
Reading the market
Farah said MDC UM had anticipated a slow 2010, but surprisingly saw activity in the market that was unexpected. "We expected the first six months to be slow, to start cranking up by mid-year, and a slightly better year going into 2011, which is what most economists are not portraying. "Our industry tails the construction sector. We are not in the leading edge of the construction sector, so we're not going to see the slowdowns that the whole construction sector is anticipating. "Sometime in 2011, we may start to see a slowdown in major projects. You have projects that are closing off, that have been closing off for the past year," Farah said. He said some of those projects were linked with the Urban Development Company (Udecott), and MDC UM is not certain about the direction of those projects, given the controversy over Udecott's former chairman, Calder Hart. He said the company has not seen much activity regarding Government Campus.
Exports
Farah said about 30 per cent of MDC UM's business goes to: Barbados, Jamaica, St Lucia, St Vincent and the Grenadines. "A lot of the smaller islands do not have dedicated furniture dealers." He said Jamaica, surprisingly, is one of the company's smaller markets because it has a lot of local competition. "It's a very big island, but big means that they have a lot of business people out there, people who buy and sell. To penetrate the market, you need a lot more human resource on the ground."
