Monday, November 24, 2008

U.S. slump brings not-so-glad tidings to N.B. wreath makers

U.S. orders for holiday wreaths are way down in New Brunswick because of the economic slowdown south of the border.

Laura and Ray Folkins of Sussex, who have been in the wreath-making business for over 20 years, have noticed a sharp drop in demand for their products.

"The wreath industry [has] pretty much dwindled here," Laura Folkins told CBC News. "We used to sell to the U.S. market, and that was our main buyer."

"But this year, I mean, I found one particular customer that we’ve been dealing with for a number of years, and when I was talking to them in September they said, 'Well, we’re not going to do Christmas,'" she said.

New Brunswick produces four million wreaths a year, making it the largest producer in Canada. About 95 per cent of the wreaths are sold in the United States.

"It’s been tough to sell anything and our business has gone down maybe 80 per cent, and we’re just doing [work] for one big customer and some local stuff, very small," Folkins said.

Production drops

This year, the Folkins will make 3,000 wreaths, a far cry from the 15,000 they used to make.

At one time, their L&R Evergreens shop near Sussex had 40 employees. Now it has five.

"In the United States they’re in an economic crisis and it’s a big deal for anyone in the export business, and so certainly there are concerns over demand for the product this year," said industry consultant Chris Dickie.

The Folkins now rely more on selling Christmas trees and they say it’s helping them to stay optimistic.

"This year is another year to grind through, and when it’s done you’re happy, and you think, well, it’s going to get better," Laura Folkins said.

Industry observers say wreaths are considered a luxury item and when the economy falls on tough times they’re one of the first items consumers pass by. On the other hand, they say more people are likely to buy trees.

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