Tropitone Furniture Co.’s Irvine lobby is straight out of the backyard,puffy casual chairs and weatherproof tables on a faux-brick floor, a green-canvas umbrella overhead.
The company isn’t making a statement. Stylish outdoor furniture is what it does.
Tropitone has one of the larger manufacturing operations in Orange County, a 204,000-square-foot factory where 250 workers weld, assemble and paint chairs, loungers and tables. They also hand stuff cushions and cut and sew fabrics.
“We can do fashionable furniture fast,” Chief Executive Michael Echolds said.
The company ships 1,500 products a day. Last year it handled more than 40,000 orders. Yearly sales are $100 million.
Tropitone has another factory in Sarasota, Fla. In all, the furniture maker has 600 workers, including 350 in Irvine. Some parts, such as the woven leather-like materials, are made in China, where Tropitone has an office in Shanghai.
Everything’s assembled and shipped from Irvine and Florida.
“Freight is so expensive that we do finishing, bracing and welding at the factory,” Echolds said.
Doing even a small amount of business in China has been a struggle but is improving, he said. Tropitone found that if it didn’t write good instructions, the China plant would make substitutions.
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Echolds: “We’re not seeing a downtick” |
“We had to really get our documentation together,” Echolds said.
There’s a full-time Tropitone manager in China as well as another in Irvine who travels back and forth.
Casual furniture is a $2.4 billion industry in wholesale sales, said Joseph Logan, executive director of the Summer and Casual Furniture Manufacturers Association in High Point, N.C.
Tropitone is one of the dominant players, he said. Casual furniture includes sales of resin furniture at drugstores and mid-priced patio sets at stores such as Lowe’s. Tropitone makes upscale furniture, a growing part of the market.
The company and its rivals are benefiting from population growth in the Sun Belt, second homes and the boom in what’s called “outdoor rooms”,furnished patios, porches and backyards.
Started in Florida by aeronautical engineer Burt Baker more than 50 years ago, Tropitone’s poolside loungers and “chat sets” also are found at swanky hotels such as Bellagio and Hilton. The Irvine Company uses Tropitone’s poolside furniture at its apartments.
Half of Tropitone’s sales come from resorts and other business. The other half comes from sales through stores. Retailers buy at trade shows and at the Chicago Merchandise Mart, where Tropitone has a permanent showroom.
Stores such as Patioworld, Anaheim Patio & Fireside and La Paz Patio & Fireside sell Tropitone. You can expect to pay at least a few grand for a backyard set.
Casual furniture stores were jumping when people were refinancing their homes, said Tom Larson, manager of Leisure Living Patio Furniture of La Habra.
The business has slowed a bit, he said. Still, the outdoor furniture business tends to hold its own, he said.
“There’s nothing in this store that you really need,” he said. “But that’s what makes people come in. We have what they want.”
Tropitone does well in the store, Larson said. Its biggest rival, at least in Larson’s store, is Minson Corp.’s Mallin, a furniture maker in Montebello. Another Tropitone rival is Jordan Brown International Inc. in Pompano Beach, Fla.
Baby boomers, who grew up with backyard picnic tables, are driving sales.
House sizes have grown 50% and more people are entertaining at home, Echolds said.
“People want to make use of the whole investment,” he said.
The outdoor room boom is holding despite the housing slowdown, he said.
“We’re not seeing a downtick,” Echolds said.
If the rest of the economy was slowing with the housing market, then it surely would affect business, he said. But beyond housing the economy is dynamic, Echolds said.
Tropitone is gaining market share in commercial and retail sales, he said. It expects double-digit growth this year. If housing turns up, that’ll be a bonus, he said.
The company isn’t well known as a brand, at least among consumers.
“Our strength as a brand is as a trade brand,” Echolds said.
The company runs Tropitone U for retailers.
“Its not so much product knowledge,” he said. “A lot of it is sales 101.”
Tropitone aims for a wide selection of comfortable yet resilient furniture, developing fabrics such as its faux woven leather.
“You can put this in the snow,” Echolds said.
A company designer comes up with styles. Tropitone also sponsors design research.
It sent researchers to hotels and resorts in South Beach and Las Vegas to find out what furniture was working. From there, it created the Cabana line, due in May. Like the fashion industry, Tropitone launches seven lines a year.
Tropitone is gearing up for its peak spring and summer season, when many of its factory workers will put in overtime. Wages for the mostly Hispanic workers average about $10.50 an hour. With the overtime in peak season, workers can earn a decent living, Echolds said.
Workers’ compensation insurance is a big cost, though its down about 10% with state reforms, according to Echolds. Tropitone pays $300,000 a year at its Florida factory and $1.3 million a year for Irvine. It’s also dealt with fraud, he said.
The company focuses on safety and gives workers incentives for time without accidents.
The Baker family still owns Tropitone. Echolds and Doug Baker, the third generation owner and chairman, are like brothers, he said.
“I’ve always tried to put Doug first,” Echolds said.
Echolds has been with the company for 33 years, straight out of high school. He’s had cleaning and welding jobs there, among other positions.
“The doors kept opening,” he said.
He became chief executive in 1995 when revenue was around $25 million. Baker’s father handpicked him to take over.
“I’ve really been able to see the company evolve,” he said. “It used to be personality driven.”
Now, it is process driven, he said. People can go on vacation and the company keeps working, according to Echolds.
