LOS ANGELES, California — For those who think that the upholstery fabric business is swinging back to the USA, CEO and president of Morgan Fabrics Inc. Michael Gittelson says that “nothing has changed.”

“We don’t believe that business is shifting back to the States.  The cost differential between China and the USA is based on raw material cost with labor being a small part of this business,” said the “The Chinese government sees to it that raw material prices are held in check through subsidies. Business in China is just as good as it always was other than the dip in 2008. We bring in items in the $4-$6 range for the motion furniture business in plush pile primarily. We’ve also gotten into $8-$12 jacquards for pillows.”

Morgan is still considered the plush pile King of Chinese fabric exporters in the States but it is getting increased competition from the likes of Marcovaldo, Dorell, Elite, Worldwide and Kaslen. “Winning is walking away with 80 percent of the business,” Mike says. He feels he is getting that much out of the market today with the volumes he is moving through the furniture trade. Morgan also has a Shanghai based company, Morgan Fabrics Shanghai Ltd. Morgan is a regular exhibitor at Shanghai Intertextile in August and at both Showtimes in High Point.

Passion Suede and Bella Velvet upholstery fabric is still knocking the doors down for Morgan Fabrics Inc. according to Gittelson.  “Morgan Fabrics is listed by the Chinese Export Bureau as the largest piece goods exporter in China,” he said. He feels that the domestic China market is still a ways off from becoming important to Morgan but “it’s definitely out there. There are just too many mills in China and many of them are going out of business. It reminds me of the silk shirt business which went from $100 a shirt to $9 before it imploded.” Besides, Gittelson said he has enough on his place just servicing the USA market from China. Gittelson

Gittelson recently went to the Ashley Furniture store which opened in what was previously a Best Buy location in Shanghai and determined “they did their homework.” As far as sourcing anywhere else, like Turkey for example, Gittelson says he wouldn’t go to Turkey for goods. “The Turks are running around China buying goods.”

The company was founded in 1956 by his father Arnie, who at 90, is still coming into the office twice a week. “We’re like two bulls in a China shop,” Michael laughs. “Neither one of us wants to back off from each other as far as father and son is concerned. I spend most of my time living in Shanghai but I still get a lot of excitement seeing the pleasure my father still takes in this business. Dad just wanted to sell full rolls but once we established Michael Jon Designs, we started to sell cut order as well,” Mike explains.

At 14, Mike discovered a group of Taiwanese businessmen in Beijing. He now lives almost fulltime—nine months a year-- in Shanghai to keep an eye on the business. He started living there in 2004 and began to practice Buddhism which he still believes in. Before China, he spent time in Japan. He started the China business by importing glass furniture components in 1980.  

In 1999, Morgan began to import rayon chenille. “We wanted the Italian tapestry look for the USA. I met a Chinese guy—he was actually Taiwanese and very innovative-- who said he could make anything. We gave him a color development blanket. In six to eight weeks, we got samples. The Chinese figured nobody would pay more than $3 a yard for anything they made but I wanted the equivalent of a $20 construction in high end rayon jacquard chenille with cotton warps. We couldn’t do that in the States. Everyone told us we were crazy.”

In 2002, Morgan started to import microdenier suede fabrics from China. That was a big hit for Morgan and the industry and still sells tonnage until today.