NATIONAL REPORT— About five years ago, a meaningful number of purchasing opportunities for furniture, fixtures and equipment (FF&E) began to develop overseas. Today, it is estimated between 70% and 75% of the FF&E for a typical upscale hotel will originate in a foreign country with China rapidly becoming the leader in overseas FF&E manufacturing. The most common items purchased overseas are casegoods, lighting and fabrics. Nylon carpet, artwork, drapery and bedding fabrication remain largely in the U.S. Foreign manufacturers often can deliver cost savings of 10% to 15%, but buyers must use caution before making a final decision. Quality, materials and workmanship may differ significantly from your expectations unless you have an experienced purchasing professional who knows the pitfalls of International sourcing and how to avoid them. There are two primary ways to buy overseas goods. The first is from a U.S. company that contracts for the goods with an overseas manufacturer. This intermediary typically has a solid reputation and/or brand and can add value in dealing with local customs and handling the often-complex shipping issues. The second method is to buy directly from the manufacturer. Before you sign the purchasing order, consider these nine points: Lead time— It generally takes 16 to 20 weeks to receive items manufactured overseas, compared to 10 to 12 weeks in the U.S. Use the right technology— Most overseas manufacturers now use the same CAD/CAM product design/ engineering programs as those in the U.S. You can eliminate a substantial number of potential problems if you use this technology to communicate between the designer and the manufacturer. Product inspection is key— Ensure your purchasing agent reviews all of the design details to ensure accuracy before the project is initiated. He or she can often identify problems that may occur with either the specific manufacturer or the manufacturing process itself. When the product sample is produced, insist that it be made and sent from the same facility where the production will occur to help ensure consistency and quality. Depending on the size and cost of the product, some hoteliers or their purchasing representative fly to the manufacturing plant to personally approve critical items. Verify, verify, verify— Before you approve the final product, verify all the various components that will be used in manufacturing. Demand a guarantee as part of your purchase order that all the components will meet U.S. standards, especially labeling. Wood species and matched finishes— This item often is overlooked when bidding on case goods. Be very specific about the wood type. Cherry wood, for example, is different in China than in the U.S. Insist on U.S. cherry if that is the product finish you want. Specify U.S. hardwood or U.S. veneer, which can have a significant impact on pricing. Ask for wood samples before committing to the contract. Moisture content of wood is another important issue. Make sure that manufacturers use kiln dried wood, rather than air-dried wood. Improperly dried wood contracts and expands with humidity, this may cause significant problems in the joints, as well as overall sturdiness of the product, cracking and warping of the woods and veneers. Containers and insurance— If containers are used to ship furniture, make sure that there is a U.S. contact who will inspect the shipment and repair any damages that may occur en route. Timing— The biggest issue with overseas production is timing. If a critical product is severely damaged in route, the lead-time to replace the item can delay a hotel opening by an unacceptable period of time. Verify that the manufacturer’s insurance will protect you should the product be damaged or not meet specifications. Do not take title of the product until you ensure all product is acceptable and meets the standards for your client. Terms of payment— Negotiation of payment terms is critical. Some overseas manuf