Furniture Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 13,300 furniture manufacturers in the US produce furniture and related articles using a variety of materials and production processes. Product categories include household and institutional furniture (upholstered and non-upholstered), kitchen cabinets, countertops, and office furniture and fixtures. Furniture manufacturers may mass produce or custom-make products. Companies produce semi-custom products by modifying stock goods according to customer specifications.
Variable Raw Materials’ Cost
Fluctuations in the cost of raw materials affect profitability for furniture manufacturers.
Fashion-Driven Trends
Household furniture is fashion-oriented and demand is driven by home design trends and fads.
Industry size & Structure
The average furniture manufacturer operates out of a single location, employs about 27 workers, and generates $4.9 million annually.
- The furniture manufacturing industry consists of about 13,300 companies that employ about 315,000 workers and generate about $65 billion annually.
- Industry concentration varies - kitchen cabinet and countertop manufacturing is fragmented, while some segments of household furniture are concentrated.
- Some large companies are vertically integrated, and may produce raw materials or have retail operations.
- Large companies include Ashley Furniture, La-Z-Boy, Steelcase, and Leggett and Platt.
Industry Forecast
Furniture Manufacturers Industry Growth
Recent Developments
Nov 19, 2024 - Prices, Wages Rise
- Producer prices for furniture manufacturers rose 1.8% in September 2024 compared to the previous year, per the Bureau of Labor Statistics (BLS). Employment by furniture manufacturers fell 3.6% in September 2024 year over year. Employment has not yet returned to pre-pandemic levels, remaining 12% lower than 2019. Wages at furniture manufacturers were up 3.7% in October 2024 year over year, reaching $24.02 per hour. Furniture manufacturing sales were $17.2 billion in Q2 2024, a decline of 11.3% from a year ago and an increase of 6.2% from the previous quarter, according to the Census Bureau.
- Furniture costs are expected to increase according to a new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals. The study looked at the effect of tariffs on prices of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. Trump has proposed a universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the NRF study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.8 billion to $14.2 billion more for toys, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Five manufacturing industries reported growth in October: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Computer & Electronic Products; and Miscellaneous Manufacturing. Industries reporting contraction in October were Textile Mills; Printing & Related Support Activities; Transportation Equipment; Chemical Products; Electrical Equipment, Appliances & Components; Machinery; Primary Metals; Nonmetallic Mineral Products; Plastics & Rubber Products; Fabricated Metal Products; and Paper Products. According to the report, the Furniture & Related Products industry was one of 11 industries reporting a decline in new orders and one of six industries reporting lower volumes of imports in October compared to September.
- Bassett Furniture’s manufacturing facilities were halted by a ransomware attack that took place on July 10, according to Security Week. One of the leading US furniture manufacturers, Bassett reported to the SEC that it detected unauthorized access to its IT systems, which involved the threat actor encrypting some data files. Per the SEC filing, “As a result of the Company’s containment measures, which included shutting down some systems, the Company has not been, and, as of the date of this Report is not operating its manufacturing facilities.” The company’s 100 retail stores and e-commerce operations remain operational with customers able to order and purchase available merchandise. However, the company is not able to fulfill orders due to the cyber incident, it reports. Per the filing, Bassett said the incident is likely to continue to have a material impact on the company’s operations until recovery efforts are completed.
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