Furniture & Home Furnishings Wholesalers

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 10,200 furniture and home furnishings wholesalers in the US resell furniture and home furnishings to retailers, builders, and other commercial customers. Major product categories include flooring and floor coverings; office and business furniture; household and lawn furniture; and linens, domestics, curtains, and draperies. Most companies are small, independent operators that serve a local market.

Dependence On Housing And Construction

The furniture and home furnishings wholesale industry is highly dependent on downstream demand from the housing and construction markets, which is influenced by economic factors.

Competition From Alternative Sources

Furniture and home furnishings wholesalers face competition from a variety of alternative sources, including manufacturers, retailers, importers, distributors, and other channels which allow customers to buy direct.

Industry size & Structure

The average furniture and home furnishings wholesaler operates out of a single location, employs about 10 workers, and generates $10-12 million in annual revenue.

    • The furniture and home furnishings wholesale industry consists of about 10,200 companies that employ 117,200 workers and generate about $125 billion annually.
    • The industry is fragmented; the top 50 companies account for 31% of industry revenue.
    • Most companies are small, independent operators that serve a local market. Large companies include Arc International North America (US subsidiary of ARC International SA - glassware and tableware distributor), Creative Office Interiors, and Building Plastics, Inc. (floor coverings).
    • Some large furniture and home furnishings manufacturers are vertically-integrated and operate wholesale distribution warehouses that sell direct to commercial customers.
                                    Industry Forecast
                                    Furniture & Home Furnishings Wholesalers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 17, 2023 - Sales, Employment Down
                                    • Sales for furniture and home furnishings wholesalers have mostly been on a decline in the second half of the year, as have the prices charged by distributors for products. Furniture and home furnishings wholesalers have seen lower inventory levels and uneven inventory-to-sales ratios in the second half of 2023. The industry has experienced flat employment in the latter part of the year and is tracking lower than in 2022. Labor costs have been contained due to generally flat wages in 2023 and slightly higher wages than a year ago.
                                    • US manufacturing activity contracted in October 2023, falling below the baseline for growth for the twelfth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.7 in October, a slight decline from the 49 recorded in September. A reading above 50% indicates manufacturing expansion. October’s New Orders Index remained in the contraction zone at 45.5%. The October Production Index was 50.4%, a decrease from September’s 52.5%. Two of the manufacturing industries tracked by the ISM reported growth in October: Plastics & Rubber Products and Food, Beverage & Tobacco Products. The 13 industries reporting contraction in October were: Printing & Related Support Activities; Textile Mills; Electrical Equipment, Appliances & Components; Machinery; Fabricated Metal Products; Wood Products; Computer & Electronic Products; Furniture & Related Products; Paper Products; Miscellaneous Manufacturing; Primary Metals; Chemical Products; and Transportation Equipment.
                                    • Consumer confidence levels fell in October 2023, marking three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index declined to 102.6 in October 2023 from 104.2 in September 2023. According to Dana Peterson, Chief Economist at The Conference Board, “Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.” Peterson added that the decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group. Plans to purchase autos and appliances rose in October 2023, while plans to buy a home within the next six months weakened.
                                    • Sales for the furniture and home furnishings wholesalers industry are projected to increase at a slightly over 2% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy, as the industry faces slower spending by cautious consumers, Employment levels declined modestly in summer 2023, and employment costs have remained stable as wages have been flat.
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