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
Sep 25, 2024 - New Orders, Inventories Fall
- New orders for furniture and related products declined 0.5% in June 2024 compared to the previous year and were down 4.7% from the previous month, according to the US Census Bureau. Inventories of furniture and related products fell 1.3% in June 2024 compared to the previous year and were up 0.4% from the previous month. Furniture and related products shipments fell 1.8% in June 2024 compared to a year ago and were up 1.3% from the previous month. Furniture manufacturing sales were $16.2 billion in Q1 2024, a decline of nearly 15% from a year ago and 5.6% lower than the previous quarter, according to the Census Bureau. Producer prices for furniture manufacturing rose 1.1% in July 2024 compared to the previous year, per the Bureau of Labor Statistics (BLS).
- US manufacturing activity contracted in August 2024 for the fifth consecutive month after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.2% in August, up 0.4 percentage points from the 46.8% recorded in July. A reading above 50% indicates manufacturing expansion. Prior to the uptick in March, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. August’s New Orders Index was in the contraction zone at 44.6%. The August Production Index was 44.8%, a decrease from July’s 45.9%. Five manufacturing industries tracked by the ISM reported growth in August: Primary Metals; Petroleum & Coal Products; Furniture & Related Products; Food, Beverage, and Tobacco Products; and Computer & Electronic Products. The industries reporting contraction in August were Textile Mills; Printing & Related Support Activities; Nonmetallic Mineral Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Transportation Equipment; Wood Products; Machinery; Paper Products; Chemical Products; and Miscellaneous Manufacturing.
- 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.
- The US furniture market registered a 4% decrease in exports in 2023 compared to 2022, according to a report in Furniture Today. Exports totaled $2.2 billion in 2023 compared to $2.3 billion in 2022. Exports to Canada, accounting for 63% of US exports, fell 4% in 2023, and exports to Mexico, which makes up 8% of US exports, fell by 2%. The US increased its exports to several countries in 2023. For example, exports to Saudi Arabia, the fifth largest importer of US-made furnishings, grew by 61% in 2023, and exports to China posted a 20% increase.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.