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 13,800 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 25-39 workers, and generates $4-7 million annually.

    • The furniture manufacturing industry consists of about 13,800 companies that employ about 380,000 workers and generate about $82 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                May 21, 2024 - Shipments, Inventories Fall
                                • Furniture and related product shipments were down 2.3% in March 2024 year over year while new orders for furniture and related products were mostly flat, according to data from the Census Bureau. Furniture and related product inventories fell almost 4% in March 2024 compared to a year ago. Meanwhile, producer prices for furniture manufacturers were up 1.2% in March 2024 compared to a year ago, according to the Bureau of Labor Statistics. Producer prices for furniture manufacturers increased in Q1 2024 compared to a year ago. In addition, consumer spending levels showed an upward trend in the first quarter of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
                                • 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.
                                • US manufacturing activity contracted in April 2024 after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.2% in April, down 1.1 percentage points from the 50.3% recorded in March. A reading above 50% indicates manufacturing expansion. Prior to March’s expansion, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. April’s New Orders Index was in the contraction zone at 49.1%. The April Production Index was 51.3%, a decrease from March’s 54.6%. Nine manufacturing industries tracked by the ISM reported growth in April: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. The industries reporting contraction in April were Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.
                                • The top furniture categories on consumer shopping lists for 2024 are mattresses, sofas/loveseats, lamps/lighting, outdoor furniture, and bedroom furniture, according to the Provoke Insights Summer 2024 survey performed in conjunction with Furniture Today. Consumers have different timetables for making their furniture purchases, per the survey. Sixty percent of consumers who bought a new furniture item extended the buying process over several days or weeks, nearly 20% decided over a period of months, 15% decided in hours, and 7% decided within minutes. About 77% of shoppers said they planned their most recent furniture purchase, and more than half said they bought a new furniture brand while 48% went with a familiar brand. Of shoppers planning to make a furniture purchase in 2024, a third are planning to spend over $1,000. The biggest spenders per the survey will be households earning $150,000 or higher (50%), impulse shoppers (47%), and Black and Hispanic consumers (47% and 43%, respectively).
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