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
Recent Developments
Mar 21, 2024 - Employment, Producer Prices Flat
- According to data from the Bureau of Labor Statistics (BLS), employment by furniture manufacturers had not returned to pre-pandemic levels in 2023 and was flat in December 2023 compared to the previous year. Industry labor costs stayed fairly consistent in 2023, following growth of some 23% since before the pandemic. Average hourly wages reached $22.92 in Q4 2023, the highest point of the year. Producer prices for furniture manufacturers were mostly flat in December 2023 compared to December 2022, per the BLS.
- US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
- New furniture orders increased 12% in October 2023 over October 2022, according to a Furniture Insights report by Smith Leonard based on its survey of residential furniture manufacturers and distributors. The report noted the tumult of recent years, with new furniture orders falling in October 2022 and October 2021, following a pandemic-related 40% increase in October 2020. New orders year-to-date through October were up 2% over the same period in 2022. Furniture shipments were down 13% in October 2023 from October 2022 and were down 18% year to date. Manufacturers have been working through their backlogs that developed in 2020 and 2021. Backlogs dropped 5% in October from the previous month and were 43% lower than 2022 levels as backlogs moved closer to pre-pandemic levels. Inventories have also been rebalancing, down 1% in October from September and 31% from a year ago.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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