Reupholstery and Furniture Repair
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 3,300 firms in the US primarily repair, refinish and restore wooden and upholstered household and commercial furniture. Firms may also repair and refurbish aircraft interiors and seats, as well as cabinetry. Firms often supplement their service income with merchandise sales including refurbished furniture and décor, furniture care products, and complementary products like throw pillows.
Unintended Damage
Disassembling and stripping old furniture carries the risk of unintended damage.
Millennials Embrace Pre-owned Furniture
More and more young people are choosing to buy pre-owned furniture for their homes, according to PYMNTS Intelligence.
Industry size & Structure
A typical reupholstery and furniture repair business operates out of a single location, employs 3 workers, and generates about $400,000 annually.
- The reupholstery and furniture repair industry consists of about 3,300 firms that employ about 11,000 workers generate about $1.3 billion annually.
- Another 18,500 businesses are owner-operated with no employees and generate $630 million annually.
- The industry is highly fragmented with the 50 largest firms representing just 15.6% of industry revenue.
Industry Forecast
Reupholstery and Furniture Repair Industry Growth
Recent Developments
Nov 19, 2024 - Services Sector Expands, Labor Costs Up
- Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. While labor costs for the industry were on the rise in October 2024, employment experienced a downturn, according to the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at household goods repair and maintenance firms, which include reupholstery and furniture repair services, were 7.2% higher in September 2024 compared to a year ago, reaching $23.41 per hour. Employment by household goods repair and maintenance firms fell 3% in September 2024 compared to a year ago, per the BLS. Consumer spending, a leading indicator for the industry, increased nearly 3% in August 2024 compared to a year ago and was up 0.1% from the previous month, according to the Bureau of Economic Analysis.
- According to a new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals, furniture costs are expected to increase. 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 $3.1 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.”
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Home remodeling spending, a demand driver for furniture repair and reupholstery, is expected to trend higher through the first half of 2025, following a modest slowdown, according to the latest Leading Indicator of Remodeling Activity (LIRA) report released by the Joint Center for Housing Studies at Harvard. Homeowner improvement and repair spending is expected to reach $466 billion through the second quarter of 2025. Spending on residential remodeling has been more limited due to economic uncertainty and continued weakness in home sales and the sale of building materials. The report noted that homeowners are making upgrades and repairs to their homes at a steadier pace following several years of frenzied activity during the pandemic.
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