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 analysis of auction house data by antique search engine, Barnebys.

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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    May 21, 2024 - Higher Employment, Labor Costs
                                    • Employment by household goods repair services, which includes reupholstery and furniture repair, rose almost 3% in March 2024 year over year while wages grew nearly 2% to $22.72, according to the Bureau of Labor Statistics. Compared to pre-pandemic levels, employment levels have grown nearly 14% and wages are 5% higher. 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.
                                    • Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
                                    • Home remodeling spending, a demand driver for furniture repair and reupholstery, is expected to decline in 2024 for the first time since 2010, according to a recent 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 fall from $481 billion in 2023 to $450 billion in 2024. Looking ahead, the report projects that spending will worsen through the third quarter of 2024 before moderating slightly to 6.5% lower by the end of the year. According to Abbe Will, Associate Project Director of the Remodeling Futures Program, “Even with the anticipated downturn, spending for improvements and repairs to owner-occupied homes this year is expected to easily surpass the robust levels seen early in the pandemic. Recent improvements in homebuilding and mortgage rates also support the prospect of turning a corner on the rate of remodeling spending losses by the end of the year.”
                                    • Reupholstery and furniture repair businesses will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
                                    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.

                                    Request A Demo