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
Recent Developments
Sep 25, 2024 - Employment Falls, Wages Higher
- Average wages for nonsupervisory employees at household goods repair and maintenance firms, which include reupholstery and furniture repair services, were 6.5% higher in July 2024 compared to a year ago, reaching $23.29 per hour, according to the Bureau of Labor Statistics (BLS). In addition to higher labor costs, the industry is facing the challenge of finding trained upholsterers to replace older upholsterers who have retired from the business. Employment by household goods repair and maintenance firms fell 4.2% in July 2024 compared to a year ago, per the BLS. Consumer spending, a leading indicator for the industry, increased 2.6% in June 2024 compared to a year ago and was up 0.2% from the previous month, according to the Bureau of Economic Analysis.
- Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved on a six-month average basis.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in August 2024, with a seasonally adjusted 40% of small business owners reporting jobs they could not fill. The reading is up two points from July 2024. A seasonally adjusted net 13% of small business owners plan to create new jobs over the next three months, down two points from July. About 21% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
- 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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