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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 3,500 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 3-4 workers, and generates about $330,000 annually.

    • The reupholstery and furniture repair industry consists of about 3,500 firms that employ about 12,000 workers generate about $1.1 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

                                    Coronavirus Update

                                    May 17, 2022 - Remodeling Spending to Moderate
                                    • Even as pandemic conditions wane, homeowners are expected to continue to invest in home improvements. Home remodeling spending is expected to remain strong for most of 2022 before tapering off in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 11.3% to $390 billion in the first quarter of 2022 compared to Q2 2021. On a year-over-year basis, quarterly remodeling spending levels are forecast to rise 15% in Q2, 19.7% in Q3, then moderate slightly to 17.3% in Q4 when spending will reach $430 billion.
                                    • New cases of COVID-19 are down significantly from the peak of the Omicron surge. Amid the drop in new cases and hospitalizations, more consumers are returning to pre-pandemic patterns of life, which could result in increased business for reupholstery and furniture repair shops with retail showrooms.
                                    • Shops with a retail space may have reconfigured shop layout to accommodate social distancing. Some shops kept showrooms open to customers by appointment only and offered curbside drop-off and pick-up to minimize contact and promote distancing. To limit in-person interaction, reupholstery and furniture repair firms may put fabric, wood, and finish options on their websites, so customers don’t have to spend as much time perusing swatches and other samples on-site.
                                    • Some industry watchers note that furniture repair demand may get a boost as many people continue to work from home and seek to spruce up their home offices with fresh finishes or new upholstery on their furnishings. While under quarantine, many passed the time with DIY projects around the home. Furniture repair and reupholstery firms may see an uptick in business as consumers seek fixes for their DIY projects that didn’t turn out well.
                                    • The coronavirus outbreak has generally widened the discussion around human activity’s impact on the environment. Reupholstery and furniture repair shops may tout their services as an environmentally friendly alternative to buying new furniture.
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