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 $330,000 annually.

    • The reupholstery and furniture repair industry consists of about 3,300 firms that employ about 11,000 workers generate about $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

                                    Recent Developments

                                    May 20, 2023 - Hardwood Prices Drop
                                    • Furniture repair firms may be benefiting from a drop in lumber prices. In 2021 and most of 2022, lumber prices were often near record-high levels. US producer prices for hardwood lumber were down 15% in April 2023 year over year unadjusted and less than 1% month over month seasonally adjusted, according to the US Bureau of Labor Statistics. US producer prices for hardwood lumber have fallen for four of the last five months on a month-over-month basis.
                                    • Labor quality was the top business problem for small business owners, called out by 24% of owners, according to a survey by the National Federation of Independent Business (NFIB). The NFIB’s Small Business Optimism Index declined 1.1 points in April 2023 to 89.0, marking the 16th consecutive month below the 49-year average of 98. According to NFIB Chief Economist Bill Dunkelberg, “Optimism is not improving on Main Street as more owners struggle with finding qualified workers for their open positions. Inflation remains a top concern for small businesses but is showing signs of easing.” Owners are still encountering supply chain disruptions, with about half reporting a significant or moderate impact on their business.
                                    • Sales for furniture and home furnishings stores fell about 9% unadjusted year over year and less than 1% month over month seasonally adjusted in April 2023, according to the National Retail Federation. Overall retail sales were up 1.6% in April 2023 over a year ago and 0.4% from March 2023, according to the US Census Bureau. NRF’s retail sales calculation, which excludes car dealers, gas stations, and restaurants, showed growth of 2% unadjusted year over year and 0.6% month over month in April 2023. According to NRF President and CEO Matthew Shay, “Retail sales rebounded in April, reflecting consumer resilience in the face of elevated economic uncertainty. Moderating price levels, continued labor market strength and wage gains have increased consumers’ ability to spend. However, they remain cautious and concerned about the current economic environment. Retailers continue to provide competitive pricing and convenience to help cost-sensitive consumers stretch their budgets.”
                                    • Even though they remain more expensive than conventionally marketed goods, sustainability-marketed products gained market share in 2022 and now account for 17.3% of purchases, according to a new report from Circana and the New York University Stern Center for Sustainable Business in Retail Dive. The sustainability-marketed products are more expensive than conventionally marketed items, with a 27.6% price premium. The five-year CAGR for the sustainable products category is 9.48%, compared to 4.98% for conventionally marketed products. Randi Kronthal-Sacco, senior scholar at the NYU Stern Center for Sustainable Business, states, “This year’s results definitively show that sustainable products survived inflation. In a clear nod to changing consumer preferences, we are encouraged to see that several large legacy brands have also begun to adopt sustainable benefits in their product lineup.” Furniture repair companies may see higher demand as customers continue to seek more sustainable choices, such as repairing furniture instead of making a new purchase.
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