Industry Analysis & Industry Trends
The Home Furnishing Wholesaling industry has fought falling downstream demand over the past five years. Since home furnishings are often discretionary, low consumer confidence in the economy and reduced disposable income during the recession led to plummeting sales at the retail level. Consequently, stores purchased fewer goods from industry operators while wholesale demand declined. However, recovery for the industry will likely continue to gain traction in the five years to 2019, as the economy improves. In 2014, IBISWorld forecasts improving per capita disposable income and housing starts will help boost industry revenue... purchase to read more
Industry Report - Industry Investment Chapter
The Home Furnishings Wholesaling industry has a low level of capital intensity. IBISWorld estimates that for every dollar spent on wages, firms in the industry spend $0.05 on capital investment. This level of capital intensity is typical for industries in the wholesale sector. The labor required in the industry is not highly skilled, but staff is needed to operate stocking machinery, check inventory and provide customer service. As technology capabilities develop, automated processes can take over some of the functions of personnel, resulting in a slight decline in the share of wages to revenue.
This industry's main capital applications include delivery vehicles and storage, warehousing and computer inventory systems... purchase to read more