Bed and board: Despite positive housing trends, rising imports will constrain industry revenue

Over the five years to 2018, US demand for household furniture has risen relatively strongly, underpinned by growth in the US housing market. Consumers often purchase furniture when moving into a new home, so an increase in housing starts has raised overall furniture demand over the past five years. Existing home sales and home improvement spending have also grown strongly during the five-year period, spurring furniture purchases for redecoration. However, despite rising demand for furniture, the industry has experienced intensifying competition from imports. Foreign manufacturers, particularly in Asia, can manufacture furniture at lower costs and undercut the prices of domestic operators...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The continued increase in import penetration is projected to lead to stagnation in industry revenue
  • Growth in the housing market has underpinned a particularly strong increase in demand
  • The importance of millennials as a major market for the industry will continue rising
  • Industry Report - Industry Products Chapter

    Upholstered furnitureUpholstered furniture is the largest product segment for household furniture manufacturers and is expected to account for 48.1% of revenue in 2018. Upholstered products include couches, recliners, futons and ottomans. This segment has fared relatively well amid the overall industry's struggles with import competition in recent years. Many upholstered furniture products are bulky, making them costly to ship internationally. Companies therefore tend to offshore the fabric cutting and sewing portion of manufacturing in this segment, while keeping woodworking and final product assembly closer to domestic markets. As a result, this segment has been expanding as a proportion of the industry...purchase to read more.

    Additional Insights for the Household Furniture Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Household Furniture Manufacturing Industry are

  • Contacts within key markets
  • Guaranteed supply of key inputs
  • Ability to alter goods and services produced in favor of market conditions
  • IBISWorld analysts also discuss how external factors such as Import penetration into the manufacturing sector and Per capita disposable income in the Household Furniture Manufacturing industry impact industry performance..

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    What's in this report

    What is the Household Furniture Manufacturing Industry?

    This industry manufactures a range of furniture for personal, household and public use. Public furniture is used for hospitals, theaters, cafeterias, schools and other facilities. Furniture may be made on a stock or custom basis and may be sold assembled or unassembled.

    Industry Products
  • Upholstered household furniture
  • Metal household furniture
  • Institutional furniture
  • Nonupholstered wood household furniture
  • Industry Activities
  • Upholstered household furniture
  • Nonupholstered wood household furniture
  • Metal household furniture
  • Household furniture (except wood and metal)
  • Institutional furniture
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Import penetration into the manufacturing sector
  • Per capita disposable income
  • Housing starts
  • Trade-weighted index
  • Price of sawmill lumber

  • Current Performance
  • Competition from abroad
  • Rising demand
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Tepid demand growth
  • International trade
  • Table: Household Furniture Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Household Furniture Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Carpenters
  • Furniture Wholesaling
  • Furniture Stores
  • Department Stores
  • Consumers

  • Key Selling Industries
  • Glass Product Manufacturing
  • Metal Wholesaling
  • Plastics & Rubber Machinery Manufacturing
  • Textile Mills
  • Wood Paneling Manufacturing
  • Woodworking Machinery Manufacturing

  • Products & Services
  • Upholstered household furniture
  • Institutional furniture
  • Nonupholstered wood household furniture
  • Metal household furniture
  • Other
  • Chart: Household Furniture Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Housing market
  • Price and import demand

  • Major Markets
  • Home furnishing stores
  • Other retailers
  • Independent wholesalers
  • Businesses
  • Exports
  • Department stores and warehouse clubs
  • Other
  • Chart: Major Market Segmentation for the Household Furniture Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Household Furniture Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Household Furniture Manufacturing Industry

  • Industry Globalization
    Ashley Furniture Industries Inc.,
  • Table: Ashley Furniture Industries Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Household Furniture Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Household Furniture Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    80/20 Principle
  • Also known as the Pareto Principle, it states, as a rule of thumb, that 80.0% of a business's revenue should come from 20.0% of its customers.
  • Case Goods
  • A classification that includes furniture made of hard materials like wood, metal, glass or plastic.
  • Cellular Manufacturing
  • A lean method of producing similar products using cells, or groups of team members, workstations or equipment, to facilitate operations by eliminating setup and unneeded costs between operations.
  • Contract Outfitter
  • An independent distributor that works with office furniture manufacturers to help clients customize their furniture selections.
  • Edgebanding
  • Veneer or laminate used to conceal the exposed edges of furniture or cabinets and made of the same type of material.
  • Offshore
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Value Engineering (Ve)
  • VE is a systematic method to improve the value of goods or products and services by using an examination of function.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Household Furniture Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Household Furniture Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Household Furniture Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Household Furniture Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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