Los Angeles, CA (PRWEB) September 04, 2013
In the five years to 2013, the Household Furniture Manufacturing industry suffered as consumer disposable income declined with the recession. With less disposable income, consumers were forced to cut back on expenses, inhibiting industry growth. Additionally, the recession forced delays in housing starts, another major driver for the industry. Because the total number of homes influences the number of consumers in the market for new household furniture, when housing starts plummeted 35.6% in 2009, industry revenue subsequently fell 27.9%.
Over the past five years, industry concentration has increased slightly as a result of operators being driven out of business by the recession and lower-priced furniture imports. Imports have created an intensely price competitive environment for existing players. “Faced with eroding profit and loss of demand, many underperforming operators were forced to exit the industry,” reported IBISWorld industry analyst Brandon Ruiz. "To remain competitive, some manufacturers have moved their production facilities to China and other overseas locations where production costs are cheaper," Ruiz said.
Despite these challenges, IBISWorld expects industry revenue to grow to $24.5 billion in 2013, driven by the revival of disposable income and housing starts. As disposable income increases, consumers are more likely to purchase new household furniture. Additionally, the rise in housing starts will fuel industry demand as consumers look to furnish their new homes. Nevertheless, industry operators will continue to face challenges over the next five years, despite anticipated growth early on. The expected rise in disposable income and housing starts will cause demand for household furniture to grow in the short term, but the influx of low-cost imports is expected to thwart long-term growth prospects. Operators in this industry include Ashley Furniture Industries, Inc.
For more information, visit IBISWorld’s Household Furniture Manufacturing in the US industry report page.
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IBISWorld Industry Report Key Topics
The Household Furniture Manufacturing 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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