Household Furniture Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

A number of factors are expected to weigh on the Household Furniture Manufacturing industry, including weak demand from downstream markets, rising external competition and an appreciation of the Canadian dollar; however, despite these challenges, there are some bright spots, such as rising disposable income and improvements in the housing market, that will likely support industry revenue from falling further over the next five years. For these reasons, industry research firm IBISWorld has added a report on the Cosmetic and Beauty Products Manufacturing industry to its growing industry report collection.

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Rising competition from household manufacturers in low-cost countries has caused revenue to decline

New York, NY (PRWEB) May 15, 2014

Revenue for the Household Furniture Manufacturing industry is expected to plummet over the five years to 2014. A number of factors are expected to weigh on the industry including an appreciation of the Canadian dollar and weak demand from downstream markets, such as furniture stores. Although these factors have inhibited growth, rising external competition from household manufacturers in low-cost countries is anticipated to be the primary force behind the industry's decline. Industry operators in emerging markets, such as China, benefit from lower wage costs in addition to looser regulatory standards. Consequently, they have the ability to pass along these savings in the form of lower prices, stimulating demand from downstream markets. As a result of these trends, revenue for the Household Furniture Manufacturing industry is expected to fall at an annualized rate of 4.8% to $3.0 billion, dragged down by an estimated 3.6% in 2014.

According to IBISWorld Industry Analyst Brandon Ruiz, “International trade, particularly exports, is an integral component of the industry and is expected to remain so in the five years to 2014.” Industry operators are heavily reliant on US downstream markets, such as furniture store retailers and wholesalers. Due to the industry's reliance on trade, fluctuations in the value of the Canadian dollar impact industry demand. For example, as the Canadian dollar appreciates relative to the US dollar, household furniture manufactured domestically becomes more expensive, and thus, less desirable. Moreover, an appreciation of the Canadian dollar increases domestic purchasing power, stimulating demand for low-cost imports.

“Despite these challenges, there are bright spots that will likely support industry revenue from falling further over the five years to 2019,” says Ruiz. Improvements in the housing market are anticipated to bolster furniture sales. Housing starts are expected to rise, which will cause many consumers to purchase new furniture to fill out their new homes. Moreover, disposable income levels are expected to trend higher, which will likely lift premium furniture sales. To combat rising price-based competition, industry operators are expected to focus on high-quality products that sell at premium prices to compensate for their lack of price flexibility. Although positive industry trends exist, demand for low-cost imports is expected to remain strong.

For more information, visit IBISWorld’s Household Furniture Manufacturing in Canada 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, theatres, cafeterias, schools and other facilities. Furniture may be made on a stock or custom basis and may be sold assembled or unassembled.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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