The household furniture industry is divided into three general categories: wood (43%), upholstered (46%), and other forms (11%). Our industry of wood, medium to high priced makes up 45% of the total market for wood.
According to the American Furniture Manufacturers Association (AFMA) the main types of wood furniture are bedroom pieces and dining room sets.
Total furniture sales at manufacturer’s prices in 2003 were $23.9 billion, total wood sales were $10.28 billion and total medium to high priced wood was $4.62 billion.
The furniture sales were flat in 2003 but trade economists are predicting a 6% sales increase for 2004.
There are more than 1,000 furniture manufacturers in the US and five of them represent about 31% of industry sales, with the top 25 accounting for half of the sales.
Imports (bedroom furniture) make up 25% of sales which have driven down prices by 30% forcing downsizes and the closing of over 60 domestic furniture stores in 2002 and 2003.
Baby boomers make up 47% of all US households, As they become home oriented they replace older, cheaper furniture with more expensive longer lasting pieces.
Consumer spending on wood is closely linked to new housing starts, consumer confidence, and personal disposable income (about 1% of US total disposable income is spent on furniture).
There is currently an increased emphasis on spending family time in the home and there is also an increase in new home sales and sales of existing homes.
According to s survey in Better Homes and Gardens, consumers highly value style, design, construction, comfort and durability when selecting furniture as well as a dependable store. They least value planners, guarantee and delivery time.
Consumers enjoy shopping but lack confidence in accessing construction, quality and value relative to price. They also worry that the style may not be appropriate once they get it home or in the near future. When...