Challenges and Trends Facing Manufacturers in 2018

Abstract:

“With the growth of millennial consumers buying furniture, U.S. furniture manufacturers are moderately optimistic about the steady increase of new furniture sales in the coming years. The National Association of Realtors forecasts existing-home sales growth of 4% for the residential property market in 2018, which could, in turn, have a positive impact on the moderate furniture industry performance.

Overall, the U.S. furniture market is expected to experience growth. The market registered a 4.5% increase in growth in 2016, placing its overall value at $114 billion.  Although the first six months of 2017 saw a softened increase of 2.5% in consumer spending year over year, the U.S. furniture market is anticipated to grow at a “compound annual growth rate of 2.9% through 2019.”

While the demand for furniture in California and the U.S. have remained strong overall, California's household furniture manufacturing industry — which has an estimated revenue of $3 billion — has stagnated over the past five years. This is due, in part, to an increasing import penetration and high in-state operating costs.

Furniture manufacturers in California and abroad need to be abreast of emerging trends that are shaping a new furniture industry landscape. The trends focus mainly on the fundamental shifts in U.S. consumers’ buying preferences due to changing lifestyles. They can either pose some challenges or open doors to new opportunities”.

Link to Article: Challenges and Trends Facing Manufacturers in 2018