Furniture Manufacturing Industry Overview

Excerpt from Furniture Manufacturing Report

The US furniture manufacturing industry includes about 20,000 companies with about $60 billion in combined annual revenue. Major companies include Steelcase, HNI, Herman Miller, La-Z-Boy, Sealy, and Furniture Brands International. Some segments, such as mattress manufacturing and office furniture manufacturing, are highly concentrated, but the industry as a whole is fragmented: the largest 50 companies generate less than 40 percent of revenue.

Competitive Landscape

The volume of home furniture sold depends heavily on the level of home sales, while office furniture sales depend on the health of the US economy. The profitability of individual companies is closely linked to volume, since many costs are fixed. Small companies can compete effectively if they produce specialty items or high-quality workmanship that can sell for a premium price.

Products, Operations & Technology

Major product categories include household furniture (about 50 percent of industry revenue), office furniture (about 35 percent), and institutional furniture used in schools, hospitals, and churches (about 10 percent). Within the household segment, wood kitchen cabinets account for about 40 percent of sales; upholstered furniture another 25 percent; and nonupholstered furniture 20 percent. Products include "case goods" (bedroom, living room, and dining room furniture); upholstered items like sofas and recliners; mattresses and box springs; and other items such as occasional furniture, home entertainment centers, and grandfather clocks. Products may be factory-finished or ready-to-assemble (RTA). Within the office segment, wood and non-wood furniture accounts for 45 percent of sales; partitions, showcases, and shelving account for 30 percent; and custom architectural woodwork 25 percent. Companies tend to specialize in household or office and/or institutional furniture.