Newell Rubbermaid Competition
Now Viewing Newell Rubbermaid's competition in: Furniture Manufacturing
Recent Developments
Bedding Manufacturers Trim Jobs - Two major bedding manufacturers, Simmons and Spring Air, are cutting jobs in light of tougher business conditions. Simmons offered voluntary layoffs to administrative and sales employees after cutting 9 percent of its salaried workforce in July 2008. Spring Air trimmed about two dozen sales positions and several executives. Existing home sales, an indicator of demand for bedding and other furniture, dropped 14 percent in August 2008 compared to a year earlier.
Furniture Shipments, Orders Decline - US shipments of furniture and related products fell 5.2 percent in the first eight months of 2008 compared to the same period in 2007; new orders dropped 4.7 percent, and unfilled orders increased 4.4 percent. The housing crisis, troubled credit markets, and sagging consumer confidence are likely contributors to the drop in furniture shipments and new orders.
Furniture Raw Material Prices Mostly Stable - Prices for many of the raw materials used in furniture manufacturing remain stable. Producer prices for broadwoven fabrics used in many furniture items dropped 0.2 percent in September 2008 compared to a year earlier; lumber prices fell 4.2 percent. Leather prices rose 1.6 percent, while prices for the metal springs used in chairs, sofas, and recliners rose more than 17 percent.
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. Imports have become a major competitive factor.
Furniture Manufacturing Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US furniture manufacturing is forecast to grow at an annual compounded rate of 6.4 percent between 2008 and 2013.
Furniture Growth Uneven
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Linked to home sales
- Need good merchandising
- Risk: Housing slump lasts years
Industries Where Newell Rubbermaid Competes
- Consumer Products Manufacturers
- Housewares (primary)
- Baby Supplies & Accessories
- Hand Tools, Power Tools, Lawn & Garden Equipment
- Office & Business Furniture, Fixtures & Equipment
- Office, School, & Art Supplies
