Is the Furniture Industry Facing “Armoiregeddon?

Furniture World News Desk on 10/5/2015

Millennials and GenXers buy everything online. Changing housing patterns are giving rise to smaller living spaces. Technology integration is occurring at a rapid pace. Sustainability, environmental footprints and sourcing are becoming points of differentiation. Skilled worker competition is intense.

These are some of the forces currently at play in the American furniture industry as detailed in a new report, Is the Furniture Industry Facing “Armoiregeddon?,” released today by ABTV, a leading business and financial advisory firm headquartered in Greensboro, NC.

The report examines how the furniture industry is responding to the changing needs of consumers—what they want and how they want to buy it. The analysis shows an industry that is vibrant and engaged, concerned about growing its share of the retail dollar and actively developing strategies for long-term success. But challenges exist that must be overcome to achieve that success.

Here are some of the report’s key findings:

• The growing preference for smaller living spaces, as evidenced by the surge in apartment construction and rise of the Tiny House Movement, is creating a need for a different kind furniture: fewer pieces that are more multi-purpose and appropriately sized. 

• Innovation remains a key to the industry’s survival. The “Internet of Things” is slowly making its way into furniture, and manufacturers and retailers must adapt. 

• Manufacturers and retailers must recognize that a new generation of consumers concerned about the environment is seeking sustainable, responsibly sourced furniture, a trend that started at the top of the market and is now moving down into the masses.

• E-commerce is no longer an either/or proposition for retailers—it’s here and growing, driven by the demands of Millennials and young moms. Retailers need to find their own split between online and in-store sales.

• Distribution of sales is quickly shifting toward the largest retailers, forcing smaller players to rethink their strategies to keep market share.

• Concerns are growing about the availability of skilled craftsmen to fill open positions in order to sustain a domestic manufacturing base. The industry must find fresh ways to prepare a new generation of workers to meet the demands of existing high-demand jobs.

 
“This year’s update to our annual furniture industry report reflects some of the refrains we’ve addressed in previous reports,” says Peter Tourtellot, principal at ABTV. “The shift to appropriately sized furniture for small living spaces is here to stay. And the disruptive power of technology is going to reorder the retail experience of buying home furnishings. The industry is getting smarter about how it responds to change with innovation, and this is one of the strategies that will keep the industry on a steady road to success.”

Anderson Bauman Tourtellot Vos (ABTV), with offices in Greensboro, Charlotte, Atlanta, Jacksonville and Richmond, is a leading business and financial advisory firm with specialized experience in the furniture industry. ABTV is headquartered in Greensboro, NC. www.abtv.com