Upholstery Showing Stronger Gains Than Wood Furniture Overall Industry Shipments Expected to Rise 4.1% in 2002, New AFMA Forecast Says

Furniture World Magazine

Wholesale furniture shipments are expected to increase 4.1% overall this year, with upholstery showing stronger gains than wood furniture, according to a newly revised forecast from the American Furniture Manufacturers Association. Industry shipments of residential furniture are projected to total $23.907 billion in 2002, up 4.1% from $22.963 billion last year, according to AFMA’s just released forecast. The increase for upholstery is projected at 6.3%, with total shipments of $10.472 billion. Wood furniture shipments are projected to increase 2.7% to $11.156 billion. The overall increase is only slightly lower than AFMA’s earlier forecast in April, but the increases by product sector have been adjusted as a result of actual sales in the categories for the first few months of the year. The recovery is expected to strengthen in 2003, with an increase of 5.9% overall to $25.319 billion in shipments, the forecast shows. "We are still confident that furniture sales will continue to rebound this year following a disappointing year in 2001," said Joseph P. Logan, AFMA’s vice president of financial services. "But sales in the first half of 2002 indicate that upholstery is recovering more quickly than wood furniture. The consumer remains cautious with big-ticket purchases." The strength of upholstery sales can be attributed to a number of factors, Logan said. Because upholstery is more of a fashion item and also generally wears out more quickly, consumers tend to replace it more frequently. Upholstery also is often less expensive than wood furnishings so consumers may be more willing to make that purchase. And with many of today’s consumers spending more time at home, they may see upholstery as an avenue to freshen up their homes and create a more comfortable, inviting setting. According to the new AFMA forecast, consumer furniture demand is expected to be at the $66.387 billion level this year, up 3.5% from $64.119 billion in 2001. An increase of 1.8% to $67.563 billion is projected for next year. Wood furniture sales are expected to strengthen in 2003, rising 6.3% to $11.861 billion. The forecast shows upholstery shipments increasing 5.6% to $11.063 billion. The AFMA forecast is based on the current outlook for the U.S. economy that is prepared by the Research Seminar in Quantitative Economics at the University of Michigan. The American Furniture Manufacturers Association is headquartered in High Point, N.C. – the furniture capital of the world – and represents more than 200 leading U.S. furniture manufacturers and 250 suppliers to the industry.