Countries covered: United States
The US furniture manufacturing industry includes about 20,000 companies with about $65 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 LANDSCAPEThe 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 are a major competitive factor, totaling more than $26 billion a year, and many US manufacturers have factories overseas, where labor and production costs are lower than in the US. Foreign competition and production overcapacity have combined to keep prices low. Additionally, despite automation, the made-to-order nature of much of the business means that the industry is fairly labor-intensive: average annual revenue per worker is around $250,000.PRODUCTS, OPERATIONS & TECHNOLOGYManufacturers generally specialize in either household furniture (about $60 billion market) or office furniture ($20 billion). Within the household segment, bedroom furniture accounts for about 32 percent of sales; upholstered furniture another 32 percent; and home office, …
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