Hot seat: As the Canadian dollar rebounds, import competition will threaten the industry

Over the past five years, the Household Furniture Manufacturing industry in Canada has struggled to compete with foreign operators that have dominated domestic demand. Imports share of domestic demand has risen in recent years, a continuation of trends going back over a decade due to low wage costs and less demanding regulatory standards. In addition, although strong macroeconomic indicators for this industry have risen, industry revenue is expected to decline over the five years to 2018. Over the five years to 2023, the industry is expected to continue its decline. The Canadian dollar is forecast to rebound, diminishing the cost advantages that domestic manufacturers have experienced over their US counterparts in recent years...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-1.6%
Forecast Growth 18-23
Profit
Employment
21,055
Businesses
2,697
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has struggled to compete with foreign manufacturers that have dominated domestic demand
  • Increased market share concentration has contributed to lifting the industry's average profit margin
  • Housing starts are anticipated to decline, inhibiting demand for industry services
  • Industry Report - Industry Products Chapter

    Case goodsCase goods, which include nonupholstered wooden furniture, are the largest industry product segment, accounting for an estimated 52.2% of industry revenue in 2018. Case goods include bed frames, bookcases, chairs, desks and dining tables, but exclude cabinet and vanity manufacturing (See IBISWorld report 33711CA). Although this product segment accounts for the largest share of the market, it has been particularly susceptible to competition from imports over the five years to 2018. Overseas manufacturers can leverage low labour and overhead costs to produce furniture at more competitive prices than domestic manufacturers. Therefore, retailers and wholesalers that have traditionally purchased domestic goods are increasingly turning to imports to save money. Imp...purchase to read more.

    Additional Insights for the Household Furniture Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Household Furniture Manufacturing Industry are

  • Contracts within key markets
  • Guaranteed supply of key inputs
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from furniture stores and Canadian-dollar effective exchange rate index in the Household Furniture Manufacturing industry impact industry performance..

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    What's in this report

    What is the Household Furniture Manufacturing Industry?

    The Household Furniture Manufacturing industry in Canada manufactures a range of furniture for personal, household and public use. Public furniture is used for hospitals, theatres, cafeterias, schools and other facilities. Furniture may be made on a stock or custom basis and may be sold assembled or unassembled.

    Industry Products
  • Case goods
  • Upholstered furniture
  • Institutional furniture
  • Other household furniture
  • Industry Activities
  • Upholstered household furniture
  • Nonupholstered wood household furniture
  • Metal household furniture
  • Household furniture (except wood and metal)
  • Institutional furniture
  • Wood TV, radio and sewing machine cabinet
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from furniture stores
  • Canadian-dollar effective exchange rate index
  • Per capita disposable income
  • Housing starts

  • Current Performance
  • Weak domestic demand
  • International trade
  • Bottom lines
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing slowdown
  • International trade
  • Industry structure
  • Table: Household Furniture Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Household Furniture Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Furniture & Furnishings Wholesaling in Canada
  • Furniture Stores in Canada
  • Department Stores in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Glass Product Manufacturing in Canada
  • Metal Wholesaling in Canada
  • Plastics & Rubber Machinery Manufacturing in Canada
  • Textile Mills in Canada
  • Wood Panelling Manufacturing in Canada

  • Products & Services
  • Case goods
  • Institutional furniture
  • Upholstered furniture
  • Other household furniture
  • Chart: Household Furniture Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Wholesalers
  • Retailers
  • Business end users
  • Other
  • Chart: Major Market Segmentation for the Household Furniture Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Household Furniture Manufacturing

  • Basis of Competition
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Household Furniture Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Household Furniture Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Household Furniture Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Housing starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Case Goods
  • A classification that includes furniture made of hard materials like wood, metal, glass or plastic.
  • Contract Outfitter
  • An independent distributor that works with office furniture manufacturers to help clients customize their furniture selections.
  • Edgebanding
  • Veneer or laminate used to conceal the exposed edges of furniture or cabinets and made of the same type of material.
  • Offshore
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • What Our Customers Say

    Why buy this report?

    The Household Furniture Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Household Furniture Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Household Furniture Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Household Furniture Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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