Hot seat: An anticipated housing cooldown is expected to limit domestic demand for new furniture

Over the five years to 2019, the Household Furniture Manufacturing industry in Canada has struggled to compete with foreign operators that have dominated domestic demand. The US market has been the main driver of recent export growth. A weak Canadian dollar has made domestic products much more affordable for US consumers, making Canadian furniture manufacturers more competitive internationally. Additionally, housing starts in the United States have grown more rapidly since 2013. Since demand for furniture closely follows patterns in real estate markets, furniture sales have also increased strongly in the United States over the past five years. However, the depreciation of the Canadian dollar is not enough to offset the threat of foreign producers...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
-3.8%
Forecast Growth 19-24
Profit
Employment
22,411
Businesses
2,774
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 operators that have dominated domestic demand
  • The industry has been challenged by uncertainty in the economy
  • The Bank of Canada has risen interest rates
  • Industry Report - Starting a New Business Chapter

    The Household Furniture Manufacturing industry in Canada has low barriers to entry. One indicator of the industry's low barriers to entry is the percentage of nonemployers. In 2019, about half of industry operators are nonemployers. An industry with a high share of nonemployers indicates that entry costs are relatively low, as small operators are still able to compete effectively. Although nonemployers account for a large share of enterprises, smaller operators typically find it difficult to compete with larger companies. Larger operators benefit from economies of scale, distributing their fixed costs among several facilities, thereby lowering overall costs and supporting profit margins...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 effective exchange rate index in the Household Furniture Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    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 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
    WagesPurchasesProfitDepreciationMarketingRentRent and lease costs are expected to account for 3.0% of revenue in 2019. Cost varies by size and location and most operators opt to operate in a high-traffic area. With the majority of operators based in Ontario and Quebec, known for being more expensive to do business in, rent expenditure is projected to be high compared with the manufacturing sector. Furthermore, the proportion of small businesses in the industry inflates this expenditure’s share of revenue.UtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Household Furniture Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Housing starts (2010-2024)

  • 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.

    Contact Us

    Want to speak to a representative? Call us.

    clear