Current Furniture Market

There are currently 3,922 furniture manufacturers in the US, according to IBISworld research from this year. (Household Furniture Manufacturing in the US - Number of Businesses 2003 - 2028, 2022). The upholstered furniture business remains a strong domestic business with opportunities for growth and expansion however they still do see the threats of off-shore manufacturing coming into play. With the increased demand for furniture and mass production from large retailers, upholstered furniture manufacturers face threats of off-shore manufacturing.  Upholstered Household Furniture manufacturers saw the share of imports rising from 5 percent in 1992 to 28 percent in 2008 (U.S. Census Bureau 2009c, ITA 2009), and those numbers continue to rise today. While this is still a large domestic business in the U.S., they are often smaller furniture manufacturers that have been operating for a long time and use traditional methods of manufacturing furniture. 

The household furniture manufacturing industry in the US has low market share concentration and the largest businesses are Ashley Furniture Industries, Inc. and Ikea, each with about 10% market share. Mattress Firm, Rooms to Go, and Williams Sonoma Inc. each have roughly 5% market share, and the remaining 65% is made up of thousands of small and medium-sized companies.

Retailers who could be open to implementing sustainable manufacturing practices in order to differentiate themselves and take market share.  Domestic Furniture manufacturing can also be at risk of off-shore manufacturing threatening these businesses as low cost production and increased cost structures make it important for domestic manufacturers to remain competitive in the future. There is a significant opportunity to target those businesses to use more sustainable practices and materials in order to improve their processes, limit waste and improve production practices.  By utilizing more sustainable materials that limit toxicity and monitor carbon emissions the domestic upholstered manufacturing industry presents an opportunity to target and lead sustainability here in the U.S. and Retailers also have the opportunity to drive sustainability initiatives by utilizing better materials and supporting domestic businesses that can help drive change.  

They also can stay competitive among off-shore manufacturing threats and increased demand for cheaper and easier to access furniture.  “While furniture manufacturers were dominated by vertically integrated entities that sold their product mainly through traditional home furniture stores in the second half of the last century, the increased division of labor among industry participants and streamlined supply chains brought forth a more focused furniture factory by the end of the last century… To that end the successful furniture manufacturer of the future will have close links to the final customer to learn about customer preferences, to provide excellent service, and, potentially, to offer mass customized solutions (Buhlman)”.  The changing landscape of the direct-to-consumer e-commerce selling of furniture also poses a threat to domestic manufacturers as increased demand requires more products and resources for materials. Streamlining production practices and offering products that utilize materials that are less harmful to the environment than overseas manufacturing options can pose an opportunity to these smaller scale manufacturers who are trying to maintain their businesses in the future. Additionally, utilizing materials that are more domestically sourced can limit costs and carbon footprint for these manufacturers and can be a value proposition for customers to purchase from them.  “Domestically, the United States has seen an increased interest in environmentally sustainable, carbon neutral, green product demand. Local production also finds renewed interest as it serves both the increased interest in green, certified products and increased expectations of customers with respect to the customization of the product they are willing to buy.” Opportunities exist for the U.S. furniture manufacturing industry to recreate what was once a proud part of the industrial landscape in the United States through sustainable practices, materials and innovation.  

Successful furniture manufacturers may become similar to successful car manufacturers, where successful brands are heavily dependent on marketing to dealers and retailers and guaranteeing quality products tailored to the consumers' taste at a reasonable and competitive price. Manufacturers will also have to respond to customers who are becoming more sensitive to environmental issues, thus opening opportunities in the green product categories (Schlegelmilch et al. 1996, Vlosky et at. 1999, Veisten 2007). 

Domestically, the United States has seen an increased interest in environmentally sustainable, carbon neutral, green product demand. Local production also finds renewed interest as it serves both the increased interest in green, certified products and increased expectations of customers with respect to the customization of the product they are willing to buy. Opportunities exist for the U.S. furniture manufacturing industry to recreate what was once a proud part of the industrial landscape in the United States.