FURNITURE TODAY — The furniture industry is seeing even tougher times as the credit crisis hampers businesses and consumers alike, according to a recent article published in Furniture Today. Approximately 86% of manufacturers are reporting losses in a survey conducted this August. An ordering decline of 10% year-to-date has accounting and consulting firm Smith Leonard concerned about the near future for many furniture businesses.
The sharp decline in fuel prices combined with the end of the election season could already be improving these numbers. As furniture retailers downsize and smaller businesses exit the market, surviving retailers are enjoying a modest resurgence in sales. This brief moment of respite may carry over into the holiday shopping season, which should improve retail orders.
Businesses are developing aggressive strategies to bring in as much business as possible in what may be one of the most meager holiday seasons. The incoming administration should be hard at work trying to return consumer spending to a healthy level. While we're not sure if that means extending tax benefits to consumers or subsidizing their debt, a surprising number of furniture businesses are trying to create enough income to make it through 2nd quarter, 2009- and hoping for better numbers next year.
Bookmark with:
