Furniture manufacturers are retaining a level of optimism for the coming months, despite overall trade being worse than this time last year, according to the latest Trade and Price Trends Survey by British Furniture Association (BFA).
The survey revealed a balance of -25% manufacturers and -10% of suppliers reported worsening profit margins.
Balance trends based on manufacturer responses recorded a rise in labour costs and raw material inputs over the last six months of +88% each, with other overheads rising by 100%.
BFA MD, Phil Spademan said: “Material and product price increases were a big issue for all respondents, with 60% of respondents reporting rises.
“The output over the last six months was not as good as expected last October with cash flow trends being negative for both manufacturers and suppliers.
“However, while the picture was fairly gloomy, +22% of manufacturers report feeling more confident about the next six months and +44% are expecting output and new orders to improve.”
Among respondents’ comments recorded within the survey, were notes on sizeable surcharges added to some products, construction delays impacting on order timelines alongside difficulties posed by Government policies and the war in Iran.
BFA trade surveys play a vital role in monitoring the health of manufacturing in general and the furniture sector specifically, providing insight into the make-up of the sector with analysis of respondents by both membership category and product, including upholstery, beds and mattresses, kitchens and cabinetry.
Member surveys create a ‘pulse check’ for manufacturers and suppliers operating in the sector and contribute to a growing library of data and market research that helps businesses in forecasting and decision-making for the future.
The BFA reports on the furniture trade as whole, production wages, state of the trade and price trends, retail price trends and imports and exports.
Phil Spademan added: “The Trade and Price Trends Survey continues to evolve, with analysis of responses from both manufacturers and suppliers and new questions added to reflect the changing business landscape, such as monitoring apprenticeships which began in 2024 and, more recently, starting to evaluate the impact of ESG requirements on the sector.”
Members of the BFA can access all these resources and more at: www.bfa.org.uk/resources
