Upholstery Showing Stronger Gains Than Wood Furniture
¡¾2002.07.26¡¿

Source: American Furniture Manufacturers Association

Industry shipments of residential furniture are projected to total $23.907 billion in 2002, up 4.1% from $22.963 billion last year, according to AFMA’s just released forecast. The increase for upholstery is projected at 6.3%, with total shipments of $10.472 billion. Wood furniture shipments are projected to increase 2.7% to $11.156 billion. The overall increase is only slightly lower than AFMA’s earlier forecast in April, but the increases by product sector have been adjusted as a result of actual sales in the categories for the first few months of the year.

“We are still confident that furniture sales will continue to rebound this year following a disappointing year in 2001,?said Joseph P. Logan, AFMA’s vice president of financial services. “But sales in the first half of 2002 indicate that upholstery is recovering more quickly than wood furniture. The consumer remains cautious with big-ticket purchases.?

The strength of upholstery sales can be attributed to a number of factors, Logan said. Because upholstery is more of a fashion item and also generally wears out more quickly, consumers tend to replace it more frequently. Upholstery also is often less expensive than wood furnishings so consumers may be more willing to make that purchase. And with many of today’s consumers spending more time at home, they may see upholstery as an avenue to freshen up their homes and create a more comfortable, inviting setting.

The AFMA forecast is based on the current outlook for the U.S. economy that is prepared by the Research Seminar in Quantitative Economics at the University of Michigan.