North American Furniture Industry Progressing Forward

According to the Allied Market Research firm, the demand for furniture in the residential and commercial markets across North America is moving onward and upward. In February, the global Furniture Market was predicted to reach $1.89 trillion starting in 2023 to 2023. The furniture demand will hit $400.1 billion by 2030 at a CAGR of 4.9 per cent from 2021 to 2030.

The global wooden household furniture market is anticipated to grow from $153.77 billion in 2022 to $160.18 billion in 2023 with a CAGR of 4.2 per cent. The primary products of wooden household furniture include chairs, tables, cabinets, and other wooden furniture pieces. The different types of wood involved are hardwood and softwood which consists of plywood, laminates, and medium-density fiberboard (MDF).

Growth for Commerical and Residential Markets

The residential furniture industry is determined to have sufficient growth in market share due to continuous home renovations and expansion of the real estate market. The commercial furniture sector’s growth has been attributed to companies investing in furnishing offices for flexibility and hybrid workplaces and investing in smart furniture and technologies. For the institutional furniture market, Canada was up $4.2 billion.

In the Americas, our fourth quarter orders were stronger than we anticipated and drove revenue and earnings above our expectations,” said Sara Armbruster, president and CEO of Steelcase, Quebec office furniture manufacturer. “Although our fourth quarter orders were below the prior year, project business from large corporate customers improved sequentially from the third quarter. We’ve seen opportunity creation in the Americas grow on a year-over-year basis for eight of the last nine months, and in recent months, a notable number of larger companies in the United States have announced workplace strategies that emphasize the importance of an in-office presence.”

CEO and president, Sylvain Garneau of Groupe Lacasse, Quebec commercial furniture manufacturer, have reported supply chain stability has allowed for shorter lead times and steady supply. The company’s sales for 2023 are set to grow compared to 2022 and even be more successful than 2019. “When your lead times are two to eight weeks, it is too early to say,” Garneau said. “There is still quite a bit of unknown for 2024: Recession or not? Will there be more returning to work in downtown or not? Will employers invest more in their workplaces to make them more attractive or not? It’s too far out at this time.”

The FDMC 300 released its list in March with 34 Canadian companies that ranked based on sales figures: https://woodindustry.ca/over-30-canadian-businesses-on-fdmcs-top-300-list-for-2022/ .

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