External Swot Analysis
? The household furniture industry is divided into three general categories: wood (43%), upholstered (46%), and other forms (11%). Our industry of wood, medium to high priced makes up 45% of the total market for wood.
? According to the American Furniture Manufacturers Association (AFMA) the main types of wood furniture are bedroom pieces and dining room sets.
? Total furniture sales at manufacturer’s prices in 2003 were $23.9 billion, total wood sales were $10.28 billion and total medium to high priced wood was $4.62 billion.
? The furniture sales were flat in 2003 but trade economists are predicting a 6% sales increase for 2004.
? There are more than 1,000 furniture manufacturers in the US and five of them represent about 31% of industry sales, with the top 25 accounting for half of the sales.
? Imports (bedroom furniture) make up 25% of sales which have driven down prices by 30% forcing downsizes and the closing of over 60 domestic furniture stores in 2002 and 2003.
? Baby boomers make up 47% of all US households, As they become home oriented they replace older, cheaper furniture with more expensive longer lasting pieces.
? Consumer spending on wood is closely linked to new housing starts, consumer confidence, and personal disposable income (about 1% of US total disposable income is spent on furniture).
? There is currently an increased emphasis on spending family time in the home and there is also an increase in new home sales and sales of existing homes.
? According to s survey in Better Homes a ...