SMART furniture manufacturing. A North American perspective.

Abstract

Furniture manufacturing is fast becoming one of the most globally dispersed manufacturing industries. Regions with low labor and production costs are capturing market share from manufacturers located in higher production cost regions. This paper describes the current situation for furniture in the United States of America, a high production cost region. Both production and distribution are discussed, as well as trends for the future. Assuming there is no recession in the US in the next few years, furniture markets should do well. However, a significant part of the furniture production is expected to move to countries with lower labor costs. Furniture retailing will see significant consolidation and non-traditional retail outlets such as specialty stores, branded stores, and mass merchants are expected to gain market share. The internet, employed for both production (B2B) and retailing (B2C), will gain in importance as it will help lower transaction costs. Smart manufacturing technologies will help US-based manufacturers compete against lower-cost international competitor and will also allow for a more efficient supply chain management for all agents involved in the furniture value chain.