Modern Furniture
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INDUSTRY SNAPSHOT

This classification comprises establishments primarily engaged in the wholesale distribution of furniture, including bedsprings, mattresses, and other household furniture; office furniture; and furniture for public parks and buildings. Establishments primarily involved in the wholesale distribution of partitions, shelving, lockers, and other store fixtures are classified.

BACKGROUND AND DEVELOPMENT

This industry is affected by interest rates and the housing market. When these economic indicators are stable and strong, the furniture industry generally has higher retail sales. Barrons reported that the furniture industry experienced a slump from 1988 until mid-1992 when a "stop-and-start" recovery process began. Conditions within the furniture industry reflected the nation's general economy as consumers postponed purchases. As a result, when the economy began to improve, there was a pent-up demand for industry products, and the American Furniture Manufacturers Association (AFMA) predicted an increase in furniture shipments.

Following a slump in the early 1990s, the International Wholesale Furniture Association found more than 90 percent of survey respondents reported sales increases in 1993. Sales continued to climb in 1994 and 1995. Throughout 1995, monthly sales for furniture and home furnishings were between $3.1 and $3.4 million. AFMA also predicted an increase in the value of shipments of 7.6 percent in 1999, and a smaller increase of 2.1 percent for 2000. Consumer demand was expected to increase by 5.5 percent and 4.5 percent for 1999 and 2000, respectively.

Housing starts were forecast to increase by 2.9 percent in 1999, followed by only 0.3 percent in 2000. In the late 1990s, much of this industry's strength has come from the industrial (offices, hotels, restaurants) side of the market. The office furniture market estimated at $12 billion, dropped to $8 billion annually in. The office furniture market is estimated at $12 billion. Some analysts predicted that 50 million families were to occupy a home office.

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