Tupelo Furniture Market prepares for show time

Mississippi’s Tupelo Furniture Market is gearing up for it annual show which is already almost sold out, WTVA reports.

This year’s market will run from February 6 through February 9. So far, 12,000 buyers and exhibitors have pre-registered for the event, Kevin Seddon, the market’s president told WTVA.

“We’re almost sold out. 2.5 million square feet of exhibit space and almost sold out for this event,” Seddon told WTVA.

The market expects to see about 30 to 50 new companies this year displaying their products, Seddon told WTVA. One reason for the huge turnout is that the economy is growing. When the furniture industry improves, usually the housing market rises right along with it.

“When houses sell, people buy furniture,” Seddon told WTVA. “When somebody buys a house, they are going to put furniture in it,” he said.

The Tupelo Furniture Market comprises six buildings and is one of the largest exhibit facilities in the region.

“We’ll have buyers come to this event from 40 states,” Seddon told WTVA.

Furniture sector sees post-recession boost

As markets improve and many Americans regain confidence in the economy, furniture industry sales are elevating, according to 4-traders.com.

In spite of that, certain sectors of the furniture industry were actually able to benefit during the recession. Casual and outdoor furniture saw increased sales because people were spending more money on their homes rather than on vacations, according to Michael Hudgens, Southeast Regional Manager of CIT Trade Finance at CIT Group Inc., a bank holding company that provides financing and advisory services to small businesses and middle market companies.

“In 2012 the furniture industry grew almost double the rate of the overall economy,” Hudgens told 4-traders. “We think that was due to pent-up demand,” he continued. “Also, as the housing market improves, the furniture business will continue to see increased sales.”

However, some of the challenges that are facing the industry involve determining where sales will come from and how to make it, which could spark adopting e-commerce strategies. Another challenge is learning how to serve the 25-35 year-old demographic.

“People in that age category really don’t want their parents’ furniture and see these products more as disposable versus durable,” Hudgens told 4-traders. “This is what many furniture companies are trying to solve right now, and this is both a challenge and an opportunity,” he said.

The top three issues facing the furniture industry right now are rising costs, the consolidation of the customer base and securing financing, according to 4-traders.

“Whether you are a domestic manufacturer or an importer, labor is scarce and expensive,” Hudgens told 4-traders. “Secondly, retailers have consolidated from independent retailers to chain stores and then big box retailers,” he further added. “Lastly, when the housing market collapsed, furniture sales did as well. As a result, several banks and lenders pulled away from the furniture market, making financing difficult for businesses to secure.”

On the whole, the market is doing well and is seeing an upturn. And we will see more growth as the last remnants of the recession dispel.

“The outlook for the sector is very positive,” Hudgens told the site. “It’s a great business to be in and one that’s very important to CIT. We believe the companies that work with us have a huge advantage over their competitors because of our knowledge base and our deep experience in the sector.”

Job growth extending to more industries

Job growth is far from robust, but it is steadily improving and having a ripple effect, USA Today online reports.

The recovery of jobs is well on its way as the housing revival and rising consumer wealth begin to lift an array of industries, from mortgage lending to charities.

The spread of employment gains to previously lagging industries makes for a more sustainable recovery that’s less vulnerable to unforeseen events that could hobble certain sectors, Wells Fargo economist Mark Vitner told USA Today.

The recent boost could help long-term unemployment by providing spots to long-idled workers in beleaguered industries, such as construction. Unemployed Americans out of work for at least six months was still high in January at 38.1 percent, but it was down from 43 percent a year ago.

The turnaround has helped boost construction payrolls by about 200,000 the past two years, but it’s also rippling to sectors that benefit directly from an improved housing market. Kitchen cabinet and other wood product manufacturers, for example, increased payrolls by 9,000 the past year to 344,000 after years of layoffs.

Employment at sawmills similarly rose, USA Today reports. Weyerhaeuser, the giant forest products company, added several hundred workers at its sawmills in late 2012 for the first time in several years amid the pickup in housing construction.

Staffing at furniture stores climbed last year for the first time since 2006. The Badcock furniture chain last year opened 12 new corporate-owned stores in the Southeast that employ 60 workers, its first significant expansion since the housing crash.

Housing forecast to boost online furniture sales

Factory EStores, an online furniture store that connects consumers directly to manufacturers of name-brand products, expects the housing recovery to continue through 2013, according to Virtual-Strategy.com.

This is expected to lead to a major boost for the furniture industry. With real estate markets recovering, more demand for furniture and other home decor items will also increase.

“Furniture companies will continue to benefit from the strong rebound of the housing and construction industries,” says Chris Granwehr, Market Analyst for Factory EStores. “Any time there is an increase in construction it has a direct impact on furniture sales. History has proven that strong housing and construction is directly correlated with strong furniture demand,” he says.

As construction picks up, building permits are expected to rise. With fewer vacant houses, there is an increased need for new developments and homes. For furniture and retail, this is a positive sign.

At this time of year, customers are buying furniture for a variety of reasons, which has contributed to the housing boost. Some people redecorate for the new year and replace worn furniture, while others are buying for their kids who are going back to school. Valentines Day also brings in shoppers who want to surprise their loved ones with a new comforter or loveseat.

There are many reasons for people to buy new furniture in the first couple months of this year, and if the market keeps up, the housing recovery will continue to soar in 2013.

Furniture orders up 10 percent

The latest Furniture Insights report shows new orders for furniture rose 10 percent in September compared with the same month last year. According to Home Furnishings Business online, High Point accounting and consulting firm, Smith Leonard, conducts the monthly survey of residential furniture manufacturers and distributors.

In the first three quarters of this year, new orders remained up 5 percent over the same period a year ago. At the same point last year, new orders were up 6 percent. As orders have steadily increased, Smith Leonard Managing Partner Ken Smith said it could be due to a timing issue. Although several survey participants reported strong double-digit increases in orders, only 53 percent overall reported an increase.

Year-to-date, shipments were up 7 percent, but monthly shipments actually fell 1 percent in the month of September compared to a year ago.

“Again, we think this was probably also a timing issue” Smith told the site. “In September 2012, there were only 19 working days compared to 21 a year ago, so that probably impacted the shipping results.”

With shipments down 1 percent from September 2011, receivables also fell 1 percent from last September. And with orders exceeding shipments for the month, backlogs rose 9 percent over August. In September, backlogs were 13 percent higher than September 2011.

But many other sectors rose in September compared to last year, including inventories, which rose 4 percent, and factory and warehouse employment, which also rose 4 percent. Another sector that rose was factory and warehouse payrolls, up 6 percent over last year.

Smith believes it’s best to focus on the year-to-date results due to the fewer shipping days. New orders (year-to-date) were up 5 percent, so we seem to continue to move upward. He noted that consumer confidence continues to improve and the Conference Board’s Consumer Confidence Index reached its highest point in 4½ years.

“Housing also is continuing to improve,” said Smith. “Home prices are rising, giving people a bit more confidence as well. Interest rates are low. And the GDP is showing positive signs.

“Overall, we have some pretty good things to feel good about. Let’s hope we can continue to move forward.”

HGTV launches Home Design Studio in Bassett Home Furnishings stores

HGTV launched the Home Design Studio in Bassett Home Furnishings stores across the U.S. featuring an HGTV Home-branded line of custom upholstery and accent furniture.

Both in-store and online at www.bassettfurniture.com, HGTV Home collection includes custom upholstered sofas, sectionals, beds, ottomans and benches that are available in more than 1,000 fabrics and made in the USA.

As part of the promotion launch, HGTV will advertise for Bassett stores on a national scale, supported by local-market television advertising, direct mail and digital marketing. Bassett will also give away a piece of HGTV HOME custom furniture every day for the next eight weeks during its “Dream It, Design It, Win It” online sweepstakes.

“HGTV Home is about creating smart and stylish products based on our years of experience informing and inspiring consumers both on-air and online,” said Ron Feinbaum, general manager of consumer products for HGTV. “Our viewers look for great furniture products that bring them the right style, design and quality for their homes. With the HGTV Home Design Studio only at Bassett, they can easily create custom-designed living spaces from the wide range of styles that are available.”

Alliance formed by Samsung, Qualcomm Inc. open to furniture industry members

Wireless technology companies Samsung and Qualcomm Inc. have joined other technology companies to form the Alliance for Wireless Power, A4WP, to promote global standardization of a wireless power transfer technology that offers spatial freedom, as well as to develop product testing, certification and regulatory compliance processes, and to foster industry dialogue with regulators on wireless power policy development.
The alliance is targeting a broad base of consumer electronic devices to establish a worldwide wireless power technology ecosystem. The A4WP will focus on a new wireless power transfer technology that provides spatial freedom for charging of electrical devices in cars, on tabletops and for charging multiple devices simultaneously. The organization says benefits of this wireless power technology include: a transmitter and receiver antenna; design that is easily implemented, a simple wireless power control system; and the ability to transfer power through non-metallic surfaces. 
The A4WP is open to new members and welcomes participation from vendors in all segments of the potential ecosystem, including: handheld devices, consumer electronics, semiconductor products, automotive, furniture, test equipment, cellular operators, and retail. For more information, visit www.a4wp.org.

Furniture manufacturer KI to add up to 45 jobs at Wisconsin plant

Furniture and movable wall systems manufacturer KI reached a new developer’s agreement with the Bonduel, Wis., village board that will provide the company with a grant to create more manufacturing jobs at that facility.
As part of the agreement, KI will receive $75,000 to assist in creating 30 to 45 full-time jobs at its Bonduel manufacturing plant between 2012 and 2013.
“We’re very pleased with the new developer’s agreement and look forward to expanding our manufacturing capabilities in Bonduel,” said Dick Resch, KI CEO. “And we’re excited to create new jobs in the community, expand our production capabilities and continue to be a viable part of the community.”
According to Resch, KI will move production from its plant in Pontotoc, Miss., to its Bonduel plant beginning in January 2012. For more information, please visit www.ki.com.

Study: US demand for outdoor furniture to rise

US demand for outdoor furniture and grill products will increase 3.9 percent annually to $7.2 billion in 2013, according to a new study from the Freedonia Group. 
The market is predicted to benefit from growth in the number of households and the increasing popularity of outdoor living. Consumer lifestyle trends such as staycations and outdoor rooms also are expected to help.
While many of these trends will remain in place, some retrenchment in consumer spending will slow gains going forward, says the report. In addition, continued strong increases in imports, particularly inexpensive products from low-cost countries, will limit value gains. Imports are, and are forecast to continue to be, a significant share of the U.S. outdoor furniture market.