Rising material prices are having a significant effect on trade, the latest survey from British Furniture Manufacturers (BFM) has revealed.

In the BFM’s October 2020 State of Trade and Price Trends survey, 81% of manufacturers reported rising materials costs, with almost all expecting further increases into the New Year, while pressure on profit margins could see rises in product prices in the coming weeks and months.

Nick Garratt, MD of the BFM, says: “Survey results show that rises in material prices are having a major impact on the furniture trade, as 81% of manufacturers reported rising material costs and almost all respondents expected further rises as we approach Christmas and enter the New Year.

“A number of factors have led to 34% of those surveyed taking steps to raise product prices, and it seems inevitable that many more will follow.”

The State of Trade and Price Trends Survey is produced every six months for the BFM. A full version, which features a comprehensive overview of key industry statistics including financial rations, trends in sales, materials, labour, overheads and margins, is available to BFM members from the association’s website.