Furniture manufacturers are retaining a level of optimism for the coming months, despite overall trade being worse than this time last year, according to the latest Trade and Price Trends Survey by British Furniture Association (BFA).
The survey revealed a balance of -25% manufacturers and -10% of suppliers reporting worsening profit margins.
Balance trends based on manufacturer responses recorded a rise in labour costs and raw material inputs over the last six months of 88% each, with other overheads rising by 100%.
BFA MD Phil Spademan says: “Material and product price increases were a big issue for all respondents, with 60% of respondents reporting rises.
“The output over the last six months was not as good as expected last October with cashflow trends being negative for both manufacturers and suppliers.
“However, while the picture was fairly gloomy, 22% of manufacturers report feeling more confident about the next six months and 44% are expecting output and new orders to improve.”
Among respondents’ comments recorded within the survey were notes on sizeable surcharges added to some products, construction delays impacting on order timelines alongside difficulties posed by Government policies and the war in Iran.
Phil adds: “The Trade and Price Trends Survey continues to evolve, with analysis of responses from both manufacturers and suppliers and new questions added to reflect the changing business landscape, such as monitoring apprenticeships which began in 2024 and, more recently, starting to evaluate the impact of ESG requirements on the sector.”
Members of the BFA can access these resources here.
