Industry Analysis & Industry Trends
The Wooden Furniture and Upholstered Seat Manufacturing industry is the largest in the furniture manufacturing sector, accounting for 60% to 70% of Australian furniture production and employment. However, the industry has endured a sharp decline since the since the mid-2000s. An appreciating Australian dollar through to a peak in 2012-13 significantly eroded the capacity of local manufacturers to compete with imports and non-wooden furniture substitutes.
Domestic demand for wooden and upholstered furniture products is expected to currently total $4.3 billion, representing a marginal decline over the five years through 2015-16. However, imports now capture a greater share of domestic demand at the expense of local manufacturing... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is considered to be in a declining stage of its economic life cycle. It is increasingly subject to competition from low-cost substitutes and imported furniture.
Demand is also influenced by the cyclical fluctuations in new building activity, growth in household incomes, household consumption patterns and new household formation. The industry is characterised by its many small- to medium-scale operators and there is little scope for the emergence of a major player, which could stimulate a faster pace of industry expansion. The limited scope of the domestic market tends to prevent manufacturers from obtaining substantial scale economies in production, distribution or marketing... purchase to read more