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. Industry activity has trended sharply downwards since the mid-2000s, as appreciation of the Australian dollar has significantly eroded the capacity of local manufacturers to compete with imports and non-wooden furniture substitutes. The price of general furniture components, such as leather, textiles, metal fasteners and springs, has increased, while the price of imported furniture products has decreased.
Industry revenue is expected to total $2.2 billion in 2014-15, reflecting moderate growth by 1.2%... purchase to read more
Industry Report - Industry Investment Chapter
The capital and labour intensity of this industry varies according to the scale of operations and the segment in which a firm operates. The industry has an overall low level of capital intensity. Unlike most manufacturing industries, wooden furniture manufacturers have a heavy reliance on the input of skilled labour for design and craftsmanship.
The ratio of labour costs to capital depreciation is indicative of the relative importance of each input per dollar in industry revenue (unit of output). Industry wage costs currently total 22.1% of industry revenue, and depreciation charges are about 1.6% of annual revenue. The industry allocates $13.82 on labour supply for every dollar spent on capital equipment... purchase to read more