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 - Starting a New Business Chapter
Barriers to the entry of new competitors vary according to industry segments, but generally new entrants must quickly establish a market profile to withstand strong competitive pressures existing in the market. New entrants at the upper end of the market are likely to incur high marketing costs to counter the recognised brand names of existing manufacturers. Entrants into this segment are also likely to face difficulties competing against existing manufacturers and importers, which may have long-term, possibly exclusive, supply contracts with key retailers.
In the area of mass-produced institutional furniture, entry is barred by large capital requirements for machinery, high tooling-up costs, and the need for long production runs... purchase to read more