Industry Analysis & Industry Trends
The Wooden Furniture and Upholstered Seat Manufacturing industry is the largest industry 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 exchange rate appreciation 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 $2.5 billion in 2013-14, reflecting moderate growth by 2.2%... 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 in order 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, and 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