Industry Analysis & Industry Trends
The Wooden Furniture and Upholstered Seat Manufacturing industry exhibited limited growth over the past five years as it struggled to protect its market share from the influx of low-cost imports and furniture alternatives, such as metal, plastic and glass. Industry revenue is expected to grow at an annualised 0.7% over the five years through 2016-17, to reach $2.6 billion. This includes expected growth of 0.6% in the current year. The appreciation of the Australian dollar in the early part of the period reduced the price of low-cost imports. This reduced the production capacity of local manufacturers. Although the Australian dollar has depreciated from 2013-14 onwards, the industry has not been able to regain the sales lost to imports... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry vary according to industry segments, but generally new entrants must establish a market profile quickly 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. However, the existence of a substantial number of small firms in the industry indicates that small players have fewer barriers to entry, as long as quality can be established as a point of differentiation.
In the area of mass-produced institutional furniture, entry is constrained by large capital requirements for machinery, high tooling-up costs, and the need for long production runs... purchase to read more