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 - Industry Investment Chapter
The capital intensity of the industry varies significantly according to the scale of operations and the segment in which a firm operates. Overall, the industry has a low level of capital intensity. Unlike most manufacturing industries, wooden furniture manufacturers rely on the input of skilled labour for design and craftsmanship. Most of the industry’s players are small-scale firms with fewer than 20 employees, which often cannot afford to invest large amounts in production technology.
The industry allocates an estimated $16.00 on labour for every dollar spent on capital equipment in 2016-17. This indicates high labour intensity, especially when compared with the total manufacturing sector... purchase to read more