In China's furniture and furnishings industry, production expenses are rising as suppliers face higher material and labor costs. As a response to these challenges, a number of makers are now maintaining large material stockpiles to hedge against sudden outlay increases. Others have begun streamlining their operations to improve manufacturing efficiency.
The imposition of such measures coupled with strengthening demand from key markets is leading to a generally optimistic export outlook, with most companies anticipating a sharp rise in overseas shipments across the next 12 months.
The current workforce shortage is having a detrimental effect on this labor-intensive industry.
Prices are expected to rise in the various categories as material and production costs grow. Such increases, however, will typically be restrained to 10 percent as companies attempt to keep quotes at levels attractive to buyers.
This report covers the major categories exported from China: living room, dining, bedroom, children's, outdoor and office furniture, lamps, and home textiles and accents.