AFMA Predicts Continued Growth In Furniture Sales

Furniture World Magazine

The American Furniture Manufacturers Association is predicting that furniture sales will continue on a solid growth path into 2001, with shipments rising to $26.282 billion, a 2.1% increase over this year. Growth in 2002 is expected to be even stronger, with shipments rising to $27.167 billion, a 3.4% increase. Looking at consumer furniture demand, the AFMA Econometric Model forecasts a level of $65.969 billion in 2001, an increase of 1.2% over this year. For 2002, gains to $68.235 billion are projected, increasing 3.4% over the previous year. "Although the growth rate is expected to slow a bit, we'll still see record numbers in furniture shipments in 2001 and 2002," said Joseph P. Logan, vice president of financial services for the AFMA. "We have to keep it in perspective. For the past few years, we've enjoyed stellar growth in the furniture industry. In fact, the rate has been so strong for so long, we cannot expect it to be sustained." Although the overall economy is expected to slow in 2001, there are still a number of positive factors for the furniture industry. Inflation is in check and the unemployment rate is still very low. Consumer price increases will not exceed a 3% annual rate before the middle of 2001. Personal disposable income also is expected to increase significantly over the next two years: 3.7% in both 2001 and 2002. At the same time, consumer prices are not expected to rise dramatically in the next year, with an increase of only 2.2% expected in 2001. Overall, looking at a number of these factors, the outlook for the furniture industry continues to be good for the next two years, Logan noted. The American Furniture Manufacturers Association is headquartered in High Point, N.C. - the furniture capital of the world - and represents more than 3 5 0 leading U. S. furniture manufacturers. These manufacturers represent a total of 150,000 employees and more than 75% of U.S. furniture shipments.