Daily News

From Home Furnishing Business

Furniture Orders Rise 5 Percent in August

October 31, 2014  by in Economic News, Industry   

High Point accounting and consulting firm Smith Leonard conducts the monthly survey of residential furniture manufacturers and distributors.

August orders rose 3 percent over July, and remain 5 percent ahead of 2013 levels through last year's first eight months.

Shipments rose 6 percent in August 2014 compared with August 2013. Shipments were up 6 percent over the first eight months of 2013, which in turn were 4 percent higher than the same period from 2012. Backlogs were up 3 percent over August 2013.
 
Receivables levels rose 6 percent in August, in line with both the increase in shipments for August 2014 versus August 2013, as well as the increase in year-to-date shipments.
 
Inventories were up 6 percent over 2013 levels, down from 9 percent reported last month; and fell 1 percent from July.

"These results indicated that inventories in September were much more in line with current conditions," said Smith Leonard Managing Partner Ken Smith.
 
Factory and warehouse employment fell 1 percent from July, but August 2014 levels were 4 percent higher than August 2013. Factory and warehouse payrolls rose 1 percent over August 2013, and are up 5 percent year-to-date, in line for the most part with current conditions, according to Smith.

In summary, the report noted that existing home sales improved in September to the highest level of 2014 and were just slightly below the 2013 pace, with existing-home sales improved significantly in all regions of the country except the Midwest. New residential sales rose from August and were 17 percent ahead of September 2013, with sales up in all four regions of the country.

"Housing starts were also up nicely in each of the regions except for being flat in the Northeast," Smith added.
 
While retail sales trended down slightly in September, they remain 4 percent ahead of last year; and sales at furniture and home furnishings stores were up 2.5 percent year-to-date.
 
"The recent upticks led to one of the most positive High Point Markets we have seen in some time," Smith said. "While the mood of market always seems good, this one actually felt good for other reasons. Some of the exhibitors who do write substantial orders at market said their order writing was the highest in years.
 
"We felt like attendance was also up significantly, at least at some showrooms. Attendance being up or down is showroom by showroom. We did try to explain to a few who felt attendance might be off a bit that as far as we knew, every dealer does not go to every single showroom, so there is no real way to measure traffic."

Smith rated the October show as one of the best markets in years.

"Except for those who write a lot of business at market, the proof of how good will be known in the next two weeks to two months," he said.