HIGH POINT \u2013 New orders for furniture remained strong in April, up 239% from the same month last year, and a healthy 30% ahead of a more meaningful comparison with April 2019.<\/p>\n\n\n\n
According to the latest Furniture Insights survey of residential furniture manufacturers and distributors, year-to-date orders are up 73% compared with 2020\u2019s first four months \u2013 and up 36% compared with January-April 2019. Ken Smith, partner at accounting and consulting firm Smith Leonard, which produces the monthly Furniture Insights report, called that performance \u201creally impressive.\u201d<\/p>\n\n\n\n
\u201cAs would be expected, all of the participants reported increased orders for the month,\u201d Smith said.<\/p>\n\n\n\n
April shipments rose 296% from April 2020 levels, and were up 39% year to date. Compared with April 2019, shipments increased 26% and rose 18% year to date.<\/p>\n\n\n\n
\u201cFrom our conversations, most everyone we talk with say their receivables are about as clean as ever as it relates to past due invoices,\u201d Smith noted. \u201cWe continue to believe that the PPP really helped dealers have the funds to continue to buy products.\u201d<\/p>\n\n\n\n
Inventories increased 21% from April 2019, in line with the new level of orders.<\/p>\n\n\n\n
\u201cHad materials been more available, inventories would likely have been higher,\u201d Smith said.<\/p>\n\n\n\n
Factory and warehouse employment and payrolls were another area where April 2021 comparisons with the same prior-year month were skewed due to pandemic shutdowns in 2020. At any rate, number the employees rose up 14% in April compared with April 2020.<\/p>\n\n\n\n
\u201cBut we are not sure what the April 2020 results included as many had shut down, some furloughed employees, others had brought them back due to the PPP program, so these results are just that,\u201d Smith observed. \u201cPayrolls were up 170%, again, not a meaningful comparison.\u201d<\/p>\n\n\n\n
In summary, Smith noted the June High Point Market seemed successful for most with \u201cfew tire kickers\u201d reported.<\/p>\n\n\n\n
\u201cSome of the larger dealers that did a fair amount of business at Premarket did not come back, but those that did seemed to come to do business,\u201d he said. \u201cIf you sold to the design trade, you were busy.\u201d<\/p>\n\n\n\n
Pricing was a dominant discussion topic at June Market.<\/p>\n\n\n\n
\u201cUpholstery exhibitors were troubled by having 12- to 25-plus-week deliveries in conjunction with prices of most materials going up,\u201d Smith said. \u201cFor example, how do you price goods for sale today that won\u2019t be made for say 15 to 20 weeks? On the case goods side, the same pricing issues were there as well, with some price increases in finished goods, but also crazy container increases, even if you can get one. When some prices of materials are going up four to six times, wholesale prices have to follow suit.<\/p>\n\n\n\n
\u201cWe believe that one good thing that may be coming from these price increases and shortages is that many dealers are learning that they actually can sell goods at higher prices, even when they didn\u2019t think they could,\u201d he continued. \u201cThis proves again that the average consumer has no idea what a piece of furniture should cost to begin with.\u201d<\/p>\n\n\n\n
Strong business, Smith added, \u201cfeels like it may last longer than we thought early on. For sure shipments will continue to grow as backlogs are worked down, but it feels like orders will continue to improve as consumers seem to really be into upfitting and redesigning the spaces they live in.\u201d<\/p>\n\n\n\n