Main Menu
Home
In the News
Special Contributors
Special Report - Bedding
Sponsors
Events Calendar
Classifieds
Advertising
Contact HGO
Home
follow-on-twitter
Merchandiser Summer 2014
Merchandiser Spring 2014
2014 Product Guide
Research Store

Canada Counts
CanadaCounts-Badge-Sept2012.fw
A survey of Canadian buying intentions.
Purchase Report

 

Syndicate

Please Update Your HGO Profile

BRIGHTON, Ontario (30 June 2014) – Home Goods Online wants to improve our news delivery service for everyone in Canada’s furniture, mattress, major appliance and consumer electronics industries. So, we’re not only signing on with a new service provider but we’re asking each of our readers to give us a few moments of his or her time to update their individual profile.

Doing so will not only ensure that HGO is in compliance with current federal legislation, but will strengthen our connection with you, the reader.

Click here to update your profile.  It will only take a few moments of your time.

Here at Home Goods Online, our only mission is to keep every member of Canada’s furniture, mattress, major appliance and consumer electronics industries up-to-date on issues of vital importance as well as the news everyone needs to know, regardless of your role: retailer, manufacturer, distributor/importer, sales rep or other industry professional.

Thank you for your help.

Update Your Profile Now
Furniture industry to see modest growth to 2015, conference board says PDF Print E-mail
Written by Michael J. Knell   

OTTAWA (05 September 2011) - Canadian furniture manufacturers can look forward to modest upticks in productivity, revenues and net profit over the next five years, according to the summer edition of the Canadian Industrial Profile published by the Conference Board of Canada. However, the board cautions it won't be until after 2015 that it returns the production levels achieved before the recession struck in 2008.

Furniture was one of six industrial sectors included in the report - the others being aerospace products, motor vehicle parts, paper products, printing services and wood products.

"Uncertainty is the watchword for all of these industries. The current global economic turbulence increases the general risk to these industry outlooks. As well, industry-specific factors are adding layers of concern," Michael Burt, the board's associate director of industrial economic trends.

The board noted that furniture exports have declined in recent years, falling from one-half to one-third of shipments. "The U.S. housing market bust and intense international competition have contributed to the decline," its report said, adding, "With the U.S. housing sector proving slow to rebound, the growing middle-class in countries such as China, India and Mexico offer new markets for high-end furnishings.

"The industry can therefore expect modest growth over the next four years, but production will not return to its former peak levels within that timeframe," the board believes.

The Conference Board noted in its report - which covers not only residential but also contract furniture and allied products such as kitchen cabinets - there are about 4,000 businesses in Canada making furniture, although 97% of them have fewer than 100 employees. Indeed, 64% have fewer than 10 employees. In a drastic change from the years immediately following free trade, the board said there isn't a furniture manufacturer in Canada employing more than 500 people.

The industry is concentrated in two provinces - Ontario and Quebec. Between them, they account for more than 80% of all the furniture made in this country.

Industry revenues grew 2.7% in 2010 to just over $10.7 billion, the first annual gain in more than three years. For 2011, the board is forecasting addition growth of 3.2% giving the industry total revenue of $11.1 billion. Looking out to 2015, the forecast calls from industry revenue to climb $13.1 billion - just below the $13.2 billion generated in 2007.

The industry can also expect to see gains in productivity. After falling 1.1% to $41,700 per employee in 2010, productivity will climb 1.8% to $42,400 this year and grow steadily over the next three years to reach $45,400 in 2015.

Net profit margins are also expected to improve. After holding steady in 2009 and 2010 at 2.4%, the board expects them to fall to 1.8% this year before climbing steadily to 3.0% in 2015. These will also be a drastic improvement over the industry's collective net profit margin of 1.2% in the 2007 peak sales year.

The Conference Board also encouraged furniture manufacturers to look further afield than the United States for future export markets. "A growing middle class in countries such as China, India and Mexico is creating a new market for high-end home furnishings. Companies that product high quality and hand-crafted furniture could benefit from that trend," the board noted.

At home, the industry is facing a debt burdened consumer. "This could limit the ability and willingness of Canadian consumers to finance the purchase of furniture," the board said.

Much of the industry's growth is also dependent on a recovery in the U.S. economy, which remains the industry's largest export customer. "The anticipated industry recovery is largely dependent on a turnaround in the U.S. housing market," the board said. "If that recovery is slow to materialize, the industry's output could be weaker than expected."

Published annually, the board's Canadian Industrial Profile provides outlooks for 23 industries and is produced in association with the Business Development Bank of Canada. For more information, visit the Conference Board of Canada's web site at www.conferenceboard.ca.

<Previous   Next>
Banner
Other News
Rob Vickers joins DRSG
CAMBRIDGE, Ontario (28 July 2014) - Industry veteran Rob Vickers has joined Dufresne Retail Solutions Group (dRSG) as business development manager for Western Canada. He succeeds Ed Cowx who is retiring after a 42-year career in Canada's furniture industry.
Read more...
Confidence index falls in July
OTTAWA (28 July 2014) - Although the overall Index of Consumer Confidence remains higher than it was at this point last year, it has dropped for the past three consecutive months as Canadians remain apprehensive about job creation and their household finances, according to the latest report from the Conference Board of Canada. They are also less enthusiastic about making a major purchase.
Read more...
Easyhome signs $200M credit facility
MISSISSAUGA, Ontario (28 July 2014) - Merchandise leasing specialist Easyhome has entered into a new $200 million credit facility that will provide $115 million of additional capital to support the growth of Easyfinancial, it's consumer finance segment.
Read more...
Traub named president of Serta
HOFFMAN ESTATES, Illinois (28 July 2014) - Serta Simmons Bedding (SSB) has named Michael Traub as the new president of National Bedding Company, better known as Serta International. He will assume the post on September 2 and report to SSB chief executive officer Gary Fazio.
Read more...
Banner

 

 .

Banner
Picture of the Day
Cantrex-golf-presentation (1)

Some 145 people from across the industry took part in Cantrex Nationwide’s annual charity golf classic recently. This year, some $10,000 was raised to benefit the ‘Take the Kids to Camp’ initiative of the Salvation Army. Here, Lt. Col. Sandra Rice (left), commander of the Ontario Central East division is accepting a cheque from CNW chief operating officer Jeannine Ghaleb and Jim Mahoney, vice president of photography and consumer electronics.


 

 

Banner
 
Banner
Banner
Donald Cooper
My Turn!
HGO Merchandiser
Banner
Upcoming Events
August
Toronto Gift Show
August 10, 2014 - August 13, 2014

View Full Calendar