The furniture industry had a wonderful year in 2015, topping $100 billion in sales for the first time since 2007. According to Furniture Today, furniture sales for the year are estimated at $102 billion, a 3.9% increase over 2014, and even higher than 2007's $100.8 billion. Furniture sales have been rising fairly consistently since 2009 when they reached a low point of only $83.2 billion, and there is no reason to believe that this trend won't continue. Furniture Today is predicting that sales will continue to rise over the next 5 years and will reach $122 billion in 2020. The categories that experienced the highest increase in sales this year where rugs with a 4.8% increase over last year, followed by bedding with a 4.5% increase, and casual furniture with a 4.4% increase.
The larger categories also did well in 2015. Stationary upholstery experienced sales of $17.8 billion, a 4.2% increase over 2014. Motion upholstery experiences sales of $10.9 billion, a 3.9% increase over 2014. With a 38% share of the overall upholstery market, leather upholstery sales reached $11.7 billion, a 4.1% increase over 2014. The other large category, case goods, had sales of $28.3 billion in 2015, a 3.7% increase over 2014.
One factor that is leading to higher furniture sales is an improving housing market. Construction of single family homes have been on the rise since 2011 when construction spending was at $108 billion. Last year construction spending reached $193 billion, and 2015 appears to be even better. For the first nine months of 2015 construction spending on single family homes were $160 billion, a 13.8% increase over the same period in 2014. Construction of single family homes accounted for 57% of residential construction spending in 2014. Another third of residential construction spending comes from home improvements, with the remainder coming from multi-family dwellings.
With continued growth expected over the next 5 years, its important that you are able to handle increasing sales volumes. Let DSA Factors help you by factoring your accounts receivable. We can provide you with the cash flow you need while also handling your collection work and offering you insurance on your receivables. Give us a call at 773-248-9000 and make 2016 your best year yet!