Competitiveness of the UK furniture manufacturing industry

Report published in 2010 UK furniture manufacturing makes a significant contribution to the UK economy. Factory gate sales of over £8.3 billion per annum are generated by almost one hundred thousand employees.

Despite these impressive statistics, furniture, like many other manufacturing sectors, faces challenging market conditions and ever increasing global competition. However, furniture is also relatively labour intensive in comparison with many other manufacturing industries and, as a consequence, faces additional pressures from low wage economies such as China and Poland. Nevertheless, UK furniture manufacturers have some inherent advantages compared to their overseas counterparts, and have proven to be resilient and capable of embracing change; qualities that will underpin their future competitiveness.

This analysis uses statistics, key performance indicators and industry opinion to establish the current competitiveness of the furniture industry. Quantitative and qualitative information, combined with an assessment of the future economic climate, are tentatively used to predict likely changes in the competitive environment. This will enable informed strategic decision making at a macro, industry-wide level, and by individual companies. resulting in actions that will ensure long term success.