– The furniture industry is set to face even more challenges due to price hikes and surcharges.
– Upholstery producers are experiencing difficulties in acquiring poly foam, a key furniture component leading to delays and price increases.
– Despite the pressure, furniture retailers are trying to keep prices low to sustain customer demand.
– The import market is undergoing a radical shift with surcharges placed on imported goods which will potentially increase furniture prices more.
– Due to economic instability caused by the pandemic, the ability for furniture retailers to absorb costs is diminishing leading to the likelihood of customer price increases.
– Profitability for many stores is in jeopardy due to higher freight costs.
– Experts predict that the current issues faced will likely continue into next year.

Furniture Industry Braces for Increases

Sourcing and Cost Challenges Pile Up

The furniture industry finds itself in a tight spot with the rising costs of essential materials such as poly foam causing delays and driving up prices. Slimming margins are forcing many stores to reconsider their profitability strategies.

The Weight of Import Surcharges

A radically changing import market is adding to the industry’s woes. With new surcharges on imported goods, furniture prices are on the brink of further increases.

The Impending Hit to Customers

Economic instability fueled by the ongoing pandemic has left furniture retailers with little room to soak up additional costs, potentially leading to customer price hikes.

Freight Costs: A Threat to Profitability

Rising freight costs are also seriously jeopardizing the profitability of many stores, adding further complexity to an already challenging market situation.

The Long Road Ahead for Furniture Industry

Industry experts predict this turbulent period will extend into next year, continuing to test the resilience and adaptability of both large and small players in the furniture industry.

In conclusion, 2021 has proved tough for the furniture industry and it looks like the challenges are not going to alleviate any time soon. Rising costs of materials, higher shipping fees, and import surcharges are all piling pressure on both manufacturers and retailers. These increasing expenses are forcing some hard decisions within the industry, with the likelihood of customer price rises on the horizon. Despite the adversity, furniture companies are doing their best to maintain customer demand by keeping their prices as low as possible, however, the stake at profitability may take a hit. The industry really is, sitting on pins and needles!

originial article https://www.furnituretoday.com/?p=318343

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