FIRA's new competitiveness report flags up the challenges
UK furniture manufacturers face challenging market conditions, but have proved resilient and capable of embracing change, according to FIRA's much-awaited competitiveness report, the first since 2001.
Furniture is relatively labour-intensive in comparison with many other manufacturing industries, according to the report. As such the industry faces additional pressures from low-wage economies, especially China and Poland, where operations are being established with the sole aim of producing low-cost exports. However, a comparison of the current status of the UK industry, compared with that of nine years ago, reveals that many manufacturers have responded by specialising more, making significant improvements in quality and service, and operating leaner, more efficient businesses.
In addition, the customer base, especially retailers, has started to appreciate the hidden costs involved in purchasing and transporting furniture from remote locations. Evidence has emerged to indicate that UK manufacturers are in a favourable position when it comes to choice of location - a position that also translates into a price premium.
Click here to download the report in full
The study combines an analysis of the industry's economic status with anecdotal evidence from leading industry figures to formulate a comprehensive assessment of UK furniture manufacturing and its relationships both up and down the supply chain.
A number of opportunities for the industry are identified in the report, and a series of actions, for individual companies, the industry as a whole and for Government, are proposed.
Jonny Westbrooke, chief operating officer at FIRA, which put together the report, said: "There's little doubt that the climate for furniture manufacturing will become even tougher than it is today. However, the last ten years have demonstrated that manufacturers which adapt and change are in a strong position to survive and indeed, prosper. This report identifies some opportunities for companies which are prepared to take on the challenges, as well as some positive actions to ensure the UK furniture industry remains competitive in the global market."
