Atlanta, GA -- (SBWIRE) -- 04/08/2013 -- Unlike the technology gadgets, the price of making your home comfortable with furniture is going up day by day. The main reason behind such an increase is the rise in wages, higher gasoline prices and disruption of petroleum supplies.
While most of the American buyers and businesses are feeling the heat over increasing cost and prices, the increase in the upholstered furniture is going to be more than other businesses. The foam, mattress, polyester fabric and fibers, plastics, bubble wraps and adhesives are all derived out of petroleum products. Not only it hurts in the manufacturing of the products but also when it comes to delivery of these products.
Gradual decrease in woods coming from Canada, Indonesia and Malaysia is leading to dearer wooden products. Over the last decade, the wages in these countries have gone up significantly as the living standard has improved. This has also resulted in higher labor costs in manufacturing the products overseas.
In American Furniture Industry, profit margins have already been narrow. With such increases, American manufactured furniture can face severe threat. Manufacturers are already paying much more for many types of raw materials and supplies.
The trade magazines have been reporting similar trends in the furniture industry for quite some time. If the manufacturers don’t increase the prices now, their existence may be threatened. They will not only have to innovate in design but also keep the manufacturing process lean and avoid overheads.
Retailers have also seen shrinking margins in the industry because of the higher shipping costs. For online retailers like National Furniture Supply, the cost of the shipping has increased significantly over last couple of years. While Free Shipping has been a major factor in Online retailing, this recent increase has eaten into the profit margins.
Shipping cost is significantly higher for traditional furniture. Some of the major brands like American Drew, Fairmont Designs , Kincaid, and Hekman have premium furniture made out of hardwoods and carvings. It is very important to ship such furniture using White Glove delivery so that it reaches the customer safely. While Modern furniture brands like Modloft and Nuevo Living make furniture which is modular in nature and can be safely shipped by Curbside delivery.
One of the investment research firms recently quoted that most of the bigger brands have over 50% of their products are upholstered and also constitute 50% of sales in the market. With higher prices of crude, this can be a problem for Upholstery manufacturers.
China, which has been major manufacturing destination, for modern furniture has also seen similar trends in the market. The provincial capital of Guangzhou will see a minimum monthly pay rise from 1,300 yuan ($208) to 1,550 yuan, which is major jump of 19 per cent from May 1, 2013. China as a whole aims to increase the nationwide minimum monthly wage by 13 percent annually before 2015.
Looking at the scenario, buying furniture now instead of later this year can lead to significant savings for people moving to new homes or renovating their old homes.
National Furniture Supply, being one of the authorized dealers of Hekman furniture brands. They have been in business for last four years. Not only they sell a lot of furniture but also provide the best price for the furniture. They have got complete portfolio of Modern and Traditional furniture brands across the board.
For details Contact:
National Furniture Supply
http://nationalfurnituresupply.com
450 Piedmont Ave, #718, Atlanta, GA, 30308
Email: support@nationalfurnituresupply.com