Furniture orders up 5 percent in June
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HIGH POINT, N.C. -- According to the latest survey of residential furniture manufacturers and distributors in Furniture Insights, a monthly report by Smith Leonard, new orders in June were 5 percent higher than June 2015. June 2015 new orders were 10 percent higher than June 2014. But the results in total do not tell the whole story. About one-half of the participants reported increased orders, some significant double-digit gains, while others reported significant declines in orders.

Overall, it appears that upholstery did better than casegoods. Year-to-date, new orders were just slightly ahead of last year’s first half of the year. The first six months of last year showed a 5 percent increase over the same period of 2014. Only approximately 42 percent of the participants posted order gains over last year for the six-month period.

Shipments were 2 percent higher in June 2016 versus June 2015, with slightly over one-half of the participants reporting increased shipments. As with orders, the variations were sizeable with some up double digits and others off double digits. Year-to-date, as with orders, shipments were up slightly less than 1 percent. Just over 44 percent of the participants reported increased shipments year-to-date.

Backlogs fell 3 percent from May due to shipments exceeding orders. Backlogs were down 5 percent from June 2015. In May 2016, backlogs were 6 percent lower than May 2015.

Receivable levels fell 3 percent from June 2015 in spite of the increase in shipments of 2 percent. Receivable levels continue to be in very good shape in total as they have been for several months.

Inventories were up 3 percent over June 2015, down from a 6 percent increase reported in May. It appears that inventories are slowly getting back in line with current business conditions.

The number of factory and warehouse employees was up 1 percent over June of 2015, down from a 2 percent increase reported last month. The number of employees fell 1 percent from May 2015.

Factory and warehouse payrolls were 2 percent higher than June 2015, again in line with current business. Overall, the employment situation seems in line even with factory and warehouse payrolls up 2 percent for the year-to-date. Some of this is related to wage increases which had not been given in a long time in some cases.

For more information see Smith Leonard.

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About the author
Karl Forth

Karl D. Forth is online editor for CCI Media. He also writes news and feature stories in FDMC Magazine, in addition to newsletters and custom publishing projects. He is also involved in event organization, and compiles the annual FDM 300 list of industry leaders. He can be reached at [email protected].