Furniture and Fixtures
Overview
The furniture and fixtures industry encompasses companies that manufacture household, office, commercial, and institutional furniture and fixtures. In 1998, the furniture and fixtures industry employed 523.5 million workers with shipments valued at $66 billion. International trade has been increasingly important to the furniture industry. U.S. imports, especially from China, have shown dramatic growth and account for an increasing share of U.S. consumption of furniture and fixtures. Imports now account for 1 of every 5 dollars of apparent consumption. A significant aspect of the import growth is accounted for by U.S. manufacturers that often import parts or import certain pieces to augment their product lines. Exports, though less of a factor (accounting for 1 out of every 16 dollars in U.S. shipments), have contributed positively to the furniture and fixture producers’ sales growth in recent years.
Furniture and fixtures, like appliances and audio and video equipment, is classified as a household or consumer durable industry. As such, it is affected greatly by such factors as housing activity (both new starts and repair and alteration), employment, consumer disposable income, and consumer confidence levels.
Last year (1998) was another good year for furniture and fixtures as the economic expansion that began in 1991 continued. Economic indicators were generally quite favorable with several factors reaching record highs or at least cyclical highs. Especially strong were the stock market, housing sales, employment and consumer confidence levels. Housing starts and home sales continued to be strong, aided by low mortgage interest rates. Such low rates resulting in substantial amounts of mortgage refinancing, which increased available consumer spending for other goods and services, like furniture and fixtures.
Definition of the Furniture and
Fixtures Industry
This industry report uses industry definitions and concepts that underlie the U.S. government's Standard Industrial Classification (SIC) system. In the SIC system, furniture and fixtures (SIC 25) is a major industry, one of twenty such industries that form the manufacturing sector. According to the Standard Industrial Classification, there are five separate furniture and fixtures subsectors and 13 market segments defined by broad product categories. Each of the 12,100 furniture and fixtures establishments operating in the United States in 1997 was placed in one of these five industry subsectors:
Household furniture (SIC 251)—consisting of producers of wood furniture, upholstered furniture, metal furniture, and miscellaneous furniture. This subsector includes the production of many different types of products including wood household furniture, metal houshehold furniture, mattresses, machine cabinets, shelving, and lockers;
Office furniture (SIC 252)—consisting of producers of office furniture, made of wood and other materials;
Public building and related furniture (SIC 253)—consisting of producers of furniture for schools, theatres, churches, and libraries. This subsector includes the production of a number of benches, bleachers, church pews, and stadium seating;
Partitions, shelving, lockers, and office and store fixtures (SIC 254)— consisting of producers of shelving, lockers, office and store fixtures, plastics laminated fixture tops, and related fabricated products; and
Miscellaneous furniture and fixtures (SIC 259)—consisting of producers of drapery hardware (e.g., curtain rods and poles, venetian and other window blinds) and other furniture and fixtures, such as hospital beds, restaurant and bar furniture, and factory furniture.
Current Status
In 1998, the Washington furniture and fixtures industry employed 4,500 workers, representing less than 2 percent of the state’s manufacturing work force. The 1998 total represents the highest employment level in fifty years. Over the last fifty years, the industry’s growth and change has been cyclical, with periods of decline and growth marked by cyclical recessions and expansions in the national economy.
Employment in Washington’s Furniture & Fixtures
Industry, 1947-1998
Source: Washington Employment Security Department
For more detail of above graphic
Growth in the number of furniture and fixture industry establishments in Washington had been steady until 1988; since then, there has been virtually no growth in the total number of establishments. Household furniture remains the dominant subsector in Washington furniture and fixtures. Establishment numbers in the subsectors of office furniture and partitions, shelving, lockers, and fixtures have grown steady in recent years.
Number of Establishments in Washington Furniture & Fixtures
Industry,
1981-1998
Source: Washington Employment Security Department
For more detail of above graphic
Between 1981 and 1998, employment in furniture and fixtures increased on average 2.2 percent per annum, compared with the statewide nonfarm growth of 2.7 percent. While employment growth has virtually halted in household furniture, office furniture and partitions and fixtures have been the stellar performers averaging 19.9 percent and 8.7 percent per annum, respectively.
Employment in Washington’s Furniture & Fixtures
Industry, by Sector:
1981-1998
Source: Washington Employment Security Department
For more detail of above graphic
Furniture and fixtures in Washington is largely composed of small companies that manufacture various furniture and fixture products. On average, each furniture and fixture establishment has about 20 employees compared with the statewide nonfarm average of 13 employees per establishment. About 30 percent of all furniture and fixture workers are found in establishments with 100 or more employees. Statewide, three-fifths of all nonfarm workers are employed in establishments with 100 or more employees.
Size of Establishments of Washington Furniture & Fixtures
Industry, 1998
Source: Washington Employment Security Department
For more detail of above graphic
Note: Due to nondisclosure, information on employees for size categories of 250-499 and 500+ employees are shown in the size category of 100-249 employees.
Average covered wages for chemical and allied products workers was $27,154 in 1998, about 20 percent below the statewide nonfarm average of $33,922. In 1998, furniture and fixtures employees’ wages and salaries ranked seventeenth among the twenty manufacturing industries, and substantially lower than the statewide manufacturing industry average at $42,247. Substantial wage growth has occurred in household furniture; between 1981 and 1998, real (i.e., without inflation) wages and salaries increased by 14 percent.
The distribution of hourly wages for furniture and fixtures is dissimilar to the state, with a pronounced disposition toward lower hourly wages. Nearly eighty percent of all workers in the furniture and fixtures industry earn between $6 and $16 or more per hour, compared with 53 percent of all nonfarm workers in the state. In contrast, only 9 percent of all furniture and fixtures workers earn $20 or more per hour compared with 28 percent for all state nonfarm workers.
Table 1
Real Average Wages for Washington Covered Furniture &
Fixtures Workers, 1981-1998 (1998 dollars)
Sources: Washington Employment Security Department,
U.S. Bureau of Economic Analysis
Sector |
1981 |
1983 |
1985 |
1987 |
1989 |
1991 |
1993 |
1995 |
1997 |
1998 |
Household furniture | ||||||||||
$20,059 |
$18,575 |
$18,092 |
$19,546 |
$18,783 |
$18,769 |
$20,408 |
$21,619 |
$22,964 |
$23,793 |
|
Office furniture | ||||||||||
$28,029 |
$27,997 |
$23,786 |
$24,274 |
$23,939 |
$26,127 |
$27,130 |
$27,584 |
$28,948 |
$29,733 |
|
Public building & related | ||||||||||
$32,374 |
$28,598 |
$27,229 |
$29,623 |
$32,642 |
$28,915 |
$27,248 |
$21,628 |
$32,726 |
$34,421 |
|
Partitions & fixtures | ||||||||||
$33,703 |
$33,281 |
$28,811 |
$27,822 |
$28,303 |
$28,162 |
$25,333 |
$26,886 |
$28,004 |
$29,597 |
|
Misc. furniture & fixtures | ||||||||||
$24,246 |
$25,439 |
$21,563 |
$23,015 |
$18,741 |
$19,378 |
$23,798 |
$20,932 |
$23,100 |
$23,400 |
|
Total furniture & fixtures | ||||||||||
$25,074 |
$23,461 |
$22,080 |
$23,202 |
$22,401 |
$22,894 |
$23,415 |
$24,100 |
$25,834 |
$27,154 |
|
Forestry | ||||||||||
$15,857 |
$15,627 |
$16,761 |
$21,907 |
$18,760 |
$18,350 |
$18,213 |
$18,981 |
$19,059 |
$20,245 |
|
Pulp & paper | ||||||||||
$43,848 |
$45,944 |
$47,465 |
$48,889 |
$47,348 |
$46,280 |
$46,064 |
$47,327 |
$49,067 |
$50,085 |
|
Lumber & wood | ||||||||||
$35,344 |
$34,720 |
$33,086 |
$31,730 |
$31,167 |
$30,956 |
$31,921 |
$32,940 |
$34,224 |
$34,955 |
|
Total nonfarm | ||||||||||
$28,783 |
$27,789 |
$27,313 |
$27,304 |
$27,167 |
$27,928 |
$28,575 |
$29,046 |
$31,504 |
$33,922 |
|
Hourly Wages for Washington Furniture & Fixtures Workers,
1997
Source: Washington Employment Security Department
For more detail of above graphic
The labor force in the furniture and fixtures sector is dominated by operatives and laborers. Common furniture and fixtures occupations within this group are machinists, and equipment operators. Clerical and management occupations are also important in furniture and fixtures.
Table 2
Occupational Profile of Furniture & Fixtures Workers in
Washington,
1998 and 2008
Source: Washington Employment Security Department
|
Estimated 1998 |
Projected 2008 |
||
Furniture & furnishings, SIC 57 |
Estimated Employment |
Percent of Total Employment |
Projected Employment |
Percent of Total Employment |
Managerial & Administrative |
1,903 |
8.7% |
2,056 |
8.3% |
Professional, Paraprofessional & Technical |
1,390 |
6.4% |
1,667 |
6.7% |
Sales & Related Occupations |
10,416 |
47.7% |
12,338 |
49.9% |
Clerical & Administrative Support |
2,880 |
13.2% |
3,101 |
12.5% |
Service Occupations |
173 |
0.8% |
160 |
0.7% |
Production, Operating & Maintenance |
2,806 |
12.9% |
3,022 |
12.2% |
Operators, Helpers & Laborers |
1,520 |
7.0% |
1,608 |
6.5% |
Undefined Occupations |
735 |
3.4% |
778 |
3.2% |
TOTAL |
21,823 |
100.0% |
24,730 |
100.0% |
Contribution of Furniture &
Fixtures Industry to the Washington Economy
Compared to the nation, the relative importance of furniture and fixtures to the Washington economy is low. Although there has been some improvement over the years, the index of specialization for Washington furniture and fixtures has remained well below 0.5 since 1982 (an index of 1.0 signals the same importance of an industry for Washington as for the U.S.). Since 1993, furniture and fixtures’ relative importance has been around 0.40 and not trending upward.
Although most furniture and fixtures manufacturers in Washington service regional and domestic markets, an increasing share of production is being exported to foreign customers. In 1998, furniture and fixtures exports from Washington totaled $31.4 million. Approximately one-fourth of all furniture and fixtures workers are supported by foreign exports.
Index of Specialization for Washington Furniture & Fixtures
Industry,
1982-1997
Source: U.S. Bureau of Economic Analysis, Gross State Product series.
For more detail of above graphic
Outlook
Furniture and fixtures has underperformed the state economy during this decade. Employment in furniture and fixtures has risen at a 2.4 percent average annual pace since 1991, significantly less than total nonfarm employment (3.6 percent). Domestic and foreign end-use markets for furniture and fixtures are expected to remain dependant upon overall economic activity, consumer disposable income, housing activity, and consumer confidence. Continued but modest expansion is expected within the furniture and fixtures industry. By the year 2020, furniture and fixtures manufacturers are forecast to employ 5,015 workers, an average annual growth rate (2000-2020) of 0.3 percent. Household furniture is projected to lose workers during the forecast period while the other furniture and fixture sectors are projected to gain workers.
Employment Forecast for Washington Furniture & Fixtures
Industry,
2000-2020
Sources: Washington Office of Financial Management,
Washington Employment Security
Department
For more detail of above graphic
Prepared
by Chase Economics, Tacoma
For Washington Employment Security Department,
Labor
Market & Economic Analysis Branch, Olympia #1999.
Published in agency’s Internet homepage, Industry
series (www.wa.gov/esd/lmea)