Furniture Industry News
Holiday Sales, Market Shifts & North Carolina's Manufacturing Shakeup
Dec 4, 2024 · 6:08
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Description
Welcome to "Furniture Industry News," the premier podcast dedicated to executives navigating the ever-evolving world of furniture. In a landscape where the latest trends, market shifts, and innovative technologies can redefine success overnight, our podcast stands as your authoritative source for everything you need to stay ahead. Tune in to stay informed, inspired, and in step with the future of furniture. "Furniture Industry News" – where leaders come to learn, share, and shape the future of the furniture world.
Show Notes
Furniture Industry News – December 4th, 2023 Highlights: Holiday Shopping Surprises: Nearly 197 million consumers shopped during Thanksgiving weekend, exceeding projections despite a slight drop from last year. Holiday spending is forecasted to hit $979–$989 billion, marking a 2.5–3.5% increase over 2022. Mixed Furniture Order Trends: While September orders declined 9% year-over-year, there’s a 5% month-over-month increase, signaling potential stabilization. Shipments are down, but backlogs are slightly improving. North Carolina Manufacturing Closures: MasterBrand is closing two facilities in 2025, impacting 274 workers. Support measures include severance pay, benefit assistance, and relocation opportunities. Sale-Leaseback Strategies on the Rise: Companies are using this financial approach to access capital, improve balance sheets, and maintain operational control amid economic challenges. In-Depth Updates: 1. Holiday Shopping Outpaces Projections Record-Breaking Stats: 197 million shoppers surpassed the 183.4 million forecast. Black Friday Dominance: 81.7 million in-store and 87.3 million online shoppers led spending, with average per-person spending reaching $235. Industry Insight: A robust holiday season reflects consumer resilience despite economic pressures. 2. Furniture Order Trends Declines & Stabilization: Orders fell 9% year-over-year in September, continuing a downtrend since May. Month-over-month, orders rose 5%, indicating gradual improvement. Economic Indicators: Consumer confidence and existing-home sales are gaining traction. Federal Reserve's recent interest rate cuts could spur further industry recovery. 3. North Carolina Manufacturing Closures MasterBrand's Announcement: Closure of Dura Supreme (Statesville) and Norcraft (Liberty) facilities in 2025. 74 employees affected in Statesville (closing January 20th). 200 workers impacted in Liberty (closing May 22nd). Support Measures: Transition assistance, severance pay, and relocation options to Kinston facility. Closures underscore shifts in the cabinet manufacturing sector and local economies. 4. Sale-Leaseback Transactions Gaining Momentum How It Works: Companies sell their facilities to investors and lease them back, unlocking real estate value without losing operational control. Key Benefits: Immediate access to full property value. Improved balance sheets and reduced debt. Fully tax-deductible lease payments. Example Impact: A $20M facility sold for $30M provides substantial capital while preserving operational continuity.