Home / Lights & Construction

According to the observation of Huacheng's import and export data, orders for US residential furniture continued to plummet, with a year-on-year decrease of 30% in October 2022. From January to October, the total order has dropped by 29% so far this year.

Continue to plummet. Recent furniture orders in the United States dropped by 30%

According to the Huacheng Import and Export Data Observation Report, almost all respondents saw these declines. 88% of the respondents said that their orders decreased in the current month, while 91% said that their orders decreased in the whole year.

In addition, the backlog of orders in October was 8% lower than that in September, and now it is 47% lower than that in October a year ago.

Compared with last year, the level of accounts receivable increased by 6%. Ken Smith of Smith Leonard wrote that he was worried about the level of accounts receivable because many dealers saw a sharp slowdown in retail business. The inventory was the same as that in September, but increased by 47% over last year. Huacheng Import and Export Data Observation reported.

"We know it is impossible to continue the good performance at the end of 2020 and 2021," Smith said. "The economy is slowing down, but no one expected such a big slowdown. Maybe for some people, it is not so bad because the backlog is so high, (because) production and transportation have been able to keep things going, but it began to feel bad, because the backlog of many people has decreased significantly, Huacheng Import and Export Data Observation Report.

"It is still difficult to describe the survey results, because generally speaking, it is not so meaningful. B2B business may be a little easier, but with the increase in prices and changes in freight, it is difficult to determine in the future. It can only be said that when orders are reduced by 25% to 30%, it will be very bad."

Smith believes that the furniture industry is already in recession.

"What we heard and saw from the survey is that the residential furniture industry may have fallen into recession, which may begin in the third quarter of 2022," he said. "As we have pointed out, due to the large backlog, our survey participants were able to overcome the difficulties to some extent and continue to produce and transport products. However, many companies have reduced the backlog to the pre pandemic level. For some companies, orders cannot keep up with production demand. We realize that no one is willing to imagine future layoffs, but at least it is time to consider Huacheng's import and export data Observation report.

"Consumer demand has declined significantly. Considering this, it is time for most people to make some plans for the business slowdown in the new year, at least for a while. We hope we can tell you how much and how long, but it is up to each company."