British Furniture Manufacturers

Rising material costs & skill shortages feature in latest furniture trade survey

5 November 2021

Rising material costs & skill shortages feature in latest furniture trade survey

Furniture Trade SurveyFurniture Trade SurveyThe latest BFM State of trade survey for October showed that while furniture manufacturers were still confident in the trading environment, the price of raw materials was pressurising margins and cash flow.  Labour costs were also on the rise. Skill shortages were reported by more than three quarters of respondents and in some cases the lack of suitable labour was severe.

An average cost increase in excess of 20% was reported for Board, Plywood, Timber, Steel and Springs. And, across all materials covered in the survey, the average increase stated was 15%, up from 8% recorded in April, with surcharges being applied to some materials.  This led to a significant proportion of manufacturers to raise product prices.


The annual financial ratios survey also revealed that direct labour and material prices had risen as a proportion of sales and that overhead costs were likely to rise with the end of the furlough scheme.

The survey looks at the 6-month periods to and from October 2021, and includes material price trends.

For more information contact: info@bfm.org.uk.

 

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