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Press Release

Outdoor Furniture Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

>PRWEB.COM Newswire

Los Angeles, CA (PRWEB) May 16, 2012

Two key features exemplify the US Outdoor Furniture Manufacturing industry: a high level of import penetration and low market share concentration. To the first point, imports are expected to account for an estimated 90.4% of domestic demand. Overseas manufacturers, particularly in Asian nations like China and Vietnam, achieve operational efficiencies that US manufacturers find difficult to match. According to industry analyst Josh McBee, “the savings realized through overseas production allow foreign producers to sell their goods at a lower cost relative to US outdoor furniture prices.” In addition, the trade-weighted index has failed to support export sales, though the dollar has been depressed during the past five years. The failure of exchange rates to boost exports or stem imports speaks to the cost-effective production achieved overseas. In addition to import dominance, low disposable incomes, slumping housing activity and declines in key demographic markets have stymied revenue during the five years to 2012. As such, IBISWorld expects industry revenue to fall at an annualized rate of 8.2% during the period.

To the second point, firms that actually manufacture outdoor furniture in America are predominately small enterprises that serve local or regional markets. IBISWorld estimates the average firm has about 31 employees. An increasing number of US manufacturers are moving production operations overseas, thereby removing themselves from the US industry. The remaining operators include Furniture Brands International, Poly-Wood and Nikita Indoor Outdoor. McBee says, “foreign producers benefit from lax wage policies that keep their labor forces relatively cheaper than US manufacturers.” Combined with rising input costs, these factors paint a picture of an industry in decline. While incomes and housing activity are expected to pick up in 2012, industry revenue is expected to grow only marginally, by 0.4% to total $534.4 million.

Looking ahead, imports are forecast to continue increasing their dominance within the US market. This competitive factor is anticipated to lower the number of US firms that manufacture outdoor furniture, as price-based competition will prove too stiff for firms lacking downstream demand in specific niche or geographical markets. In the five years to 2017, IBISWorld forecasts revenue for the Outdoor Furniture Manufacturing industry will decrease.

For more information visit IBISWorld’s Outdoor Furniture Manufacturing in the US industry page

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This industry manufactures outdoor furniture like lawn and patio chairs, picnic tables and patio umbrellas. Outdoor furniture can be made of various materials, including metal, wood and plastic. Items are designed to be placed outside the home. Furniture designed specifically for camping is excluded.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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