Surprise: Furniture orders are down

OK, so we all know that 2009 will be a challenging year, and I don’t think our new president will be able to offer a quick fix. Car manufacturers to furniture makers are feeling the crunch as wary consumers pull back. Until consumer confidence is restored luxury good makers and big ticket items will continue to experience decreased to flat sales.
Orders for new residential furniture fell by 28 percent in October 2008 compared to a year earlier, according to a manufacturer survey from High Point accounting and consulting firm Smith Leonard. New orders in October were down by 13 percent from September and year to date though October 2008 orders were off by 12 percent. Shipments of completed orders were 20 percent lower in October 2008 compared to October 2007 and year-to-date shipments were 11 percent less than the year prior.
As a result furniture companies are shedding jobs. I just read that Michigan-based Kindel Furniture Co. laid off 24 employees and is adding a four-day work week. Even though sales were slightly up for 2008, a waning backlog and fewer orders from High Point Market made the cuts necessary.