U.S. leads world’s $307 billion production market

While low-cost imports continue to challenge the U.S. furniture industry, worldwide production of furniture is worth about $307 billion in U.S. currency, with the United States in the lead at 21 percent of total production. These findings are part of the World Furniture Outlook 2008/2009. The estimates are based on information from national and international official sources.
The seven major industrial economies, the United States, Italy, Germany, Japan, United Kingdom, Canada and France, comprise 50 percent of the world’s total production. Sixty-five percent of the entire world’s production is from developed countries with 35 percent coming from emerging countries, with China being the highest at 18 percent. China and Poland have had rapidly increasing production thanks to newly built plants.
The degree of openness in the furniture markets, or the ratio between imports and consumption, rose from 20 percent in 1997 to 30 percent in 2006. This increase was important in the United States, where the trade deficit was nearly $22 billion. From 1997 to 2007, the United States had an imports increase from $8.6 billion to $26 billion. U.S. imports presently are leveling off.
International trade of furniture has grown faster than furniture production and faster than international trade of manufactures due to the opening on the main furniture markets in the past 10 years. In 2008 and 2009 the world gross domestic product will continue to grow at a fast pace along with international trade of manufactures. World trade of furniture is expected to grow by 15 percent in 2008, and might amount to $121 billion.