Rising Costs May Impact Furniture Pricing in the Near Term
Rising prices of raw materials, some of which are tied to the war in the Middle East, are likely to have an impact on finished product pricing just as the manufacturers prepare for the approaching the April High Point and Milan Furniture & Design markets.
Per a recent article in industry periodical Home News, reports that with average increases of raw materials hovering around 12%, prices on finished product could raise FOB prices by 6%-8%, although this could increase even further. Some of this increase likely will be passed along to retailers and consumers as the industry continues to grapple with President Trump’s ongoing onslaught of global tariffs of 10%-15%.
Describing the pricing environment as “absolute chaos,” one industry resource noted that “this isn’t the usual ‘prices are slowly going up’ story.” Instead, the source noted, there are proposed increases of up to 12% on foam; up to 40% increase on paint, adhesives and chemicals; 25%-30% increases on hardware; 10%-15% increases on wood and board; and 5%-10% increases on fabrics.
Other secondary materials also are seeing increases, according to a materials price list shared with Home News, including Styrofoam (10%), screws (5%), cartons (5%-8%), marble (5%) and aluminum (15%), to name several
This largely could depend on how long the war with Iran lasts and how much impact this has on oil prices and the flow of goods from the Strait of Hormuz. This will have an impact on every level of manufacturing, regardless of the product origin. Imports will be impacted at a higher rate compounded by the tariffs.
For consumers, if considering a home furnishings purchase, it may be best to consider completing in the upcoming months as increases will gradually make its way to the purchase price in the weeks to come – to what degree will remain to be seen. In addition to retailer promotions, take advantage of financing promotions or cash discounts where offered to help offset some of the impacts of these rising costs.
With pricing pressures building across the industry, now is an ideal time to secure the pieces you have been considering before potential increases take effect. To make it even easier, explore our clearance page for high quality furnishings at exceptional values while inventory lasts. Shop now to take advantage of current pricing, great selection, and meaningful savings before costs begin to rise.
