Furniture Industry Profile

Definition of the Industry

The furniture manufacturing industry is comprised of establishments primarily engaged in manufacturing furniture and related products.

The North American Industry Classification System (NAICS) codes include:

  • 337: Furniture and Related Product Manufacturing
  • 3371: Household and Institutional Furniture and Kitchen Cabinet Manufacturing
  • 3372: Office Furniture (including Fixtures) Manufacturing
  • 3379: Other Furniture-Related Product Manufacturing

Statistical Summary

Furniture and Related Product Manufacturing [337] — Major Economic Indicators
(millions of $ CAD, employment in thousands)
Economic Indicators 2004 2005 2006 2007 2008 % Change
2007-2008		 CAAGR
Source: Statistics Canada, Trade Data Online.
Definitions: 
CAAGR: Coompound Average Annual Growth Rate
Apparent Domestic Market = Shipments plus Imports minus Exports
Manufacturing Intensity Ratio (MIR) = Gross Domestic Product (GDP) divided by Shipments
Import Penetration = Imports divided by ADM
Export Orientation = Exports divided by Shipments
Domestic Market Share = Shipments minus Exports divided by ADM
Apparent Domestic Market 10,999 11,691 12,369 13,443 13,597 1.1% 5.4%
Shipments 13,255 13,360 13,194 13,177 12,385 -6.0% -1.7%
Gross Domestic Product 5,837 5,604 5,476 5,529 5,167 -6.6% -3.0%
Manufacturing Intensity Ratio 44.0% 41.9% 41.5% 42.0% 41.7% -0.2% -0.6%
Total Imports 4,487 4,734 5,158 5,450 5,643 3.5% 5.9%
Domestic Exports 6,743 6,404 5,984 5,183 4,431 -14.5% -10.0%
Trade Balance 2,255 1,670 825 -266 1,212 354.9% -
Import Penetration 40.8% 40.5% 41.7% 40.5% 41.5% 1.0% 0.2%
Export Orientation 50.9% 47.9% 45.4% 39.3% 35.8% -3.6% -3.8%
Domestic Market Share 59.2% 59.5% 58.3% 59.5% 58.5% -1.0% -0.2%
Labour Productivity 57 55 56 58 n.a. n.a. 0.6%
Employment 102 103 97 95 n.a. n.a. -2.4%

Economic Overview

The furniture industry experienced a fall in output in 2008. Shipments fell by 6.0 percent, from $13.8 billion in 2007 to $12.4 billion. Similarly, GDP declined by 6.6 percent, from $5.5 billion to $5.2 billion. Between 2004 and 2008, GDP fell at an average annual rate of 3.0 percent. The manufacturing intensity ratio (GDP share of shipments), however, remained stable at 41.7 percent.

The trade deficit ballooned in 2008, as imports and exports moved in opposite directions. Exports fell by 14.5 percent in 2008, from $5.2 billion in 2007 to $4.4 billion, reducing the export orientation from 50.9 percent to 35.8 percent. Imports increased by 3.5 percent, from $5.5 billion to $5.6 billion, maintaining the level of import penetration at 41.5 percent. The trade deficit thus expanded from $266 million to $1.2 billion.

Major Issues

A major issue for the industry is the increase in furniture imports from low cost countries (primarily China) to both Canada and the U.S. This is likely contributing to a displacement of Canadian exports to the U.S. market. Another issue for the Canadian industry is the increase in number of large buying groups which does not align with its direction toward custom furniture. Finally, a decline in Canadian housing starts by 19.9 percent in 2009 from 2008 levels and with no recovery expected through to 2010 will likely lead to declining furniture sales.

Associations

  • Canadian Council of Furniture Manufacturers (Email: info@copa.ca)
    A virtual umbrella organization that deals with matters affecting all Canadian furniture manufacturers.
  • Canadian Home Furnishings Alliance
    A not-for-profit trade association representing manufacturers, importers and distributers of furniture and related products (e.g., furnishings, fixtures, accessories etc.), as well as suppliers to the industry.
  • Canadian Kitchen Cabinet Association
    Serves the interests of kitchen cabinet, bathroom vanities and millwork manufacturers, as well as their suppliers and dealers, in Canada.
  • Canadian Office Products Association
  • Furniture West
    Was established in 1970 and provides updates on the industry in Western Canada. It also develops and implements programs which aim to:
    • achieve higher levels of productivity in the manufacture and distribution of furniture products;
    • secure markets for their products in Canadian and international markets; and,
    • communicate and consult with government to ensure that the furniture industry is recognized as making an important contribution to the economy of Canada.
  • Quebec Manufacturers' Association
    A non-profit organization founded in 1942, the AFMQ is active in the development of the furniture industry in Quebec. It represents residential, office and institutional furniture manufacturers.