Getting numbers together, and where we'll go next
Jerry Epperson -- Furniture Today, February 27, 2006
I have been publishing furniture research for 35 years and have watched our industry go from one with little or no valid industry information to where we have reliable, timely, important data on which we can make decisions.
It's taken a long time, but with the consolidation and greater cooperation among the industry's associations, huge investment by our trade press — largely Furniture/Today and its sister publications — and more detailed and timely government statistics, the numbers have come together.
We're sometimes surprised that key executives are not aware of what is available. Since I'm a packrat and never discard anything, we've become a kind of clearinghouse for information in the industry. There are questions we still can't answer, but fewer than there were years ago.
On occasion, we've actually had a helpful idea. In 2001, when the quantity of imported, cut-and-sewn covers became a growing factor in upholstery, we asked the government to create a new data series to monitor this, and they did. We use these quarterly in our reports.
Three years ago, when we began to publish a more detailed economic forecast, it became obvious we needed to do several studies to make it work.
First, since we need to monitor the effects of imports, we began doing a lengthy import study that covers 10 years and is now updated quarterly. The speed of change in currencies and other issues requires this.
Second, we needed to closely study changes at retail. Our distribution study examines the impact of growing alternative retailing options and captive retailing, and the impact of pricing, especially declining retail margins.
Third, our soon-to-be-released Retail Price Point Study — covering well over 200 furniture and bedding manufacturers and importers in 20 product categories — allows us to look at the industry on a "good-better-best" basis and shows how these companies are positioning themselves. This allows us to do a more thorough analysis by price point and route of distribution. It's the best study we have ever done, if I do say so.
All three are inputs into a better economic forecast. With this core research now complete and current, our focus in 2006 will be to update our detailed demographic studies and how the shifts in our population will affect the home furnishings industry.
Our thanks go to all the industry participants, especially Furniture/Today, for their help in making this type of analysis possible. It is important not just for those of us within furniture, but for the lenders, investors and other interested parties who need this detail. We are proud of it and hope you are too. It would have been impossible only a few years ago.
