Furniture factory orders decline 16% in August
Orders down 10% for year to date, says Smith Leonard
Jay McIntosh -- Furniture Today, November 4, 2008
HIGH POINT — U.S. furniture factory orders and shipments in August fell 16% from the same month a year ago, according to Smith Leonard.
It was the third consecutive month of double-digit declines, the accounting and consulting firm said. About 83% of the participants in the firm's monthly survey of manufacturers reported their orders were down from a year earlier.
The August numbers pushed the year-to-date decline in orders to 10%, with some 86% of the survey participants reporting a decrease. Shipments were down 9% for the first eight months.
 U.S. factory orders, shipments in August 2008 |
Order backlogs in August also were down 16% from a year earlier, and were at what Smith Leonard termed as "seriously low levels."
In his monthly Furniture Insights newsletter, Ken Smith, managing partner of Smith Leonard, noted that most of the national and industry statistics available do not reflect current industry conditions, in the wake of the financial crisis. While business has declined in recent weeks, he said the good news is that gas prices are down and the negative campaigning that preceded the election will be over.
He recommended that the government push banks to ease up on credit, since failing to do so could "force some companies into bankruptcy that really do not need to be there."
"We've got a lot to fix in the nation before we will see a good deal of improvement in the furniture industry," said Smith. "Most likely, not all will survive. But for those with staying power, we believe that when times get better, those survivors will do well. We just need to make sure our bankers understand that."
