Furniture Industry Updates. Factory Growth, Supplier Restructuring, and Fewer Jobs

Originally published September 6, 2024. This version was rebuilt from the ISM manufacturing report, Culp's first-quarter release and the BLS jobs report for the FIN archive, and the facts are as of that date.

The first week after Labor Day 2024 brought mixed signals from the factory side of the furniture business. Orders were improving for some makers while staffing kept shrinking.

The short version

• ISM listed Furniture & Related Products among five industries reporting growth in August.
• Culp reported consolidated net sales of $56.5 million, up 14.2% from the prior quarter.
• BLS said furniture and related product manufacturing employment was 338.3 thousand in August.

Furniture manufacturing shows signs of growth

ISM's Manufacturing PMI registered 47.2% in August, still in contraction, but Furniture & Related Products was one of only five industries reporting growth, alongside primary metals, petroleum, food and computers.

Twelve industries reported contraction. A furniture reading in growth territory suggested some makers were seeing orders firm after a long slump, though the overall factory economy remained weak.

Supplier restructuring at Culp

Fabric maker Culp reported first-quarter consolidated net sales of $56.5 million, up 14.2% from the previous quarter, with upholstery fabrics up 19.7% and mattress fabrics up 9.0% sequentially.

Culp posted a loss from operations of $6.9 million, including $2.7 million of restructuring expense, as it worked through manufacturing inefficiencies tied to restructuring its mattress fabrics business.

Supplier results are an early indicator for furniture and bedding production, and Culp's sequential gain pointed to a modest pickup in upholstery and mattress orders.

Factory jobs keep slipping

The August jobs report showed furniture and related product manufacturing employment at 338.3 thousand, down 1.5 thousand from July and down from 355.6 thousand a year earlier, seasonally adjusted.

Total nonfarm payrolls rose by 142,000 in August. Furniture makers were holding staffing down even where orders were starting to improve.

The road to recovery

Better order readings and a stronger quarter at a key fabric supplier pointed to a slow turn. Until it showed up in hiring, furniture makers were managing for efficiency, not growth.

Related on FIN

• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.
• Furniture Factories Made Less in September

Sources

• Institute for Supply Management, August 2024 Manufacturing ISM Report On Business
• Culp, Inc., First quarter fiscal 2025 results (Sept. 4, 2024)
• U.S. Bureau of Labor Statistics, Employment Situation, August 2024