Analysing the Shifting Landscape of UK Furniture

The UK furniture manufacturing industry is one of the most substantial industries in the UK, both in terms of its contribution to the nation’s GDP, and the number of jobs that are dependent on it. This was exemplified by two key Government statistics that were released in 2016 with regards to the industry’s 8,400 companies:
- The industry contributed a substantial £11.3 billion to the country’s GDP in 2016.
- More than 250,000 jobs were dependent on it.
The industry encompasses a diverse range of products and markets but can be segmented into three distinct sub-sectors, which are determined by the characteristics of the consumer of the product:
- Domestic: This sub-sector provides products for the public, usually through retail and eCommerce outlets, solely for the domestic sphere.
- Contract: This sub-sector includes furniture for public areas, such as schools, hotels, restaurants, airport etc.
- Office: Seating, tables, cabinets and other items for an office or another professional workspace environment.
In comparison to other industries that generate high contributions to the nation’s GDP, the industry contains a higher number of micro and small-to-medium-sized businesses, meaning that there is the potential for these companies to be more acutely influenced by external factors.
While the industry contributes a substantial amount to the UK economy, it unfortunately does not receive the recognition that it arguably deserves on a political level. This is likely to be due to a variety of factors, but a key one being that the industry lacks a historical regional hub.
Historically, certain cities and regions in the UK are, or rather once were, associated with different types of manufacturing, such as the way in which the East Midlands was once associated with the textile and pottery industries.
This distinct lack of a regional hub has led to the industry being sparsely spread out across the country. Industry support and grants are predominantly assigned on a regional basis, which arguably, has meant that the industry does not gain the recognition and support that it deserves from the Government when its size and substantial contribution to the UK GDP is taken into consideration.
The widely published and ongoing uncertainty surrounding the ongoing Brexit negotiations has meant that there has been an increased level of uncertainty within the industry. However, with an increased demand for brands made in Britain across the globe, could the industry thrive outside of the European Union and generate revenue from a wider range of markets?

Despite globalisation arguably leading to substantial numbers of consumers gaining access to cheaper products from a variety of origins, the British furniture manufacturing industry is able to lean upon its reputation for producing furniture of the highest quality. This is due to a variety of factors, including expert craftsmanship, or the materials utilised, such as high-quality wood or polyurethane adhesive to provide durable, long-lasting products.
A Shift in the Landscape
In recent years as the spending power of Millennials has increased, there has been increased competition within the sector and a shift in consumer trends and buying habits. These younger buyers are demanding innovation in terms of design, style and fabric, which has led to the traditional furniture manufactures having to become more design-led to generate increased amount of business and keep up with the current trends.
In addition to this, the eCommerce sector has grown significantly over the previous decade and purchasing furniture online has most certainly become the norm across multiple demographics. This has meant that manufacturers are having to ensure that they are able to produce innovatively designed furniture that will appeal to these audiences, while at the same time ensuring that they are able to offer relatively quick delivery through a smooth supply chain that is also cost-effective.
The Effect of Brexit Upon the Industry
Brexit offers some clear challenges for the furniture industry, especially with regards to trade with the rest of Europe. However, if UK companies are ensuring that they are trying to keep up with new developments and trends within the sector, then there are benefits for companies, both large and small here in the UK.
The aforementioned increase in Millennials’ spending power means that their buying habits will ensure that furniture companies will need to develop processes to ensure that they are able to serve the needs of this consumers. This demographic has already led to their being a shift in the designs offered — but with an ever-increasing number of retailers offering next day delivery as an option — this suggests that the sector is likely to become increasingly localised as buyers opt for companies that are able to fulfil rapid delivery options that are able to fit in around their own commitments.
As long as companies are aware of this and investing in technological solutions to become increasingly more efficient, flexible and productive in order to minimise lead times and generate maximum profits, there is no reason for businesses of all sizes to feel concerned about the current uncertainty across all sectors as a whole.
