Essay: Economic characteristics of Furniture Industry

By | April 27, 2011

Sample Essay

Essay: Market for furniture products is highly fragmented worldwide and therefore the global furniture industry enjoys healthy competition. The competition pattern is centralized on a regional level.

–                      Companies in the furniture industry are both publicly traded and privately held for instance; there are a number of small and medium sized furniture companies in Europe which have been functioning with great success.

–                      The furniture industry utilizes both skilled and unskilled labor probably due to diverse production activities.

–                      Although advancement in technology has introduced newer methods for designing for example; CAD/CAM, 3D Tools etc. but hand crafted tools are still utilized. This is perhaps the reason behind the continued success of traditional furniture making countries, which still own around 70% of the global furniture market.

–                      The furniture industry has provided a lot of jobs in the rural population particularly in developing countries. The reason behind this is that a lot many tasks require certain skills for which no specialized education is needed; hence people in rural areas can perform such tasks without undertaking any formal education.

–                   Since the international furniture industry offers a wide range of products therefore it provides a great many employment opportunities to a large number of people in diverse ways.

–                   Consumer expectations and behavior play a crucial role in determining the direction of the furniture industry. This is perhaps the reason behind the demand for varied furniture products across different geographical regions.

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