Slow-Down in Real Estate Market Not Slowing Furniture Sales

The real estate market may be slowing down, butglobalization. As more furniture is imported, it
there doesn't seem to be a corresponding slow-downbecomes more difficult for American companies to
in the number of sales of furnishings that will go intocompete as consumer prices continue to decline.
people's homes. In fact, the opposite seems to beThat may prove advantageous to consumers, but it
happening across the country. For instance,will cause an increasing number of problems for U.S.
California-based Dacor, a kitchen appliance company,furniture companies.There are several ways American
reports that their sales for the first quarter of 2006furniture companies are fighting back against their
were up some 25 percent from the same period offoreign competition, especially when it comes to
2005. Another kitchen appliance supplier,innovation and increased efficiency. After centuries of
Pittsburg-based Sub-Zero, saw their sales jump nearlyexperience with American consumers, U.S. furniture
30 percent during that same period. What's drivingsuppliers have a firm grasp on what their clients need
the startling rise in the home furnishings market? Theand want when it comes to furnishing their homes.
factors are complex, but the fact remains that theOne of the most significant trends in recent years
numbers are definitely rising, in spite of a softeninghas been the migration of suburban homeowners
real estate market. Part of the reason for theback to urban areas. Since they've often done quite
increase is that whether homebuyers are purchasingwell when they sold their suburban homes, these
a new or existing house, they will spend an averagebuyers can afford to upgrade both their living spaces
of $6,000 during their first year of ownership as theyand the furnishing they fill them with. With that trend
begin the task of turning their new homes into aalso comes a rethinking of interior spaces such as the
more accurate reflection of who they are and howkitchen. Homeowners want appliances and furniture
they choose to live. So even in the face of a slowingthat allows them to create an integrated feel
real estate market, homebuyers are still spendingthroughout their homes. For example, kitchens have
significant sums of money to upgrade and furnishbecome much more than just places to cook meals.
their new homes, which makes the home furnishingThey're now gathering places, as well, and innovative
industry somewhat less susceptible to downturns infurniture allows homeowners to combine function
home sales. In fact, the American furniture industry iswith style and utility. Things may be slowing down for
actually twice as large as the country’s musicthe housing market, but the past few years have
industry overall.been excellent for companies dedicated to helping
However, as is the case in all phases of the Americanhomeowners fill those houses with furniture and
economy, the home furnishings industry is facingappliances that can fit any type of taste, lifestyle,
challenges from increasing competition fromand budget. Copyright © 2006 Jeanette J.