Domestic upholstered furniture is a $25 billion industry. While there has been consolidation and attrition, surviving firms are better for it and conditioned to compete on the global stage.
1994-97 was Accu-Router’s major debut in furniture, during which over 30 double-holddown systems were sold to now-defunct Berkline/Benchcraft in Tennessee and Mississippi.
Since then, our market and technology leadership have grown and been influenced by customer feedback. More than anyone, our furniture users push their machines hard, demanding top performance and 24/7 reliability. Most utilize nesting software to reduce work-in-process and maximize material yield.
Green CNC has spawned a new, exciting chapter in Accu-Router’s furniture strategy. Re-using structural weldments, electrical enclosures and aluminum table can save $50,000 or more vs equivalent “all new” Accu-Routers, up to today’s top performance with full warranty.
- Some customers who historically bought “all new” Accu-Routers have embraced the value of Green CNC. We often source them a compatible platform on the open market, then transform it to their spec with full warranty.
- Green CNC renewability is helping us acquire competitive accounts. In many cases, we modernize (1) older competitive machine to prove ourselves — fixed gantry brands include Komo, Northwood, Shoda & Heian. Once a new user experiences Accu-Router performance and lifetime support, they keep coming back for more.
- Green CNC has also made Accu-Router accessible to entry-level customers. By re-using inspected, traded-back components (often pre-owned Fanuc controls), we can back into almost any budget. Rather than a light machine with PC-based or off-brand control, these customers enjoy a reliable workhorse that can be upgraded as they grow.
Since our founding in 1983, we’ve found no substitute for quality construction, high structural rigidity, and responsive support. Just ask our customers.
Industry Climate & Trends
Source: Anderson Bauman Tourtellot Vos (ABTV)
In looking back over the last five years, it’s clear that 2013 marks the year when the furniture industry was finally starting to recover from the economic meltdown that caught up with the industry in 2009. In 2013, orders exceeded those placed in 2008, a peak year for the industry up to that point.
In 2013, U.S. furniture imports rose 8%, fueled by shipments from China and Vietnam as well as emerging markets in India and Indonesia. This is a trend that is expected to continue as Russia and Eastern Europe become bigger players in the import market.
The industry as a whole has seen great improvements over the past few years. After a 13% drop in sales in 2009, new orders have increased a minimum of 4% every year. As of 2013, orders were up 23% from 2009 and up 7% from 2008. This slow but steady increase has carried over into 2014 and is expected to continue for the foreseeable future.
During the near-catastrophic period from 2002 to 2009, virtually all aspects of the industry changed. From consumer trends to technology to sourcing to energy, manufacturers were forced to reinvent themselves—as well as their products and processes—to cope with the new and emerging structure.
Many manufacturers—previously lulled into complacency by decades of the status quo—were not able to successfully embrace the change necessary to compete, and simply closed shop. While this exodus has reduced competition in certain market segments, staying solvent in the furniture industry is not for the faint hearted.
In response to the recession—and to projections that the economy is on a trajectory of recovery—the industry is changing. Upholstery manufacturing has changed; conventional wood manufacturing has virtually disappeared; some retail channels are gone, while others have emerged; and previously neglected areas like furniture technology, information systems, logistics, and global sourcing have become essential. In addition, consumer trends and preferences will be a factor in driving manufacturing into the future.