Rising raw material prices in China led to double prices for furniture

Compared with the same period of last year, the prices of furniture raw materials and labor have risen by 10% to 30%, and the furniture prices for various grades have also risen to varying degrees. The prices of interior materials for furniture, aluminum used in hardware, stainless steel, and chemical materials such as paints and glues have risen significantly.

If the price rise of furniture at the end of last year appears to be somewhat subtle, and is more reflected in the less easily discounted, reduced concessions, etc., then the furniture price increase since the first half of this year is obvious. The tide of price increases has now swept into most of the furniture products in Guangdong. Compared with the same period of last year, wooden furniture prices have risen more than 10% this year. Many furniture manufacturers in the Pearl River Delta have stated that: In September and October, price adjustments will respond to rising raw material prices, which will increase by 10% to 15%. Under the pressure of rising costs, small furniture companies have gradually closed down.

As a labor-intensive industry, labor costs are one of the major components of the overall price of the furniture industry. The new "Labor Contract Law" has been formally implemented since January 1 this year. Enterprises must pay five insurances for their employees, including pension, unemployment, work-related injury, maternity, and medical care. To a certain extent, the labor costs of furniture companies have increased, and originally very meagre profits will be forced to “shrink” due to the increase in labor costs.

In the next 10 years, tight timber supply and rising prices will be the overall trend of the industry. The domestic furniture industry is facing continuous and huge cost pressures. Shortage of resources, rising prices of raw materials, and home furnishing products, including furniture, are major trends in the future.