What’s in store for the furniture industry in 2023? Industry advisor offers 5 key takeaways


CHARLOTTE, N.C. — Stump & Co., a firm that specializes in mergers and acquisitions advisement in the global home furnishings industry, released its year-end review for 2022 with a forecast for what’s in store for the furniture industry.

What will companies with sufficient capital and expansion plans look to do in 2023?

Here are five takeaways from what they see on the horizon:

  • Mergers and acquisitions activity will continue. Even with inflation, interest rate hikes and consumer sentiment varying, Stump indicated that it was sought after for mergers and acquisitions in 2022, and that momentum will continue in 2023 even if company valuations have fallen from first quarter 2022 peaks.
  • Generational pressure to sell remains. The pandemic and ensuing supply chain pressures made running a business difficult, and for those nearing retirement, the impetus to sell is even stronger in the current environment.
  • E-commerce is growing. Stump cites analyst research that indicates e-commerce channel growing by two to three times that of the core residential furniture industry, and the company expects to see more transactions in the direct-to-consumer channel in 2023.
  • Manufacturing and vertical integration will continue. Stump anticipates the need for domestic upholstery capabilities to continue with brands looking to expand their margins and production timelines by vertically integrating production capacity. Both existing manufacturers and legacy importers will be looking towards adding or enhancing domestic production.
  • Outdoor living. The pandemic heightened the demand for outdoor living furniture. Today, that demand continues unabated. As higher end consumers purchase second and third homes, Stump sees the need for outdoor and/or casual furniture and residential home services as a driver of deals in this area as well.

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