The Furniture Manufacturing Industry in South Africa 2023

Introduction

South Africa’s furniture manufacturing sector is expected to experience a difficult 2023 as demand for furniture slows and consumers come under increasing pressure. The industry came under some pressure in 2022 followed a mini-boom in 2021. Local manufacturers have benefited as higher shipping fees and delays at ports saw retailers source more locally-manufactured furniture. South Africa was the continent’s second-largest furniture exporter in 2021, after Morocco. The industry’s challenges include loadshedding, skills shortages and a lack of raw materials, which are driving up input costs.

Opportunities

Demand for environmentally-friendly and recycled furniture is growing. High shipping costs favour flatpack furniture. Logistics challenges and higher shipping costs have made it more expensive to import, therefore favouring local manufacturing (nearshoring). Productivity SA’s business turnaround and recovery programme is available to struggling companies. The designation of furniture for procurement by state entities. The hybrid work trend is driving demand for lighter, mobile home office furniture, as well as hot desk furniture.

Outlook

The slowing economy and high inflation are expected to result in a decline in demand. Manufacturers say the outlook for lounge and case goods (such as cabinets and coffee tables) is good. Shipping costs could result in local retailers shifting to favour imported furniture, though some experts expect imports to be muted in 2023. Report Coverage This report on the manufacture of furniture in South Africa provides information on how the sector has benefitted from an increasing reliance on local manufacture, key trends and challenges, notable players and industry developments. There are profiles of 22 companies including major players such as Bidvest Branded Products, Bravo, Fair Discounters and KAP, office furniture companies such as Barker Street and Ukhuni Business Furniture, bed companies such as Buraaq, Quality Bedding and Truform.

Strengths

Government support for the sector. Raw materials used are available in South Africa. The furniture manufacturing sector is well-established and able to fully supply domestic demand.

Threats

Any future global supply chain challenges could increase raw materials costs. Competition from imports. Declining shipping fees and the falling oil price could make it more affordable to import than previously. Higher inflation has lowered consumer’s ability to afford new furniture purchases. Increasing cost of electricity, water, raw materials, transport and labour. Loadshedding. Local logistics challenges make it expensive to transport goods and raw materials. The weak local and global economy will likely reduce sales and exports.

Weaknesses

A shortage of higher-skilled employees. A shortage of local and imported raw materials. Declining investment in capital equipment. Inadequate investment in skills development. Insufficient research and development. Little design improvement or new product development.