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furniture manufacturing industry south africa

The Furniture Manufacturing Industry in South Africa 2023

Stephen Timm | South Africa | 22 February 2023

The Furniture Manufacturing Industry in South Africa 2021

Alex Conradie | South Africa | 19 March 2021

The Furniture Manufacturing Industry in South Africa 2018

Alex Conradie | South Africa | 23 August 2018

The Furniture Manufacturing Industry in South Africa 2015

Glynis Harrison | South Africa | 31 March 2015

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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.

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. \r\n
• The industry came under some pressure in 2022 followed a mini-boom in 2021. \r\n
• Local manufacturers have benefited as higher shipping fees and delays at ports saw retailers source more locally-manufactured furniture. \r\n
• South Africa was the continent’s second-largest furniture exporter in 2021, after Morocco. \r\n
• The industry’s challenges include loadshedding, skills shortages and a lack of raw materials, which are driving up input costs.

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.

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.

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.

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.

Outlook

• The slowing economy and high inflation are expected to result in a decline in demand. \r\n
• Manufacturers say the outlook for lounge and case goods (such as cabinets and coffee tables) is good.\r\n
• Shipping costs could result in local retailers shifting to favour imported furniture, though some experts expect imports to be muted in 2023. \r\n

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The Furniture Manufacturing Industry in South Africa
The Furniture Manufacturing Industry in South Africa 2023

Full Report

R 9 500.00(ZAR) estimated $525.93 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 368.15 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 24.91 (USD)*

Historical Reports

The Furniture Manufacturing Industry in South Africa 2021-03-19

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2018-08-23

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2015-03-31

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
2.3. Size of the Industry 5
3. LOCAL 6
3.1. State of the Industry 6
3.2. Key Trends 13
3.3. Key Issues 14
3.4. Notable Players 15
3.5. Trade 15
3.6. Corporate Actions 19
3.7. Regulations 20
3.8. Enterprise Development and Social Development 21
4. AFRICA 22
5. INTERNATIONAL 26
6. INFLUENCING FACTORS 29
6.1. Economic Environment 29
6.2. Labour 30
6.3. Environmental Issues 32
6.4. Technology, R&D, Innovation 34
6.5. Government Support 35
6.6. Input Costs 37
6.7. Furniture Imports and Nearshoring 39
7. COMPETITIVE ENVIRONMENT 40
7.1. Competition 40
7.2. Ownership Structure of the Industry 41
7.3. Barriers to Entry 42
8. SWOT ANALYSIS 42
9. OUTLOOK 43
10. INDUSTRY ASSOCIATIONS 44
11. REFERENCES 44
11.1. Publications 44
11.2. Websites 45
APPENDIX 1 46
Summary of Notable Players 46
COMPANY PROFILES 49
Angel Shack Trading and Investments (Pty) Ltd 49
Barker Street Office Furniture (Pty) Ltd 51
Bidvest Branded Products Holdings (Pty) Ltd 52
Bravo Group Manufacturing (Pty) Ltd 55
Brothers Beds and Bedding CC 58
Buraaq Beds CC 60
City Office (Pty) Ltd 62
Fair Discounters (Pty) Ltd 64
Fechters Furniture Manufacturers (Pty) Ltd 67
Geo Cloud (Pty) Ltd 69
KAP Industrial Holdings Ltd 71
Kiran Sales (Pty) Ltd 76
OfficeScene (Pty) Ltd 78
Quality Bedding (Pty) Ltd 79
Simmons SA (Pty) Ltd 80
Strandfoam Group (Pty) Ltd 82
Sweet Sensation 210 (Pty) Ltd 84
SwissMate Manufacturing CC 86
Tapestry Home Brands (Pty) Ltd 87
Truform Bedding (Pty) Ltd 91
Ukhuni Business Furniture (Pty) Ltd 93
Upholster All (Pty) Ltd 95

Report Coverage

This report focuses on the manufacture of furniture in South Africa and includes comprehensive information on the size of the sector, trade statistics, regulation, developments and corporate actions. There are profiles of 23 companies including vertically-integrated players such as Bravo Group Manufacturing, Fair Discounters, and KAP Industrial Holdings, bedding companies such as Brothers Bedding and Buraaq, and office furniture companies such as OfficeScene.

Introduction

Stats SA figures indicate 22,716 people were employed in the manufacture of furniture in the third quarter of 2020, while the sector had an estimated turnover of R18.6bn and contributed about 1% to manufacturing GDP in 2019. South Africa was Africa’s second-largest furniture exporter, after Morocco, with exports of US$247.2m in 2019, according to the International Trade Centre’s (ITC) Trade Map. The impact of the coronavirus pandemic, weak economic conditions and rising input costs are some of the factors having a significant impact on the performance of local furniture manufacturers.

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.

Weaknesses

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

Opportunities

• Productivity SA’s Business Turnaround and Recovery programme is available to struggling companies.
• The designation of furniture for procurement by state entities.

Threats

• Competition from imports.
• Depressed domestic demand due to the impact of the coronavirus pandemic and weak economic conditions.
• Increasing cost of electricity, water, raw materials, transport and labour.

Outlook

Some analysts predict most companies will do away with large offices as their employees continue to work from home, affecting the type and amount of office furniture that will be needed. Lori Gee, vice-president of workplace performance services at US office furniture manufacturer Herman Miller, said the company is developing furniture suited for small satellite offices. Gee said: “We think there will always be the need for a physical workplace – places where you go for collaboration and bring to life the corporate culture.” Robyn Self, owner of interior design company Plan-It Design, believes South African companies’ furniture budgets are going to continue on the downward trend that started a few years ago, while financial columnist Chris Gilmour forecast that demand from the hospitality sector will be lower due to a drop in local and international tourism caused by the lockdown. \r\n\r\nGilmour also believes demand for residential furniture will be lower as consumers cut discretionary spending when their disposable income is reduced by the effects of the lockdown. However, Yanni Vosloo, merchandise director at retailer MRP Home, and Chris Swart, head of business for retailer @Home, believe there are opportunities in the upper Living Standards Measure market for quality solid wood furniture, while melamine and board furniture will continue to be in demand in the lower market segments. Manufacturer KAP Industrial Holdings predicts the demand for beds will remain strong, as it is a necessary piece of furniture.

Read More..
The Furniture Manufacturing Industry in South Africa
The Furniture Manufacturing Industry in South Africa 2021

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Historical Reports

The Furniture Manufacturing Industry in South Africa 2023-02-22

R 9 500.00(ZAR) estimated $525.93 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2018-08-23

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2015-03-31

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Trade 8
4.1.2. Corporate Actions 10
4.1.3. Regulations 10
4.1.4. Enterprise Development and Social Economic Development 11
4.2. Continental 12
4.3. International 12
5. INFLUENCING FACTORS 14
5.1. Coronavirus 14
5.2. Economic Environment 14
5.3. Rising Input Costs 15
5.4. Government Incentives and Support 16
5.5. Furniture Imports 17
5.6. Environmental Concerns 17
5.7. Technology, Research and Development (R&D) and Innovation 18
5.8. Labour 18
6. COMPETITION 19
6.1. Barriers to Entry 20
7. SWOT ANALYSIS 20
8. OUTLOOK 21
9. INDUSTRY ASSOCIATIONS 22
10. REFERENCES 22
10.1. Publications 22
10.2. Websites 23
APPENDIX 1 24
Summary of Notable players 24
COMPANY PROFILES 26
ANGEL SHACK TRADING AND INVESTMENTS (PTY) LTD 26
BARKER STREET OFFICE FURNITURE (PTY) LTD 27
BIDVEST BRANDED PRODUCTS HOLDINGS (PTY) LTD 28
BRAVO GROUP MANUFACTURING (PTY) LTD 31
BROTHERS BEDS AND BEDDING CC 33
BURAAQ BEDS CC 35
CITY OFFICE (PTY) LTD 37
FAIR DISCOUNTERS (PTY) LTD 39
FECHTERS FURNITURE MANUFACTURERS (PTY) LTD 42
GEO CLOUD (PTY) LTD 44
KAP INDUSTRIAL HOLDINGS LTD 46
KIRAN SALES (PTY) LTD 51
OFFICESCENE (PTY) LTD 52
PILOT FURNITURE MANUFACTURERS (PTY) LTD 53
QUALITY BEDDING (PTY) LTD 55
SIMMONS SA (PTY) LTD 56
STRANDFOAM GROUP (PTY) LTD 58
SWEET SENSATION 210 (PTY) LTD 60
SWISSMATE MANUFACTURING CC 61
TAPESTRY HOME BRANDS (PTY) LTD 62
TRUFORM BEDDING (PTY) LTD 65
UKHUNI BUSINESS FURNITURE (PTY) LTD 66
UPHOLSTER ALL (PTY) LTD 68

Introduction

During 2017 South Africa was Africa’s second-largest furniture exporter, with exports reaching R3.9bn or US$290.4m according to the International Trade Centre’s (ITC) Trade Map. According to the latest Industrial Policy Action Plan (IPAP) of the Department of Trade and Industry (DTI) 2,200 registered companies in the furniture manufacturing sector employ 26,400 people, while the sector contributes about 1% to manufacturing gross domestic product (GDP). However, a shortage of higher-skilled workers, rising production costs, and poor domestic demand are some of the factors having a significant impact on the performance of local furniture manufacturers

Strengths

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

Weaknesses

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

Opportunities

• Productivity SA’s Turnaround Solution programme is available to struggling companies.
• The designation of furniture for procurement by state entities.
• The DTI has agreed to the establishment of a Furniture Manufacturing Hub.

Threats

• Competition from Chinese products in local and export markets.
• Increasing cost of electricity, raw materials, transport and labour.
• Shortage of furniture training programmes.
• SMMEs are unable to supply large furniture retailers, which collectively have an 80% share of the local market.
• South Africans’ decreasing share of wallet spend on furniture.
• The planned introduction of a carbon tax.

Outlook

The FP&M SETA believes South Africa has the potential to produce furniture that is unique to Africa and appeals to Western markets. This strategy could lead to considerable growth in the furniture manufacturing sector due to higher prices and volumes achieved in the export market compared to the local market. Local demand for furniture is expected to be subdued in 2018 due to low growth in the domestic economy, but SAFI expects the local furniture market to recover through 2022. This recovery will be subject to strong economic growth, improved consumer and business confidence as a result of a conducive political environment, government support for the sector, continued growth of independent retail furniture stores to improve access to low income consumers, and growth in the social housing market.

The Furniture Manufacturing Industry in South Africa
The Furniture Manufacturing Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Historical Reports

The Furniture Manufacturing Industry in South Africa 2023-02-22

R 9 500.00(ZAR) estimated $525.93 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2021-03-19

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2015-03-31

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 10
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 11
4.2. Continental 12
4.3. International 13
5. INFLUENCING FACTORS 13
5.1. Economic Environment 13
5.2. Rising Input Costs 14
5.3. Government Support 15
5.4. Environmental Concerns 16
5.5. Technology, Research and Development (R&D) and Innovation 17
5.6. Labour 18
5.7. Increase in Imports 19
6. COMPETITION 19
6.1. Barriers to Entry 20
7. SWOT ANALYSIS 20
8. OUTLOOK 21
9. INDUSTRY ASSOCIATIONS 21
10. REFERENCES 22
10.1. Publications 22
10.2. Websites 22
APPENDIX 1 24
Summary of Major Players 24
COMPANY PROFILES 27
ANGEL SHACK TRADING AND INVESTMENTS (PTY) LTD 27
AXZS INDUSTRIES (PTY) LTD 28
BIDVEST GROUP LTD (THE) 30
BRAVO GROUP MANUFACTURING (PTY) LTD 42
BROTHERS BEDS AND BEDDING CC 45
BURAAQ BEDS CC 47
CITY OFFICE CC 49
CORICRAFT GROUP (PTY) LTD 50
DK CHAIRCRAFT CC 53
DK LAMINATES CC 55
DK METALCRAFT CC 57
DK WOODCRAFT CC 59
GEO CLOUD (PTY) LTD 61
KAP INDUSTRIAL HOLDINGS LTD 63
KIRAN SALES (PTY) LTD 68
MOTANI LOUNGE (PTY) LTD 69
OFFICESCENE (PTY) LTD 72
PILOT FURNITURE MANUFACTURERS (PTY) LTD 73
REST ASSURED GROUP (PTY) LTD 75
SIMAX MANUFACTURING (PTY) LTD 77
SIMMONS SA (PTY) LTD 78
STREAMLINE METAL FURNITURE MANUFACTURERS (PTY) LTD 80
SWEET SENSATION 210 (PTY) LTD 82
SWISSMATE MANUFACTURING CC 83
TRUFORM BEDDING (PTY) LTD 84
UKHUNI BUSINESS FURNITURE (PTY) LTD 85
UPHOLSTER ALL (PTY) LTD 88

Report Coverage

The Manufacture of Furniture in South Africa evaluates the domestic industry, government attempts to stimulate local manufacture and factors influencing the sector’s success. The report also profiles 25 industry players, ranging from KAP Industrial Holdings Ltd with 16 factories and 18,900 employees to small enterprise Streamline Metal Furniture Manufacturers which employs 20 people at its factory in Gauteng.\r\n

Introduction

This report focuses on the South African furniture manufacturing industry which is one of the main sectoral focus areas in the Industrial Policy Action Plan (IPAP) 2014/2015 – 2016/2017. According to the Department of Trade & Industry (DTI), there are 2,200 registered business entities and the furniture industry employs approximately 29,000 people. This sector contributes approximately 1.6% to overall employment in the manufacturing sector.

Strengths

• The sector has the potential to contribute to the reduction of unemployment, increase exports and develop SMMES.

Weaknesses

• Furniture retailers’ stocking of cheaper imported products.
• Lack of capital investment which has resulted in outdated equipment and technologies.
• Limited local R&D which limits global competitiveness and innovation.
• Overall lack of competitiveness.
• Raw material suppliers favour large manufacturers forcing SMMEs to pay higher prices for raw materials.
• Skills shortages, including high-level technical and design skills.

Opportunities

• Expected economic growth of more than 5% in the rest of Africa will increase disposable income and demand for furniture.
• Increasing government and provincial support for SMME development.
• Public procurement budgets of state-owned entities could be diverted to local furniture manufacturers.
• The formation of clusters will support development, especially among small businesses
• Weakening Rand could promote the purchase of locally made furniture.

Threats

• For small companies, the non-payment of money by retailers.
• Increasing input costs that will further reduce global competitiveness.
• Increasing number of cheaper imported products is a threat to the domestic and export markets.
• Low economic growth and reduced disposable incomes.

Outlook

The outlook for manufacturing production during 2015 remains uncertain especially because of the electricity crisis and subdued domestic demand. Reduced consumer disposable income will impact negatively on furniture sales and will result in cheaper imported goods becoming even more attractive than the more expensive, locally manufactured items. Analysts emphasised that the local furniture manufacturing industry has to become more globally competitive if it is to grow and provide much-needed employment opportunities. Although the DTI and provincial initiatives are helping in limited ways, the need for a comprehensive support strategy has become obvious. Some stakeholders believe this will be tackled in the business plan being compiled by the South African Furniture Initiative, which is due to be released in April 2015.

Read More..
The Furniture Manufacturing Industry in South Africa
The Furniture Manufacturing Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 24.91 (USD)*

Historical Reports

The Furniture Manufacturing Industry in South Africa 2023-02-22

R 9 500.00(ZAR) estimated $525.93 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2021-03-19

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

The Furniture Manufacturing Industry in South Africa 2018-08-23

R 1 900.00(ZAR) estimated $105.19 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 10
4.1.2. Regulations 11
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 13
5. INFLUENCING FACTORS 14
5.1. Government Intervention 14
5.2. Economic Environment 15
5.3. Rising Input Costs 15
5.4. Increase in Cheaper Imports 16
5.5. Labour 16
5.6. Cyclicality 18
5.7. Technology and Information Technology 18
5.8. Environmental Concerns 18
6. COMPETITION 19
6.1. Barriers to Entry 19
6.2. Research and Development (R&D) and Innovation 19
7. SWOT ANALYSIS 21
8. OUTLOOK 22
9. INDUSTRY ASSOCIATIONS AND BARGAINING COUNCILS 22
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 24
APPENDIX 1 25
List of members of the Cape Furniture Manufacturing Association 25
APPENDIX 2 29
List of Furntech SMME Incubation Clients 29
ORGANOGRAM 34
COMPANY PROFILES 36
AXZS INDUSTRIES (PTY) LTD 36
BIDOFFICE FURNITURE MANUFACTURING (PTY) LTD 38
BRAVO GROUP MANUFACTURING (PTY) LTD 40
BROTHERS BEDS & BEDDING CC 43
BURAAQ BEDS CC 45
CALASKA TRADING 132 (PTY) LTD 47
CECIL NURSE (PTY) LTD 49
CITY OFFICE CC 52
CORICRAFT GROUP (PTY) LTD 53
DK CHAIRCRAFT CC 55
DK LAMINATES CC 56
DK METALCRAFT CC 58
DK WOODCRAFT CC 60
DKW EXPORTING & IMPORTING CC 62
FRIEDLEIN & COMPANY (PTY) LTD 64
KAP INDUSTRIAL HOLDINGS LTD 66
KIRAN SALES (PTY) LTD 71
MOTANI LOUNGE (PTY) LTD 73
PILOT FURNITURE MANUFACTURERS (PTY) LTD 76
REST ASSURED GROUP (PTY) LTD 78
RESTONIC (PTY) LTD 80
SIMMONS (SOUTH AFRICA) (PTY) LTD 83
STREAMLINE METAL FURNITURE MANUFACTURERS (PTY) LTD 85
UKHUNI BUSINESS FURNITURE (PTY) LTD 87
WALTONS (PTY) LTD 90