Significant Place — New orders for residential furnishings dropped 20% in September 2021 over September 2020, according to Smith Leonard in its hottest Furnishings Insights survey. But the decrease isn’t as alarming as it appears.
“The final results of our every month study of residential furniture companies and distributors when again needs clarification,” reported the Smith Leonard report. “At very first look, the September 2021 effects would be alarming, but a single has to glimpse beyond the to start with glance. New orders in September 2021 were being down 20% from September 2020, but the glimpse past showed that September 2020 orders have been up 43%. So we seemed to assess 2021 with 2019 and located that September 2021 orders ended up up 15% in excess of 2019.”
12 months to date orders have been up 21% about 2020 and up 32% more than the initial 9 months of 2019.
Shipments had been only up 4% around final September, but year-to-day shipments were being 30% higher than the similar period a year in the past. Shipments were up for 91% of the individuals. Most of the participant’s shipments have been delayed by lack of personnel to manufacture, supply chain problems for domestic companies, as effectively as provide chain for imports, no matter if absence of merchandise or freight challenges.
With that, backlogs continued to increase, up 56% around September 2020, which were being up 123% around September 2019. These higher backlogs are worrisome for most, but people feel to listen to the similar tale over and around, so they appear, while pissed off, to be receiving applied to delays.
Members unveiled that receivable and inventory stages appear to be satisfactory, even with inventories a little bit substantial. The thought appears to be to be far more fear about owning stock to promote vs. manage of inventory.
The range of manufacturing unit and warehouse employees carries on to be an difficulty or instead the absence of those staff members. This looks to be genuine irrespective of whether warehouse or manufacturing.