Limited Supply of Materials and Services
Limited Supply of Materials and Services Impacting Contract Furniture Market

From trade wars to a global pandemic, multiple factors are at play when examining raw material shortages. Furniture manufacturers, vendors, and dealerships alike are in a bind, and many of these increasing costs are passed on to the consumer.
Although acquiring office furniture was once as simple as picking up a phone or clicking “buy” online, many types of furniture are now either hard to find or are only available at prices that far exceed what they were pre-COVID. Massive supply chain disruptions are affecting the cost and availability of foam seating, shipping, wood, and steel, all of which are essential in the furniture market. Limited availability and higher prices are likely to be with us for some time, but there is hope on the horizon as economies worldwide open back up in the wake of successful vaccinations for COVID-19.Seat Foam Prices and Availability

Future outlook for seat foam materials

Shipping Delays and Price Increases

Future outlook for imports and shipping
The entire shipping industry is facing capacity issues. From ocean freight to LTL shippers, almost every company that handles the movement of goods is struggling to find enough workers and enough machinery to handle orders. Stabilization of the market will come eventually, but few industry observers are willing to make a guess as to when that will be. To help reduce some of the pain, the U.S. government eased the hourly driving limitson truck drivers. But the shipping container shortage is expected to last until at least 2022, so space will continue to be at a premium for international imports. Shipping delays and higher costs will persist for the time being for any furniture coming from overseas, especially China.Wood and Steel Prices and Availability

Future outlook for wood/steel prices and availability
