UK furniture manufacturers take advantage of weak pound as output climbs

13th May 2009 | supply | The weak pound is helping UK furniture manufacturers reclaim some of the ground lost to importers over the past decade, with output climbing during March.

According to the latest ONS figures, British manufacturers across all industries recorded a 0.1% decline in March – the smallest fall in 13 months – but furniture was among the strongest performing categories, with output rising by close to 4%.

Imported furniture is becoming more expensive for retailers to buy. The strength of the dollar and euro in relation to sterling has lifted demand for home manufactured goods, and has seen some suppliers, such as upholstery firm Handwriting, drop their Asian manufacturer in favour of having goods made in the UK.

But importers could also face higher costs in other areas. One major UK furniture supplier told the Furnishing Report that ‘we could soon face a double whammy. While exchange rates have not been favourable for a while, that has largely been offset by lower container costs, as transport companies have tried to fill space on their ships.

‘But now we are seeing many of these ships being taken out of service, and that will mean higher prices to transport goods as there will be less space to fill.’

Many UK furniture firms have been adamant that the recession would not do a great deal of damage to their businesses, as the rapid growth in imports over the past decade had already put them under great pressure, and forced them to streamline operations at a time when the market was seen to be buoyant.