Canadian Industrial Profile: Furniture Products Manufacturing—Summer 2017

Foreign Demand—Exports to the U.S. are equivalent to half of Canadian furniture production. With interest rates now on the rise, growth in spending on furniture is expected to slow.

Consumer Debt—Canadian households have the highest debt ratio of all G7 countries and will eventually have to reduce debt financing; furniture purchases are often financed by home equity line of credits.

Input Costs—Lumber prices have surged this year, in part due to softwood lumber duties imposed by the U.S. on Canadian imports. This has increased costs and reduced profits for many furniture producers.