The value of bed sales by National Bed Federation members declined by 2.5% in the past quarter amid an almost double-digit drop in sales volumes.
The NBF’s quarterly Sales Tracker report found volumes of bed sets, mattresses, adjustable bed sets and divan bases declined by 8.5% from the previous quarter. Sales value was estimated at £249m.
Manufacturers remain positive about future levels of business, with 42% saying they were optimistic compared to 39% in the previous quarter and 35% in Q3 2020. Two years ago the major limiting factor on obtaining output was concerns over order levels, with almost 60% reporting that as their main worry. Now this has dropped to 16% while 43% see the availability of raw materials and components as their main limiting factor and 24% listing the availability of skilled labour.
The number of respondents reporting increases in costs of more than 5% dropped from 83% in Q2 to 67% in Q3. Almost 70% said they had passed on these cost increases, with nearly half saying the increases had been in excess of 5%. Just under a third of respondents reported that they had kept their selling prices about the same over the previous three-month period.
Margins continue to be under pressure, with 40% of respondents reporting a drop but almost half had managed to maintain their profit margins over the period.
‘The Sales Tracker reveals the challenging environment our members are still having to deal with. Volumes have yet to recover to pre-pandemic levels, costs are under constant pressure and a shortage of labour is still affecting almost a quarter of members. Nevertheless, there are signs that the pressure might be easing and optimism has risen. Predicting future demand and capacity and budgeting for next year is probably the toughest it’s been for a long time,’ says Jessica Alexander, NBF executive director.
https://interiorsmonthly.co.uk/e5914ac7-24ac-46df-8b09-71557d42d613″ alt=”Graphical user interface, text, application Description automatically generated” width=”449″ height=”62″ />