U.S. furniture manufacturing is expected to see improved growth in 2026, signaling a potential rebound after a prolonged period of contraction, according to the December 2025 ISM Supply Chain Planning Forecast. The report, based on input from purchasing and supply management executives, shows cautious optimism, with respondents projecting higher revenues, expanded capacity, and renewed capital investment. More than half expect overall revenues to rise 4.4% in 2026, compared with a 2.5% gain in 2025.
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Furniture and related products, along with wood products, are among the industries anticipating revenue growth, though in the lower half of sectors by expected gains. Capacity utilisation is currently 82.4%, and the sector plans a 5.2% increase in production capacity next year. Capital expenditures are expected to rise by 3%, driven by investments in personnel, equipment, and technology.
Employment growth is projected to be modest at 0.4%, while labor and material costs are expected to rise, continuing to pressure margins. Raw material prices are projected to increase 4.4% in 2026. Exports are expected to grow, with imports remaining flat, though currency fluctuations may influence sourcing decisions.
Overall, 2026 is seen as a transitional year for furniture manufacturing. Demand is expected to strengthen alongside broader manufacturing growth, but companies must carefully manage cost pressures, pricing strategies, and operational efficiency to support revenue recovery, capacity expansion, and renewed investment.
Source: www.furnituretoday.com
