What's Happening?
Furniture manufacturers are strategically increasing their stock levels in response to ongoing supply chain disruptions and rising demand. According to a report by Unleashed, a software platform for inventory management, small- and mid-sized firms have
seen a significant increase in sales and purchase orders. In Q2 2025, sales reached £254,106, marking a 136.81% increase from the previous year. However, lead times have also extended from 23 to 37 days quarter-over-quarter. The report indicates that manufacturers are adopting a 'cautious buffering' approach to mitigate risks of delays and stockouts, particularly ahead of high-demand periods like Black Friday and Christmas.
Why It's Important?
The decision by furniture manufacturers to build up stock levels is a proactive measure to address potential supply chain disruptions. This strategy is crucial as it helps maintain product availability and service levels, ensuring that companies can meet consumer demand during peak shopping seasons. The increase in purchase orders and stock levels reflects a broader trend of businesses becoming more data-driven, improving their forecasting capabilities. This approach not only helps in managing current challenges but also positions manufacturers to capitalize on future growth opportunities. The move is indicative of a cautious optimism in the industry, supported by favorable economic indicators such as reduced interest rates and expected declines in inflation.
What's Next?
As manufacturers continue to build stock, they may face challenges related to storage and inventory management. However, the strategic stockpiling is expected to provide a buffer against future supply chain disruptions. The industry may see further investments in technology to enhance inventory management and forecasting capabilities. Additionally, the trend of cautious buffering could extend to other sectors facing similar supply chain issues. The overall positive outlook for the end of 2025 suggests that manufacturers are well-positioned to recover margins and pursue selective growth opportunities, potentially leading to increased competitiveness and innovation in the market.
