Furniture manufacturing refers to the commercial production of consumer and commercial

sector goods including household furniture for all rooms, décor products, office furniture,
baby and children’s furniture and beds, and pet furniture and comfort products. Specific
furniture products manufactured include beds, couches, desks, tables, chairs, cubicles,
cushions, cribs, stands, recliners, stools, swings, hammocks, cabinets, shelves, armoires,
entertainment centers, lighting accessories, bathroom vanities, chests, drawers, drafting
tables, countertops, and specialty products catering to select demographics. High variability
in designs, aesthetics, dimensions, height and weight is a common parameter in furniture
manufacturing as products must conform to consumer preferences and needs of the intended
user. Consequently, standardization in furniture design is ephemeral with changing fashions
and trends in demand from varying demographics. Regional aesthetics, artistic standards and
norms also influence furniture consumption with varying products between Middle Eastern,
East Asian, South Asian, American, European, Latin American and African consumer
markets.

Wood is one of the core materials for furniture manufacturing and is still fashioned into
furniture products in the skilled trade of carpentry. Rapidly rising demand for furniture has
come with improved quality of living and higher incomes in industrialized and post-
industrialized service economies with a much broader base of consumer demand for furniture
and related products. Similarly service economies with vast commercial sectors constitute
major markets for office furniture and other products. Textile manufacturing has provided the
means for the mass production of furniture upholsteries. Similarly, industrial welding and
metalworking has opened furniture design to increased use of metal structures and parts.

Market Analysis Summary

Trestle Creek Cabinets will be focusing on architects, owners, and contractors in the regional
area who are involved in high-end residential, resort, and commercial development segments.

In 2000, a total of 219 new residential homes worth $168 million were constructed in the
Teton County, WY. If we take an average of $40,000 per kitchen, (probably conservative),
and multiply that by the 219 homes, that gives us a total of $8,760,000 in kitchens installed
for the year. We plan to acquire 4-5% of the market share of this residential segment in our
first year. We do not think this is unreachable, especially in a still growing market.

Teton County, Idaho has great potential as three new resort developments, Teton Springs
Golf & Fishing Club, Grand Targhee Resort Expansion, and Teton Country Club, come on
line.

The following table outlines to total market potential of the three major customer segments in
the Teton County.

4.1 Target Market Segment Strategy

Trestle Creek Cabinets will be focusing on contacting contractors and architects that deal
with the luxury home market. Making ourselves known to these entities will generate some
strong leads, along with getting personal recommendations to the home owners.
There are plans to upgrade office space to a showroom in a high visibility location. This will
give us exposure to new home builders that are looking for our product.

Market Analysis
Potential Customers Growth CAGR
High-end residential 3% 5,260 5,418 5,581 5,748 5,920 3.00%
Mid-range residential 5% 3,500 3,675 3,859 4,052 4,255 5.00%
Commercial development 7% 10,000 10,700 11,449 12,250 13,108 7.00%
Total 5.55% 18,760 19,793 20,889 22,050 23,283 5.55%

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4.2 Industry Analysis

There are two main types of cabinet suppliers in the industry.

1. Resellers of complete cabinet sets using stock items where the cabinets turn up
completely built. Usually have no shop facilities but do have show rooms.
2. Custom shops with full, in-house fabrication facilities. They are usually very product
orientated and under-perform with customer support.

Trestle Creek Cabinets can provide high volume work, superior project management, and
excellent quality while maintaining a low overhead.

4.2.1 Competition and Buying Patterns

The high-end cabinet market understands the concept of service and support, and is more
likely to pay for it when the offering is clearly stated.

There are many competitors in the local market. Although each of them deliver a quality
product, we feel they fail to deliver a full turnkey package. There are four factors that govern
the cost of all kitchen projects: Scope, Product, Design, and Services. Most people
mistakenly think that the size of the project and the choice of brand name products will make
for the best results. But it is the design and a company’s services that will have the greatest
impact on the quality and value of the customers investment.

ments at the manufacturers' level, with information provided including historical and forecast
market size by product line (e.g., upholstered, nonupholstered wood, and metal, rattan, and
other nonupholstered products), and vendors profiled in the report including Ashley Furniture
Industries Inc., La-Z-Boy Inc., and Ethan Allen Interiors, Inc.
Office Furniture: United States
https://www.freedoniagroup.com/
Freedonia Focus research report analyzes demand and shipments at the manufacturers' level,
with information provided including historical and forecast market size by product segment
(e.g., desks and tables, seating, modular systems, and other products such as filing cabinets,
bookcases, and credenzas), and vendors profiled including Steelcase Inc., HNI Corporation,
and Herman Miller, Inc.

BizMiner Market Analysis

Furniture Manufacturing
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county, metro area, or zip code level, with data provided including number of companies,
market volume and sales trends, average company sales, sales per employee, staffing and
employment trends, average employee wage, and business start up activity and failure rates.
Sample report can be viewed online.

More Resources
For more industry research reports and other resources, see the following