HIGH POINT: New furniture factory orders rose 4% in July compared with the same month last year, according to the latest Furniture Insights survey of residential furniture vendors from the High Point accounting and consulting firm Smith Leonard. July was the 16th straight month of year-over-year order increases, and the 24th of the last 25 months.
Year-to-date, new orders remained 5% ahead of the same period a year ago. Approximately 56 percent of the participants have reported increased orders, year-to-date up slightly from last month’s results.
Shipments were up 7% in July 2015 over July 2014, while July 2014 shipments were 7% higher than July 2013. Shipments in July were down 11% from June, but that wasn’t a surprise because most companies were shut down a week in July for the Independence Day holiday, the survey noted.
Year-to-date, shipments rose 7% over last year with some 72% of the participants reporting increased shipments, up slightly from last month’s percentage. Backlogs were 9% higher than July 2014, down from 12% reported last month. Last year at this time, backlogs were up 5% so overall, backlogs remain pretty heavy.
Receivable levels rose just 2% over last year in spite of strong shipments and continue to appear to be in good shape. Inventories crept up 2% from June but remained 6% ahead of last July, the same as reported last month. Overall, inventories seem to be in line with current business conditions.
Factory and warehouse employees and payrolls also appear in line. Employee levels were 3% higher than July 2014. Factory and warehouse payrolls were up 9% for the month but only 6% year-to-date, which is also seemingly in line with current business conditions.
