UK upholstered furniture manufacturers have made notable strides in improving efficiency over the past year, according to recent data from The Furnishing Report. Figures reveal that turnover per staff member has increased by 3.5% since spring 2024. The average sales per employee among leading UK producers now stands at £116,279, up from £112,387 in May 2024. This increase comes despite a 6.6% drop in total turnover, driven by a more significant 7.0% reduction in employee numbers.
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Manufacturers have focused on reducing inventory levels, which were elevated during the Covid period. Stock levels for comparable companies have decreased from £2.19 million last year to £1.65 million this year. However, the trend of increasing efficiency may face challenges, as manufacturers prepare for rising national insurance contributions following the autumn budget.
The ongoing adjustments reflect the industry's response to rising costs, with manufacturers looking to streamline operations as they navigate economic pressures.
Source: www.thefurnishingreport.com