Furniture Manufacturers

Melanie Onn Excerpts

Wednesday 23rd January 2019 Westminster Hall

[Maggie Throup (Erewash) (Con)]

I beg to move,

That this House has considered the contribution of furniture manufacturers to the UK economy.

It is a pleasure to serve under your chairmanship, Mr McCabe, and it is also really good to see so many people with an interest in the furniture industry. I move the motion as the chair of the all-party parliamentary furniture industry group, which exists to raise awareness of the UK’s thriving furniture industry and to promote its importance to our economy.

I declare an interest as the Member of Parliament who proudly represents the town of Long Eaton, which is globally recognised as the UK centre of quality upholstery manufacturing. The furniture industry continues to flourish in Erewash, with more than 50 companies, such as Steed Upholstery, Artistic Upholstery, David Gundry and Gascoigne Designs, involved in furniture manufacturing and its supply chain in Long Eaton alone. It employs about 2,700 people with a turnover of more than £250 million each year. On a national basis, Government-verified figures show that the wider furniture and furnishings sector, including specialised retail but excluding general retail, supports some 327,000 jobs across 50,000 registered companies.

[Melanie Onn (Great Grimsby) (Lab)]

I congratulate the hon. Lady on securing this very important debate. Does she agree that in addition to the larger companies there are some smaller companies, such as Rowlands Upholstery in Great Grimsby, that do a fantastic job—not only employing people, but providing high-quality furniture? They are essential to people’s lives, and to our local economies.

[Maggie Throup]

I completely agree, because the majority of upholsterers in my constituency are exactly the same type of company—small and medium-sized enterprises that employ people locally, generation after generation.

Consumer expenditure on furniture and furnishings was almost £17.5 billion in 2017 and exceeded all other spend in the household goods sector. That represents a 21% increase from 2014. Year-on-year growth in the sector between 2014 and 2016 rose from 4.8% to 6.9%, with growth between 2016 and 2017 higher still, at 7.9%. The latest data shows that furniture and furnishing sales continued to rise into early 2018, with first and second quarter consumer expenditure 8.5% and 8.3% higher, respectively, than for the equivalent periods in 2017, despite many other retail sectors experiencing an increasingly challenging market.

In addition, trade fairs such as the biannual Long Point exhibition, held in Long Eaton, continue to attract global attention from international buyers looking to stock some of the finest sofas and easy chairs the UK has to offer. That has led to a steady increase in furniture exports since 2012, peaking at £1.19 billion in 2017 and representing a 12.4% increase on 2016 figures.

The good news does not stop there. Provisional estimates for 2018 indicate that exports for last year could be higher still, at £1.27 billion, which would represent a year-on-year increase of 7%. Taken together, these figures clearly demonstrate that the appreciation of and the demand for hand-made British craftsmanship remains high, both nationally and internationally.

It is hard to speak in this place without mentioning Brexit, but I promise the House that I will keep my remarks brief and confined to two main areas—trade and export, and standards and regulations. Like all sectors, the UK furniture industry now just wants clarity and a degree of certainty over Brexit at the earliest opportunity, in order to preserve confidence in the UK as a stable business environment in which to invest, and to assist with business planning.

With specific regard to trade and export, the industry wants to ensure that the Government give serious consideration to the cost of importing materials, both finished and components, during the renegotiation of our relationship with the EU. For example, if the import of fine Italian fabric were to be interrupted, manufacturers in my constituency have voiced concerns that production may be significantly disrupted or even halted while they sourced material from elsewhere. Consequently, that would have a huge knock-on effect on the local workforce and would risk the financial viability of many of these small, often family-run businesses.

Britain is soon to regain its ability to negotiate independent free trade agreements, which I believe presents a fantastic opportunity for all UK businesses to access new markets outside of the UK and Europe—something that the furniture industry already has significant experience in doing. Given that there are 30% more furniture manufacturers that do not currently export but are planning to do so within the next year, I welcome the Government’s new five-year UK export support strategy, which provides manufacturers with further details of the package of support available to help exporters post Brexit. We also have a responsibility, as Members of Parliament with furniture manufacturers in our constituencies and as members of the APPG, to continue to bang the drum for the industry and ensure that they do not lose out to larger sectors during future trade negotiations.

I turn to standards and regulation. The UK already maintains some of the highest standards for furniture safety in the world, but here again clarity is needed on both product safety and the mutual recognition regime that the industry will have to work within post Brexit.