Fabric prices climbing

'Furniture Today' reports that the price of Cotton is two to three times what it was a year ago and at historic highs. That translates to 30% to 50% at manufacturer's cost for fabric. Is it a spike or long-term? The opinions vary in the article, but based on what I know of the industry I would expect to see price increases in fabric-covered upholstery after the 1st of the year unless pressure on the cost of cotton subsides. Most likely what you will see at the consumer level is fabric grades changing. For example a fabric now a Price Grade C will become a D., etc.

They also note that the costs of particleboard is up considerably, which will affect Asian imports more than any other category.

Already seems to be happening. Got an email today from one of our lines. "Grade changes due to mill price increases that we (they) were unable to absorb."

Yes, I expect that we're going to see that not only on material, but because of glue-based (plywood, particle board) materials as well. Its a good time for someone on the fence to save a few bucks and order their upholstery (fabric) now rather than after the first of the year. Seems most price increases (if we get them) usually arrive Jan 1st through Jan 15th.

I have received price increases averaging 10%-12% from 4 of my 5 primary fabric suppliers in the past week. From what I read the Chinese have dramatically raised their prices on cotton and the American fabric buyers are holding off on purchases trying to force the prices down. That sounds like a scenario for cotton fabric shortages in the not-so-distant future.

What I don't understand, however, is why the fabric companies are also raising the prices for their non-cotton fabrics by the same percentages.

Jeff Frank
Simplicity Sofas

Oil prices. All the man-made fabrics (rayon, polyester, nylon) are petroleum-based. Oil prices are moving up and by all accounts staying up for awhile. Also shipping costs never seem to do anything but increase. Ugh.

I really dislike it when all these prices increases come at once, it really plays havoc with updating everything and staying current.

More fabric price increases coming in, some as high as 23%. One of my fabric suppliers was complaining that his raw material prices have increased by 50% - 100%. There is probably some exaggeration in there but this seems to be a pretty significant price movement. Didn't I read in the papers just last week that there is no reason to worry about inflation right now?

Jeff Frank
Simplicity Sofas

Cotton got a 2-fold hit. Farmers switched from cotton to soybeans during the recession due to the fall off in apparel demand during the recession, and China (largest producer of cotton) took a weather hit this past year resulting in a poor yield and poor quality crop. So those price increases aren't going away any time soon, Jeff. Might be a good time to buy a some extra bolts of your better selling fabrics on material that hasn't has a price increase this month.

Clothing prices are going to rise as well. I haven't seen any price increases at the dealer level yet, but I know they're coming.