Labor Shortages and Product Delays Persist But Are Improving

Following up on our post describing ongoing Marketplace Challenges for Interior Designers, this week’s post will get into some of the specifics behind those challenges: including skilled labor shortages and product delays.

We are grateful to the folks at FurnitureToday.com for clarifying much of the statistical analysis derived from the Q2 2023 Houzz U.S. Renovation Barometer.

Skilled Labor More Available in 2023

First, the good news: it appears that, overall, carpenters, electricians, cabinetmakers, and other critical, skilled subcontractors are more readily available than a year ago.

“Carpenters are in the shortest supply, followed by electricians and cabinet makers (as cited by 42%, 28%, and 26% of industry pros, respectively). However, at least 30% fewer renovation and design pros are reporting shortages of these subcontractors as compared with [last year’s] survey.”

Still, “Labor shortages continue to be a headwind for the home renovation and design industry. The most significant business impacts include increased project costs (81%), subcontractor compensation (72%), and project length (71%).”

Product Shortages and Delays

While we are certainly seeing improvement in the supply-chain backlog, “construction and design professionals [continue to face] challenges in securing the items they need to complete their projects.”

“Nearly half of businesses not only report moderate to severe shortages of products and materials (49%), but also shipping delays once purchased (63%). Material challenges are greatest with copper or brass (47%), followed by lumber or plywood (46%), drywall (40%), and aluminum (40%).”

Unfortunately for interior designers and furnishing dealers, some of our most important product categories continue to be plagued by shortages and shipping delays.

“Delays in the arrival of cabinetry (96%), indoor furniture (95%), windows (94%), outdoor and indoor doors (94% and 93%, respectively), and lighting fixtures (92%) are top of mind for design professionals as they plan their projects.”

Things Are Improving

Yet, there is a light at the end of the proverbial tunnel.

“Nearly eight out of 10 of residential construction and design businesses (79%) report moderate to severe shortages in the past quarter, down from 91% of businesses in Q2 2022.”

Although some believe this good news to be a result of bad news; that is, a slight drop in new projects reported at the end of last year, we take a more positive outlook. If the traffic we saw at Spring Market and the myriad of new products from furnishings manufacturers are any indications, things are looking up all over!

Are you still struggling to find solutions to labor shortages and product delays in your design business? While he may not have all the answers (and does not happen to be captaining any container ships at present), Ted does have more than a quarter-century of experience in the design and luxury furnishings businesses. He is available for business consulting to the trade.

To learn more, simply… Contact TD Fall today.

Marketplace Challenges for Interior Designers – Have Yours Changed?

From finding installers and other tradespeople to ongoing lead time issues and rising costs, the various marketplace challenges for interior designers are being impacted by geography, local competition, the general economy, and consumer skepticism. (Run-on sentence, much?)

According to a piece at DesignersToday.com, the biggest issue facing interior designers right now also include managing expectations, finding talent, the “speed” of business in the luxury furnishings industry, and dealing with unrealistic client budgets.

We guess it goes without saying that, when one asks designers for the “biggest issue” they are facing at the moment (that is issue, singular), they offer not one but many (14, 15, or 16 depending on how you count them)! (Hey, that’s almost like the way we’ve written not one, not two, but three run-on sentences in a row. How designer-like are we?!?)

For example:

“Overall, I think it’s managing expectations – internal and external.  If I could highlight some of the top ones we see on our end, I’d say: Talent (it’s still a challenge to find the right talent when hiring); Industry speed of business (I find the industry still moves quite glacially, as a whole); and budgets, a perennial favorite that never really goes away. Clients’ expectations of how much things should cost versus how much they really do cost. And in general, the rising costs of it all.” ~ Alex Alonso, Mr. Alex Tate Design, Miami, FL

Furnishing Supply Chain Issues Persist

As for consumer skepticism, Claudia Leah of Claudia Leah Design in Naples, FL shares her thoughts:

“We are in this weird spot where on the one hand, we are still experiencing supply chain issues for certain quality items, components, and trades, literally designing around availability. Yet we are also facing the threat of discounted overstocks on the retail side where mass-produced container items are being shoved into our clients’ inboxes, making them question if we as designers are telling them the truth about those long lead times.” (emphases added)

Brittany Farinas at House of One in Miami agrees:

“One of the biggest issues facing designers today is the lead time on materials. We are still working through this [despite being] post-pandemic.”

Finally, the exponential growth of online shopping for anything and everything for the home – including luxury furnishings, designer wallcoverings, and hand-woven rugs (among so many other high-end items) has led to pricing pressure on designers and furnishing dealers alike.

If you find yourself losing sleep because of the regularly shifting marketplace challenges for interior designers, Ted is available for business coaching and consulting to the trade. Simply… Get in touch with TD Fall today.