“Where is my sofa?” (An update on design)
Since early March 2020 when COVID first came on our radar, our firm has been adapting, changing, and updating to keep our clients’ projects moving forward and kicking off new projects. Now, we want to share an update on the design industry in particular in response to questions we’ve been asked and conversations that we’ve had with both clients and vendor partners.
Why do I keep hearing about the supply chain?
It’s true; this phrase has been in the news since last year, so it’s probably very familiar. Simply put, the supply chain for almost every industry has been stressed by a number of factors dating back to last spring. My life before interior design involved managing the supply chain for a billion dollar brand as well as consulting for Fortune 500 consumer product companies on their supply chains. This equipped me, and our firm as a whole, to really understand the nuances of the current situation. What we’re seeing now is essentially a domino effect where multiple events have caused the stream to turn into a trickle.
Okay, but what does that have to do with my design? Where is my sofa?
In order to make your sofa, the manufacturer needs two things: materials and labor. When COVID hit, everything – including manufacturing and importing – came to a screeching halt. Safety restrictions, quarantines due to exposure or suspected exposure, and limited capacities all meant that factories weren’t running at full capacity. Some even pivoted to manufacture PPE for the hardest hit areas of the country. It was definitely a pause.
As numbers improved and restrictions eased, our vendors and their suppliers ramped up. However, the pause had created a higher demand on the consumer side. Many people realized that their homes weren’t working for them; they looked to the design and construction industries to help them resolve those pain points. This meant that manufacturers came back with a deficit and were facing an even greater demand than pre-pandemic. In particular, two product deficits were noteworthy: lumber and foam. The latter became even more complicated when the winter storm hit Texas early this year. Freezing temperatures, power outages, and storm damage knocked oil refineries offline, which meant no upholstery foam. In the meantime, the plants and refineries are working their way back up to full production. While the manufacturers are receiving some foam, they are also hampered by a labor shortage.
I’ve definitely heard about the labor shortage, but didn’t know it was having an effect on my furniture.
Just like the manufacturers need raw materials to create furniture, they need workers to produce it. When it comes to our vendors, most goods require a specific skill set (like the eight-way hand tie that we saw when we visited Vanguard Furniture in the spring of 2019). If there were eight craftspeople skilled in that eight-way tie and now there are only four, it’s going to extend lead times because the quality of handiwork cannot be compromised. This means that supply is still catching up to demand, and we’re seeing that across virtually every industry, from manufacturing to retail. Piggybacking off of that, companies are adjusting for increased payroll costs because of training and overtime.
Does that explain the increase in costs?
It’s a significant part of it. The other part is back to supply and demand; raw materials have tripled and even quadrupled in price. A 2×4 at Home Depot would usually cost $2.50; today that stud is $8.37. Gas prices are up, which means transportation is more expensive, especially because so much of the design industry is still transported via trucking. In addition, some trucking lines service entire sections of the country and they are running 3-4 weeks behind. The cost of securing a spot on shipping containers from overseas has also risen dramatically. Things are fluctuating so quickly, sometimes on a daily basis. We’re staying on top of new information as it comes in so that we can plan and update accordingly.
Did you save the good news for last?
Yes, we did. Now that we’ve broken down the three main factors behind the “where is my sofa?” question, we do have good news! While the situation is very fluid, we have strong relationships and communication with our vendors. This allows for transparency and frank conversations. In turn, we have the experience to advocate for our clients and work through these snags on your behalf. Because I understand the ins and outs of supply chains from my previous career, I can navigate bumps in the road and have worked over the years to ensure that we find solutions and adapt.
We’re also committed to being as honest and open with our clients about changes, because we’re working as a team. It’s true that the issue resolution process means additional hours and extended timelines, but we are committed to our process because it works. We want our clients to be happy in warm, welcoming homes that fit them perfectly. That is always our goal, and we will get you there!
Long story short, the answer to “Where is my sofa?” is “On its way; it’s just taking some extra time and it will be so worth it.”
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Glenna Stone Interior Design is an award-winning Philadelphia interior design firm serving Philadelphia, the Main Line, and surrounding cities. Utilizing her background and training in interior design, architecture, and engineering, Glenna specializes in creating interiors for residential and commercial design settings. We invite you to visit our website, view our portfolio, and catch up on the latest interior design concepts on our blog!