III. Industry Analysis
[Company Name] competes against small, individually owned woodworking shops and major regional or national companies. The wooden furniture market size exceeded $370 billion last year and is projected to expand at a steady CAGR of over 5.6% over the next five years. The wood product manufacturing industry is the 147th largest manufacturing industry in the U.S. The size of both of these markets proves very favorable to the woodworking industry.
The primary positive factors affecting this industry are growing renovation and remodeling investments along with outdoor furniture trends and the trade-weighted index. Total advertising expenditure is also expected to increase, representing a potential opportunity for the industry. In recent years, favorable government policies, such as the implementation of free trade agreements, are positively influencing the market demand. Rising foreign direct investments coupled with improving economic conditions are expected to further boost the market.