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Furniture and furnishings stores in Mexico registered reasonable growth during 2015-2016, notable after the collapse seen in 2009. However, the recovery was rather weak, and as of 2015 the sector had not yet reached the same retail value as before the crisis in 2007. Despite frequent government announcements proclaiming the recovery of the Mexican economy from this crisis, the data show that total recovery has not yet been achieved. The consumer confidence index is clear proof of this: it indicates the probability of people making a purchase of durable goods, furniture being a typical example. The consumer confidence index reached an all-time low of 77 in October 2014, recovering during 2015 to reach a high of 92 by September of that year, but reached only 96 as of July 2016 and has not been able to return to its all-time high of 112.
A DIY landscaping and gardening culture is not widespread in Mexico, and most sales of outdoor furniture and garden items go through skilled trade people who perform home improvement and maintenance jobs. In Mexico, skilled tradespeople of all kinds (plumbers, bricklayers, electricians, painters) are paid low salaries people, and the vast majority of the Mexican population (not only high- and middle-income earners) prefer to pay for home improvement tasks to be carried out, rather than doing the tasks themselves.
The Mexican furniture industry is still driven by family traditions, even though it has changed considerably over the years. Factories are mainly small in size or even micro. Midsize companies are starting to open up to the global market, and large companies in the sector are rapidly implementing technological innovations. Maquiladora companies have been recovering since 2011. Mexican furniture production takes place mainly in eight states: Jalisco (16%), Mexico City (11%), Coahuila (9%), Nuevo Leon (8%), State of Mexico (7.5%), Chihuahua (7%), Baja (5%) and Puebla (4%). The remainder is imported, primarily from the U.S., Canada and China.
Domestic furniture consumption in Mexico is currently valued at $170 million (3.5 billion pesos), which is 44 percent lower than in 2013. Furniture consumption reached a historical record in 2014 at a total of $361 million (7.4 billion pesos), more than the double its level at the beginning of the decade. However, since then the national consumption of furniture has steadily declined.
Mexico’s economy has been boosted by the recovery of U.S. demand for Mexican manufactured products, but Mexico’s vulnerability to U.S. economic trends means that substantial changes in consumer spending and employment are likely to affect more expensive branded furniture.