Feb. 4--Residential furniture orders declined 23 percent in November to a value of $1.55 billion, according to a survey released yesterday by Smith Leonard PPLC, a financial-services company based in High Point.

The orders decline was the sixth consecutive monthly decrease to be in double digits.

About 81 percent of the U.S. manufacturers and marketers surveyed reported a decline in sales from already weak sales a year ago. About 67 percent reported a decrease of 20 percent or more in orders.

"We have talked to bankers, listened to economists, watched the news and talked to many in the furniture industry," said Ken Smith, the director of furniture services for Smith Leonard.

"For the most part, what we hear is that no one has a good idea, supported by anything, as to when we will hit bottom and begin recovery," Smith said.

Home-furnishings retailers are not faring well, either. The Commerce Department reported that furniture sales were down 13 percent in December, to $8.4 billion.

Smith said that there is increasing concern that the credit crunch may squeeze more furniture manufacturers, marketers and retailers out of business.

The furniture industry in the Triad and Northwest North Carolina has lost nearly 10,500 production jobs since January 2000. The area accounted for 46 percent of the 3,062 furniture-job cuts in the state for 2008 and so far in 2009.

"It appears that, at least with many of the larger lenders, the days of working with companies in tough times are gone," Smith said. "We believe Congress needs to do something with all its stimulus package to force lenders to stop hoarding cash."

Albert Prillaman, the chairman and chief executive of Stanley Furniture Co. Inc., said that the industry won't have an increase in orders until housing activity, consumer confidence and disposable income bounce back.

"These indicators are at historically low levels and do not appear poised for near-term improvement," Prillaman said. "We continue to experience a deteriorating-demand environment and frankly, anticipate further sales declines before seeing any improvement."

Smith said that the credit crunch is taking a major toll on plants in Asia as well.

"For many who have said we have too many players in the game, it appears that you will have your wishes granted," Smith said. "Most of the people we talk with have cut to the bone and are operating as efficiently as they can. Some companies are taking market share and doing OK. But all need orders."

Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.

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