Rising costs for the furniture sector here: sofa, so good

[SINGAPORE] Faced with rising rents and a shortage of manpower, furniture firms here are taking measures to overcome their problems.

"The two main killers are rental and manpower," said Xu Xue Ting, group retail manager of furniture manufacturer and retailer Star Furniture.

Rental cost is a major bugbear for the firm, which operates out of large retail spaces, some spanning 20,000 to 30,000 square feet. This is especially so in the case of its stores located in shopping malls, where rents can rise up to 10 per cent each time leases come up for renewal.