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The potential for substitution among capital, labor, and raw materials Is relatively low In the U.S. upholstered household furniture Industry. In general, therefore, the industry prospers In areas where all the Input factor costs are relatively low, and efforts to attract upholstered furniture producers to specific areas must consider all the Inputs to production. Based on these results, and considering nationwide trends In demand, foreign competition, and regional comparative advantage, the upholstered furniture industry should continue as an Important source of demand for forest products In the southern United States.


Bullard, S.H., and B.J. Seldon. 1993. Substitution among capital, labor, and raw materials in upholstered furniture manufacturing. Forest Products Journal 43(3):64-66.



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