According to the investigation organized by Shenzhen Furniture Industry Association, manufacturing cost of furniture in Shenzhen increased by 30%. However, Chinese furniture export price rose by 8%. This meant that, Shenzhen furniture industry suffered from the problem of high price of raw materials. And this situation will continue in next few years because of high prices of crude oil, steels, and mine in the international market.

In this year, the implementation of New Labor Law highly led the rise of labor cost; the average labor cost has jumped by 25% and will double twice in next five years.

The shortage of raw material and the rise of labor cost severely restricted the development of Shenzhen Furniture industry. Since in July 2008, Shenzhen Furniture exports have dropped by 40%.