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Size of the US market for office furniture
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The office furniture industry performed very well throughout the
1990s as the domestic economy has shifted from being manufacturing
driven to one where services play an increasingly important role.
However, the new millennium has been less fortunate for office
furniture manufacturers. Between 2000 and 2003, office furniture
shipments in the United States fell by more than one-third. This
was the largest decrease in shipments for over 20 years. The market
has since recovered a bit reaching a value of $11,420 million in
2007.
Office employment growth climbed by 1.2% in 2007.
This year may see an even smaller increase of only 1.0%. However,
we anticipate a modest acceleration to 1.7% next year and 1.9% in
2010. |
Office furniture purchases advanced by 5.5% in 2007. Sales
are expected to accelerate to 6.8% this year. This is surprising in light
of the dire economic circumstances in the USA and can only be explained
by pre-committed orders to fill newly constructed office space that will
reach completion this year. The “moment of truth” will come in 2009 and
2010. Growth for office furniture shipments for the next two years will
be in the 2.2 to 2.7% range. If our predictions are correct, the market
value will reach $ 12.8 billion in 2010. This is still 3.6% lower than
the previous peak of $13.3 billion reached in 2000.
Wood office furniture accounted for $3,106 million or
27.2% in 2007. During the past ten years it fluctuated between 21.9% and
27.2%. Given the more expensive nature of wooden furniture it generally
gains market share when corporate earnings are strong rather than during
periods of fiscal constraint.
“Systems” represents the largest market segment with a
share of almost 1/3. Surprisingly, over the period 1997 to 2007 this
segment declined by 14.6%. Filing cabinets also fell as technology
continues to reduce the demand for paper storage The fastest growing
segment was storage furniture, which increased 37.3% over the last 10
years. Seating, desks and tables, also outpaced the overall office
furniture industry.
California is by far the largest furniture market in the
USA. As of 2007, this state accounted for $1,359 million, followed by
Texas, New York, and Florida. These four states account for $3,612
million -- or almost one-third -- of the US market. |
