Dimensions

Office/contract segment to grow in 2014, 2015

Largest office and contract producers and FDM 300 continues sales gains.

By Karl D. Forth

Production of office and contract furniture is forecast to grow in 2014, followed by a larger gain in 2015, according to the Business and Institutional Furniture Manufacturers Assn.

Looking at 2013, BIFMA estimated that the value of the U.S. office furniture market and overall consumption was $11.540 billion, an increase of 2.2 percent. U.S. production reached $9.355 billion in 2013, an increase of 0.9 percent. In addition, imports totaled $2.902 billion, and exports were $717 million.1407CMFfdm300off2

The forecast for the U.S. office furniture market for 2014 is positive. The HIS Global Insight Industry model forecasts consumption to increase 4.2 percent to $12 billion, and to increase again by 12.1 percent to $13.5 billion in 2015. U.S. production, meanwhile, is also forecast to increase 2.8 percent in 2014 to $9.6 billion, and by 10.4 percent to $10.6 billion in 2014.

The BIFMA forecast of the U.S. office furniture market, the HIS Global Insight industry forecast model, is adjusted to focus on the value of the U.S. office furniture market defined as consumption rather than historical shipments, or production.

BIFMA also reported that seating was the largest product category (29 percent) in terms of share of annual U.S. production, followed by systems (27 percent), files (11 percent), casegoods (11 percent), tables (11 percent) and storage (5 percent).

The overall FDM 300 group of companies recorded a second year in a row of sales gains in 2013. We calculated annual sales for this group of 300 companies to be $39.630 billion in 2013, an increase of 5.3 percent over sales reported and estimated for the year 2012. The sales increases in 2012 and 2013 come after five consecutive years of declines.

Steelcase Inc.  reported a solid increase in sales for its 2013 fiscal year, more than $100 million over the previous year. Total sales were $2.868 billion. In May of this year, Steelcase rebranded its healthcare division from Nurture by Steelcase to Steelcase Health. The company’s education business is being rebranded from Steelcase Education Solutions to Steelcase Education. The company announced that its High Point, North Carolina, manufacturing location will close within the next two years.

For Herman Miller, sales for 2013 were $1.774.9 billion. In March, the company announced that third quarter sales had increased 7.7 percent over the same quarter a year earlier.

At HNI Corp., the final sales figure for 2013 was $1.685 million for the office furniture segment. Artco-Bell, Midwest Folding and LSI Corp. divisions were added in 2012.

Haworth reported annual sales of $1.41 billion for its most recent fiscal year, an increase of 7 percent. Earlier, Haworth sold Group Lacasse, a St. Pie, Quebec, office furniture manufacturer, to an independent investment group.

 

U.S. office furniture market

U.S. production U.S. consumption

2005   $10.070   $11.912

2006   $10.820   $12.859

2007   $11.420   $13.419

2008   $11.160   $12.991

2009   $7.845   $9.230

2010   $8.300   $9.877

2011   $9.375   $11.131

2012   $9.27     $11.28

2013   $9.355            $11.54

(numbers in billions)

Source: BIFMA

 

Ten largest office/contract producers

(ranked by annual sales)

1. Steelcase Inc. $2.868 billion

2. Herman Miller Inc. $1.775 billion

3. HNI Corp. $1.69 billion

4. Haworth. $1.41 billion

5. Knoll Inc., $862 million

6. KI $650 million

7. Global Group $650 million

8. Kimball $500

9. Teknion $500 million

10. OFS Brands Inc. $240 million

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