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UK MARKET FOR OFFICE FURNITURE |
| THE UK MARKET FOR OFFICE FURNITURE The AKTRIN Furniture Information Center, in collaboration with Business and Research Associates (UK), have published a new study on THE UKMARKET FOR OFFICE FURNITURE. The Report shows that although sales have increased slowly in the last 2 years in value terms growing imports and tough competition in the UK have meant that several companies have suffered adverse results. Little growth is expected in the current year although 2003 should be better. However, continuing competition is likely to lead to further casualties. Some of the main findings from this report are summarized below: The year 1998 marked the peak for the UK office furniture market since the 1989-90 level. Whilst office furniture sales declined in 1999 and then increased slowly during the 2000-2001 period, it is clear that throughout the whole period conditions have been difficult. The highly competitive conditions have led to many companies reporting significant falls in turnover, declining pre-tax profits and even losses. Nevertheless, whilst firms such as Deanes and OEP have been placed in administration and Bullough has recently announced massive losses, some firms such as Herman Miller, Bisley, Steelcase and so on have continued to prosper, despite the rising imports. Although continuing growth is expected in the UK economy, the forecasts for North America and Europe are mixed, with both the financial and high technology sectors likely to be depressed. The UK office furniture sector has always been cyclical, or even volatile, since the pattern occasionally does not follow the economic cycle. The general situation will remain very competitive in the office furniture industry in the next two years. More casualties may occur among manufacturers and distributors of office furniture, although consolidation within the industry in recent years means that most of the leading suppliers are now part of major groups with significant capital resources. Total sales of office furniture reached an estimated ?65m in 2001, a 4.2% increase on the level of ?30m reached in 2000. In real terms sales of office furniture have declined by almost 20% since 1990. Sales of office furniture are expected to reach ?70m in 2002 Sales of workstations, desks and tables reached ?93m in 2001, compared to ?72m in 2000. This product group currently accounts for 45% of the market. It is estimated that sales will reach ?00m in 2002. Sales of seating products reached ?30m in 2001, compared to ?26m in 2000. This product group currently accounts for 27% of the market, compared to 24% of the market in 1990. The largest sub-category is "adjustable seating". Sales of seating products are expected to reach ?32m in 2002. Sales of office storage equipment totaled ?74m in 2001, compared to ?66 in 2000. This product group currently accounts for 20% of the total market, compared to 25% in 1990. Sales of systems furniture reached an estimated ?68m in 2001, compared to ?60m in 2000. Sales of such products accounted for 31% of total office furniture sales in 2001. The market for home office furniture reached ?62m in 2001, compared to ?45m in 2000. Soma 35% of this is produced and distributed by office furniture specialists. Wooden products accounted for around 61% of total sales of office furniture in 2001, compared to 53% in 1990. Wood dominates the workstations, desks and tables sector, whilst metal has a significant share of the storage sector. The South East accounts for the bulk of office furniture sales with a 39% share. Within that region Greater London accounts for 21%. The North West accounts for 11% and the West Midlands for 10% of the market. Dealers/contractors are the major distributors of office furniture, accounting for 57% of the market, while direct sales to end users account for 30%. Within the dealer/contractor sector approximately 14% of sales are through tied or exclusive dealers. Imports of office furniture reached ?32.0m in 2001, compared to ?14.4m in 2000. The EEC accounts for around 71% of total imports. Imports currently account for 27% of the office furniture market, compared to 25% of the market in 1999. The leading manufacturers and suppliers of office furniture are Herman Miller Ltd, Bullough plc, Steelcase Strafor plc and Bisley Office Equipment Ltd. * * * AKTRIN is a report writing and international consulting firm fully dedicated to the furniture industry. The company has been in existence since 1985 and maintains offices in the United States and Canada. Representatives and affiliates are located throughout the world. More information about the report on THE UK MARKET FOR OFFICE FURNITURE can be found on our web-site http://furniture-info.com/f_books.htm?1864.htm |
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