Continuing Shift In Office Layout Causes Office Furniture Business Growth

As an updated outlook endeavors solid increase through next year, the office furniture business’s long term are pegged to not economics but a continuance of office dynamics that is altering, executives say. Conventional industry drivers – corporate profits, office vacancy rates, non-residential white, capital spending and construction -collar job growth – are all favorable, said Steelcase Inc. But in the long run, growth hinges on non-economic forces that are changing the modern office, he said. “The shifting nature of work, we consider, is a bigger driving force behind demand in our industry as opposed to play that is cyclical. Together, they compound each other and we think it’s quite fascinating for the industry today and into the foreseeable future,” Sylvester said during an investor conference hosted by brokerage firm Raymond James. Click Here For “A lot of people get that the general industry drivers, from a macro viewpoint, have been quite great, they continue to be pretty good, and the viewpoint on the U.S. market is reasonably stable,” he said. We continue to believe what is more interesting are the forces which might be influencing work, although it ought to continue to ease increase in the market. It remains quite a big deal in our business.” And the business continues on solid ground. The quarterly prognosis from the Grand Rapids-based Business Institutional Furniture Manufacturers Association זולהjobs sector-wide shipping to grow 4.5 percent in 2015 to $10.2 billion, the same growth rate recorded for 2014. BIFMA’s prognosis, prepared quarterly by IHS Global Insight, projects following dispatch increase in 2016 of 6.4 percent to $10.9 billion. Amid discussing the economics changing the sector, Steelcase’s Sylvester used his presentation at the Raymond James conference to highlight that for the last few years, the Grand Rapids furniture company has been mostly focused on the drivers influencing the workplace today. People work more collaboratively and can work virtually from anywhere with mobile technology, so they do a workstation that is long-term is required by n’t. At the same time, corporations are trying to shrink and optimize their real estate. Click Here For Sylvester noted that many offices today still lack enough places for people to work collaboratively in teams and that they are mostly equipped with 1980s-style cubicles that are too large, inefficient and not overuse. Following the recession, corporate executives have increasingly taken note of the need to transform their offices adapt to the cultural changes which can be afoot and to encourage greater employee involvement, Sylvester said. It ’s in the way of what they’re striving to achieve,” he said of the old style office layouts. The changes happening in the modern office have required furniture makers to transform how they design and research products and approach the marketplace. Steelcase (NYSE: SCS) and Herman Miller Inc. (Nasdaq: MLHR) both made presentations at the convention as they prepare to release their latest quarterly sales and earnings report. Herman Miller releases closing quarterly sales and earnings figures March 19, followed by Steelcase on March 25. Zeeland-based Herman Miller last week estimated that sales for the third quarter of the 2015 fiscal year grew from 12.5 percent to 13.6 percent to $513 million to $518 million. The firm expects a lesser growth rate in new orders, 7.1 percent to 8.2 percent, for the third quarter of its 2015 fiscal year. In releasing estimated figures only prior to the Raymond James seminar, Herman Miller said that weakness in orders began for the North American contract company in the past quarter continued in the December-to-February period. The company continues to pursue a number of attempts to improve orders and sales, including focusing more on small-scale and medium -sized jobs. Walker conceded that Herman Miller needs to do better reaching out to that section of the marketplace. “To try this, we'd to do a good amount of retraining of our salesforce and our dealers to say, ‘Don’t merely wait until you’re down to the individual choosing the product and sell on features and advantages. Talk about how you’re going to help them create the future and get in early,’” Walker said in a presentation at the Raymond James investor conference. “It’s a pretty big effort on training and education.” “The sector has shifted to small to mid-sized undertakings. Our competitive result around those was never as good as it has to be,” Walker said, to be frank. “Our competitive lens was as blunt as it needed to be on those small to midsized projects.” Click Here For