CATEGORY

Office Furniture

Includes market overview of office furnitures market, key industry trends, rebates and refund structures and key global & regional suppliers

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CATEGORY ALERTS

Chinese suppliers finding a way to shift their production facilities to Mexico

July 26, 2022
alert level: Medium

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Office Furniture Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Office Furniture category is 6.20%

Payment Terms

(in days)

The industry average payment terms in Office Furniture category for the current quarter is 75.0 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Office Furniture Suppliers


    34,248
    Total Suppliers
    2,496
    Diverse Suppliers
    56
    Normalized Supplier Rating
    Office Furniture Supplier

    Find the right-fit office furniture supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    American Express Company
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    6
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    42

    100
    Limited (1)
    ESG Perfomance (/100)
    Environment
    85
    Social
    31
    Governance
    48
    6 Domains Performance (/100)
    Business behaviour
    39
    Human rights
    47
    Community Environment
    26
    Corporate governance
    54
    Human resources
    21
    Security Scorecard
    90

    Threat indicators
    B
    83
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    97
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    B
    86
    Application Security
    Detecting common website application vulnerbilities
    B
    86
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    98
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    amexglobalbusinesstravel.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    12
    Human Rights Issues
    0
    Production Supply Chain Issues
    2
    Environmental Non Compliance Flags
    14
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    26
    Fraud Issues
    3
    Labor Health Safety Flags
    3
    Regulatory Issues
    22
    Workforce Disputes
    0
    Sanctions
    1
    esg energy transition
    86
    Discrimination Workforce Rights Issues
    3
    esg controversies critical severity
    No

    Office Furniture market report transcript


    Global Furniture Industry Outlook

    • In 2019, the global office furniture market was valued at $67 billion. By 2025, the market is forecasted to reach $81.9 billion at a CAGR of 3.41 percent
    • North America, Western Europe, and some parts of APAC, such as Australia, Japan, Hong Kong, Singapore, have a high market maturity.
    • Companies have halted their expansion plans which has reduced the demand for Office Furniture Market globally.

     Global Office Furniture Market Maturity

    • The global office furniture industry is a modestly fragmented industry led by a selective group of global suppliers, who contribute roughly 7–8 percent of the total market size for office furniture globally
    • Asia and Europe contribute to around 50–60 percent of the total market size for global office furniture

    Global Office Furnitures Industry Trends 

    • Office furniture contributes up to 15 percent of the global furniture sales, wherein seating, panels, and storage contribute the majority of the overall office furniture sales.
    • Office furniture is a labor intensive industry and this industry is adopting increased automation and mechanization to increase efficiency and product standardization
    • The top players of office furniture make around 9-11 percent of the APAC market size and this market is highly unorganized in pockets across APAC
    • There is a high level of mergers occurring between global players of office furniture and the local level manufacturers and dealers, who act as the distribution channels for these global firms
    • There is a significant increase in demand for reuse/recycling of furniture and more focus on innovation to reduce environmental impact

    Global Office Furnitures: Drivers and Constraints 

    • Manufacturing of office furniture is being outsourced to emerging markets like China and Indonesia owing to the rising costs of manufacturing
    • There is increased competition from regional/local players for office furniture and this has driven larger suppliers to provide value-added services like space planning, consulting and furniture solutions by providing architect and interior design services

    Drivers

    Rapid Urbanization

    • Increase in construction activities and rise of office spaces in major consumer markets like the US, Brazil, and India. The rapid expansion of Fortune 500 firms in APAC has also given rise to the creation of new office space

    Recycled Products: 

    • In the developed markets, such as the US, there is an increased demand for customized and made-to-order furniture from recycled materials

    Demand for Office Aesthetics: 

    • Large buyers require innovative or elegant design aesthetics for their office facilities. This leads to procurement of new office furniture that suits the aesthetic dynamics of the facility
    • Refurbishment of office space or purchase of new office space drives large buyers to adapt fresh design themes, which may be aimed at increasing the productivity of the employee workforce

     Constraints

    Demand vs. Buyer Aspiration:

    • Although there might be an increase in demand for office furniture for large buyers, this demand may not be realized by the buyers, who may choose to cut costs owing to the pressure of cost optimization

    Rise in Manufacturing Cost: 

    • The office furniture industry is labor intensive and is currently facing a labor shortage as well as fluctuations in costs of raw material like wood and energy

    Dynamic User Preference

    • Buyers request variety and innovation in office furniture depending on the requirement and this makes it difficult for service providers to forecast and manufacture the product lines

    Global Office Furniture: Key Insights 

    Plant Closures and Workforce Reductions Due to Difficult Market Conditions

    Difficult market conditions compelled top global and regional manufacturers like Steelcase, Ahrend, Haworth, König & Neurath to shut their production plants and reduce workforce as per their restructuring and modernizing plans.

    Example: Steelcase shifted their manufacturing plant from Germany to Czech Republic, which is expected to generate cost savings of around $10 million a year from 2016.

    Consulting and Advisory Services Getting Offered as Value-Added Services

    Rising competition from local as well as new emerging players, downturn in economic scenarios, decrease in demand by the buyers for the furniture items have compelled manufacturers to offer value added services such as consulting, designing and furniture planning by hiring interior designers and architects

    Mergers and Acquisitions to Expand and Gain Synergies

    • The office furniture companies are getting aligned with other players to gain from synergies and strengthen their supply chain by getting add-on capability in terms of geographical presence, technology and innovation. With the availability of bank credit, strategic acquisitions have become easier and a notable trend in the industry

    Example:

    • Global OEM player Herman Miller acquired Maharam Fabric Corp., a family owned company, as part of its strategic planning

    Production Capability Expansion by Suppliers

    Office furniture, being a labor intensive industry, is increasingly moving towards mechanization and automation to bring efficiency, standardization, production of the required design and quantity of the product

    Sustainability Requirements Followed and Advertised by Suppliers

    • There is new standard, BS ISO 24496:2017 office furniture, assessing office seating in Europe. Unlike Europe Standards (EN), this standard is, however, not implemented in all European countries
    • Most of the global brands and regional players follow minimum LEED and ANSIBIFMA standards
    • With buyers having environmental concerns and sustainability targets, manufacturers are using environment friendly materials modified bio-composite sheet made from renewable natural resources is used in the production of office furniture instead of using petrochemicals and advertising the environmental benefits through a number of certification programs