The UK office and home office furniture market has been in general decline since 2001, however there was modest value growth in both 2011 and 2012, although in volume terms the market continued to decline in that period. The market for office and home office furniture is estimated to have reached £650m in 2012, compared to £645m in 2011 and £635m in 2010.
There is still an excess of production capacity in the industry, despite some well known companies having ceased to trade and this has resulted in suppliers and dealers having to cut prices further to maintain share. However, the home office sector of the market has shown some marginal growth in market share over this period. A large proportion of home office furniture is supplied in flat pack form by specialist manufacturers and sold through domestic furnishing outlets, such as IKEA and through office superstores and mail order outlets.
The office furniture market consists of desking, seating, storage and other miscellaneous products and the overall percentage shares held by each sector have remained reasonably stable in recent years. In 2012 the desking market was worth an estimated £273m at MSP and accounted for 42% of the market, while seating reached £208m or 32% of the market and sales of storage products totalled £117m or 18% of the market.
The office furniture market remains fiercely competitive, with a large number of suppliers still operating in the market, despite some high profile casualties in recent years, including Project, President, Ofquest, OEP and so on. The share of the market held by the leading six suppliers fell steadily from 42% in 1999 to 37% in 2003 and has remained around that level since then.
Today we came across this news story regarding the Office Furniture industry and its performance over the last few years – evidence that the office industry sees slight market increase in 2012. As mentioned in the first line, the office furniture industry has been in a steady decline for the last decade, but it does seem to have levelled off over the last couple of years, which is surprising given the amount of office furniture companies that have gone under in that time.
Some of our biggest customers that didn’t survive the recession where in the office industry, but we can still happily say we supply to most of the top 10 office furniture companies in the UK, which is testament to the industry holding on and moving with the times – both price wise and design wise.
The article was put together by a market research group who are offering their projections for 2013 through to 2017, it would be interesting to see what kind of future they have for the industry on a whole – we still plan to be a part of the office furniture industry for a long time in the future.
On the subject of Office Furniture, one of our most popular products we supply is our Folding Frames.