Welcome to JSA Consultancy Services

A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

BIFMA outlook shows industry lagging recovery

Thursday 3 September 2009

A new quarterly outlook reflects the US office furniture industry\'s typical lag of an economic recovery, even in what has been a far-from-typical downturn.
The Business and Institutional Furniture Manufacturer\'s Association outlook now projects shipments to decline 31 percent this year to $7.7 billion, followed by a 1 percent decline in 2010 to $7.6 billion.
The BIFMA outlook, prepared by Global Insight, presumes GDP growth returning for the U.S. economy in the third quarter. But the office furniture industry likely won\'t see volume growth return until mid-2010.
\"Unfortunately, furniture takes a while to catch up\" to an economic recovery, BIFMA Executive Director Tom Reardon said.
\"Furniture is not the first thing everybody runs out to buy when things seem like they may be moving up,\" Reardon said.
The new outlook represents a minor downgrade from the previous BIFMA forecast issued three months earlier.
If there\'s any good news in the outlook it\'s that the industry appears to have bottomed out, Reardon said. Third-quarter shipments should match the second quarter, as should the fourth.
\"It appears we may have found a bottom here and, hopefully, it will build and we can spring up from here,\" Reardon said.
Industrywide shipments in North America for the second quarter totaled $1.92 billion, down 32 percent from the $2.84 billion in the same period a year earlier, according to BIFMA. That came after a 27 percent shipment decline in the first quarter, to $1.91 billion from $2.65 billion.
In his latest U.S. economic briefing issued last week, Comerica Inc. chief economist Dana Johnson wrote that he continues to believe the economic rebound \"will be sluggish by historical standards.\" Real GDP will average 4 percent from mid-2009 to mid-2010, Johnson predicts -- or what he calls an \"unusually tepid upturn,\" though his outlook is double the consensus view.
Johnson forecasts that real GDP will reach 3.0 percent in the third quarter, followed by 2.5 percent in the fourth. Real GDP will grow to 4.5 percent in the first quarter, reach 5.5 percent in next year\'s second quarter, and then level off at 4.0 percent through the second half of 2010, Johnson predicts.
Unemployment nationally will peak at 9.9 percent in the fourth quarter, then steadily decline to 8.5 percent by the end of 2010, according to Johnson\'s outlook.
More on the office furniture industry\'s performance will come in a few weeks, when Steelcase Inc. and Herman Miller Inc. report sales and earnings for their latest quarters.

Subscribe to our News Page

Enter your email here and we will tell you when this page is updated.



moreLatest News

Wednesday 20 June 2018 Steelcase Reports First Quarter Fiscal 2019 Results

- Strong order growth of 6 percent in the Americas and 7 percent in EMEA
- EMEA posts sign

Friday 15 June 2018 Estel in Asia con Aurora Group

L’italiana Estel ha firmato nei giorni scorsi un accordo pluriennale con il gruppo asiatico

Wednesday 13 June 2018 Walmart could be selling furniture knockoffs

Office furniture making giant Herman Miller believes Walmart could be selling cheaper knockoff ve

Monday 11 June 2018 Chandler to Lead Workplace Design Group Fourfront

Gary Chandler has been named chief executive of the FourFront Group, a business operating through

Contact Us

JSA Consultancy Services
4-5 Gray’s Inn Square, Gray’s Inn,
London, WC1R 5AH, England

+44 (0) 20 7688 1928