Though buyers may be paying more for their office furniture, prices are not nearly as high as they could be, says Tom Reardon, the executive director at the Business and Institutional Furniture Manufacturers Association (BIFMA) in Grand Rapids, Mich. “When people ask me what are the major issues facing the industry today, certainly rising commodity, material and energy costs are a major factor,” he says.

Office furniture makers are trying to cut as much cost as possible to avoid price increases to buyers. One strategy is adding efficiencies and employing Lean manufacturing practices, which improve efficiency and slow upward pressure on office furniture costs.

According to data from BIFMA, 45% of office furniture coming into the U.S. in 2006 originates in Canada—historically the number one exporter of office furniture to the U.S. But data from the U.S. Office of Consumer Goods shows that China is on the path to overtake Canada for the spot of top exporter to the U.S.

“China has very quickly burst on the scene as a major exporter to our marketplace,” says Reardon. “[Chinese office furniture imports] were 1-2% eight years ago, and now they’re in the 30% range, while Canada probably accounts for 50% of the product imported here.”

Dave Grove, president of furniture at Corporate Express in Broomfield, Colo., says many American manufacturers are sourcing components from China, making their final products more cost-competitive, but he doesn’t believe buyers will see Chinese office furniture brands in the mainstream any time soon.

“A large part of the industry requires multiple options in finish, fabrics or function which are difficult to support with an extended supply chain,” he says. “Purchasers can maximize their spend on furniture products by evaluating standard stocked products and making informed choices to compromise on finish or other options.”

Both Grove and Reardon agree that a significant trend in office furniture is the shrinking size of office workspace, such as cubicles or desk systems. The current standard space is six-by-six foot, while a decade ago it was eight-by-eight.

Another trend is document security, says Jay Baitler, executive vice president at Staples Contract Division in Framingham, Mass. It’s no passing fad: in light of identity theft fears, corporations expect security across the board, and Baitler believes shredders will be standard office features in the near future.

© 2006, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.

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