Office Furniture Dealers Market - UK 2010-2014AMA ResearchNovember 9, 2010 78 Pages - SKU: AJLA6015984 |
Additional Information
The UK office furniture market has been in general decline since 2001, when the industry suffered a sharp deterioration in performance, as a result of the sharp downturn in the IT and Internet sectors in particular. These factors have led to a sustained difficult trading period for office furniture suppliers and distributors, although there was a marginal upturn in 2006 and 2007, before deteriorating economic circumstances led to further declines, particularly an 11% fall in 2009.The market for office furniture is estimated to reach £635m in 2010, compared to £650m in 2009 and £730m in 2008.
There is still a surplus of supply capacity over demand, despite some well known companies having ceased to trade and this has resulted in suppliers having to cut prices further to maintain share. However, the home office sector of the market has shown some growth over this period underpinning the overall market, although mainstream office furniture suppliers and distributors have not always benefited from this trend. 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 Argos and through office superstores.
Future prospects for the office furniture sector in the medium term are very uncertain. The economy is now out of recession, but the latest forecasts indicate that it will be 2011 before business confidence returns. The commercial new build sector had been deteriorating throughout 2008 and 2009 and there are currently high levels of availability in office space, particularly in the City, although there are tentative signs that a few new office schemes may be about to be resurrected.
Whilst technological developments, including better cable management and the increased use of wireless technologies around the office, are likely to stimulate demand in some sectors in the longer term, they are unlikely to affect demand significantly in the shorter term. Imports and exports are significant factors in the market with imports reaching £216.9m in 2009, compared with exports of £115.2m. Imports rose strongly from £209.7m in 2002 to £303.6m in 2006, remained fairly static in the 2006-2008 period, before falling markedly in 2009. Imports of the three main product groups - desking and tables, storage and seating - are now broadly similar in value terms. China, Germany, Italy and the United States are the major sources for imports of office furniture.
The size of the dealers’ market is expected to show modest growth in the next few years, increasing from an estimated £305m in 2010 to £328m in 2014. Although the share of the market held by dealers is forecast to decline to 46% by the end of the period, growth in the overall market should more than offset that decline.
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