Office Furniture, Fixtures & Equipment Manufacturing

Office Furniture, Fixtures & Equipment Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture office furniture, and office and store fixtures. Major US companies include Herman Miller, HNI Corporation, Knoll, Krueger International, and Steelcase.

COMPETITIVE LANDSCAPE

Demand for office and business furniture and fixtures is driven by corporate spending and commercial construction and vacancy rates. The profitability of individual companies is closely linked to volume, since many costs are fixed. Large companies enjoy economies of scale in manufacturing and distribution. Small companies can compete effectively if they produce specialty items or products with high-quality workmanship that can sell for a premium price. The US industry is fragmented: the 50 largest firms account for less than 50% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories include custom architectural woodwork, millwork, and wood fixtures; and office furniture including chairs, files, and panel systems, each contributing about 30% of industry revenue. Fixtures and storage racks, and wood office furniture each account for about 15% of revenue. Specific office and business furniture products include wood and nonwood desks, chairs, tables, filing cabinets and other storage systems, and office panel systems and partitions (cubicles). Custom architectural woodwork and millwork include custom-designed display fixtures, wall paneling, shelving, and sales and reception counters.