An improved employment rate and growth in corporate profit will spur office furniture sales.
Los Angeles, CA (PRWEB) February 01, 2012
In the five years to 2012, the Online Office Furniture Sales industry's revenue is expected to grow at an annualized rate of 3.5% to $2.1 billion, largely due to the overall increasing prevalence of e-commerce. In 2012, about 44.8% of total manufacturing shipments are expected to go to e-commerce businesses, up from 35.2% in 2007. “As a result of this growth, the declines experienced by the industry during the recession were not as drastic as those experienced in other industries that retail office furniture,” says IBISWorld analyst Kevin Culbert, referencing the Office Supply Stores industry (IBISWorld report 45321) as an example.
Despite the consistent move online, Online Office Furniture Sales industry growth has not been steady throughout the past five years. During the recession, operators suffered as unemployment increased and businesses closed their doors. According to Culbert, troubles in the labor market were twofold: Consumers had fewer discretionary dollars to spend on home office furniture, while corporations struggled with diminished profit margins and were no longer expanding into additional or bigger offices.
In the five years to 2017, the industry will fare better, thanks to falling unemployment and rising investment in computers. And the rising prevalence of broadband and high-speed internet will continue to boost overall e-commerce demand. As the industry’s largest players, including OfficeMax, Office Depot and Staples, increase in size as a result of acquisitions, smaller or new companies will look to alternative models, such as built-to-order units. Although the top companies control a significant share of the industry, it’s considerably less concentrated among smaller players, which are more likely to sell specialized units or specific product types. Like most e-commerce industries, the industry has relatively low barriers to entry. For more information, visit IBISWorld’s Online Office Furniture Sales in the US industry page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry sells office furniture online. Products include desks, tables and seating. The industry does not include brick and mortar sales of office furniture.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.