Growth in nonresidential construction, combined with the expanding workforce, has boosted demand and supported moderate price growth in the past three years
Los Angeles, California (PRWEB) April 08, 2015
Office furniture systems have a buyer power score of 3.0 out of 5, reflecting moderately favorable negotiating conditions for buyers. According to IBISWorld market research analyst, Michelle Hovanetz, "Buyer power has largely been supported by suppressed price growth, which has resulted from the pressure that rising imports have put on domestic suppliers to provide competitive pricing." This trend, coupled with moderate market share concentration, has empowered buyers to pit suppliers against one another to obtain the most favorable pricing for office furniture systems. Major vendors in the market include Steelcase, Knoll, Herman Miller and HNI Corporation.
During the past three years, office furniture system prices have been rising meagerly. "While rising prices are disadvantageous for buyers, increased import penetration has tempered price growth and provided buyers with access to lower-priced alternatives," says Hovanetz. Additionally, low product specialization has benefited buyers because it indicates that they are not restricted to a small pool of suppliers for their office furniture needs. That being said, some suppliers may offer facility design services at an additional cost. Due to the volume of office furniture systems needed to outfit a new office, however, buyers can often negotiate to have the design cost waived or, at least, negotiate a lower per-system price.
Moderate price volatility has offset some of these market advantages during the three years to 2014. Although the pricing trend has been conservative overall, prices have still risen during the period, and they have fluctuated considerably year-on-year. For instance, in 2014, office furniture system prices have risen considerably more than they did in the previous year. Moderate price volatility hurts buyer power by making it more difficult for buyers to accurately budget for purchases. While price volatility is expected to ease during the three years to 2017, prices are forecast to rise at a marginally faster rate due to continued strong demand, further reducing buyer power. As a result, buyers should seek to secure their office furniture systems now rather than later to hedge against higher prices in the future. For more information, visit IBISWorld’s Office Furniture Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of office furniture systems for a business or commercial office setting. Office furniture systems are bundles of worksurfaces, shelves, panels and other items sold in a package for furnishing offices. Cubicles are the most well-known office furniture systems. Such systems include desks or workstations, cubicle walls and desk extensions. This report does not cover office seating, storage units or standalone filing cabinets, nor does it cover home office desk systems.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.