November 16, 2001—According to the latest office furniture forecast released by BIFMA, U.S. office furniture industry shipments declined by 21% during the third quarter of 2001 as compared to the third quarter of 2000. Year-to-date shipments, through September 2001, were down 13% compared to the first three quarters of 2000.
An updated office furniture industry forecast, prepared by the economic consulting organization DRI-WEFA, predicts continued negative shipment growth until late in 2002. The DRI-WEFA forecast model now predicts shipments to decline by 17.8%, to $10.9 billion for calendar year 2001, and by 8.8%, to $9.95 billion in 2002. A modest recovery in industry shipments beginning in late-2002 should continue throughout 2003.
This latest furniture industry outlook is based on the assumption that the U.S. economy is in the midst of a recessionary period that will be mild and brief. The general economy is expected to turn around in early 2002 with corporate profitability improving through the calendar year. The anticipated boost in corporate profits will provide a positive impact on office furniture shipments.
The outlook for service-sector employment and new office construction (two other important industry drivers) are not as favorable and will contribute a limiting influence on furniture demand until late in 2002. For more information, contact BIFMA.
