May 24, 2002—The Business and Institutional Furniture Manufacturers Association (BIFMA) recently released the latest office furniture industry forecast prepared by the economic consulting organization, DRI-WEFA. The latest forecast continues to call for a 13% decline in shipments during 2002, but significant improvement is expected next year with a nearly 9% increase in shipments during 2003.
A cautious corporate investment outlook and weak office construction will continue to put a drag on order and shipment volumes in the short-term. Despite considerable volatility during the balance of 2002, corporate profits are expected to trend upward through the year and will support some growth in furniture demand later in 2002. Service-sector employment, which was very weak at the end of 2001, will stabilize over the course of 2002. Employment growth should accelerate toward the end of the year, contributing to a renewal in the demand for office furniture. New office construction is expected to decline for several more quarters before any signs of recovery materialize. This downturn in new construction will provide the primary drag on furniture demand through mid-2003.
For more information, contact BIFMA.
