Office Furniture Industry Back on Track.

Continued consumer optimism and consolidation within the industry have office and contract furniture manufacturers excited about the year 2000.

THOUGH TOTAL U.S. office furniture shipments were down for the first time since George Bush was in the Oval Office, leading furniture manufacturers

Nearly three-quarters of respondents to W&WP's survey said that 1999 was either "very good" or "the best year ever" for their respective companies. The remaining 27 percent of respondents felt that last year rated "fair" for their companies in terms of overall business.

Those answers are encouraging considering that the Business and Institutional Furniture Manufacturers Assn. -- International's figures indicate industry shipments actually declined last year by almost 1 percent. (See chart on page 90.) The decrease to $12.24 billion was the industry's first decline since 1991, when furniture shipments were down over 8 percent.

Though the dollar shipments were lower than in 1998, that figure should be taken in context of the industry as a whole, says BIFMA executive vice president Thomas Reardon.

"Some companies may have increased profits by 15 to 20 percent," says Reardon, "while a larger manufacturer may have a decrease in orders. A lot of times, that's what happens. We've seen some of the smaller manufacturers really have good years."

Outlook for 2000: Excellent

Surveyed manufacturers appear poised to build on success garnered in 1999, with 94 percent of executives surveyed expecting to do the same or greater amounts of business in 2000. Only 6 percent of those surveyed felt that 2000 would result in lower sales for their respective companies.

Though statistics are only available through the first two months of 2000,

BIFMA figures show that the industry has increased sales 6 percent over January and February of last year. This percentage is in line with BIFMA's prediction of a 4 to 6 percent total increase for 2000 that the association made last year.

"Right now, the industry is looking very good," says Reardon. "Manufacturers are very upbeat and positive right now. And that optimism is translated down from other manufacturers and consumers. People seem very optimistic about what the next 12 months will bring."