Office furniture market’s slowdown

The Office furniture industry is a little bit laid-back nowadays according to a closely watched index that tracks 10 key business activities.

The office furniture market has slowed slightly. This is a study conducted by Michael Dunlap, industry analyst and owner of Michael A. Dunlap & Associates of West Olive.

Despite the slowdown, it is not slipping enough to worry, he said.

“Our interpretation is that the industry is still improving, just at a slower pace,” he said. The evaluation reflects what’s going on with West Michigan’s largest publicly traded office furniture companies.

Grand Rapids-based Steelcase Inc. and Zeeland-based Herman Miller Inc. look forward to a development during the quarter.

Steelcase said it expects profits will continue to be in good shape as for the first quarter of this year. The company cannot display an estimate for the year, but “does expect to continue its developments in profitability.”

At rival Herman Miller Inc., fail to see its target by 2 cents in the third quarter. The prediction is tough as well, but not as positive as the past quarters. Its fourth-quarter direction was slightly lower than investors anticipated.

There was an increase of 9% to 14% as the company forecast shows fourth-quarter sales over the prior year. Which would equate per share are estimated at a 4% increase in earnings.

The survey index for April is 56.25, down from 57.91 when the survey was last taken in January. It is up from the 55.87 recorded during the same period last year.

An index between one and 100 is the basis on how the industry in doing. 100 means the highest and one means alarming. Generally, the index includes all ares in the industry.

In the year 2004, the survey began its mark that centers on 10 key business activities including shipments, backlog, employment, capital investment, new product development and the respondents’ personal outlook on the industry.

Raw materials and employee costs are in good levels of index values.

“Secondary indicators like new product development are extraordinary,” Dunlap said. “Although slightly lower, the high levels of enthusiasm for the industry are the best signs of continued optimism.”

Responses and answers from different companies and from executives in North America, Asia and Europe, those averaging more than $1 billion in sales to those less than $10 million.

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Office furniture market’s slowdown

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