Taking a back seat: Economic uncertainty and wholesale bypass continue to limit growth

The Office Furniture Wholesaling industry is expected to grow at a compound annual rate of 1.1% over the five years through 2018-19. Due to the nature of the industry’s services and its strong link to business confidence, the industry’s performance typically reflects wider economic conditions. At the start of the period, an improving economy, with business confidence levels returning to growth, led to more businesses increasing their expenditure on additional office space and furniture, which boosted downstream demand for office furniture and benefited industry revenue. However, increased uncertainty since the EU referendum has resulted in a number of businesses delaying expenditure until economic conditions are more certain, which in turn has constrained demand for industry products...read more.

Industry Statistics & Market Size
Revenue
£804.9m
Annual Growth 14-19
1.1%
Forecast Growth 19-24
Profit
Employment
3,288
Businesses
407
Market Share of Companies

Industry Threats & Opportunities

  • Wholesale bypass has exacerbated price competition, weighing on profit margins
  • The weak pound since the EU referendum has increased purchase costs and weighed on margins
  • Firms are expected to improve inventory management in an attempt to limit wholesale bypass
  • Industry Report - Industry Products Chapter

    SeatingThe largest contributor to revenue is seating, mostly in the form of office chairs, although sofas and seats are also required for reception areas. The proportion of revenue coming from this segment has increased considerably over the past five years, and is estimated to account for 29.1% in 2018-19. Focus on seating quality has risen due to growing concerns regarding health and safety in the workplace. Companies are upgrading to more ergonomic workstations to address the increasing awareness of the comfort and health of employees. Addressing these issues should theoretically lead to higher productivity. High-end chairs are more expensive and contribute more to revenue...purchase to read more.

    Additional Insights for the Office Furniture Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Office Furniture Wholesaling Industry are

  • Superior financial management and debt management
  • Having an extensive distribution/collection network
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Demand from commercial building construction in the Office Furniture Wholesaling industry impact industry performance..

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    What's in this report

    What is the Office Furniture Wholesaling Industry?

    Office furniture wholesalers stock a range of office furniture including bookshelves, cabinets, chairs, desks, filing cabinets, furniture parts and cubicle partitions. Furniture may be ordered off the shelf or it can be custom-made. Items may be sold assembled or unassembled.

    Industry Products
  • Seating
  • Office systems and desks
  • Filing cabinets
  • Casegoods
  • Tables
  • Storage
  • Industry Activities
  • Wooden office furniture
  • Steel office furniture
  • Partition, shelving and locker
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Demand from commercial building construction
  • Business confidence index
  • National unemployment rate
  • Real effective exchange rate

  • Current Performance
  • Performance trends
  • Profit fluctuation
  • Structural issues
  • Chart: Revenue Growth

  • Industry Outlook
  • Constructing demand
  • Wholesale bypass
  • Profit trends
  • Table: Office Furniture Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Office Furniture Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Furniture, Lighting & Homeware Retailers
  • Consumers

  • Key Selling Industries
  • Office & Shop Furniture Manufacturing

  • Products & Services
  • Seating
  • Office systems and desks
  • Filing cabinets
  • Casegoods
  • Tables
  • Storage
  • Other
  • Chart: Office Furniture Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Contract outfitters
  • Construction firms
  • Retailers
  • Chart: Major Market Segmentation for the Office Furniture Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Office Furniture Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Office Furniture Wholesaling Industry

  • Industry Globalization
    Spicers Limited,
  • Table: Spicers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Office Furniture Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Office Furniture Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Business Confidence Index
  • A measure intended to track business confidence in the UK economy.
  • Casegoods
  • Furniture made from hard materials like metal, wood, plastic or glass (such as bookcases and cabinets).
  • Wholesale Bypass
  • The process by which manufacturers and retailers deal directly with each other, cutting out the wholesaler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Office Furniture Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Office Furniture Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Office Furniture Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Office Furniture Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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