The most recent quarterly MADA/OFI Trends Survey indicated that trends were positive for the office furniture industry. Michael A. Dunlap & Associates, LLC completed the survey in January 2011 to measure the activity of the office furniture industry and its suppliers. The survey's January 2011 overall survey index is 57.01 (all numbers are on a scale of 1 to 100), which is the highest since the July 2007 Index of 58.49. Overall index value in October 2010 was 56.65. Gross shipments measured 65.00, well above the previous survey average of 57.41 and order backlog was 56.47, nearly identical to the earlier survey average of 56.46. The employment index increased to 55.77, which is the highest since the survey began. Hours worked rose to 59.09, the highest since the January 2007 index of 61.30. Capital expenditures rose to 58.24, the highest since achieving 55.75 in April 2006. New product development accelerated to 66.12, the highest since July 2007 at 66.32.
“Although I am very pleased in the results this quarter, as well as the past three quarters, I remain ‘cautiously optimistic’ for 2011 and 2012," Dunlap said.. "The improvements are nearly across the board for office furniture manufacturers and suppliers."
Dunlap said that suppliers and manufacturers both appear to share the same level of optimism, but he is not convinced that the industry can return to the same sales levels experienced in the late 1990s.
The majority of respondents cite increased material costs (steel, copper, and resins), energy costs, and increased health care costs as the “largest threats to the industry."
The January 2011 MADA / OFI Trends survey was sent to more than 600 individuals involved with office furniture manufacturing and suppliers from Asia, Europe, North and South America and from companies ranging from more than $1 billion in sales to less than $10 million in sales. The next survey will be in April 2011.
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