More than just sustainability is driving demand trends in selection and purchase of office and contract furniture in North America. Product and marketing innovation, a desire for improved cost-of-ownership economics, and more flexible office furniture solutions are speeding the pace of change within the industry known for multi-decade product lifecycles.  A recent study by Velocity Partners Inc., finds that these and additional factors are changing the way we work and are creating new opportunities within the industry that designs, manufacturers and distributes office furniture.

The independent study commissioned by Velocity Partners Inc.,
2007 Future Sustainable Demand, was conducted in September and October 2007 with 240 interior design and facilities management professionals, presents a high-level look into key factors driving the demand for furniture within the general corporate and business office environment.  The study focused on key architecture and design professionals and end-user business customers. The key findings found that interior designers and facilities management professionals are driving new workstyles within office environments, with the objectives of improving work efficiency, effectiveness, flexibility and reduction in cost-of-ownership. Findings include:

Increased Team & Workforce Collaboration.
+Over one-third (38 percent) of facilities management professionals reported a shortage of conference rooms and teaming space within their existing facilities and cited a significant increase in the need for more short-term and longer-term project-based workspaces for team or group collaboration within their office facilities.

+About one-quarter (22 percent) of interior design professionals reported that they were increasing the number and type of collaboration spaces within the office projects they were currently working on.

Increased Workforce Mobility
+About half (44 percent) of facilities management professionals reported a marked increase in a range of employee types working outside the office on a regular basis over the last 36 months in a range of typical non-office locations.

+Over one-third (42 percent) of interior design professionals active in office projects in certain market sectors reported being asked to plan offices for a more mobile and collaborative workforce.

Working Without Walls (WWW)
+About one-third (31 percent) of facilities management professionals are either purchasing or seriously considering the future purchase of freestanding systems (bench & spine-type) and desking solutions over traditional panel or wall-based systems for their facilities.

+About one-half (48 percent) of interior design professionals active with clients in specific market sectors reported specifying more open-plan freestanding systems, tables and desking than three years ago.

An Emphasis on Ergonomics
+About one-third (28 percent) of facilities management professionals reported that they are exploring the purchase of more adjustable tables, desking and accessories than three years ago with the most stated reasons, an aging workforce and a desire for sit-stand solutions.

Increased Flexibility, Reduced Move Costs. Less Workspace
+Over two-thirds (68 percent) of interior design professionals reported clients increasingly looking for furniture product solutions that are freestanding or easy to move or reconfigure by internal facilities management instead of using outside movers, installers or contractors.

+More than one-third (39 percent) of facilities management professionals in several market sectors reported that they have or are seriously considering making their workforce more mobile with the increased elimination of designated levels of private offices and/or traditional systems cubes.

Sustainability and Design
+Almost one quarter (22 percent) of facilities management professionals stated that their future furniture decision criteria would include increased product features and distinctive design style (increased level of design, quality of finish and fabric).

+Over one-quarter (26 percent) of interior design professionals have been asked by their clients to introduce higher-level design or style furnishings products in their office projects in the past year.

+While about two-thirds (64 percent) of interior design professionals stated that Sustainability and "green" were very important factors in the recommendation or specification of office furniture products, over one-third (42 percent) stated that product design and aesthetics (look and feel) was equally important to their current office clients.

Other Findings
+About one-quarter (22 percent) of interior design professionals responded that their current commercial interior design project backlog exceeded their backlog from a year ago, while almost one-half (48 percent) stated that their office project backlog was about the same as a year ago.

+Over two-thirds (67 percent) of interior design professionals reported a desire for manufacturer sales reps or manufacturer sales professionals to call on them more often and with an increase in focused product solutions.

High-Level Conclusions.
Results seem to indicate the following:

End-user companies and interior design professionals are placing increased emphasis on teamwork and collaboration environments to accommodate changes in workstyle.

An increased level of workforces and professionals are working outside their private office or systems cube at an increasing rate allowing facilities and interior design professionals to rethink their workplace strategies including reducing office footprints.

While common in Europe, workspace configurations without, or with fewer walls are being introduced more often into North American offices.  This will continue to create “outside-the-cube” new product development opportunities for systems and freestanding furniture manufacturers.

Facilities and company management professionals are leveraging change in workstyles, reducing the size of their environments, moving to more flexible furniture that can be more easily reconfigured thus further driving down the cost of reconfiguration and ownership.

While price is still a major factor in many general office market sectors, in several market sectors there is a desire on the part of both facilities management and interior design professionals to increase the level of design and quality of office furnishings.  This trend will continue to put price and margin pressure on furniture manufacturers who have products and lines without distinctive design, feature, function, application and quality.  For some of these manufacturers, further new product development and innovation will continue to occur, for others the potential loss of market-share and consolidation will occur in the event of lack of growth or a short downturn in the business economy.

Finally, both facilities management and interior design professionals indicated the increase in furniture manufacturer innovation in product development, marketing, and sales or distribution with a focus on the specific needs of individual market sectors and applications as the key for growth in the more competitive office and contract furniture industry.


About The Survey.
The survey consisted of twenty-four quantitative and qualitative questions with over 120 practicing interior designers at leading architecture and design firms as well as with over 120 facilities management decision-makers within end user customer organizations in the financial services, professional services, technology and software, industrial products, construction products and consumer products industries. The survey was conducted the survey between September and October 2007. Percentage numbers have been rounded to the nearest percentage based on responses.

For more information on this study or to receive a copy of the executive summary, email your interest and contact information or contact Brian Bascom, Principal at Velocity Partners via telephone at +1 616 546 9300.

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