Category Update

Back on TRACK

The furniture sector is in a prime position to grab the opportunities presented by workspace revamps as companies try to entice employees back to the office

– by Michelle Sturman

What a lovely surprise – to speak to industry members where the overwhelming sentiment is positive. The office furniture category in 2021 was still so-so as many companies postponed – sometimes multiple times – return-to-office policies, trying to figure out remote working demands.

This year, as they have begun to rethink, finalise and implement plans to accommodate contemporary ways of working, it has resulted in more robust furniture sales due to workplace environments being revamped. Pretty much all operators OPI spoke to that deal with the segment had a strong start to 2022. Encouragingly, they expect this to continue for the rest of this year.

POSITIVE BEGINNINGS

David Guernsey, CEO of US independent dealer Guernsey, for example, reveals that the category actually performed very well for the company in 2021 too, and the same appears to be true for this year. “Guernsey has always maintained a significant position with public sector entities which is where both stability and growth is coming from. There was little activity in 2021 in the private sector, but at the beginning of Q2 2022, we started seeing an uptick with these customers,” he says.

Cody Durbin, Sales and Business Development Manager at fellow US dealer GBP Direct also feels the private sector is ramping up again following the “temporary blip” when work-from-home (WFH) negatively impacted the furniture business due to paused or cancelled projects.

It’s the same story from Fellowes Brands. Talking to OPI, Chief Market Officer Monica Lopez says the sales climate so far this year has been strong compared to H1 2021, as a broader return-to-office movement has accelerated throughout the US. “We expect this trend to continue, with only a slight slowdown from the current pace in the last months of the year.”

S.P. Richards (SPR) SVP of Sales, Furniture and Corporate Accounts Eddie Baird further adds that the wholesaler got off to a great start in January and sales have been maintained. “We are witnessing robust activity for transactional and project business and feel confident this will continue into Q3 and hopefully Q4.”

Baird says SPR’s strength lies in the commitment it made to a strong inventory position, which has paid off this year. “We want to provide customers with next-day delivery as well as special options in this category and currently have a deep inventory in our distribution centres of Lorell and branded products. We have even more Lorell in our redistribution centre which supports our Global Sourcing and Lorell Quick Ship Direct Programs.”

Where SPR did encounter some problems has been with products in such high demand that they have outpaced even its large commitment to excessive inventory.

During difficult times is when new ideas and businesses bloom

Guernsey, for one, expects the residual supply chain kinks to slowly continue to iron themselves out, with the situation improving over the course of this year and a return to normalcy in Q1 2023.

Across the pond, the UK market sector is doing well too. From a wholesaler perspective, VOW Wholesale Furniture Category Director Vanessa Warne notes that, coming out of the pandemic, the category was the first to recover and has performed at pre-COVID levels for the past year.

In addition, she says, there has been a “very positive” response to enhancements to VOW’s Interiors workplace furniture service for dealers – especially the carriage-inclusive pricing, with free-of-charge end-user deliveries.

UNCERTAIN TIMES AHEAD

According to Simon Howorth, Marketing and Design Manager of UK manufacturer Dams, “the UK office furniture industry is buoyant at the moment and showing no signs of slowing down”.

Ergochair CEO Robert Lunga, meanwhile, refers to significant year-over-year growth of around 35%, with the past six months being exceptionally busy. That said, Lunga assumes “some reversion as recession fears start to solidify”.

Despite a somewhat shaky start to 2022, there has been a reduction in supply chain disturbances and supplier lead times have stopped expanding. This easing up has clearly aided the furniture market recovery in the UK. “We anticipate this to remain the case until a macro-slowdown creates excess capacity in supply chains and shipping routes,” remarks Lunga.

Back in the US, Baird notes that with the surge in fuel prices – on top of freight costs – excessive price increases are impacting consumer spending the most. “It’s much easier for people to understand delays because of labour shortages and port hold-ups than massive price gains due to fuel costs. It will impact sales, more so with project decision setbacks and customers unwilling to pay fuel surcharges.”

However, he goes on to say: “The education and healthcare segments continue to be strong. These are two areas where we will see further increased needs and available funding because they are essential to society. The commercial segment will be consistent until companies determine their office space needs with a hybrid workforce.”

But, he adds: “Let’s not forget, during difficult times is when new ideas and businesses bloom. There will be small project and growth opportunities for sales people focusing on SMBs.”

ALL CHANGE

The rapid onset of hybrid and remote working has created somewhat of a conundrum for the office furniture segment and caused a mixed bag of opportunities. In terms of homeworking, VOW’s Warne refers to sales of home office desking now giving way to seating, with purchases on better products such as posture seating, for example, seeing a growth of over 50%.

SPR is experiencing strong demand for seating within the office environment too, including the replacement and upgrading of old chairs. “Seating is a low-cost investment and adds comfort and style. One specific sub-segment is soft seating designed for collaboration areas as well as for employees who work outside their designated workspace, but are still in the building,” says Baird.

Hybrid working is leading to companies evolving the way the workspace is utilised. As Chief Wellness Officer at Yo-Yo DESK Gavin Bradley explains: “Customers inform us that, in many cases, mass deployment of WFH/hybrid working has resulted in revolutionary thinking about the role of the workplace. As a result, offices everywhere are having their purpose, layout and equipment requirements re-evaluated.

“In addition, space allocation for desking has reduced drastically, in some cases by 50%. However, there is a much greater appetite for investment in sit-stand desks.”

Kelly Link Eisenberg, Insights Specialist at Innovative Office Solutions in the US, sums up the refreshed work environment. It includes flexible, moveable and adjustable furniture, a focus on employee well-being, technology integration, and collaborative spaces.

Explaining further, she adds: “Sit-stand desks are almost not even a question anymore and integrating power and technology throughout the workplace is no longer just an add-on option. Meeting spaces now must have the ability to include remote employees, and the importance of areas for people to come together to collaborate and innovate has increased.”

But, she warns, customers are struggling with what to do and are trying to understand what their personnel need. “We offer enhanced services to support the design process and currently have a programme called ‘Insights with Innovative’. It includes interactive workshops to help companies gain awareness and deep understanding of a project or team to make sure it’s successful.”

THE WELL-BEING FACTOR

Everyone OPI spoke to agreed that of paramount concern for companies updating any workspace is employee well-being. “When people first returned to the workplace last year, the attention was on providing a safe environment to stop the spread of germs, with protective screens and social distancing measures in place,” observes Dams’ Howorth.

“Now the focus is more on creating the buzz people can get from being in the office, with new ideas for high-energy collaboration and furniture for social spaces.”

Fellowes’ Lopez agrees, reiterating the current sentiment for encouraging staff back to the office: “More people are returning in a full-time or modified hybrid format, compared to the previous two years. We are working with many businesses which want to reconfigure and reimagine their spaces to be inviting, collaborative workspaces that produce a positive state of mind, body and soul for their workforce.”

Fellowes is investing in product development following some of the leading COVID-19 workspace trends, including air purification, mobile and adaptable furniture for hybrid work and various types of dividers and accessories for ‘hoteling’. “We see these trends as interrelated and connected to our belief that a healthy workplace offers employees the tools they need to feel safe, supported to be productive and fulfilled in what they do,” Lopez comments.

Guernsey states breakroom equipment and furnishings are “front and centre”, with customers requesting colours and textures to make the space lively, comfortable, cleanable and sustainable.

Expounding on this point, he says his dealership has developed the resources to entirely build out a breakroom: “From design and space-planning to installing furnishings and brewing, water and refrigeration equipment, we have trained technicians with skills ranging from plumbing to electrical and customised carpentry.”

Warne adds that the current penchant for dining upgrades extends to the outside – even in the UK – with bistro, alfresco and outdoor furniture becoming increasingly popular. She says it’s an area where VOW is looking to expand its range to offer more choice (for more on the breakroom sector, see Category Update, page 35).

A few years ago, ergonomics was one of the dominant trends. And so it remains as WFH has continued to highlight postural problems. In fact, it has turned ergonomics from a nice-to-have to a must-have, driving sales for both the home and office environment.

“We have seen a shift in thinking over the past 12 months towards looking for the best long-term solutions for WFH. Clients have decided that, since they spend at least part of their working life at home, they should invest in their equipment. For many, this means duplicating the specialist chair they have in the office,” says Lunga.

Link Eisenberg mentions workstation height adjustability as desirable among most, if not all, employees. Other notable trends include solutions such as monitor arms and highly adjustable task chairs and, of course, sit-stand desks. As she remarks: “Ergonomics and well-being is the trend.”

Sit-stand desks are almost not even a question anymore

For more industry feedback on the office furniture sector, see Xtra content in the July/August issue on opi.net

SUSTAINABLE REQUIREMENTS

One can’t talk about well-being without incorporating sustainability, and the office furniture category is no exception. In continental Europe and the UK at least, it has shifted from a trend to a baseline requirement across the board.

“Companies’ ESG policies are demanding their suppliers consider sustainability and show they are working towards a zero-carbon operating model with sustainable disposal options,” explains Lunga. “How strict those stipulations are varies by customer at the moment. However, very few disregard it entirely, which is why Ergochair has a plan for green growth.”

While Yo-Yo DESK already has 100% eco-packaging, Bradley says the company is looking to upgrade components to contain 50% recycled materials. He notes that sustainable manufacturing and packaging practices have become essential.

Also delving into these two areas over the past couple of years, VOW has proactively sought to reduce plastic and polystyrene in its packaging. The wholesaler has further sourced and resourced goods closer to home, including those manufactured in the UK.

Talking about other progress, Warne says: “Due to the negative environmental impact of the manufacturing process, we intend to eradicate chrome in all products and components over the next couple of years. Customers are also asking for more recycled and recyclable products.”

Lopez explains sustainability is one of the top corporate drives at Fellowes, with the vendor pursuing a three-year roadmap specifically focused on advancing product, organisational and facility sustainability initiatives. “Sustainability has been a focus for years, driving us to excel in codes, standards and certifications like BIFMA Level and Indoor Air Quality for low VOC emissions for our furniture. We know it matters to dealers as well as their customers.”

The circular economy is something everyone should pay attention to, and dealers are embracing initiatives to handle this. GBP’s Durbin told OPI that the company tries to donate used furniture where it can to help keep it out of landfill and prolong its usable life.

Innovative also supports its clients by specifying products with recycled content and/or those that can be recycled after use. As Link Eisenberg elaborates: “We have access to a great decommissioning service that provides expertise to assist our customers in diverting furniture they no longer need from landfill by allowing them to donate, recycle and/or sell those items.”

[Sustainability] has shifted from a trend to a baseline requirement

At the end of May, Clerkenwell Design Week (CDW) returned for its eleventh edition, taking over London’s most creative district with the infamous pink trail. Since its debut in 2009, CDW has grown to become one of the UK’s leading independent design festivals, providing a platform for brands to showcase their products and for the 150+ resident showrooms to open their doors.

More than 30,000 visitors were treated to the latest in furniture designs, innovations and creative ideas, plus installations celebrating the fascinating history of Clerkenwell. Two in particular caught the eye. The first was Plant.Nurture.Bloom curated by Plant Designs, which highlighted the importance of planting within urban working environments.

The second was The Office Group’s Beautifully Sustainable – a vision of the future of work, challenging the industry to reassess and adapt its physical spaces for the future and to a more sustainable way of life.

As usual, CDW featured design-led fringe events, pop-ups, workshops, talks by leading designers and architects, and showroom presentations. There were ten exhibition venues, each with a different curatorial focus, ranging from cutting-edge international design to emerging talent, lighting, luxury interiors and the best of British design.

Plant.Nurture.Bloom

Beautifully Sustainable