Steelcase Competition
Now Viewing Steelcase's competition in: Furniture Manufacturing (primary)
Recent Developments
Nonresidential Construction Market Expands - Construction spending, an indicator of demand for furniture, is rising for commercial lodging, educational buildings, and offices. US construction spending for lodging increased 49.4 percent; educational buildings, 14.7 percent; and offices, 8.7 percent, during the first two months of 2008 compared to a year earlier. In contrast, spending on residences declined 19.6 percent.
Furniture Production Declines from Year-Ago Levels - Lower overall demand is affecting domestic furniture manufacturing output. US furniture production decreased 6.7 percent in February 2008 compared to one year earlier. Average annual furniture output declined 3.3 percent in 2007 from 2006.
Manufacturers Charge Slightly Higher Prices - Furniture manufacturers are receiving higher prices than a year ago. US producer prices for furniture and related products increased 1.5 percent in February 2008 compared to a year earlier. Average annual prices rose 2 percent in 2007 from 2006.
Competitive Landscape
The volume of home furniture sold depends heavily on the level of home sales, while office furniture sales depend on the health of the US economy. The profitability of individual companies is closely linked to volume, since many costs are fixed. Small companies can compete effectively if they produce specialty items or high-quality workmanship that can sell for a premium price. Imports have become a major competitive factor.
Furniture Manufacturing Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US furniture manufacturing is forecast to grow at an annual compounded rate of 5.3 percent between 2007 and 2012.
Furniture Growth Improves Significantly
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Linked to home sales
- Need good merchandising
- Risk: Housing slump lasts years
Industries Where Steelcase Competes
- Consumer Products Manufacturers
- Office & Business Furniture, Fixtures & Equipment (primary)
