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Thomas Reardon, Executive Director, BIFMA

The value of U.S. office furniture shipments increased approximately 5.5 percent in 2007 — as compared to 2006 — from $10.8 billion to just over $11.4 billion. Both order and shipment growth rates gradually slowed — but remained positive — during the course of calendar year 2007.

This is according to Tom Reardon, executive director of BIFMA International, the trade association representing manufacturers of business and institutional furniture.Reardon says 2008 is projected to be down slightly for the office furniture segment.

“The latest forecast projection for 2008 calls for a moderate decline in U.S. shipment volume of about 1 percent,” he says. “This is primarily the result of the overall economic outlook, anticipated decline in office building construction, service sector employment and reduced corporate capital spending.”

BIFMA was established in 1973 and presently represents over 240 member companies. Approximately 50 percent of those member companies are furniture producers located in North America, 40 percent are North American-based suppliers of components, materials or services, and 10 percent are furniture producers, or goods and service providers located outside of North America.

Reardon says BIFMA’s mission is to “lead, advocate, inform and develop standards for the North American office and institutional furniture industry. We serve businesses that are primarily engaged in design, development, marketing and fulfillment of office and institutional furniture products.”

MEMBER SERVICES

BIFMA is a not-for-profit organization that provides an effective forum for members to cooperate and collaborate on appropriate industry issues.

“We develop voluntary product and industry standards that support safe, healthy and sustainable environments,” Reardon explains. “We also publish key industry statistics; advocate for legislation and government regulation that have a direct and positive impact on the industry and our customers; and facilitate meaningful dialog and education to support our core services and the industry we serve.”

Reardon was recently asked some questions relative to his industry and the association he represents.

Wood Digest: Does replacement office furniture make up much of the lost sales due to a slowdown in new office building?

Reardon: Demand for “replacement” furniture and furniture intended for use in new construction projects is driven by separate factors. Generally speaking, I don’t expect to see an increase in “replacement” furniture volume coinciding with a slowdown in new office construction. There may be an increase in the share mix but not in total volume. The overriding economic impacts tend to place similar pressures on both segments of total volume.

WD: From a global perspective, how have the U.S. producers of office furniture and related products faired with the dollar being down compared to other currencies?

Reardon: The present currency valuation trends tend to make U.S. goods more attractive to foreign buyers from a pricing standpoint. I assume that dynamic holds true for furniture also, but we do not have industry data to quantify the impact.

WD: How have BIFMA members adjusted/reacted to the “green” movement?

Reardon: The “green” building movement has begun to affect the furniture industry in a fairly substantial manner. Due to the efforts of the U.S. Green Building Council (and other similar organizations) and the LEED building rating system(s), there has been a rapid increase in the awareness level of the environmental impacts of construction projects. Furniture producers see the value in developing products, processes and corporations that are more “sustainable” and have a reduced environmental footprint both from a marketing and overall efficiency perspective.

However, the use of terms like “green” and “sustainable” prompt one to ask, “What exactly does that mean?”. How does one company define green as opposed to its competitors? How do customers effectively evaluate the various environmental performance attributes of products? The rapid increase in “sustainability” and the potential for corresponding market confusion has prompted BIFMA to spearhead development of a standardized (what we intend to be an American National Standard) method of evaluating the “sustainable” attributes of business and institutional furniture products. This open, balanced consensus standard will provide a common measurement tool and road map for companies seeking to develop more environmentally preferable products, processes and businesses.

WD: What are some of the trends you and your members are currently tracking?

Reardon: The sustainability movement is probably the most significant and fastest moving trend right now, and we (and other stakeholders) have directed significant resources toward development of that standard. However, there are a number of developments on the regulatory front, from product emissions regulation in the state of California covering particleboard products to the potential for a national flammability standard for upholstered seating issued by the Consumer Product Safety Commission (CPSC) in which BIFMA has been closely involved.

WD: What are some of the goals for 2008 from an association standpoint?

Reardon: In 2008 we look forward to completion of the sustainability standard, implementing a potential refinement to the recently approved ANSI standard for furniture emissions testing based on extensive test research, working closely with the California Air Resources Board (CARB) on the finished product testing protocol for their board formaldehyde rule, working with the CPSC on their proposed flammability test standard, and continuing to represent the commercial furniture industry in a proactive and responsible manner with all relevant stakeholders.