Manufacturing And The Office Furniture Industry

Manufacturing And The Office Furniture Industry

By:


Economic activity in the manufacturing sector failed to grow in October for the third consecutive month. The overall economy concluded 83 consecutive months of growth reports the nation's supply executives in the latest Manufacturing ISM Report On Business®. The Institute for Supply Management (ISM) is a not-for-profit association, the largest supply management association in the world. ISM's mission is to lead the supply management profession through its standards of excellence, research, promotional activities, and education.

The Institute for Supply Management™ ISM Manufacturing Report On Business® is considered by many economists to be the most reliable near-term economic barometer available. Except for a four-year interruption during World War II, the Report has been published monthly since 1931 for the guidance of supply management professionals, economists, analysts, and government and business leaders.

The report was issued by Norbert J. Ore, C.P.M., and Chairman of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI indicates a significantly faster rate of decline in manufacturing when comparing October to September. It appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices. This is the lowest level for the PMI since September 1982 when it registered 38.8 percent. In this report, we see inflationary pressures dissolving as the Prices Index fell to 37 percent, the lowest since December 2001 when it registered 33.2 percent. Export orders also contracted for the first time following 70 months of growth." (www.ism.ws).

The two industries reporting growth in October - listed in order - are: Apparel, Leather & Allied Products; and Computer & Electronic Products. The industries reporting contraction in October are: Petroleum & Coal Products; Nonmetallic Mineral Products; Wood Products; Fabricated Metal Products; Furniture & Related Products; Textile Mills; Machinery; Plastics & Rubber Products; Primary Metals; Printing & Related Support Activities; Transportation Equipment; Miscellaneous Manufacturing; Electrical Equipment, Appliances, & Components; Paper Products; Food, Beverage & Tobacco Products; and Chemical Products (www.ism.ws)

Looking closely into the furniture industry, according to the new quarterly outlook from the Michigan-based Business and Institutional Furniture Manufacturers Association, the office furniture industry sees a slightly deeper downturn occurring in 2009, however 2008 shipments will not drop as much as previously expected. BIFMA's mission is to lead, advocate, inform, and develop standards for the North American office and institutional furniture industry. BIFMA is a not-for-profit organization that provides an effective forum for Members to cooperate and collaborate on appropriate industry issues.

BIFMA also projects a 1.8 percent decline in industry wide shipments for 2008, to $11.2 billion. The struggling U.S. economy will push shipments down another 11.6 percent in 2009, to $9.9 billion, according to the updated BIFMA outlook prepared by Global Insight.

The updated BIFMA outlook comes right after the announcement of Grand Rapids-based Steelcase Inc. that 300 of its employees could face layoff within 60 days. Zeeland-based Herman Miller Inc. also announced recently its plans to cut 400 to 650 jobs by January.

However, According to Michael Dunlap & Associates' MADA / OFI Trends Survey, a unique global industry performance measurement tool, on a quarterly basis, the market for office furniture in the US will continue to expand. Michael Dunlap-the owner and principal of Michael A. Dunlap & Associates, LLC, a business consulting services company that focuses upon issues involving the office furniture industry-said that although the office furniture industry "is showing signs of weakness", it is "still growing - just at a much slower pace".

Despite the challenges facing the economy nationwide and worldwide, MAiSPACE expects continued growth in 2009. "These are tough times for every business", reports Mark Bassil, the vice president and co-founder of the company. "We are pleased with our business yet remain cautious and prepared for the future."

MAiSPACE is a wholly owned subsidiary of ORG Co., Ltd., a consortium of 5 manufacturers. Established in 1993, the company has roughly 250 employees and a North American installed base of more than $150 million.

About the Author:
MAiSPACE.com will help business owners and operators make smart choices in Systems Furniture and Office Cubicles for their offices and selecting the right Office Furniture. Manufacturing and the Office Furniture Industry.



Article Originally Published On: http://www.articlesnatch.com


Tags:

|

Loading...
Related....
Videos...

Recent Quit-Smoking Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.