Released on = April 16, 2007, 3:58 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Office Furniture - Market Report estimates that, in 2003,
the apparent UK market for office furniture and accessories was £1.18bn at
manufacturers\' selling prices (msp), a decrease of 1.8% on 2002.

Press Release Body =
Office Furniture - Market Report

Office Furniture - Market Report estimates that, in 2003, the apparent UK market for
office furniture and accessories was £1.18bn at manufacturers\' selling prices (msp),
a decrease of 1.8% on 2002. In 2002 and 2003, there was a steep downturn in demand
for office furniture in the UK and worldwide, as a result of the deterioration in
economic conditions and delayed decisions relating to investment in new office
construction and office refurbishments until the return of more favourable
conditions. Between 1999 and 2001, the apparent UK market for office furniture
increased by 19%, although between 2001 and 2003, it fell by 18.3%.

Many new offices - and speculative offices that are still undergoing construction in
areas that used to be in high demand, such as the M4/M40 corridors and central
London - remain unlet. Even if the high gross domestic product (GDP) rates that are
predicted by the Government for 2004 and 2005 are reached, there is little prospect
of a quick recovery in demand for office space, as a result of the major changes
taking place in the commercial sector of the service economy. It is evident from the
various pronouncements made by companies with a large labour force that a rising
number of routine service-sector jobs are being moved overseas to benefit from lower
costs - a trend that is also evident in the manufacturing sector. Relocating
overseas has serious implications for office furniture manufacturers, as it is
likely to adversely affect demand in the domestic market.

Although the commercial sector is contracting, the public sector is expanding as a
result of investment in service jobs. A major reorganisation of the National Health
Service (NHS) is under way and a large number of civil service jobs from the various
Ministries are to be relocated from London to the regions. In addition, expenditure
on services such as education and the police has grown, as greater emphasis is being
placed on improving their performance. Inevitably, this will lead to an increased
demand for office space.

The rapid application of new technical developments in communication networks has
led to the rise in the number of people working from home and away from a fixed
office location. Demand for dedicated home-based office furniture is expected to
grow rapidly, as more companies encourage people to work away from the office. In
addition, flexible working and multitasking is increasing, which might change the
type of furniture that will be required in the future.

Over the next 5 years, sales of office furniture are expected to rise steadily and,
overall, between 2004 and 2008, the market is forecast to grow by 20.9%. Growing
demand in the public sector and from home office workers is likely to outweigh the
negative effects of some job losses in the commercial sector, which might be
recouped over time.

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