Office Furniture Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every company and its procurement unit look to bargain the best deal while procuring a set of products or subscribing to a set of services. Rate benchmarking comprises price/cost comparison of multiple sets of products/services to assess the most effective combination that can potentially assist the procurement team in getting the optimum rate.

The average rates of office furniture products in the U.S. vary according to the type of item. For instance, in 2023, the average prices of side chairs were in the range of USD 170 - USD 950. The average prices of lounge chairs were in the range of USD 450 - USD 2,300. The average prices of boardroom tables were in the range of USD 2,500 - USD 9,500. Furthermore, the average prices of conference tables fell within USD 900 - USD 4,500. The average prices of administrative workstations were approximately USD 1,200 - USD 3,600. The average prices of executive seating products spanned in the range of USD 450 - USD 1,650.

Furthermore, the rates are also influenced by the type of pricing model and length of the contract. Long-term contracts are favorable to both parties as they ensure enhanced security, added stability, dedicated assistance, and robust partnerships. Moreover, long-term contracts enable clients to consolidate suppliers by maintaining long-term relationships with two or more preferred suppliers and also help them bargain product pricing and payment terms.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Project Managers working in Steelcase Inc. and HNI Corporation receive a 10% - 15% higher base salary as compared to the salary received by Project Managers working in Herman Miller, Inc. and Haworth Inc. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Office Furniture industry over the last two years:

In August 2023, Herman Miller, Inc. partnered with Diez Office to introduce a new product named ‘Fuld’ nesting chair. The minimalist design of this chair allows it to accommodate a wide range of workstation configurations. The chair has a refreshing aesthetic and is capable of reconfiguring office space for various events such as corporate training, educational events, and breakout conferences. It is produced using only two materials having recycled content. The launch of this product enabled Herman Miller to enhance its capabilities in product innovation and sustainability.

In June 2023, HNI Corporation completed the purchase of Kimball International, Inc. This acquisition strengthened HNI’s capabilities in providing office furniture to end-use sectors such as commercial offices, healthcare facilities, and hospitality establishments. Moreover, the deal enabled HNI to expand its product range and offerings and also expand its coverage and clientele in the U.S. It also facilitated HNI to include ancillary products in its portfolio and enhance its manufacturing competencies in the U.S.

In June 2023, Global Furniture Group introduced a new series of office chairs named as ‘Rebound’ seating series. These office chairs are equipped with a patented flexible back for enhanced user comfort. The chairs are available in various polypropylene colors, are built using a fully recyclable shell, and contain several customization features such as armchair/armless choice, hard/soft surface casters, glide options for several flooring types, and choice of upholstered seat fabric (vinyl/leather). The launch of these chairs facilitated Global Furniture Group to improve its portfolio of sustainable and innovative products.