BIFMA: April Office Furniture Orders up 5%

Grand Rapids, MI, June 4, 2007--Office furniture orders rose modestly in April, continuing a trend toward moderating growth industrywide, an analyst said.

"The April data largely confirms our view that industry growth is moderating toward a GDP-like 3%-6% growth rate," Budd Bugatch of Raymond James wrote in a research note.

The Business and Institutional Furniture Manufacturers Association said April orders had increased 5 percent year-over-year to $855 million, according to Bugatch's note. Shipments rose 2 percent to $840 million.

In 2004 and 2005, Steelcase Inc. (SCS.N: Quote, Profile , Research), HNI Corp. (HNI.N: Quote, Profile , Research), Herman Miller Inc. (MLHR.O: Quote, Profile , Research) and Knoll Inc. (KNL.N: Quote, Profile , Research) enjoyed percentage order increases into the low double-digits.

But the industry is cooling. In January, monthly orders fell for the first time since July 2004.

Bugatch said growth would probably settle at a rate that tracks the GDP in the absence of a noneconomic driver, like the adoption of a new technology such as the personal computer, which has fueled outsize growth in the past.

BIFMA compiled its April report from 40 companies, which account for about 73 percent of the industry's volume.