Chicago, IL, January 6, 2006--Office furniture shipments saw double-digit growth for the fourth consecutive month in November, according to a Business and Institutional Furniture Manufacturers Association study released late Wednesday.
The BIFMA study showed office furniture shipments rising at a solid rate of 15 percent on the year to $870 million, compared with 13 percent annual growth recorded in October, which analysts said indicated the growing economy has boosted commercial construction and labor prospects.
Following a sharp decline in the office furniture industry from 2000 to 2003, improving sales have boosted profits at companies like Herman Miller Inc., Steelcase Inc., HNI Corp., and Knoll Inc., over the past year.
"(T)he underpinnings of industry demand are positive as the economy continues to grow," Raymond James analysts said in a research note. Corporate profits, "though moderating, remain fairly robust, commercial construction activity has improved, and the employment picture is good," the note added.
The Raymond James analysts said "recovery in the industry should continue into 2006."
The BIFMA survey was carried out in November, with data collected from 45 companies that represent some 76 percent of total industry volume.
