HOLLAND, MI - The office furniture industry continues to show modest improvement, according to a quarterly survey of more than 800 domestic and international office furniture manufacturers and suppliers, conducted by Michael A. Dunlap & Associates LLC.
The overall index score for July was 58.78, indicating “the industry remains on course to achieve its best year in more than a decade,” said Mike Dunlap of the Holland, MI-based consulting firm.
The MADA/OFI Trends Survey, the 34th by Dunlap, assigns ratings for 10 key business activities: Gross Shipments, Order Backlog/Incoming Orders, Employment Levels, Manufacturing Hours, Capital Investment, Tooling Expenditures, New Product Development Activity, Raw Material Costs, Employee Costs and Personal Outlook.
Rankings are from 1 (worst) to 100 (best), with 50 signifying “neutral” or no change. According to the survey, gross shipments measured 62.40, “significantly higher” than the survey average of 57.75, while order backlog hit 62.50, which is also well above the survey average of 56.82.
"Eight out of ten Index values have improved and only two declined and those that went down were minor adjustments. Only Employee Costs and Material Costs are below the ‘50’ level," Dunlap said. Dunlap and Associates maintain the opinion that the industry will continue to accelerate during the third and fourth quarters of 2015 and will finish strong into 2016.
The employment index also rose to 55.42, compared to 52.17, while the hours worked index hit 58.33, compared to the survey average of 55.44.
Capital expenditures peaked at 58.00 which was up from 57.88 in April. Tooling expenditures increased from 57.27 in April to 58.40 in July.
The next quarterly survey by Michael A. Dunlap & Associates will be in October 2015.
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