Yesterday, the Business and Institutional Furniture Manufacturer's Association (BIFMA) International released the latest office furniture industry report compiled by Global Insight. The consulting organization's forecast predicts an 8 percent decline in shipments to U.S. $8.2 billion for 2003, compared to $8.9 billion in 2002.
The war with Iraq had a significant impact on industry shipments during the first quarter of 2003. First quarter shipments dropped 12 percent compared to 2002 when Global Insight expected a drop of only 2 percent.
Global Insight does not foresee significant change in the level of order and shipment volumes during the second quarter of 2003, nor does it expect them to decline much further, assuming the macro economy proceeds according to expectations. BIFMA International expects two more quarters of negative growth before shipments flatten out in the fourth quarter of 2003.
BIFMA International says a significant industry rebound is expected in 2004 once corporate investment recovers, and should result in the first year of positive growth since 2000.
Back to Breaking News