The cost of office furniture is rising again in 2023, like it has for the past few years.
Why?
Inflation, of course, but that isn’t the sole reason.
As Southwest Florida’s leading office furniture and design company, OFDC Commercial Interiors has a pulse on the entire furniture spectrum. That includes sourcing raw materials, design, production, sales, delivery and installation.
Price is always an important consideration for customers, but so is value. The following information can help businesses understand why the cost of office furniture is rising and how they can lock in prices before the next increase.
Inflation’s impact on the cost of office furniture
Year-over-year inflation rates throughout 2022 ranged from 7.1% to 9.1%. By comparison, policymakers generally believe 2% is an “acceptable inflation rate.”
The following items have contributed to a higher cost of office furniture:
- Raw materials: Furniture manufacturers use wood, metal, fabrics, leather, plastic and other components to make furniture. All of those items cost more.
- Salaries: The current economy is a job seekers’ market, and companies often have multiple vacant positions at any given time. Employers are raising wages to remain competitive, a human resources strategy that helps attract and retain talent.
- Shipping: The cost to get products from Point A to Point B is higher. Although gas prices have subsided, diesel fuel prices remain high. That impacts products shipped by truck and boat. Additionally, salaries of those involved in the shipping industry are higher.
- Real estate: Land and commercial buildings are worth more now than a year ago. That means furniture manufacturers seeking to expand will pay more for their physical plant. When property values rise, existing businesses must pay higher property taxes. Insurance costs also are a factor.
READ MORE: Movable offices: How tables, chairs on wheels can transform workspaces
Supply and demand
In economics, the law of supply and demand is well-documented. As demand increases, inventory declines, and thus prices increase. As demand drops, inventory climbs, and thus prices drop. The principle was quite evident with car sales in 2021 and 2022. A microchip shortage and pandemic-caused factory shutdowns cut production levels, and fewer new cars at dealerships drove up prices for both new cars, which in turn caused the price of used cars to spike.
There isn’t as much fervor over office furniture, but demand is rising for three primary reasons:
- Workplace expansion: Although Southwest Florida rebounded quickly from pandemic shutdowns, full recovery took a year or two for businesses in other states. Some businesses that initially contracted have since reversed course, growing as a company while adding to in-office employee counts.
- Evolution of the office: In recent years, businesses have shifted toward collaborative spaces instead of one-desk-per-office interior designs. Companies are buying new desks, chairs and storage solutions that are more appropriate for open floorplans.
- Hurricane Ian: In Southwest Florida, hundreds of businesses sustained wind damage or flooding from Hurricane Ian. To reopen, they all need inventory as well as office essentials like desks and chairs. That created a micro supply and demand challenge.
READ MORE: Replacing office furniture, flooring after Hurricane Ian
Controlling prices
Furniture distributors like OFDC Commercial Interiors are often the bearers of bad news when it comes to the cost of office furniture. It’s not uncommon for manufacturers to implement overnight price increases of 10% or more.
To secure the best pricing, it’s important to start the furniture-buying process early. Signing a contract secures pricing and helps protect your bottom line if the cost of office furniture rises again.
OFDC’s design and product specialists help business owners and managers set a budget, choose products and schedule delivery. It’s a process that should start at least nine months before the delivery is needed or wanted.
READ MORE: Step-by-step: The furniture-buying timeline
Contact OFDC
OFDC Commercial Interiors is available by telephone, email or in-person consultations.
READ MORE: Step-by-step: The furniture-buying timeline
Contact OFDC
OFDC Commercial Interiors is available by telephone, email or in-person consultations.
- Call us: 239-337-1212 (Collier, Lee, Charlotte) or 941-893-5508 (Sarasota, Bradenton)
- Email us: Online portal
- Visit us:
- 11866 Metro Parkway in Fort Myers
- 7819 25th Court E. #104 in Sarasota
