Ready already. to-
Manufacturers look at traditional workplaces and assemble markers in the Home Office.
More and more, readyto-
Assembling furniture for commercial offices is one of the hottest growth areas for manufacturers.
Small, aggressive startups like Altatech and BoxOffice are standing on their toes --to-
Toe traditional regional trading companies such as Bush in the traditional situation of Shaode and regional trade arrangement products good manufacturer Steelcase company, Herman Miller, dear, Haworth ~Z-Boy.
Although the US dollar in this market category is estimated to be wide, walking in the lobby of NeoCon \'99, the world\'s largest office
hotel furniture factory trade show, indicates that furniture companies are taking the market seriously, and is pushing a series of RTA-for-the-Office products.
For small and medium-sized enterprises
Scale is small of the companyto mid-
For most RTA new products, larger companies are the target market.
This huge but competitive market is very attractive because these companies have the largest number of recruiters.
At least by percentage-
Thomas Ryden, executive director of Business and Institutional maker Assn, said that throughout the 90 years. -International.
\"If you look at the Fortune 500, these companies don\'t usually increase their staff and they are integrating, cutting jobs or maintaining the existing level of staff,\" says Leiden . \".
\"They may be redecorating their office, but we haven\'t seen the incremental growth of their increased staff yet.
We see employment growth in small and medium-sized enterprises.
\"Small businesses have a limited budget and their available funds are usually used for product development and technology, rather than\" large luxury offices and office furniture \", added Ryden \".
Growth potential of these small businessesto mid-
Larger companies are another major attraction, especially those with the ability to deliver products at many price points.
The Turnstone division of Steelcase is an example of the sales shock that RTA products can throw out.
Five years ago, Steelcase, the world\'s largest maker of office furniture, saw its distributors selling products from other companies at the low end of the market and decided to try to reach a price point of $500 to $2,000.
Today, after going through what the company says is a trial period, Turnstone is the fastest growing case department --
About 75-
100% per year.
John Malnor, product manager at MI-Grand Rapids, said: \"We are looking for new growth customers who will become larger contract customers over timeBased on turning over the stone.
Jamestown, NY-
Bush-based commercial furniture is another company that is actively looking at the market.
Bush Industries, the second largest RTA furniture manufacturer in the United States, held a second exhibition at NeoCon \'99 and launched the Corsa 2000 modular office furniture series --
Offer a line of multiple options at a relatively moderate price.
\"We think small businesses are going through a fundamental explosion, and we think a lot of these people have been growing for years,\" said Dave Meisinger, senior vice president of commercial furniture sales and marketing at Bush.
It\'s not just these very big companies that are looking for business offices to sell.
Smaller concerns such as Altatech and BoxOffice are vying for the position of the market.
Altatech found that 8 of its 10 sales of wood and steel products were for commercial applications, while Altatech was trying to attract small-to mid-
Mountain markets in Ohio
The company\'s customer list includes IBM, Wrangler jeans and the United States. S.
Army, said Jim candarak, president of altartak in bellakesville.
\"They like the fact that they can spend $200 on our products and can survive nuclear war,\" he said . \".
According to the design, a 17-month-
Old Arlington, Texas
The company expects its products to attract high
But they found that the office furniture market has become a major part of its sales.
However, as commercial customers want to put this kind of office furniture at work, there is a crossover --at-
Family staff residence.
\"We also found that the company is buying our furniture to put in the staff\'s home,\" adds Design President Jeff Noemi . \".
\"They found it more cost-effective and cost-effective for some workers to work from home.
Los Angeles representative Steve lartonderisZ-
The boy contracted furniture company said that while 85% of its first RTA product was mainly sold to the Home Office, \"The beauty of this product is that it works in satellite offices, insurance companies, too, and enterprises that provide accommodation to employees.
\"Another sign of the growth in RTA office furniture is the commercial office assembly workload we are preparing to assemble, a Atlanta-based National Assembly company, with half of its operations in the office.
\"We are doing about 50% businesses and 50% homes,\" said William Boyce, chief operating officer of WRTA . \".
\"We see more small businesses.
Kandrac of Altatech said: \"Improving the quality and convenience of assembly, while the cost is the most important factor for many company buyers and business owners, they are also attracted by the improved quality, today\'s RTA office furniture products are easy to assemble and add options and style.
Boyce said he saw fewer and fewer damaged goods and fewer incomplete orders.
\"I have been in the retail industry for 18 years and the quality has indeed improved,\" Boyce said.
I remember some early KD products, just no comparison.
\"This improvement is partly due to better
Products, but also from higher demand commercial consumers.
\"Consumers need more as prices go up,\" said Mr Singh . \".
\"We are selling some commercial office products up to $2,000, which they expect to last for years when consumers spend $2,000.
\"In addition, today\'s products are easier to assemble, and this information is not lost in the promotional literature distributed by these RTA companies.
Altatech is proud to claim that only one Allen key is needed to assemble and disassemble the product, and BoxOffice Design says no tools are needed to assemble the product.
On the other hand, Steelcase also considers the ease of use of its products --of-
Although most of its products are assembled for customers by dealers and distributors, Assembly is a selling point.
\"If you ask the dealer if they want to ship the item to them fully assembled or RTA, his first reaction would be to fully assemble,\" Malnor said . \".
\"But if you tell him that his cost would be 10% lower and it would be easy to assemble, then the answer might just be \'rta \'.
You have to make it a business case.
RTA-\"continue to attract new styles/and options for new customersfor-the-
Office companies are increasing their product line.
At NeoCon, many companies have introduced new options and looks, which seems to be just the beginning.
Altatech currently has 25 SKUs in its product line, but plans to launch new products every quarter.
Steelcase has just launched a new return set La-Z-
Boys are rolling out six new SKUs, box office has introduced a new credenza through design, and Sauder has just launched many new ones for its two office furniture products that are already widely collected
\"The personality of emerging growth companies has changed a bit and design is more important,\" says Malnor of Steelcase . \".
As businesses buy more and more RTA products, the face of distribution begins to change --
Just like the residential furniture industry.
According to BIFMA Statistics, sales through retail channels such as office supermarkets and warehouse clubs have been rising.
From 1995 to 1996, sales from \"mega\" dealers through these office products range from 8. 0 to 8.
4%, while sales through supermarkets, warehouse clubs and other mass goods merchants range from 5. 9 percent to 6. 3 percent.
At the same time, sales of aligned contract office furniture dealers declined.
Nevertheless, sales of these dealers still account for more than 50% of the total office furniture market.
This subtle shift is the latest development, says Leiden.
He said: \"12 to 15 years ago, those office supermarkets did not exist . \"
\"This is a big distribution channel for some manufacturers.
Companies such as Sauder and Bush are likely to benefit a lot from the move.
\"For us, distribution has a lot of advantages over manufacturers with good cases,\" said Meisinger, \"because we can take a pre-
The assembled boxes are not good.
Our distribution base is much broader than they usually do.
\"However, companies like Altatech do not have this advantage, so it turns to the Internet, the catalog, and the secondary store as an alternative to selling products.
\"As a manufacturer, my biggest challenge is to bring my products to market,\" says candarak . \".
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