- Tags : Office Management | Office Furniture Systems | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Office Furniture Systems
During the three years to 2017, office furniture system prices have been rising at an estimated average annual rate of 0.9% to reach about $2,000 per system. Due to the long and useful life of office furniture, demand tends to ebb and flow based on the economic climate. As economic activity has picked up, so has activity in key buying segments, including the healthcare sector and the education sector. As a result, demand has grown, pressuring prices upward.
Strong demand has been partially facilitated by the declining unemployment rate and a growing number of employees during the period. As a result, there has been an increase in demand as businesses have been purchasing a greater amount of furniture to accommodate more employees. Demand growth has led to rising prices, which have adversely affected buyers.
Moreover, trends in input costs have kept prices elevated. Although steel and plastic prices have been falling during the past three years, year-on-year movements in these costs have been highly volatile due to fluctuating global demand and rapidly changing oil prices. As a result, suppliers keep prices elevated to guard against input cost spikes that would hurt their profitability.
Fortunately for buyers, increased import penetration has facilitated price-based competition, helping temper the rate of price growth in recent years. High competition in the market has also helped keep price volatility low in the three years to 2017 despite volatile input costs, enabling buyers to more accurately budget for purchases. Nevertheless, buyers are encouraged to secure office furniture systems sooner than later because prices are forecast to rise through 2020.
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