CATEGORY UPDATE
Bouncing
BACK
As schools and universities return to the physical classroom, the education sector finally appears to be on a more stable footing – by Michelle Sturman
W
hile the coronavirus pandemic has presented everyone in our industry with a crazy time, you’ve got to feel sorry for and equally be full of admiration for those that had to deal specifically with the education sector. Highly irregular school openings and closures, and massively volatile spending patterns have been just two factors to deal with. Admittedly, 2021 was not as stop-start as the previous year as students returned to the physical classroom for lengthy periods. But it certainly hasn’t been easy, as plenty of those supplying the sector can confirm.
DISRUPTIVE FORCES In the UK, the education market is also buoyant. Speaking to OPI, Nick Cash, owner and Director of Nick Cash Agencies, which represents over 60 companies in the furniture and interiors market, reports that sales for its partners in 2021 increased above inflation, but were generally “a little more erratic than normal”. His expectations for 2022 are again above just inflation sales, although he says there are still specific challenges to deal with, such as changing school spending patterns and the reliable supply of components due mainly to Brexit and global shipping problems. “This has meant making sure suppliers are holding sufficient stocks; our stock levels are appreciably larger than before. “Along with this, partners are passing on price increases – sometimes monthly – which need to be transferred onto our customers.”
January/February 2022
GOVERNMENT AID Taking a broad overview of the vertical, sales last year substantially improved over 2020 and all the signs point to a very welcome bounceback in 2022. In the US, for example, federal action and funding have had a positive impact. Says Charles Forman, EVP Sales and Marketing at dealer organisation Independent Suppliers Group (ISG): “As of 24 November 2021, the Department of Education had already distributed two-thirds of the American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) funds, totalling approximately $81 billion throughout the country. A total of 48 ARP ESSER state plans have been approved since June, but with supply chain and inventory issues, not all funds have been used – many have been approved but are yet to be spent.” Eddie Baird, VP of Furniture Sales for US-based wholesaler S.P. Richards (SPR), agrees: “We feel educational spending will continue to rise over the next couple of years due to the stimulus packages put in place.” The sector has already performed exceptionally well for SPR during 2021. The company’s SVP of Merchandising Curt Small told OPI in December
that 2021 year-to-date pureplay education product sales for SPR had surpassed those in 2020 and even exceeded 2019 figures in both core education and educational furniture. Baird adds: “We have seen very strong sales in all brands of furniture that focus on education. Our ‘Classroom by Lorell’ experienced significant growth in student desks versus activity tables. Many schools were looking for additional desks to achieve social distancing in the classroom. Fortunately for us, we had increased our inventory at the beginning of the school year.” US education furniture specialist Whitney Bros also experienced an exceptional 2021. According to VP Sales and Marketing Brian Vaillancourt, sales volumes rose to their highest level in the company’s 117-year history: “For 2022, we are similarly bullish, with a strong pipeline of forward orders, robust demand for our collections, and the tantalising promise of the federal government funding Universal Pre-K – finally.”
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