Category Update

On the MOVE

With the prospect of a return to the workplace, what’s in store for the office furniture sector? OPI’s Michelle Sturman finds out...

It’s an intriguing undertaking to look back on what was written in OPI a year ago. Reading the Category Update for furniture in 2020 (see OPI July/August 2020, page 40) reveals that much of what was predicted then is now coming to bear. For example, hygiene protocols and social distancing prompting a change in office design, an increased focus on ergonomics and the rise of the home office.

However, many aspects were unforeseen. How could any of us have known back then – a mere few months into the COVID-19 pandemic – that we would still be battling the virus despite vaccination programmes? Additionally, in many areas of the world, the majority of office employees are continuing to work from home (WFH).

Interestingly, the term ‘hybrid working’ didn’t appear once in last year’s feature, whereas now it’s virtually the default phrase embedded in our office-related lexicon. It’s currently a defining factor in shaping the office furniture sector for the foreseeable future, but it’s not the only one.

A more (hopefully) short-lived determinant likely guiding the industry for the rest of the year is the ongoing supply chain disruption. It is causing issues from shipping product across the globe to transporting goods countrywide, even down to the last mile.

In the US, VP of Furniture Sales for S.P. Richards (SPR), Eddie Baird, sums up the problem: “It is a perfect storm of shortage of raw materials, containers and domestic truck drivers, railcar congestion and increasing fuel prices.

“For our private brand Lorell, we started moving pieces of production back to the US years ago as we felt a strong mix of domestic and import suppliers was needed. For the items that are still sourced from overseas, it has been challenging and is very fluid today.”

Baird notes that an aggressive inventory move a few months ago based on the expected return in demand is paying off, and customers will continue to see the benefit in the short term. “However, we do have challenges with high-velocity items as customers are coming to us because their traditional sources do not have product. This places an additional strain on our inventory because it is unforeseen demand. It is a good problem to have – sometimes!”

BREXIT BREAKDOWN

It is the same in the UK, according to VOW Wholesale Furniture Category Director Vanessa Warne. “At the start of the pandemic, demand forecasting was difficult as there was no real precedent for it. Fortunately, wherever there were stock shortages, we’ve been able to offer alternative items. More recently, the challenges have been centred around the lack of container space, rising shipping costs and port closures.”

The UK has suffered extra headaches from the invasion of red tape due to Brexit coupled with the rise in coronavirus infections at the start of 2021. Richard Costin, CEO of UK-based office furniture manufacturer Bisley, explains: “In January, at the start of Brexit and the height of COVID, we initially had 50% of drivers not wishing to take our shipments into Europe because of the new paperwork and testing at the French border. This was a challenge, but it is fortunately now back to normal, albeit with an increase in cost due to the required paperwork.”

Brexit-related expenditure has also risen for UK manufacturer Sit-Stand.Com as stock required for the German market, for example, must now be stored locally. It also has to supply Ireland from its warehouse located in Germany if necessary. “We cannot drop-ship from the UK anymore, so that’s an expense; it’s also reduced customer choice,” says Managing Director Gavin Bradley.

UK-based firms are not the only ones affected. Dutch ergonomic accessories manufacturer and designer Bakker Elkhuizen has experienced some difficulties transporting products to its UK customers, predominantly in Q1 of 2021. The issue has not come from the manufacturing and supply of items, but dealing with UK customs and capacity in the UK palletised delivery network, says UK Country Manager Steven Howe, adding: “Getting stock the last mile has probably been the most difficult part.”

RETURN TO GROWTH

Supply chain woes aside, growth is returning to the sector. Says Baird: “In Q3 2020, we saw growth in the furniture category through our e-commerce customers due to the WFH segment. At the same time, companies were pushing out their return to work plans as COVID continued to spike.

“Q4 was the typical seasonal decline and although e-commerce once more was strong,

dealers and their customers were still confined to home offices.

“2021 has started positively and continues to improve as the independent dealer business is returning, as are projects. We are currently outpacing our forecast and expect the year to finish strong.”

Warne echoes this sentiment, adding that VOW is fortunate to have a wide-ranging customer base that has been incredibly resilient throughout the pandemic. “Some have been able to maximise the opportunity of switching from face-to-face to online, and many customers have had really good furniture sales growth in the past 12 months. We fully expect this to continue as we enter the second half of 2021.”

Meanwhile, German office furniture manufacturer Wilkhahn has been helping its dealers to establish online shops and notes an increase in its own e-commerce business. Ultimately, according to Wilkhahn’s Director of International Communications and Public Relations Burkhard Remmers, the company planned for moderate growth this year, and it appears it’s on course to attain those goals.

A HYBRID MODEL

Part of this buoyancy can be attributed to a swift about-turn by manufacturers and dealers in terms of supplying customers with WFH furniture and accessories as workplace demand shrivelled. “We’ve experienced a huge surge in sales of our office chairs to homes as well as our dedicated home workstations for use in open or limited spaces,” notes Simon Howorth, Marketing and Sales Director for UK-based DAMS.

“Ongoing, we expect many businesses to adopt a hybrid work model, and anticipate sales for homeworking and office furniture to continue.”

SPR was already primed to take advantage of the WFH opportunity when it ramped up in 2020, having added a SOHO solution years ago. Baird believes WFH sales will continue to grow as more firms propose a flexible work schedule. “The hybrid work model is here to stay,” he adds.

For VOW, on the other hand, WFH represented an emerging market which made it necessary to respond differently as regards the type of items offered. According to Warne, new SOHO products were sourced and brought quickly to market. “These have now become part of our wider offering and featured in this year’s catalogue. We expect sales of home office furniture to persist, though perhaps not at the levels witnessed in 2020.”

Bakker Elkhuizen has equally seen huge demand for its mobile products such as laptop stands, separate compact keyboards and vertical mice for employees who required them in a home set-up. But, says Howe, even as offices begin to reopen, there’s still some hesitancy over the final decision on hybrid working for many companies. “I think a number of employers that have decided on flexible working protocols are those likely at the end of their office leases; others haven’t figured out their policies yet. They’re making preparations, but this could just bump along over the next few months, maybe longer.

“Many firms are struggling to envision what the office is going to look like as it depends on how many employees occupy the same space at any one time, the social distancing etiquette required, whether an HVAC system is necessary, etc.”

All this is necessitating a redesign of the workspace and the furniture utilised within it. But what will the post-COVID office look like?

AN ERGONOMIC FUTURE

It will incorporate several pre-coronavirus trends such as health and well-being, including hygiene and ergonomics, collaborative spaces and better awareness of hybrid working, all of which have been turbo-charged during the pandemic.

Baird says ergonomics still influence the seating and active office segments of the business and continue to grow. For Jim Foster, General Manager, Merchandising and National Accounts at HON, the demand for sit-stand will only accelerate. “Many people started this pandemic sitting at their kitchen table and are now more conscious of the need for ergonomic products.

“They may not previously have connected the reason they were able to work at the office for eight hours a day without backache, but now are in pain after a few hours at home due to an uncomfortable set-up. I think this will translate back into the office as employees insist on their well-being in the workplace as well as a better home solution too.”

Remmers agrees with Foster’s assessment. He believes many companies will try to improve the working environment – at home or in the office – specifically around ergonomic work solutions due to the associated days off related to back pain which increased during 2020. Likewise, Warne says sales are growing in this category, adding that most employers realise investing in a decent chair for the workforce can save money in the long run through a reduction in sick days and lost working hours.

Many companies are struggling to envision what the office is going to look like

Both Howorth and Bradley refer to the inactivity of homeworkers during the pandemic. According to Howorth, ergonomic office furniture is now being thought of as a long-term health investment. “The well-being of employees in the workplace is becoming more vital, and office furniture can play a huge part in helping to keep them happy and healthy.”

Bradley believes we are certainly more aware of the ‘sitting’ problem and the benefits of standing desks, and predicts a snowball growth effect with this knowledge. However, he says many people continue to search for office chairs that enable them to sit comfortably for longer, instead of looking for more ‘active’ seating solutions which encourage them to move more often and reduce prolonged sitting. “This is counterintuitive from our perspective, but it is a message not yet being delivered,” he notes.

Howe agrees, and adds that while seating represents a critical element of any ergonomic solution, it should be seen as just one part of the package. “People may have a great chair, but it has to be used in partnership with other ergonomic solutions including desks and accessories, which are equally as important.”

To this end, Bakker Elkhuizen has just launched its enhanced WORK & MOVE software which can record personal workstation settings as well as provide tips and reminders for healthier working and to encourage movement.

A COMFORTABLE SPACE

With a mass hybrid working model expected, signs point towards the office functioning primarily as a social and collaborative area. “I think you’ll see an increased resimercial aspect to the office to mimic the home space, as it’s more about having comfortable areas to work and impromptu spots where employees can move around. There will also be different privacy zones so people can have a videoconferencing call where they won’t disrupt anybody else at the same time,” states Foster.

“We’ve experimented with removing the traditional long conference table and replacing it with just individual chairs to enable social distancing and the flexibility to move around to facilitate requirements within that space. We’ve also looked at increasing the number of monitors to enable a more two-way conversation with those accessing a meeting remotely,” he adds.

Bisley’s Costin has identified a major focus by employers to provide staff with personal storage such as lockers with digital technology locks to eliminate any shared space. The company has recently launched collaborative and private meeting booths with personal storage.

“I believe social distancing will continue for some time, especially as staff must feel their employer prioritises their safety and well-being. Having pods and booths where people can collaborate, meet or focus on their individual work will remain a priority,” he notes.

Many offices will be different post-pandemic, that’s for sure. DAMS’ Howorth sums it up succinctly: “The most effective office spaces are characterised by division into distinct zones, supporting employees as they perform particular tasks. A modern layout encompassing private workspaces and collaborative areas, alongside breakout zones, can support how people work through freedom of choice, encouraging organic interaction and promoting movement.

“Moveable elements such as modular furniture or space dividers and screens will be critical. Additionally, an office should be adjusted to employees, not employers.”

THE SUSTAINABLE OFFICE

The issue of sustainability has been amplified by the pandemic and vendors and wholesalers agree it is integral to the design of the ‘new’ workplace. The increasing importance of this topic has led VOW Interiors to create a project team to look at the office furniture range in particular.

Explains Warne: “It’s not only about looking at the products, logistics, packaging, etc, but also at the services we provide and the impact on the environment. It is a full 360° review of where we are versus our vision.”

According to Howorth, environmental concerns are on the client agenda more than ever, and the company works “exceptionally hard to ensure it is doing the right things, in the right way”.

Foster concurs, saying the issue is being driven by customer expectations. “A lot of social changes have happened within the past 12 months or so, and a focus on the environment is one of those areas. I think there will be a lot more to come from the office furniture sector moving forward; it will definitely remain a priority for HON.”

Bisley’s Costin believes sustainability is a primary concern and companies need to move quickly to ensure they’re doing all they can or risk losing business. “For us, it’s both making certain that our facilities are as sustainable as possible as well as making sure our products last and are sustainably sourced.”

Ergonomic office furniture is now being thought of as a long-term health investment

For an interesting customer viewpoint on the creation of and the required products for a post-pandemic office, listen to the OPI Talk podcast Planning for a hybrid working environment – visit opi.net/podcast