overview of the european office furniture market with implications
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1© Copyright CSIL
Overview of the European Office Furnituremarket with implications of the economicslowdown
CSIL Centre for Industrial StudiesCorso Monforte 15, 20122 Milano, Italytel.+39 02 796630 - fax +39 02 780703
[email protected] - www.csilmilano.com
FEMB Congress - Stresa, 10 September 2009
Mauro Spinelli
Business Consulting Unit
Overview of the European Office Furniture market with implicationsof the economic slowdown
CSIL – Centre for Industrial StudiesCSIL – Centre for Industrial Studies
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Overview of the European Office Furniture market with implicationsof the economic slowdown
MAIN AREAS OF CSIL’S ANALYSISMAIN AREAS OF CSIL’S ANALYSIS
HomeHome
KitchenKitchen
Upholstered furnitureand mattresses
Upholstered furnitureand mattresses
OfficeOffice Lighting fixturesLighting fixtures
Household appliancesHousehold appliances
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Overview of the European Office Furniture market with implicationsof the economic slowdown
a
• CSIL reports cover 60 countries for the FURNITURE INDUSTRY, selected on the basis of size of the economy, importance of the furniture sector and contribution to world furniture trade.
Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, United Kingdom plus Norway and Switzerland. Central and Eastern Europe Czech Republic, Hungary, Poland and Romania.Eastern Europe outside the EU: Russia and Turkey.Asia and Pacific : China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.Middle East: United Arab Emirates.North America :United States.
COUNTRIES COVEREDCOUNTRIES COVERED
• Specific OFFICE FURNITURE expertise in:
• Forthcoming reports on OFFICE FURNITURE:
…Ukraine & Russia, Japan, Libya and Morocco
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Overview of the European Office Furniture market with implicationsof the economic slowdown
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SANTA MARGHERITA LIGURE - 1988
LONGSTANDING COOPERATION WITH FEMBLONGSTANDING COOPERATION WITH FEMB
…. STRESA - 2009
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Overview of the European Office Furniture market with implicationsof the economic slowdown
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WORLD ECONOMY: where markets are goingWORLD ECONOMY: where markets are going
Source: IMF
GDP, 2008 and projections 2009-2010. Percentage (%) change
EURO AREA
Germany
France
Italy
Spain
2008
0.8
1.3
0.3
-1.0
1.2
2009
-4.8
-6.2
-3.0
-5.1
-4.0
2010
-0.3
-0.6
0.4
-0.1
-0.8
UNITED STATES
JAPAN
UK
CANADA
1.1
-0.7
0.7
0.4
-2.6
-6.0
-4.2
-3.0
0.8
1.7
0.2
1.6
RUSSIA
BRAZIL
2008
5.6
5.1
2009
-6.5
-2.3
2010
1.5
2.5
CHINA
INDIA
MIDDLE EAST
9.0
7.3
5.2
7.5
5.4
2.0
8.5
6.5
3.7
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Overview of the European Office Furniture market with implicationsof the economic slowdown
Source: Eurostat, OECD
Selected indicators, forecasts 2009-2010. Percentage (%) change
EUROPE: where markets are goingEUROPE: where markets are going
Germany
France
Italy
United Kingdom
Spain
Poland
Czech Republic
2009
-0.5
0.2
-1.7
-3.4
-3.1
0.6
0.2
2010
-0.7
0.3
0.2
-1.5
-1.1
0.2
0.3
PRIVATE CONSUMPTION
TOTAL INVESTMENTS
NON RESIDENTIAL INVESTMENTS
2009
-2.8
-3.6
-4.6
-9.0
-9.2
4.0
5.0
2010
1.2
2.1
2.1
-0.5
-2.7
3.2
5.3
2009
-4.3
-3.9
-5.9
-8.8
-5.8
n.a.
n.a.
2010
1.0
3.0
2.6
0.4
-0.4
n.a.
n.a.
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Overview of the European Office Furniture market with implicationsof the economic slowdown
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Office furniture: Europe & selected countriesOffice furniture: Europe & selected countriesMAIN EUROPEAN EXPORTERS
Exports (Bil.€):
Germany
Italy
Sweden
UK
Austria
Source: CSIL processing
2004 2008
2.2 3.0
% shares
2004 2008
22 24
22 22
9 10
8 6
4 6
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Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Trade: Trade: Europe. Office furniture. Exports by destination 2003-2008. Percentage (%) values
0
10
20
30
40
50
60
70
European Union(15)
New EU Members(12)
Norway &Switzerland
OtherEurope+Russia
North America Middle East Asia-Pacific Other Countries
2003 2004 2005 2006 2007 2008
Source: CSIL processing Eurostat figures
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Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Trade: Trade: Europe. Office furniture. Exports outside EU 15 area 2004-2008. Million Euro
Source: CSIL processing Eurostat figures
0
20
40
60
80
100
120
140
160
Russia UnitedStates
United ArabEmirates
Poland CzechRepublic
SaudiArabia
Angola Romania Qatar Hungary
2004 2005 2006 2007 2008
The Gulf Countries becomea prominent exporting area outside EU 15
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Overview of the European Office Furniture market with implicationsof the economic slowdown
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Office furniture: Europe & selected countriesOffice furniture: Europe & selected countriesMAIN EUROPEAN IMPORTERS
Imports (Bil.€):
France
UK
Germany
Belgium
Netherlands
Source: CSIL processing
2004 2008
7.6 9.4
% shares
2004 2008
15 15
17 13
13 12
10 10
7 8
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Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Imports from Asia-PacificImports from Asia-PacificEurope. Office furniture. Imports from Asia-Pacific 2004-2008. Mil Eur
0
50
100
150
200
250
2004 2005 2006 2007 2008
Office Furniture
Office Seating
Over the last 5 years China became the first office seating supplier for: UnitedKingdom, Germany, Italy, Spain and Greece.
Source: CSIL processing Eurostat figures
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Overview of the European Office Furniture market with implicationsof the economic slowdown
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Effects of the economic recession: Effects of the economic recession:
Source: CSIL processing Eurostat figures - Note: EU 15
Europe. Office furniture. Imports and Exports monthly figures, January 2008 – April 2009. Million Eur
120
140
160
180
200
220
240
260
280
300
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
Exports Imports
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Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Main exporting countries. Office furniture. Exports January – April 2009, compared to the same period of 2008. Percentage (%) change
Source: CSIL processing Eurostat figures
Effects of the economic recession: Effects of the economic recession:
-8Austria
-31United Kingdom
-26Sweden
-25Italy
-22Germany
COUNTRY % change 09/08
© Copyright CSIL
Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Source: CSIL processing Eurostat figures
Effects of the economic recession: Effects of the economic recession: Main importing countries. Office furniture. Imports January – April 2009, compared to the same period of 2008. Percentage (%) change
COUNTRY % change 09/08
-20Netherlands
-25Belgium
2Germany
-39United Kingdom
-19France
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Overview of the European Office Furniture market with implicationsof the economic slowdown
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Combined performance of 4 leading players in the office furniture industry. First Quarter 2009 -vs- First Quarter 2008
Source: CSIL processing
Effects of the economic recession: Effects of the economic recession:
Turnover
Gross Profit
EBTDA
-31%
2008 2009
-27%
-93%
Pressure on company marginsdue to reduction ofrevenues…
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Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Product tendencies: Product tendencies:
Source: CSIL processing
Europe. Office furniture. Breakdown of production by segment, 2008.Percentage (%) shares
40.0
27.3
15.5
6.0 5.6 5.5
operative desking seating filing/storage communal areas wall to wall units executive furniture
FILING and COMMUNAL AREAS, the best performing segments
© Copyright CSIL
Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Office furniture:…just one sector? Office furniture:…just one sector?
© Copyright CSIL
Overview of the European Office Furniture market with implicationsof the economic slowdown
a
Office furniture:…just furniture? Office furniture:…just furniture?
? ?
© Copyright CSIL
Overview of the European Office Furniture market with implicationsof the economic slowdown
a
ConclusionsConclusions
• MARKET: financial conditions improved more than expected, but recoveryremain discontinuous and unequal among markets.
• SECTOR: for office furniture a “delayed reaction to crisis” does not mean“delayed reaction to recovery”.
• COMPANIES:
Geographical diversification (still remain foundamental)
Product developement (pedestals….towers…..caddies….?)
Sector expansion (office is just furniture?)
Distribution, different solutions for different targets
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