You Can Expect The Commercial Furniture Market To Bounce Back Despite the COVID-19 Crisis

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You Can Expect The Commercial Furniture Market To Bounce Back Despite the COVID-19 Crisis
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The COVID-19 crisis has hit us all very hard indeed but despite the devastating level of damage the virus has reaped across the US it’s good to know that we are moving closer to the light at the end of the tunnel.

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Impending Positivity

This feeling of impending positivity is certainly beginning to be felt in the commercial furniture industry, an industry that has done well to adapt and adjust according to imposed regulations that have hit businesses throughout the country, and we expect the whole market to move forwards in the coming months and years.

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Commercial spaces of all types have had to evolve to deal with the ‘new normal’ and that has impacted on the usage of space as a whole as well as adjustments having to be made with the actual layout of businesses whether that’s for the sake of keeping employees safely apart or for keeping customers spaced effectively.

Essentially guidelines were developed with the specific purpose of limiting access, and close proximity, between individuals and the furniture market has had to develop new ideas to help creatively manage the situation.

Though we are hopefully moving to a more moderate approach to the way we deal with the health crisis that has come with the coronavirus pandemic it’s fair to say that the situation will be with us for a few years to come and furniture manufacturers who learn to best market the situation will perform the most successfully.

Restaurants Were The Hardest Hit Industry

In the restaurant industry we’ve seen a marked drop in customers ‘in-house’ and the level of occupancy in establishments has had to reduce drastically, by more than half in most cases, however outdoor areas have been used expertly to help pick up the slack and commercial furniture retailers have the skills to change their collective outlooks.

The restaurant industry was certainly one that was hit hard over the past year and the sheer scale of the pandemic was indeed above and beyond any crisis for a century, but even in this harsh environment there have been winners as well as losers.

Industry professionals and relevant marketing professionals estimate that their will be huge growth in the commercial furniture market up to 2025 and that among those predicted to do well are the behemoths in the space, such as IKEA and Home Depot but more bespoke retailers can also expect to see an upsurge as we drag away from this current crisis.

Just as open office space, which helps in the act of spreading those in the work area, has led to a change in style and commercial realignment for the office area, so should we expect commercial furniture for the restaurants and other culinary areas to change the way they think and fill relevant areas and spaces.

The Luxury Furniture Market Is Expected To Grow

The luxury furniture market is expected to grow by 4.1% in the coming year and this market supplies the high-end commercial sector, which in turn covers a portion of the restaurant industry and perhaps this speaks to how being clever with spacing can also be dealt with in a high-end manner.

The overall office furniture market is similarly expected to surge, with a CAGR of above 6% being forecast, and this is also a sign that the way we work, across all niches, is changing the way we work as a whole.

It’s likely that the retail experience as a whole will adjust, large mall settings may experience some drop off as people seek to avoid large gatherings, and indeed this could aid smaller businesses on the high-streets, and restaurants that are situated in less crowded areas.

Our entire day to day experiences, both as workers and consumers, is likely to experience a significant seachange in the next decade and the office and commercial furniture sector will look to design and plan accordingly as we as a whole get about our lives in a positive trajectory.

The struggle that marked our first year of the COVID-19 crisis was always going to be the biggest obstacle to overcome and the coming year will show how resilient and intelligent we can be as we go about making the most of the new situations, when it comes to both work and pleasure, to bring us back on the right course.

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Ankur Shah is the founder of the Value Investing India Report, a leading independent, value oriented journal of the Indian financial markets. Ankur has more than eight years of equity research experience covering emerging markets, with a focus on India and South East Asia. He has worked as both a buy-side investment analyst for a global long/short equity hedge fund and a sell-side analyst for an emerging markets investment bank. Ankur is a graduate of Harvard Business School. You can learn more about his latest views on global markets at the Value Investing India Report. -- He can be emailed at [email protected]
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