Stronger Focus on Pricing in Public Sector Sales in 2011

Government, schools pushing for affordable furniture in wake of budget fights

OFM, one of the nation’s leading office and school furniture manufacturers, distributors, and wholesalers, predicts that public-sector buyers will push harder for lower prices this year due to the ongoing recession and fights over federal, state and local spending. That will mean a shift in the market to more affordable furniture options for government agencies, schools and colleges.

In response, OFM co-founder and chief executive officer Abel Zalcberg said the company will continue to focus on keeping costs down and provide better value to long-standing customers.

“There is still a strong need for new chairs, desks and other furniture in schools and government offices, but buyers will be more focused than ever on price,” he said. “The more time they spend looking at the options, the more likely they are to choose one of OFM’s affordable options.”

OFM predicts an overall five percent decline in spending on public sector furniture sales, with buyers spending more time looking at alternative suppliers and different product lines.

A family-owned business, OFM was started in 1995. Over the years, it has built up a sizable customer base of government agencies and schools selling chairs, desks, conference tables, storage systems, shelving units and more.

Summertime is typically a busy season in the furniture industry due to the fiscal year ending Sept. 30, meaning government agencies are typically active in July, August and September. Meantime, schools on average purchase in June, July and August when students are on break.

“People are still going to be looking for furniture, but they’re going to be more concerned about value,” he said. “Our longtime relationships with clients and our experience in manufacturing will help us keep costs down and still provide the quality products they need.”