The office and contract industry index remained steady in January 2012, according to the MADA / OFI Trends Survey, a tool designed to measure the current business activity of the office furniture industry and its suppliers by Michael A. Dunlap & Associates, LLC. This survey was completed during the month of January 2012. This is the third quarter in a row that has seen improvement.
The January 2011 Overall Survey Index is 54.46, compared to 56.36 in October 2011, 55.57 in July 2011, and 55.38 recorded in April 2011.
“Although this represents a slight decrease, it is very modest. The steady index during the past 12 months indicates that the industry is still on solid ground and on a positive track.” Mike Dunlap commented.
The survey focuses upon 10 key business activities, with respondents rating each area on a scale of 10 (the highest) to one (the lowest). The business activities are Gross Shipments, Order Backlog / Incoming Orders, Employment Levels, Manufacturing Hours (Overtime vs. Reduced Hours), Capital Investment, Tooling Expenditures, New Product Development Activity, Raw Material Costs, Employee Costs, and the respondents’ Personal Outlook on the industry.
The Industry Index Number quantifies where the industry is currently performing on a scale of 1 to 100. In October 2011, gross shipments were about equal with the previous survey, employment index dropped slightly, capital and too,ing expenditures held steady, with new product development improving but below the average of all the previous surveys.
Dunlap stated, further “The weaker Gross Sales and Order Backlog index values are of some concern to me, as both have declined during the past two quarters. I am not worried about the very slight dip in the Employment or Hours Worked index values because both manufacturers and suppliers are hiring on all levels.
“The steady performance in Capital Expenditures, Tooling Expenditures, and New Product Development are encouraging, too. I am excited to see the steadiness in Raw Material Costs. Higher Employee Cost index values are always a concern and never seem to show a lot of improvement. Although still in the 40’s, they are much better than I had anticipated.
“The increase in Personal Outlook is very encouraging.”
The majority of the respondents cites increased energy costs, material costs, and increased health care costs as the “largest cost threats to the industry”.
For more information, see ww.mdunlap-associates.com.