Categorization from the Broader into More Specific North American Office Manufacturing Industry - Case Study Example

Office furniture industry Part II Grade (March 10, Office furniture industry Part II Scope and boundaries The Office furniture industry Part II is a continuation of the analysis of the North American office furniture industry, with a view to developing an appropriate strategy. The need to maintain the consistency of the analysis of the North American office furniture industry would require the continued focus on the office furniture industries in the United States and Canada. The scope of this paper seeks to first narrow down the industry categorization from the broader office furniture industry, into a more specific office manufacturing industry. This is because, the broader office furniture industry may consist of a range of product categories, which may include the office furniture specifically manufactured in the North American markets of Canada and USA, the office and furniture products exported into this region, as well as the office furniture exported to other regions from the USA and Canada industries (ABTV, 2014). Thus, by narrowing down the scope and boundary of this paper down to the specified manufacturing industry of the office furniture in North America, a comprehensive analysis becomes more feasible, since the focus will be specifically on the office furniture production in the USA and Canada. However, the scope of analysis will subsequently be narrowed down, to focusing specifically on the office furniture manufacturing industry in the United States. The office furniture manufacturing industry generated well over $25 billion in annual revenue in the year 2014, and the industry is still set to grow and expand further, reaching an annual revenue generation capacity of $25.4 billion by 2015 (IBIS World, 2014). The industry has provided employment to 104,609 people through direct employment, in addition to hundreds of thousands of others who are employed by the industry indirectly. The growth and expansion rate of the USA furniture manufacturing industry currently stands at annual rate of 3.8% growth per annum, while the numbers of business that are operating directly under this industry are estimated at 3,560 business, as per the statistics gathered by end of 2014 (IBIS World, 2014). The boundary of the scope of this paper will be set within the limits of the NAICS Code-3372, which covers the office furniture manufacturing (NAICS, 2014). This scope of boundary has been considered owing to the fact that it is comprehensively covering different types of furniture that are specifically manufactured for office use. Nevertheless, the scope of the boundary of this paper may also overlap the products categorized under the NAICS Code-337214, which covers the office furniture (except wood) manufacturing industry (NAICS, 2014). In addition, the scope of the boundary of this paper can also partly cover the products categorized under the NAIC Code-337127, which covers the institutional furniture manufacturing industry (NAICS, 2014). The choice of the scope of boundary of this paper to overlap the three industries as classified under the NAICS code is informed by the fact that some of the products under the office furniture industry may belong to either of these categories, making it difficult to specifically and exclusively attribute such products to a specific industry. For example, while the NAICS Code-3372 covers the products categorized and manufactured as office furniture, the NAICS Code-337214 covers the same office products that are categorized and manufactured as office furniture, only that it excludes wooden products (NAICS, 2014). Ultimately, it means that the products under the code-3372 will comprise of the entire products categorized under code-337214. In addition, there is some institutional furniture which is categorized under the code337127, which will also fall under the categorization of office furniture as classified under code-3372 and vice versa (NAICS, 2014). In this respect, it becomes necessary to focus on the office manufacturing industry in the USA, while also providing for the possibility of overlap of some of the office furniture products that might be classified under the other two industries. Thus, the scope and boundary of this paper is defined as covering the furniture products that are used in offices, which may include both the wood and the non-wood furniture products. The furniture are manufactured on both stock and custom basis, depending on the nature of the product, the target market or the customer specifications as contained in their orders (Veleris, 2013). Thus, the range of products that are covered under the scope of this paper may include the office chairs, tables, cabinets, desks and filing cabinets (NAICS, 2014). The products may also extend to drawing tables, benches and office trays, while also including the categories of tools and book stands, as well as office coffee tables and furniture (NAICS, 2014). Complementary Products Complementary products have been defined as the products that serve to increase the value of a product or a service, such that a product would be of less or no value without being used alongside the complementary product (Carbaugh, 2006). In this respect, a complimentary product will add to the value of another product offering, making the product more usable, than when it would have been consumed or used alone. The office furniture manufacturing industry would be a highly dysfunctional industry, without the support of other complementary industries and complementary products that are offered by different non-related industries. In fact, there has been a high tendency to hide office furniture under the complementary products, such that the most conspicuous items are the complementary products, at the expense of the furniture they sit on (ABTV, 2014). Therefore, while furniture is an important component of a functional office, it would not be of greater value without the accentuation of the complementary products. The range of complementary industries that help to improve add value to the furniture manufacturing industry include the paints and coatings industry, which provides the most essential paints, adhesives, timber finishes, paint thinners, stain removers, fillers and varnishes (Timetric, 2011). All the products become essential parts of the office furniture that would not operate if at all these products were not available, and even if it were to operate, the value of the products from this industry would be very poor. Therefore, the paints and coatings industry and its products has gone a long way in increasing the value of the office manufacturing industry, through ensuring that the quality and aesthetic value of the finished office furniture is highly desirable. In addition, it is courtesy of the products offered by the paints and coatings industry to the office manufacturing industry, that the different players in the industry, such as the manufacturers of the office furniture are able to distinguish and differentiate their products from their competitors (Veleris, 2013). This is because, depending on the finishing products that a manufacturer will apply to give the office furniture its final outlook, the works and products manufactured becomes unique and differentiable. The architectural industry is another industry that plays an important role in improving and enhancing the value of the office furniture manufacturing industry, through offering the industry a range of architectural designs that are applied on or in the production of the office furniture (ABTV, 2014). There is no doubt that an office chair, table or office cabinet would still be used even when it has no design that makes it look appealing. Nevertheless, owing to the fact that the office furniture are required mostly by the business community, the aspect of aesthetic value and visual appeal becomes important, since it determines the customer perception of an office (Veleris, 2013). Therefore, through the application of various architectural designs in the manufacturing of different office furniture or in the finishing of the furniture, the visual appeal and the aesthetic value of the office furniture is enhanced. The enhancement of the aesthetic value and the visual appeal of the office furniture do not only determine the value f the furniture, but also influences the mood of the furniture user, as well as offering an opportunity for motivation. Therefore, a company can just motivate a highly valued worker through furnishing the worker’s office with office furniture that represents high aesthetic value and sophisticated designs. In this respect, the architectural design products offered by the architecture and design industry helps in defining the value of the office furniture, which in turn offers the manufacturers of the office furniture a competitive edge, based on the nature of the architectural designs that the manufacturers are able to adapt for their furniture (Veleris, 2013). The use of paints, furnishes and thinners on the office furniture as some of the complementary products, coupled with the application of high quality and appealing architectural designs may improve the value e of the office furniture, but not to the extent attained through the use of interior décor services. Contracting interior decor services ensures that the office furniture is not only accentuated with the relevant complementary products such as flower vases and beautiful flowers, but that the office space is organized in such a way as to reflect more value (ABTV, 2014). Consequently, the fashion industry also contributes some products that are used to complement the office furniture, and thus add more value to the furniture products. References ABTV. (October, 2014). The American Furniture Industry: 2014 Industry Watch Update. ABTV Industry Watch Report. Carbaugh, R. (2006). Contemporary Economics: An Applications Approach. Cengage Learning. IBISWorld. (2014). IBISWorld Office Furniture Manufacturing in the US: Market Research Report. Retrieved from http://www.ibisworld.com/industry/default.aspx?indid=870 NAICS Association. (2014). NAICS Code 3372Industry: Office Furniture (including Fixtures) Manufacturing. Retrieved from http://naics-codes.findthedata.com/l/240/Office-Furniture-including-Fixtures-Manufacturing Timetric. (December 2011).Global Construction Paints and Coatings – Market Opportunities and Business Environment, Analyses and Forecasts to 2016. Timetric Global Sector Report. . Retrieved from www.construction-ic.com/uploads/report/1184/b88188cb-0a34-445e-a81f-e5d8a21309b2.pdf Veleris, J. (June, 2013). Thoughts on the USA office furniture industry: On Problems and Opportunities. JVA Partners Group of Companies. Read More