Howsmon's Office Interiors closes Springfield location

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Effects of the declining office furniture shipping business hit home last week as Howsmon's Office Interiors closed its Springfield store at 3045 E. Chestnut Expressway, Ste. L.|ret||ret||tab|

Owner John Howsmon, who also operates a Joplin store, said eliminating the Springfield location reduces overhead during a difficult time for office furniture dealers. |ret||ret||tab|

"We're just trying to respond to changes in the market with changes in our cost structure," Howsman said.|ret||ret||tab|

The Joplin store remains open and will serve Springfield, he added. The closure eliminated five jobs.|ret||ret||tab|

A substantial industry growth trend in the late 1990s has suffered a reversal in the last two years due to decreased capital spending and shrinking work forces, according to Howsmon and an industry association.|ret||ret||tab|

The national industry is coming off back-to-back years of declining values for new office furniture shipments in the United States, according to the Business and Institutional Furniture Manufacturer's Association, a nonprofit industry trade association based in Grand Rapids, Mich. |ret||ret||tab|

The value of new office furniture shipments in 2002 totaled $8.89 billion, compared to $10.98 billion in 2001 and $13.29 billion in 2000. Last year's 19 percent decline in shipments represents the largest reduction since 1981, when BIFMA began tracking shipment volumes.|ret||ret||tab|

The result is greater pressure on office furniture dealers. |ret||ret||tab|

"The declining market value is increasing the competition for everyone," said Tom Reardon, executive director of BIFMA. "Everybody is fighting harder to get business."|ret||ret||tab|

Reardon blames a number of factors; chief among them are the recession and reduced capital expenditures. Reardon also cited foreign competition and busts in the technology and dot-com sectors.|ret||ret||tab|

"There are a whole lot of factors coming together that have really put a hurt on this industry like never before," he said. "Anytime you get into tough economic times we saw it 10 years ago in 1990-1991 when this country went through the last recession things get tight and budgets get squeezed."|ret||ret||tab|

However, the decline of shipments in 1991 was much less severe, with manufacturers shipping only 8 percent less product than in 1990.|ret||ret||tab|

"There's been a dramatic swing in terms of people's budgets and people's desires for high-quality furniture," Howsmon said. "It is difficult to sell furniture to companies that have excess furniture sitting around because they have downsized." |ret||ret||tab|

The problem begins at the manufacturing level. |ret||ret||tab|

"The manufacturers have all downsized, eliminated jobs and closed facilities," Reardon said. "What we're seeing at the dealer level is a continuation of what's been happening at the manufacturing level for the last two years."|ret||ret||tab|

Bill Abbott Sr., president of Springfield Office Supply Inc., has found the recession to be less severe on his company because it sells mid-priced office furniture.|ret||ret||tab|

"It hasn't hit us as bad as those that handle A-grade (product)," he said. "The competition is getting stronger because (high-end sellers) are out trying to get business by lowering prices."|ret||ret||tab|

Howsmon sells upper-end lines, such as Steelcase. |ret||ret||tab|

Like many big-name office furniture manufacturers, Steelcase has downsized in the last two years. Since 2001, the company has released more than 1,000 employees and consolidated several operations. |ret||ret||tab|

Howsmon added that the closure of his Springfield location also was in response to customer ordering tendencies.|ret||ret||tab|

"With the Internet and customers ordering over the cell phone, there is less and less need for bricks and mortar," Howsmon said. "We're just trying to reduce overhead."|ret||ret||tab|

According to Howsmon, Internet sales are growing by 20 percent a month. However, overall sales productivity and net profits are down.|ret||ret||tab|

A positive area for the industry is the refurbished office furniture market. Reardon said as companies downsize, their unused office furniture is shipped back to manufacturers to be refurbished and resold at discounted prices.|ret||ret||tab|

"It is more economical but it certainly does cut into the new furniture volume."|ret||ret||tab|

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