Contents:

Executive Summary 1. Market Definition REPORT COVERAGE MARKET SECTORS Seating Panels, Screens and Other Office Accessories Desks and Tables Storage Units MARKET TRENDS Seating Panels, Screens and Other Office Accessories Desks and Tables Storage Units Economic Trends Overview Population Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 1998-2002 Gross Domestic Product Table 2: UK Gross Domestic Product at Current and Constant 1995 Prices (£m), 1998-2002 Inflation Table 3: UK Rate of Inflation (%), 1998-2002 Unemployment Table 4: Actual Number of Unemployed Persons (million), 1998-2002 Household Disposable Income Table 5: Household Disposable Income (£ and %), 1998-2002 MARKET POSITION The UK Overseas 2. Market Size THE TOTAL MARKET Table 6: The Total Apparent UK Office Furnitureand Accessories Market by Value at Current Prices (£m at msp), 1999-2003 BY MARKET SECTOR Seating Table 7: The Total Apparent UK Market for Seating by Valueat Current Prices (£m at msp), 1999-2003 Panels, Screens and Other Office Accessories Metal and Wood Table 8: The Total Apparent UK Market for Panels, Screens and Other Office Accessories by Value at Current Prices (£m at msp), 1999-2003 Desks and Tables Metal and Wood Table 9: The Total Apparent UK Market for Desks by Value at Current Prices (£m at msp), 1999-2003 Storage Units Table 10: The Total Apparent UK Market for Office StorageEquipment by Value at Current Prices (£m at msp), 1999-2003 Metal Table 11: The Total Apparent UK Market for Metal Office Storage Units by Value at Current Prices (£m at msp), 1999-2003 Wood Table 12: The Total Apparent UK Market for Wooden Storage Units by Value at Current Prices (£m at msp), 1999-2003 OVERSEAS TRADE Imports Table 13: UK Imports of Metal and Wooden Furniture,and Seating by Value (£m at msp), 1999-2003 Exports Table 14: UK Exports of Metal and Wooden Furniture and Seating by Value (£m at msp), 1999-2003 EU and Non-EU Import and Export Sales Table 15: EU and Non-EU Export and Import Sales (%), 1999-2003 3. Industry Background RECENT HISTORY NUMBER OF COMPANIES Table 16: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Office and Shop Furniture by Turnover Sizeband (£000), 2003 EMPLOYMENT Table 17: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Office and Shop Furnitureby Employment Sizeband (number of employees), 2003 Table 18: Number of Employees by Leading UK Manufacturersof Office Furniture, 2001 and 2002 REGIONAL VARIATIONS IN THE MARKETPLACE DISTRIBUTION HOW ROBUST IS THE MARKET? LEGISLATION KEY TRADe ASSOCIATIONS Association of Suppliers to the Furniture Industry British Contract Furniture Association British Furniture Manufacturers Furniture Industry Research Association Office Furniture and Filing Manufacturers Association 4. Competitor Analysis THE MARKETPLACE MARKET LEADERS Table 19: Selected Leading UK Suppliers of Office Furniture by Turnover and Pre-tax Profit (£000), Latest Financial Year End Dates Acco UK Ltd Company Structure Current and Future Developments Financial Results Bisley Office Equipment Ltd Company Structure Current and Future Developments Financial Results Black Arrow Group PLC Company Structure Financial Results Bullough Ltd Company Structure Current and Future Developments Financial Results Dam International Ltd Company Structure Current and Future Developments Financial Results EFG Matthews Office Furniture Ltd Company Structure Financial Results H Morris & Co Ltd Company Structure Current and Future Developments Financial Results Herman Miller Ltd Company Structure Current and Future Developments Financial Results Kinnarps (UK) Ltd Company Structure Financial Results Komfort Office Environments PLC Company Structure Current and Future Developments Financial Results Pentos Office Furniture Ltd Company Structure Current and Future Developments Financial Results President Office Furniture Ltd Company Structure Financial Results Project Office Furniture Ltd Company Structure Current and Future Developments Financial Results Senator International Ltd Company Structure Current and Future Developments Financial Results Steelcase PLC Company Structure Current and Future Developments Financial Results OUTSIDE SUPPLIERS Marketing Activity Table 20: Main Media Advertising Expenditureon Office Furniture and Storage Systems (£000), Years Ending September 2001-2003 5. Strengths, Weaknesses, Opportunities and Threats STRENGTHS WEAKNESSES OPPORTUNITIES THREATS 6. Buying Behaviour INTRODUCTION THE PUBLIC SECTOR THE PRIVATE SECTOR The Executive Market Middle Management The General Office The Home Office 7. Current Issues THE ROLE OF THE INTERNET PRODUCT DEVELOPMENT MAJOR TRENDS CONSUMER BEHAVIOUR CORPORATE ACTIVITY THE ENVIRONMENT 8. The Global Market TOTAL MARKET SIZE EUROPEan AND INTERNATIONAL MARKETS THE IMPACT OF THE EURO THE POLITICAL SCENE 9. Forecasts INTRODUCTION Table 21: Forecast UK Gross Domestic Product in Real Terms (%), 2003-2007 FORECASTS 2004 to 2008 Table 22: The Forecast Total Apparent UK Office Furniture and Accessories Market by Value (£m at msp), 2004-2008 FUTURE trends Refurbishment and New Office Construction Homeworking Changes in Legislation 10. Company Profiles Acco Uk Ltd Bullough Ltd Efg Matthews Office Furniture Ltd H morris & Co ltd Herman Miller Ltd Senator International LTd 11. Further Souarces Associations General Sources Government Publications Bonnier Information Sources

Summary:

We estimate that, in 2003, the apparent UK market for office furniture and accessories was £1.18bn at manufacturers' selling prices (msp), a decrease of 1.8% on 2002. In 2002 and 2003, there was a steep downturn in demand for office furniture in the UK and worldwide, as a result of the deterioration in economic conditions and delayed decisions relating to investment in new office construction and office refurbishments until the return of more favourable conditions. Between 1999 and 2001, the apparent UK market for office furniture increased by 19%, although between 2001 and 2003, it fell by 18.3%. Many new offices — and speculative offices that are still undergoing construction in areas that used to be in high demand, such as the M4/M40 corridors and central London — remain unlet. Even if the high gross domestic product (GDP) rates that are predicted by the Government for 2004 and 2005 are reached, there is little prospect of a quick recovery in demand for office space, as a result of the major changes taking place in the commercial sector of the service economy. It is evident from the various pronouncements made by companies with a large labour force that a rising number of routine service-sector jobs are being moved overseas to benefit from lower costs — a trend that is also evident in the manufacturing sector. Relocating overseas has serious implications for office furniture manufacturers, as it is likely to adversely affect demand in the domestic market. Although the commercial sector is contracting, the public sector is expanding as a result of investment in service jobs. A major reorganisation of the National Health Service (NHS) is under way and a large number of civil service jobs from the various Ministries are to be relocated from London to the regions. In addition, expenditure on services such as education and the police has grown, as greater emphasis is being placed on improving their performance. Inevitably, this will lead to an increased demand for office space. The rapid application of new technical developments in communication networks has led to the rise in the number of people working from home and away from a fixed office location. Demand for dedicated home-based office furniture is expected to grow rapidly, as more companies encourage people to work away from the office. In addition, flexible working and multitasking is increasing, which might change the type of furniture that will be required in the future. Over the next 5 years, sales of office furniture are expected to rise steadily and, overall, between 2004 and 2008, the market is forecast to grow by 20.9%. Growing demand in the public sector and from home office workers is likely to outweigh the negative effects of some job losses in the commercial sector, which might be recouped over time.