28 November 2003
	EXECUTIVE OFFICE FURNITURE Overview NO SOLID NUMBERS By Dave Pincus No-one can say how big the industry is, and the jury is likely to be out for a while

It's strange that an industry as important as office-furniture manufacturing should be so fragmented. Unlike motor manufacturing, for example, which is represented by the National Association of Automobile Manufacturers of SA (Naamsa), it does not have a body that collects and correlates data concerning its activities. It is therefore impossible to say how big the industry is, or whether it is growing or contracting. Richard Davidson, MD of top-end manufacturer the Office Portfolio, says: "The size of the industry has declined, particularly at the upper end. Five years ago, there were factories that employed 500 workers or more, but several have rationalised or closed down." However, Clive Vidergauz, director of middle-of-the-range Celebrity Engineering says: "Demand is growing, but I can't say by how much. We have too many individuals in the industry to form a representative body." Cecil Nurse Business Furniture MD Robbie Bergh estimates that "at retail level, it's probably worth between R1,5bn and R2bn". Bergh's company could be considered the biggest office-furniture retailer in the country. It has 13 branches and also owns Budget Desks & Chairs, which sells secondhand furniture. It has 330 employees and 60 subcontractors on a full-time basis. It holds stock worth R30m, and turnover for the past financial year to June 2003 was R232m, up R57m on the previous year. Bergh believes the industry is growing, but is also unable to quantify the growth. He does say, however, that taking a six-month time lag into account, the industry' s growth is linked to that of the building industry, as new buildings need new furniture. Bergh says Waltons and Work Holdings (the former Grant Andrews) are his biggest opposition, and his 13 branches compete with local companies that have premises and carry stock. "But," he says, "there are also dozens of brokers who look at companies' requirements and source from factories, not from retailers". But Bergh has also another problem. Cecil Nurse Business Furniture is the only company in SA that sells from a comprehensive catalogue, which is a good source of business, but, according to one manufacturer, "it's also a great source of business for many manufacturers". Pointing to a row of factories down his street, he says, "I'll guarantee you that every one of them has a Cecil Nurse catalogue, and when they need office furniture, they call in a dealer or a broker, point to what they want in the catalogue, and tell them: Get something like that for us, but cheaper.'"