In the furnishings industry, it’s no secret that workplace furniture sales has struggled to recover after the pandemic and the work-from-home epidemic. Many manufacturers, dealers, and rep firms have had to turn to other vertical markets to stay financially healthy: Healthcare, Education, Government, Residential, and especially Hospitality.
This has certainly affected hiring in the industry. As a team of experienced industry recruiters, our clients ask to fill positions that follow the need. The requests to fill leadership, sales, design, project management, marketing, operations, product positions, and more that focus solely on the contract market have lessened while the focus on the vertical markets has increased.
The furnishing industry has seen a surge in hiring due to the market growth in vertical markets, especially residential and hospitality. Our clients have shared with us that, with the rise of remote work, online learning, and shopping, and essentially online everything, people are spending more time at home than ever before. This has prompted many to reflect on what is important to them, prioritize family time, and focus on health and wellness. As a result, the residential and, especially hospitality industries, have experienced a boom due to the renewed emphasis on spending quality time with loved ones.
An expert in the hospitality industry who prefers to remain anonymous states, “Over the past 3 years and moving into 2024, I attribute the growth to strong travel and tourism and a large backlog of renovations. Renovations volume is up due to tourism demand and delayed renovations coming back online after COVID.”
According to statistics provided by "Verified Market Resource," the Global Hospitality Furniture market is predicted to grow at a CAGR of roughly 4%.
by Verified Market Resource
Global Healthcare Market.
According to our friend Amanda Schneider and ThinkLab, “Corporate work (the largest sector) is down 13% since 2019 and is not expected to recover in the near future. In fact, a recent CBRE study suggested that 43% of corporate end users are planning to decrease their portfolio size by more than 30% in the next three years. So where are the bright spots? It’s no secret that hospitality was expected to have a boom (which is a bit more of a blip in ThinkLab data). 2023 actuals show that healthcare remained strong, though that may subside in 2024, while government and education have very favorable outlooks.”
Regarding Public Sector business, which includes the Education market, Steve Hindle, who has run this vertical for Teknion for over 20 years, offered the following comments: “The effect of COVID on our industry between 2019-2022 was significant. Commercial business across the US declined 25% or more with most manufacturers. Teknion saw a lower decrease in sales through this time with our Public Sector business. Education sales suffered as a result of the lockdowns, but Federal, as well as State and Local governments, pushed through with less impact as agencies were still funded through this period. Following the end of COVID, we have seen Education opportunities surge, and government continues to fund agencies federally, with state and municipalities through increased tax revenues.”. The aging of the largest generation, baby boomers, coupled with a general population living longer has also greatly contributed to growth in the Healthcare Industry. Lesley Roberts, National Director of Healthcare for Clarus, says, “The COVID-19 pandemic had a profound effect on the healthcare industry. However, innovation in healthcare business models, technological enhancements, and expansion in the continuum of care have created new business models for these healthcare systems. Acquisitions and new business building will increasingly be key success factors for the systems. Things such as diversification, vertical integration, new business building and renovations have greatly contributed to the growth in Healthcare furnishings sales.” The team at The McSweeney recommends that you stay informed and up-to-date with the latest research in the industry. If necessary, get training to shift your focus to high-demand areas. Build genuine relationships with key influencers in that space. Provide valuable information on social media and look for opportunities to be seen in the industry as a topic matter expert. For job stability and advancement potential, as always, be a standout performer and keep an eye on where the money is trending.
