Suppliers linger in doldrums while office space increases
With the explosion of new office space in Warsaw, and an estimated 150,000 square meters still available, office suppliers should be gearing up for record sales but that's yet to happen.
Most companies have reported the market to be ticking over, but not growing by as much as expected although there are exceptions. Nowy Styl and Potamkin International both reported growth, with the former up 15.3% to zl. 249 million ($57.9 million) in revenue and the latter up 30.8% to zl. 50.9 million ($11.8 million) in revenue last year.
"Sales are even, but we have had no boom in the office furniture sector," said Marek Poniewierka, commercial director at Bene, which supplied Lukas Bank, Dewey Ballantine and Societe Generale with their furniture.
For Iwona Cendecka-Kazimierczak, Haste International's designer and sales representative, it's a question of budget. Not every company can afford to buy new furniture, especially when new floor space is more than 1,000 square meters. An average workstation costs zl. 1,500-zl. 3,000, and companies with more than 100 employees can end up looking at huge bills. "A mishmash of furniture can be troublesome, but furniture suppliers have to be flexible," Cendecka-Kazimierczak said, adding that furniture can be replaced gradually.
"With high rents, it's sometimes hard to do everything new. Only start-ups have to furnish offices from scratch," said Piotr Harasiewicz, key account manager of Martela Design Center, which services Ytong, CB Richard Ellis, Euromedical, Sony and Heitman, among others.
Nevertheless, some companies tend to be more generous with their money. Law firms, pharmaceutical and insurance companies, banks and representative offices make the best clients for office furniture. "We don't really care about the price," said one source (who wished to remain anonymous) from Millennium bank. "It just has to be good."
Most companies view buying furniture as a long-term investment. "It's not replaced every two years," Poniewierka said. As a result, firms are more concerned with quality than price. "The most frequently posed questions are, 'What's the quality of this system? Do I have a warranty and service?'" Harasiewicz said. Many companies go for more expensive, but more representative office furniture. "Price goes with quality," said Jaroslaw Nowacki, director of branch development at Lukas Bank.
Companies dealing in office furniture also often offer other services, such as space arrangement, accessories and post-warranty services. Good design, ergonomics and quality had to be incorporated into the furnishings at Lukas Bank, Nowacki said, which was specifically developed as a client-friendly retail bank. "We wanted something unconventional and artistic. Colors and shapes that are ahead of the time," he said.
As with any fashion accessory, trends in office furniture change frequently. Many companies want specific styles. "There are obvious differences in the arrangements of office space, and the materials and colors used," Poniewierka said. He said law firms tend to focus on heavy, dark furniture, which conveys a certain amount of prestige. "Dark wooden furniture is classic and elegant, there's no extravagance here," said Anna Hytryn, office manager of law firm Dewey Ballantine.
Law firm Gide Loyrette Nouel is an exception. The company recently furnished about 1,000 square meters of space for over zl. 500,000. The office, equipped with furniture bought from Steelcase Straford, is in white and blue with light brown wood. "I think it's cozier, both for us and for our clients," said Stanislas Dwernicki, the firm's managing partner.
Commercial banks and media companies also tend to want to be modern, and emphasize bright colors, aluminum, and wooden details. "You can find really hip solutions," Poniewierka said. He added that modern furniture brings to the fore the individuality often lost in huge offices.
Advertising agencies and promotional companies have the quirkiest designs. Kidney-shaped desks and feng shui arrangements are not yet the norm, but are becoming increasingly popular. "A well-planned design is expensive, but it's worth it," Poniewierka said. It promotes a professional appearance and fosters a good atmosphere among employees, he said.
