Office and Store Fixtures, Partitions, Shelving, and Lockers, Except Wood

Industry Snapshot

The U.S. Census Bureau reported that 1,377 establishments produced showcases, partitions, shelving, and lockers in 2007. However, the census did not distinguish between wood and nonwood products. Combined industry shipments were valued at $8.0 billion, produced by a workforce of 45,920. About 75 percent of employees in the industry were production workers.

Organization and Structure

Most companies in the partitions and fixtures industry were originally organized into divisions reflecting their potential customers. In general, they focused on assembling and retaining a staff of highly skilled woodworkers. Research and development, marketing, and customer support typically did not receive a high priority, especially among smaller firms. Even in the early twenty-first century, only the largest companies can afford in-house staffs to handle those responsibilities.

Manufacturers of partitions, shelving, and fixtures usually reach out to their markets by advertising in trade journals such as Restaurant Hospitality, Chain Store Age Executive, and other publications aimed at business owners and managers. They sell to a wide range of customers, including major wholesalers, contract hardware jobbers, display and fixture jobbers, specialty wholesalers, independent hardware distributors, export outlets, government agencies, original equipment manufacturers, national mass merchants, large home centers, and building supply outlets.

Background and Development

The growth of the metal partitions and fixtures industry in the United States was directly related to the expansion of the retail segment of the economy and the development of new technology. After World War II, rapidly growing suburbs in the United States fueled the construction of large retail outlets such as supermarkets and shopping centers, which increased the demand for shelving and other fixtures. At the same time new manufacturing processes made it possible to craft fixtures and partitions from lightweight metal alloys to replace the standard wood fixtures. Metal shelves, cases, garment racks, and other products appealed to retailers because they were affordable and could be moved easily.

Demand for nonwood shelving and fixtures slumped in the early 1990s due to a recession but subsequently increased again. The highly competitive retail market and steady growth of the economy encouraged merchants to invest in new store fixtures to keep their product displays attractive and up to date.

Customization was a key word for retailers seeking a distinctive look to set them apart from their competitors. Flexibility was also important because few businesses were interested in buying fixtures that could not be moved or changed to accommodate different kinds of display inventory. Metal wire emerged as a particular favorite because of its high-tech look. Combinations of wire and other materials (mostly wood and Plexiglas) were also popular. This was partly due to the fact that metal products tended to cost less than wood because they could be manufactured quickly and efficiently, often on automated assembly lines.

Wire and wire combination products were popular among residential customers for shelving, storage components, and fixtures. These products were often used in closets, kitchens, baths, laundries, and garages and were available at various retail outlets. They offered a less expensive alternative to similar wood and laminated wood products, which appealed to a more upscale market.

The industry failed to experience any significant gains through the early 2000s, which was reflective of the general economy and a slump in retail corporate growth nationwide. The industry posted 2002 and 2003 sales that were equal to or less than those reached several years earlier, representing a 20 percent decrease in shipments from 2000. According to the Harris Information Group, weak numbers of new office construction projects and new hire freezes contributed to the decline. Hundreds of failed dot-com firms resulted in a glut of used office fixtures, and shelving stockpiled in warehouses around the country. In 2005, however, the industry experienced a 7.6 percent growth, reaching $9.2 billion in shipments.

Current Conditions

According to Dun and Bradstreet's 2009 Industry Reports, by the late 2000s approximately 1,294 establishments were producing nonwood partitions and fixtures in the United States. Total revenues in this category were $2.4 billion. New Jersey accounted for $322.5 million of the nation's sales, followed by California with $312.2 million, Texas with $311.0 million, and Illinois with $225.4 million. California also had many more firms in the industry than the other states (190 establishments); New York was a distant second with 92. About 77 percent of U.S. nonwood partition and fixture manufacturers were small, employing fewer than 25 workers.

Industry Leaders

Industry leaders in the office furniture and fixtures manufacturing industry included Haworth Inc. of Holland, Michigan, with 2007 sales of $1.6 billion and 8,000 employees; Steelcase Inc. of Grand Rapids, Michigan, which had sales of $3.1 billion and employed 13,000 in 2009; and Herman Miller of Zeeland, Michigan, with 2009 revenues of $1.6 billion and 5,229 employees.

One of the largest firms whose primary business fell into this category was Hoffman Enclosures Inc. based in Anoka, Minnesota. Hoffman manufactured primarily enclosures for electronic controls and electrical systems. Other leaders included Melrose Park, Illinois-based Interlake Mecalux Inc., which one of the largest producers of storage racks in the United States; Madix Inc., in Terrell, Texas, which produced racks, fixtures, displays, and storage products at four factories in Texas, Alabama, and Massachusetts; and Lozier Corp. of Omaha, Nebraska, which operated plants in Missouri, Utah, Nebraska, Alabama, and Pennsylvania and made shelving and storage products mainly for retailers. As a subsidiary of Marmon Group based in Paragould, Arkansas, L.A. Darling Co. manufactured store fixtures, shelves, racks, and point-of-purchase displays. Stanley Storage Systems Inc., a subsidiary of Stanley Works based in Allentown, Pennsylvania, was also a significant player.