The annual gathering of dealers took place in Memphis late October with attendance up by 10%.  Even Elvis showed up!

Over 500 dealer representatives assembled for the OFDA Conference October 27, for a discussion on the "Future of the Industry - Manufacturer Executives Panel."  The panel was comprised of Russ Minick, The Gunlocke Company; Mark Nemschoff, Nemschoff; Mike Love, Steelcase Design Partnership; Dave Burdakin, The HON Company; Al Lanning, Haworth; Alan Breslow, Global; and Dan Miller from Kimball International.

The panelists delivered much the same message as last year: that services can differentiate dealers in the marketplace.  Alan Breslow outlined a number of such services, including the suggestion that a dealer become a resource for information and services.  Breslow also added that a dealer should be "creating your own brand identity, sell your ability to understand your customers objectives and don't just sell furniture.  Solve problems and use manufacturer support with dynamic sales tools, warranty and customization."

Al Lanning added that custom products can add significant differentiation against foreign competition.  "Manufacturers need to accelerate the reasons why customers chose us over foreign manufacturers.  Global competitors can only provide product through stocking programs."  He added that we need to reinvent solutions to keep from being knocked off by foreign competitors and that ultimately the ability to supply (workplace) knowledge will set U.S. manufacturers apart.

What makes one dealer more successful than another?  Three things according to Dave Burdakin. 1. Focus: Focus on schools, government, small business, etc. 2. Passion: Have a passion for the business, but more for taking care of your customer and 3. Courage: Have the courage to grow, enhance the buying experience, and offer value added services.

As for the future, Russ Minick believes there will be a continued move to more collaborative and group work.  The conference room is changing and the social aspect of work is also changing.  "There will be more hospitality and residential type spaces with more comfort like all the places that have Wi-Fi, it will be like being in Starbucks and Panera Bread."

Mike Love feels current and future technology in the form of flat screens, lighter products, mobile products and especially wireless will dramatically impact the office.  "We need to adapt as quickly as we can to the coming technologies and partner with technology companies to know what is coming out."

But even in the future old habits die hard.  As Mark Nemschoff reminded the audience, "This is a relationship business and it always will be."

Attending the OFDA Conference as a speaker and consultant to the industry, Jim Heilborn, President of Jim Heilborn and Associates said, "All the manufacturers today talk about providing service, but they talk about it in very generic terms.  They all use the same generic mantra.  It's not that they're wrong, but there is very little specificity and very little specific direction on how to implement it.

"A lot of manufacturers talk about doing focus groups and surveys, but feel they're not necessarily effective in getting that information to the dealers or helping them apply it," said Heilborn.

The industry needs to do a better job at gathering information.  I feel the lack of that information has created a knowledge gap.  We have a knowledge gap because the industry has lost seasoned professionals and new people to the industry don't know the questions to ask.  Dealers also are not spending the kind of money or time in training that is needed.

There is still a great deal of arrogance versus confidence in the market.  You need to buy from me because of my name versus being able to provide all the services." concluded Heilborn.

Meanwhile, Dave Burdakin, President of the HON Company, Executive VP HNI Corp., said he was optimistic about the industry.  "Yes, we are in a recovery.  Business is better across the board in both the public and private sectors and stronger on a national basis." " However, he added, raw material prices, steel and oil, are driving costs up across the board, all related materials are being impacted.  People can't avoid some price increases."

Burdakin believes there will be more focus on practical furniture and less on image.  Customers want to get their money's worth.  In the late 90s customers were buying for image, now they mostly want value, but are willing to pay for value added services.  HON believes R&D is critical to differentiate themselves and new product introductions are one way to do that.  "We approach R&D from the point of view of affordable innovation.  Customers want style, comfort and flexibility at affordable prices."  Burdakin sees continued moderate growth, but no spike in demand.

November 1, 2004  The Monday Morning Quaterback