The office furniture business is similar to the automobile industry. There are the big three North American based manufacturers (Steelcase, Haworth, Herman Miller), some second tier manufacturers (Furniture Source International, HON, Global, Knoll, Kimball), and literally hundreds of small manufacturers.

Just as a GM dealer cannot sell Fords or Chryslers, the big three furniture manufacturers do not allow their dealers to sell either of the other two's products. As a Haworth dealer, we enjoy the strength and growth of the second largest office furniture manufacturer in the world who is growing at twice the rate of the industry. However, we cannot sell Steelcase or Herman Miller products.

The Interior Design Industry

Interior designers come from all walks of life. They are self-governed professionals who design and plan the interior space of a building. Some work independently, some work for dealerships, and some work for manufacturers. Independent designers may not be up to date on the latest technology available from manufacturers to design and specify projects. Manufacturers' designers are very familiar with their own technologies and products, but not very familiar with those of their competitors. Designers within a dealership such as RCDawson have access to multiple technologies, multiple symbol libraries, and can compare products from competing manufacturers to recommend what is best for the client.

The Contract Office Furniture Industry

The contract office furniture industry is a subset of the office furniture industry that involves designers and planners working with a client to develop standards and three party agreements with manufacturers to properly plan, furnish and maintain the furnishings within the clients building(s). Furniture is made to the designer's specifications, and requires several weeks or months to manufacture, deliver and install. Contract dealers like RCDawson typically have designers, installers and trucks to manage a whole turnkey project.

The Mid-Market Office Furniture Industry

The mid-market office furniture business is simpler than the contract office furniture business. There are many more dealers selling mid-market furniture than there are selling contract furniture. Big box stores, stationers, computer dealers, liquidators, and some independent designers all sell mid-market furniture. Prices are much lower for mid-market furniture, but additional services are usually not offered. The mid-market concentrates on desks and chairs, and usually avoids complex panel based systems furniture.

The "Middle Man"

In his article entitled "The Future of the Middle-Man", Arnold Smith states that most contract office furniture dealers, during the last recession, divulged themselves of any value-added services that they once offered, to reduce their cost of operation, and stay alive. "This was the worst thing that a dealer could do, at a time when nobody was buying furniture, because all the dealer was ultimately capable of doing, was selling furniture".

In 1992 when the recession hit RCDawson, we decided to keep our design staff, keep our service staff, and buy new trucks. If nobody was going to be buying furniture for the next while, we had to learn how to help other companies cope with the recession and survive. Our designers helped companies "right-size" into smaller premises with better landlord deals. Our service technicians provided office moves. We provided warehouse space for storing unwanted office furniture, and liquidation services for furniture that customers felt would never be needed gain. We signed service contracts with several large clients to help them manage their furnishings; 3M Canada outsourced their furniture maintenance program from us. CIBC purchased their office furniture direct from the manufacturer and contracted RCDawson to receive, store, deliver, install, and service all branches between Windsor and Milton. The Royal bank signed a sole-source agreement with Haworth and RCDawson to provide all furnishings for all branches in Southwestern and Northern Ontario.

In 1997 we finally came out of the recession and those companies who once used us for our special services are now considering us for new design work, asset management, and office furniture. We're glad they remembered us, and hope that we'll all do well now that the recession is over.