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Bush Industries going small to find large furniture sales
Published:September 9, 2010, 10:20 AM
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Updated: September 9, 2010, 3:05 PM
Small-business offices look like a big opportunity to Bush Industries.
The Jamestown-based maker of ready-to-assemble furniture has stepped up its emphasis on its commercial furniture products, giving the division the name BBF, short for Bush Business Furniture, and a new logo.
But changes go beyond image, said Michael Chefalo, vice president of product management for Bush's commercial division. The company is targeting businesses with fewer than 100 employees, including home offices for professionals and remote offices set up by companies. It is a market that Chefalo says larger furniture makers tend to bypass.
"It's a very underserved portion of the market," Chefalo said.
While Bush has supplied products to the commercial market for a number of years, its products for the retail segment have tended to draw more attention. The idea was to create a stronger identity for the commercial side of its business, which accounts for about a quarter to a third of Bush's sales, Chefalo said.
"We are looking at that as a growth engine," he said.
Bush's target customers include the federal government, via the U.S. General Services Administration. Bush already offers four product lines to federal government customers, and plans to add more products for the GSA market next year.
Bush, which employs about 250 people in Jamestown, survived tough times. It reorganized through bankruptcy several years ago, closed a plant in Cattaraugus County and reduced its work force.
Even though its sales volumes took a hit last year amid a downbeat economy, the company was profitable in 2009, Chefalo said. "Stability is something that I think has been restored over the past few years." The company expects sales of about $150 million this year.
"We're confident that we are in a position of growth rather than shrinking," Chefalo said.
Bush has manufacturing operations in Jamestown and a suburb of Erie, Pa., as well as operations in Germany and China. While a lot of U.S. furniture manufacturing has migrated overseas, Chefalo said having production of commercial furniture in the United States is a sound strategy.
"There is a level of flexibility and design requirement and quality not easily met in China or other parts of the world," Chefalo said.
Keeping that production domestic, he said, also ensures a company like Bush can offer customers lots of product choices with quick turnaround times.
Chefalo said the new BBF brand has stimulated interest. The company has about 7,000 to 8,000 installations in its sales pipeline, he said.
Some of those installations involve setting up home offices. An employer might allocate $1,000 to $1,500 to an employee to pay for the furnishings. Bush says it can fill those kinds of orders quickly, working with its network of installers.
William Daly, chief executive officer and administrative director of the Chautauqua County Industrial Development Agency, said while Bush has gone through downsizing, that is the nature of the industry the company operates in, with stiff competition from overseas manufacturers.
"The great news is they have very strong management," Daly said. "These are very savvy professionals who know exactly where they stand on a competitive basis."
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