The opportunity with Momentum

The opportunities

The following market opportunities were identified through a combination of experience, outside consultancy, external reports and independent customer research:

Market downturn

Fewer projects, lower budgets, more competition. While a downturn in furniture sales has seen some companies fold, it has also highlighted those who have the right client bases but who lack the management and infrastructure for dealing with market troughs.

Growing preference to buy from dealers

Over the past 10 years there has been a steadily growing trend (+12%) towards buying from dealers rather than directly from manufacturers. Currently 55-60% of furniture is bought through dealer, and this trend is set to continue as manufacturers and dealers each focus on and develop their core competencies.

Customers expect more

In this mature, changing and highly competitive market, the pressures are increasing on the dealer to offer more and add value at every stage of the buying process. This requires more infrastructure, project management, design and administrative support.

Product-led to service-led

There is an on-going shift from “tied” dealers to service-led sales through independent organisations. In the past this “tied” relationship was fuel for growth as lucrative corporate accounts were “fed” through the dealership. However, as this supply has diminished, many have found the single product/single manufacturer relationship restrictive to growth. At the same time, customers are increasingly valuing the choice and objectivity independent dealers offer. To become a competitive independent dealer requires good purchasing power across a wide range of suppliers.

Changing workplace

Changes in technology are driving changes in working practice — and the types of furniture required. These changes include more soft areas in offices, smaller work surface requirements, increased homeworking and a variety of shared facilities such as touchdown and break-out areas. Finding individually tailored solutions to allow customers to meet these changes requires products from a variety of sources — and a high level of expertise and knowledge.

Demand for return on property costs

Customers are more aware of the need to maximise the return on their property costs and frequently monitor this return. The desire to get maximum value from space investment creates opportunities for furniture and related workplace services from a specialist provider.

Momentum’s strengths

The Momentum Group was created to exploit the identified market opportunities by building on existing strengths and expertise.

Extensive experience — Momentum has extensive experience and in-depth knowledge of the furniture market.

Proven success — The support services Momentum offers and systems they employ have been tried, tested and proven with current Group companies.

Significant purchasing power — Because overall Momentum’s purchasing power is greater than any of the single Group companies, they can negotiate better prices with manufacturers.

Best practice — The Momentum company culture is based around the operation of “best practice” philosophies throughout the organisation.

Clear vision — The Momentum management team has a proven track record and is committed to and clear about the future direction of the company.

Quality standards — Momentum was the first in the industry to receive the Investors in People and ISO 9001 awards, and has an ongoing commitment to delivering quality, and to the continuous development of it’s employees.

Efficiency — Momentum Group companies benefit from effective administration systems and a proven history of tight financial management and reporting.

People — Momentum employs and manages a strong team of people who are well-qualified, experienced and focused on the support needs of the group companies.

Cross-selling — Any opportunities for cross-selling between the Group companies are identified and exploited.

Reputation — The Momentum Group reputation reflects the strong reputation of existing Group members — and that of the directors.