Furniture & Design Update - Q2 2025

Furniture industry outlook is turning cautiously optimistic heading into the back half of 2025.

Contract furniture manufacturers are seeing steady demand recovery, fueled by a stabilized macro environment, improving consumer sentiment, and continued return-to-office trends. Education and healthcare markets are especially active, with $100B+ in K-12 bond approvals driving future demand for education furnishings.

Office furniture: Growth led by premium, design-focused products in prime office spaces

Education: Strong momentum, with Q2 orders rebounding and healthy funding pipelines

Healthcare: Continued investment in wellness-focused, flexible environments

Private Equity: Targeting non-cyclical, specialized end markets like education, healthcare, and high-design

M&A remains selective - premium assets command strong multiples, but overall deal volume remains muted as buyers navigate ongoing economic uncertainty.