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Update from NWUPC on Office Furniture Framework Price Increases


By Keeley Blackburn

Pricing on the current Office Furniture framework agreement has been held since the agreement began in January 2015 however, since the January review meetings the furniture suppliers have been seeking pricing increases in light of the volatile exchange rates since the EU referendum result. Below is detail of approved price increases from EFG, Senator and Broadstock; all of which are supported by evidence justifying the proposed increases.


NWUPC have agreed a 5% increase on RRPs with EFG effective from 1st March. EFG initially requested an increase across the board based on the devaluation of the pound against major currencies including the Euro, US Dollar and Swedish Krone. They have now decided to absorb the increasing costs for core basket products but will be implementing a 5% increase across non-core products. The price increase stems from increases from within their supply chain well in excess of 5% which are driven by increases in the cost of raw materials. They have been able to absorb some increases through improved logistical efficiencies and through purchasing in Sterling from their Swedish parent company. However, 60% of their output is bought from UK manufacturers and they have seen sweeping price increases from all. Given that their necessity for price increases is driven by a post Brexit currency slide, EFG have indicated that they are open to subsequent price reductions were Sterling to recover sufficiently. The furniture contract will continue to be monitored in line with Foreign Currency Exchange rates.


NWUPC have agreed a 4.75% increase in RRPs with Senator for non-core products, effective from 1st March. Pricing for the core basket of goods shall remain the same. The increase is a response to price increases from their supply chain, dating back to June, which has seen increases in some areas well in excess of 10%. Though the increase has largely been triggered by the post Brexit currency slide there are additional industry factors which have put pressure on bought in costs including raw materials shortages, rising energy prices, import tariffs and rising labour costs abroad. Senator have absorbed some rises and have sought to mitigate others through forward buying (though this is restricted by space constraints); using alternative suppliers (although this is an uncompetitive option); or agreeing fixed prices (though there is little commitment beyond 6 months).


NWUPC have agreed a 3% increase in RRPs with Broadstock for non-core products, effective from 1st March. Pricing for the core basket of goods shall remain the same. Again, the increase stems from price adjustments within both their component supply chain and from finished goods supply partners, which have largely taken effect since January, triggered by the post Brexit currency slide. Given that the necessity for the increases has emerged from significant rises within their supply chains, largely emanating from currency fluctuations, the Consortium will continue to monitor foreign currency exchange rates and have emphasised, in accepting these price increases, that any subsequent reductions the suppliers receive will be passed on to member institutions. This will be monitored in line with exchange rates.

Godfrey Syrett

NWUPC are currently reviewing proposed price increases. These will be communicated to members when agreed.


No pricing increases have been requested.

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