Navigating the Cliff: Higher Education's New Reality

Welcome to Catalyst Conversations! In our latest session, Michelle Warren and Dan Conaty of Catalyst Consulting Group sat down with Kelsey White, Director of National Accounts for OMNIA Partners, to discuss the seismic shifts currently reshaping higher education. As institutions prepare for the "enrollment cliff," the furniture industry must adapt to a landscape where flexibility, "vibe," and strategic procurement are no longer optional—they are essential for survival.

1. Facing the "Enrollment Cliff" The most urgent topic of discussion was the impending demographic shift known as the "enrollment cliff." Kelsey explained that this is a direct result of the 2008 recession, leading to a significant drop in the college-age population today.

• "With higher education, from what I've seen, it's a different animal," Kelsey noted. "The universities have to figure out how to appeal to this crowd that's debating whether or not to come to college, but also trying to bring them into their university when there just literally aren't as many people to apply to go to college."

• Because of this, schools are fighting harder than ever for a smaller pool of students, which shifts their spending priorities toward recruitment and retention tools.

2. From Capital Projects to Modernization As budgets tighten, the era of massive new "ground-up" capital projects is slowing down, replaced by a focus on making existing spaces work harder.

• Dan Conaty highlighted the trend toward "inherent flexibility" in furniture: "You're gonna really see a shift in modernization, dorm modernizations; a shift in general renovations. [Universities need] furniture that has an inherent flexibility to it."

• Dan further explained the need for spaces that can transform instantly; going from a room that can hold twenty people, but then can also hold two hundred people depending on how you're using the furniture.

3. Designing for the "Vibe" Student expectations have evolved. Today’s applicants aren't just looking for a degree; they are looking for a community and an aesthetic that matches their personal brand.

• "Something new that's coming up with these students that are applying to colleges is they want to see if the college is their vibe. Like, is it my vibe going here?" Kelsey shared.

• She emphasized that furniture is a key part of this "vibe": "These universities have to be particular in what they buy and how that fits into that space. Dorm furniture isn't just dorm furniture anymore. How collaborative is it? How does it piece together? Is it inviting? And they’re looking at that with various spaces, all over their campuses. How adaptive is it?"

4. The Efficiency of Cooperative Contracts With procurement departments shrinking, universities are moving away from the "traditional bid" model in favor of cooperative purchasing to save time and administrative costs.

• Kelsey pointed out a clear preference among buyers: "I have been told that, by some schools, if we don't have to bid it, we don't want to."

• Lisa Merder of OMNIA Partners added that the higher ed market is beginning to mirror the corporate world: "Higher education's gonna be like the new corporate. Corporate doesn’t have a lot of potential here in 2026-2027, just because of all the things happening with the world. So people are going to come and gravitate into the higher education spaces."

5. Becoming a Partner, Not Just a Supplier Kelsey concluded with a powerful distinction for manufacturers and dealers: to survive the "cliff," you must move beyond a transactional relationship.

• "The universities there's a difference for them between a supplier and a partner," Kelsey emphasized. "A partner is someone they know they can go to, they talk with, they can gain insight from, and have that relationship."

• Michelle Warren added that this strategy should extend to university systems, with Kelsey adding strongly agreeing: "When you can touch upon those interests [like sustainability], you know, there's absolutely room for growth. It's just going to be a more strategic approach to find it."

Conclusion and Next Steps The higher education market is entering a period of intense competition and modernization. Success for furniture manufacturers will depend on their ability to provide flexible, "vibe-worthy" solutions while leveraging the efficiency of cooperative contracts. We want to thank Kelsey White and Lisa Merder for providing such a deep look into the OMNIA Partners perspective.

If you are interested in refining your higher education strategy and navigating these "new realities," consider joining our monthly subscription program, the Public Sector Accelerator. Our next Catalyst Conversations call will dive into the CMMC certification and the Defense Furniture supply chain on February 19th. We hope to see you there!