
Sandow, the publisher of Interior Design, Luxe Interiors + Design and Metropolis, has acquired Design Milk, an online platform for an undisclosed amount. Sandow founder Adam Sandow says that Design Milk is one of the original and best design platforms, and they’ve done such a good job maintaining the brand and surviving the tumult of the industry. Sandow will acquire Design Milk’s social media presence, including an Instagram account with 3.8 million followers, and all of its employees will remain on staff.
According to Sandow, the near-term objective is to bring Design Milk into the Sandow fold, not to make editorial changes. Sandow states that they want to invest in Design Milk and build on it. Sandow will be the third owner of Design Milk. Founded in 2006 by Jaime Derringer, the site was part of a wave of blogs that rose to prominence in the late 2000s. Its audience grew steadily over the next decade, and Derringer branched out into podcasts, events and commerce while still running Design Milk mostly herself.
Derringer sold Design Milk to Ahalife, an e-commerce roll-up, in 2019. At the time, the idea was to develop a more robust marketplace and turn Design Milk into something like the Food52 of design. Citing burnout and a desire to find deeper pockets to grow the site, Derringer sold Design Milk. Mancini left the company earlier this year. The content-meets-commerce play did not appear to have transformed Design Milk—the site does not currently feature a marketplace, and Sandow says that, going forward, the brand’s focus will be on ad sales, not commerce.
For Sandow, the acquisition points to an omnivorous approach to media, with much of the recent expansion happening online. The company unwound its most recent print partnership with Galerie in 2020 and since then has mostly announced digital endeavors, including DesignTV—a streaming channel for design content—and Surround, a podcast network. Sandow has also been aggressive about expanding beyond content and into services, including the acquisition of research firm ThinkLab and the launch of a creative studio, The Agency. The acquisition of Design Milk, while clearly an opportunistic buy, plays into Sandow’s kitchen sink approach to publishing.
Architecture firms improved in May, with the highest AIA/Deltek Architecture Billings Index (ABI) score since last September. Inquiries into new projects and the value of new design contracts also increased this month, with inquiries reaching their highest level in nine months and design contracts increasing for the first time since February. However, business conditions remain variable in different regions of the country, with billings declining in both the West and Northeast. In terms of employment, nonfarm payroll employment continued to grow at a steady pace, with 339,000 new jobs added in May.
Remote Work and ProductivityMore than four in 10 responding firm leaders (43%) indicated that they feel that staff productivity levels have decreased as compared to pre-pandemic levels. On the other hand, 22% of firm leaders believe that productivity levels have increased, while 35% think that they have remained about the same as pre-pandemic levels. In terms of remote work, 70% of responding firm leaders estimated that nearly all paid workdays at their firm are worked remotely in some capacity. Overall, slightly more than one third of firm leaders (35%) reported that they believe that their firm’s remote work policy has decreased overall staff productivity, while 55% think that it has not significantly changed productivity, and 10% think that it has increased overall staff productivity.
Intereum has joined PARIC Holdings to expand their commitment to integrated building and workplace solutions, strengthening their suite of services and supporting their customers. PARIC Holdings is a privately held family business generating a billion dollars in annual revenue across multiple construction-related industries. The acquisition of Intereum comes a year following PARIC Holdings' purchase of Interior Investments, another MillerKnoll Certified Dealer. Bret Abbott, CEO and Founder of Intereum, is excited about the opportunities this acquisition brings, enabling them to better serve their clients. Together, they will create experiences to meet clients' business needs through Intereum's offerings of workplace strategy, furniture application, audio visual deployment, and project-related services.
PARIC Holdings is the parent company of several privately held building and design firms, including Cooperative Building Solutions, Henning Companies, Interior Investments, LLC, and PARIC Corporation. Headquartered in St. Louis, PARIC Holdings provides talent, capital, and resources to support its portfolio of growing businesses in multiple construction-related industries, including general construction, interior construction, electrical co-ops construction, agriculture construction, procurement services, and more.
NeoCon is (still) the largest and most important platform for commercial interior design, and this year's edition brought together more than 50,000 design industry professionals at THE MART in Chicago. Attendees included manufacturers, dealers, architects, designers, end-users, design organizations, and media, who were all eager to discover the most innovative products and learn about the trends shaping the future of design.
The three-day event was buzzing with an impressive roster of exhibitors showcasing their latest products and services. The show-goers enjoyed captivating keynote presentations by world-renowned futurists, architects, and designers. For instance, Amy Webb, the Founder & CEO of the Future Today Institute, Co-Founder of MASS Design Group, Michael Murphy, and Chicago Hip Hop Legend & MIT Professor, Lupe Fiasco, all gave keynote speeches.
The event coincided with the unveiling of THE MART’s latest building renovations designed by Gensler Chicago. NeoCon attendees were the first to experience the amenity-rich enhancements, including state-of-the-art programming studios, community rooms, and a redesigned River Park.
Exhibitors showcased products that incorporate wellness, balance, and socially and environmentally responsible core values. For example, Schiavello launched its Climate Workstation System, which uses natural, low-waste, and easily-recyclable materials to produce and was designed to support complete workspace flexibility thanks to an easily reconfigurable layout. Shaw Contract launched an inspiring collaboration with Mike Ford, while HMTX Industries unveiled Mycelium Collection, the market’s first introduction to an entirely new, non-vinyl, circular multilayer flooring system.
The Best of NeoCon Awards returned to the show for its 33rd year. The 114 awards recognized NeoCon exhibitor products in more than 50 categories, including Gold, Silver, Sustainability, Innovation, Business Impact, and Best of Competition. The Flote Lounge Collection from Hightower took home the Best of Competition honor, while six products received Business Impact Awards.
The event also offered diverse on-site and virtual educational offerings, lively events, and activations that encouraged knowledge sharing and working together. Thought leaders from the industry's leading associations addressed critical topics, including equity, empathy, social justice, sustainability, and workplace occupancy in an ever-evolving landscape.
NeoCon will return on June 10-12, 2024, for a special milestone––the 55th edition.
The Stump team traveled to Chicago this week for the annual office/contract furnishings show called NeoCon. It was an upbeat and productive show, and CEOs were optimistic despite continued occupancy headwinds and disruption in the office sector.
Neocon is one of Stumps’ favorite trade shows (June in Chicago tends to be a win!), and, historically, the show has been located in one place, but there is now disruption with the competing venues. The Merchandise Mart is the historical site for the entire industry to gather under one roof, but, this year (for the second year), the Fulton Market Design Days was active and vibrant with old warehouses converted to loft showrooms, and new towers with bright and airy venues for product displays and client meetings. The tenants love this area for this annual show and year-round meetings.
There is a terrific food scene in Fulton Market and emerging boutique hotels. It will get even better with time. There is clearly a transition away from the Mart to Fulton Market, yet the Mart was nearly full of new exhibitors (many new names and lots of international players), and the halls were jammed and attitudes were upbeat.
The logistics of getting between the two venues remains challenged with too few buses, poor mapping of where showrooms are located, and the Tuesday rain didn’t help. Disruptions aside, we enjoyed the show and the opportunity to meet with over 50 industry CEOs.
QUOTE OF THE MARKET
When I mentioned this resi-mercial product focus, one seasoned CEO said “No! Resi-Mercial is a bad word. The name to use is ‘soft contract.’"Disruption
Beyond the showroom competition, many friends were concerned with the fragile dealer network, and the threats of e-commerce and direct sales models. Aligned dealers are under pressure thanks to a COVID hangover along with the MillerKnoll combination, and the aging ownership of the dealers. Expect to see consolidation.
Soft Seating
The key product trend was comfortable upholstery for creating inviting office environments that entice the expanded work from home population of workers to return to the office. Quote of the Market: When I mentioned this resi-mercial product focus, one seasoned CEO said “No! Resi-Mercial is a bad word. The name to use is ‘soft contract.’"
The Future of the Office
Our clients are witnessing corporations shrink their office footprint, and commercial office real estate owners are scrambling to remain solvent. Will employees come back to work? Can bosses require employees to work in the office? We are seeing shorter lease terms, and more modular architecture furnishings to remain more flexible in this choppy economic time.
M&A
Following the MillerKnoll and HNI-Kimball acquisitions, we expect to see more transactions, both large and small. We see many older owners who have no succession plan, as well as many weaker companies, seeking “just to get out.”
Based in Charlotte, NC, Stump & Company is a privately held Mergers & Acquisition Advisory firm led by its second and third generations, partners Tim Stump, Stuart Stump Mullens and Bo Stump.
While 40% of civil servants in the UK are still working from home, some high-profile firms have reversed their work-from-home policies, including Meta, Starbucks, and Walt Disney Co. Other firms, like Goldman Sachs, Morgan Stanley, Apple, and Peloton, require their employees to return to the office three days per week. Amazon and General Motors also have a thrice weekly attendance policy. PwC's chairman believes that incentives and AI can lure people back to the office.
Being present in the office fosters creativity and engenders a sense of culture. LABS members also value colleague relationships. Workplace strategies can easily shift to address sudden changes, and LABS' turnkey solutions and flexible tenancy arrangements can help optimize a workplace model that works for everyone.




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