A study found the four-day workweek works / Auditor deems City of Vancouver high-end office chairs bought with 'due regard' for value / Fellowes Announces the Extension of Its Brand into Contract Furniture / Loll Designs Grows Its Contract Team In Anticipation of New Distribution Model / ABI January 2023: Architecture firm billings decline at slower pace / DIRTT Reports Fourth Quarter 2022 Financial Results / Haworth Reports Setting Global Sales Milestone in 2022 / HNI Corporation Reports Earnings for Fourth Quarter and Fiscal Year 2022 / Office Furniture Dealers Reinvent after the Pandemic / More Companies Are Adding Space Than Removing, But Only a Year Out / Office Demand Is Alive and Well in These Cities


The Working Space
Monday, February 27, 2023

Industry News

Fellowes Announces the Extension of Its Brand into Contract Furniture
Fellowes, a company that has offered workplace products since 1917, is expanding its brand into contract interiors and will transition Trendway and ESI brands to the Fellowes brand in the first half of 2023. In addition, Fellowes will expand its brand to include modular walls, select furniture, business machines, commercial air purification systems, and workspace products and capabilities. The company aims to operate as one company with the same standard across all touchpoints of its brand and will focus on reintroducing its brand, services, and capabilities to its market partners in 2023.
HNI Corporation has reported sales of $2.362 billion and net income of $123.9 million for the full year ended December 31, 2022. Fourth quarter sales of $568.9 million were down 6% from the previous year. The corporation expects continued pressure from lower volumes in 2023 and has taken actions to help mitigate the short-term volume pressure and drive long-term margin improvement. HNI expects to generate more than 85% of its annual profit in the second half of 2023, compared to 60% in the second half of 2022.
Haworth Inc. reported a record-breaking global sales performance of $2.5 billion USD in 2022, a 27.5% increase from 2021. This was achieved through a diversified portfolio, design innovation, and the addition of Mikomax, a Polish manufacturer of Hushoffice collaborative booths. Haworth also made progress on their sustainability mission, with two of their ergonomic desk chairs achieving Cradle to Cradle Certified and a commitment to 100% renewable energy sourcing for electricity in manufacturing facilities by 2025.
DIRTT reported a decrease in the fourth quarter of 2022 revenues of 9% and 1% over the third quarter of 2022 and the fourth quarter of 2021, respectively, due to a reduction in volume. However, gross profit and gross profit margin increased due to realization of price increases and improved labor efficiency. Net loss for the quarter was $(5.9) million compared to $(16.0) million for prior year’s fourth quarter, and Adjusted EBITDA for the quarter was a $0.6 million or 1.4%, an improvement of $10.3 million from a $9.7 million loss or (22.7)% for the prior year’s fourth quarter.
Loll Designs is expanding its contract team in anticipation of a new distribution model to make its products available in the commercial space as an open-line offering. The team will provide customers with the highest level of hands-on customer service, helping them to source and specify Loll Designs products for their projects. The company's mission is to enhance outdoor experiences through design-led and sustainability-focused products, and they specialize in indoor projects that demand sturdy, easy-to-clean furnishings.
Empire Office, Inc. has launched its new headquarters in New York City, designed with the architecture and design teams at VMAD to reflect industry trends and the new way of working. The space features touch-down spaces, open and flexible collaboration areas, and amenities to promote socialization and collaboration. It also showcases a variety of brands, custom millwork, and signature pieces. The company celebrated one-year post-acquisition of DeKalb Office in December, expanding its reach in the Southeastern U.S. and boasting 41 of the top 100 Fortune 500 companies in the U.S.
Nearly three years since the pandemic, furniture dealers are rebounding due to companies upgrading existing offices and steady business in other sectors like education and health care. In 2020, when the pandemic hit hard, furniture manufacturers saw a 12.2% drop in American office furniture market, to $12.94 billion. In the Detroit area, office usage came to a stop, but Natalie Flora, chief creative officer for Interior Environments, said the firm had record revenue last year, increasing sales by 15%. In West Michigan, Interphase Interiors and Custer Inc. reported three straight record-breaking years for total sales, mostly due to increased business in the health care and education segments. Companies are downsizing and retooling offices, looking to make investments to drive people back in.
Architecture firm billings declined for the fourth consecutive month in January, but the pace of the decline slowed. Firms in nearly all regions of the country reported a slight uptick in billings, with only firms located in the South continuing to experience a decline. Inquiries into new projects and the value of new design contracts both strengthened, though only firms with a mixed specialization reported growth for the third month in a row.
A six-month trial of a four-day workweek in the U.K. found that businesses experienced drops in worker turnover and absenteeism while largely maintaining productivity. Over 90% of the 61 companies involved said they would continue testing the shorter week, while 18 planned to make it permanent. The concept has gained momentum recently as employers and employees seek new and better ways to work, with similar trials in other countries. Companies reported improved employee well-being and loyalty, and some noted an increase in revenue.
If it wasn’t clear before, a new study from proptech firm Visual Lease, which has lease management software, shows that medium-to-large enterprises are changing the way they look at leasing space. One thing that hasn’t changed according to the survey is that companies are poor at tracking leases, terms and conditions, and sometimes even how much they’ve paid.

Wakefield Research conducted the study of 200 senior US corporate real estate executives at organizations with 1,000 or more employees. The survey, run in December 2022, used an email invitation and an online survey. Private, public, and government organizations were all qualified to respond.

Demand for office leasing has declined nationally, with the largest drops in San Francisco, Seattle, and Chicago. New York City and Los Angeles have seen the most recovery, while other cities such as Austin, Dallas, and San Jose have seen positive absorption. San Francisco continues to see record office vacancies, with negative absorption reaccelerating in 2022. Landlords are providing interactive experiences to attract tenants back to the office, while local governments are offering tax incentives to bring companies back downtown.
CBRE's plans to move its global headquarters from Los Angeles to Dallas in 2020 and invest up to $42 million in a new 27-story office tower in Uptown Dallas have stalled due to high-interest rates, inflation, and labor shortages, which have caused construction costs to escalate and led to CBRE laying off an unknown number of employees. The delays could jeopardize economic incentives CBRE was expected to receive, and the lack of progress is emblematic of the struggles many developers are facing in the current economic climate.
Kimball International has launched the Creating Places to Belong initiative, which focuses on creating environments where employees feel valued and connected to a greater purpose. The initiative includes tools, insights, personal stories, and conversations to help employers create a welcoming environment, as well as versions for the Education and Health vertical markets. Learn more >
The U.S. construction industry is estimated to need an additional 546,000 workers this year, and 342,000 more in 2024, according to the Associated Builders and Contractors. This shortage could impede the federal government's infrastructure plans, and is due to an aging workforce, a lack of younger workers entering the trades, and an increase in demand due to new chip plants and green energy facilities.
Office landlords are increasingly defaulting on their loans as developers believe that remote and hybrid work habits have significantly weakened the office market. Brookfield Asset Management recently defaulted on over $750 million in debt for two towers in Los Angeles, while RXR is in talks to restructure debt on a 34-story tower in Manhattan's financial district, with the possibility of handing it over to the lender.
It's clear that the four-day work week is here to stay – and it's something that the real estate industry should be excited about! With the right support and resources in place, it could be the perfect way for companies to increase productivity and performance, while helping staff maintain a healthy work-life balance.

Features

ThinkLab's research has revealed five distinct specifier types for the interior design industry, providing manufacturers with insights on how to navigate the industry's shift and reach clients in a personalized way. Through focus groups and surveys, the research provides an understanding of the desired blend of human and digital interaction with brands today.
Despite most employees believing their managers trust them to work from anywhere, only 24% of people trust their remote working colleagues to get work done from home. The survey also found that 54% of workers prioritize group productivity over individual performance, and 85% report a stronger sense of camaraderie since returning to the office. These findings suggest that workplace culture and relationships are important for productivity and mental wellbeing.

Workspace News

According to data from CBRE, finance and insurance companies have taken over from tech companies as the biggest leasers of office space in the US. The shift could be due to tech companies' success in avoiding a return to the office, while finance and insurance firms have been pushing for their employees to return. The report also found that finance and insurance firms have generally recorded higher office attendance rates than tech companies. The shift in leasing activity has led to a rise in office renewals, with companies looking to renovate their spaces to fit modern work needs.
Cushman & Wakefield predicts that by 2030, 1.4B SF of U.S. office space will be "functionally obsolete" due to remote and hybrid work shifts, resulting in a national vacancy rate 55% higher than 2019. Major office owners are already experiencing difficulty refinancing, subleasing, downsizing, and potential conversions of their properties.
Companies are embracing the remote-first work environment, which prioritizes remote work as the primary option for most employees. Designers are helping to create these new workspaces, which must be adaptable and promote employee health, while also considering the needs of local, regional, national and global users. A workplace strategy team is essential to ensure the space meets the company's values and needs, and is typically led by the CEO and internal stakeholder team.
Forty-four percent of coworking spaces are now in the suburbs, with the Los Angeles metro area leading the nation with the highest number of suburban coworking outposts.

Overall, there are a whopping 361 coworking spaces in Los Angeles suburbs, according to a new analysis from CommercialCafe. The LA suburb of Irvine, located south of the City of Angels in adjacent Orange County, has 91 coworking spaces, distantly followed in the suburban rankings by Newport Beach and Arlington, Va., each with 25.

The challenge for office acoustics is to create a space that allows people to carry out both focussed and collaborative work, while also providing the same comfort and privacy of working from home. This requires a balance between private and shared spaces, as well as acoustic panels, workstation screens, and tiles to create the ideal environment.
Gonçalo Hall proposed a Digital Nomad Village in Ponta do Sol, Portugal, as a way to boost the local economy during the pandemic. The project was a success, with over 8,000 remote workers visiting the island, but it has been criticized for its lack of meaningful interaction with locals and its potential for displacement of long-term residents.

Design

By 2050, one in five people in the world will be aged 60 or over, with significant spending power. Despite this, older consumers are often ignored by designers and marketers. The term 'third agers' is used to describe those aged 55 and over, but this group is not homogeneous and design should not be bland or clinical. Rather, designers should consider the longevity and potential future uses of products, furniture and spaces. This human-centred approach to design can also help tackle the stigma associated with traditional mobility aids. The same approach can be applied to offices and home-working spaces, which need to be versatile and adaptable. Designers and architects should consider the needs of all ages, including their future selves.
Gensler's just released Canadian Workplace Survey 2022 reveals that office workers prioritize focusing on their work over reconnecting with colleagues in-person, and that they need to spend more time in the office than they currently are to maximize their productivity. The survey also found that employees want access to quiet, tech-free spaces and focus rooms, as well as amenities like coffee shops and outdoor spaces, to create an ideal mix of experiences that will draw them back to the office.
Effective office design is more than just bold graphics and splashy logos; it is understanding an organization's ethos and creating a strong workplace strategy that welcomes authentic expression and reflects the company's values. By utilizing an ethnographic approach and creating spaces that mirror an organization's needs, designers can create an inspiring office environment that encourages collaboration, boosts productivity, and optimizes employee morale.
Frank Lloyd Wright's licensing program, launched in 1955, has led to numerous high-profile brand partnerships over the decades, allowing his iconic designs to be available to everyone. His principles of creating a unified whole and user-centric designs are still seen in modern-day products, such as the Frank Lloyd Wright Racine Collection by Steelcase and the Frank Lloyd Wright Bath Collection by Brizo.
Abraham Maslow's "Hierarchy of Needs" theory provides a useful lens for understanding modern workplace design challenges, which should focus on meeting basic needs such as safety and security before aiming for higher-level goals. Practitioners should look to the family and spiritual world for inspiration, creating spaces that foster relationships and enable workers to shift to different workspaces depending on the task or mood. Additionally, organizations should look to engage with the community and repurpose vacant office space for communal uses.
The post-pandemic age has changed the way organizations commission workplaces, requiring new design skills to help clients navigate the future. These include long-term client engagement, data analysis, and systems engineering, as well as an understanding of technology to enable workplace adaptation.

Trends

Leading architects and real-estate developers are pioneering concepts to accommodate hybrid work styles, such as flexible, multiuse spaces, outdoor terraces, and residential touches like couches and fireplaces, to make offices more comfortable and engaging for employees. These changes are aimed at making the office a destination, with access to natural light, outdoor areas, and soundproof booths to provide privacy, in order to increase employee engagement.
The article discusses how the traditional office model is outdated and inefficient, and how organizations should focus on intentional efforts to rebuild trust and interpersonal relationships, as well as leverage the science around knowledge worker performance to strengthen cultures and increase team productivity. It also suggests a human-centered workplace design process that keeps employees and their activities as the central focus, and encourages organizations to build intentional and nuanced workplace solutions to nurture their employees.

Latest Products

The Agility Company has launched the Omada Bench, a modern benching desk system with height adjustable legs for a range of individual seated and standing options. It is designed for shared workspaces, with ergonomics as the key element and the ability to link benches for flexibility. It is available in two- and three-stage configurations with four width and two switch options, and customizable with over 100 powder coat options.
Chemetal's Waterworld designs are pressed into thin sheets of anodized aluminum, creating stunning, light-shifting metal textures ideal for feature walls, counter fronts, and ceiling panels. Waterworld is significantly more affordable than stainless steel and can be easily fabricated by design professionals. Additionally, Chemetal is committed to sustainability, offering materials that contribute to LEED and are part of the mindful MATERIALS library, and using solar energy to power their 70,000 sq ft manufacturing facility.
Taiwan-based Beflo has launched the Tenon, a luxury modular smart desk designed for home offices. The desk features height-adjustable legs, a touchscreen panel, built-in power plugs and USB ports, smart sensors, and an optional mobile app. It also includes aroma diffusion blocks to enhance the user's environment.
Occhio's "Gioia equilibrio" table luminaire offers elegant design, maximum mobility and touch-free control, allowing users to control the light source and intensity with simple hand movements. It features a 360-degree rotating lamp arm and adjustable colour temperature, making it ideal for both working and relaxing.

Other News

Jason McCann, co-founder and CEO of Vari and VariSpace, is a self-taught artist who began experimenting with painting in the '90s. During the pandemic, he rediscovered his passion for art and has since produced more than 70 abstract paintings. His artwork is inspired by his entrepreneurial spirit and he donates pieces to nonprofits such as Metrocrest Services and Make-A-Wish Foundation. McCann believes that art and business have similar processes, such as taking risks and learning from failure.

Trends in Commercial Projects from Around the Globe

Ivy Studio designed M.A.D. Collectif's HQ to be a flexible laboratory that invites experimentation, featuring raw materials, linear lighting, a ceramic-wrapped ramp, and bold splashes of color to match the collective's ever-evolving energy and needs.
Brainium Studios asked Hacker to design a workplace that was modestly branded and created a welcoming and visually pleasing experience. The design team started with an inquiry to the Brainium team to understand their specific objectives, which included a space that supports the health and well-being of staff with an intuitive, rational flow, simple material palette, and superb acoustics and lighting.
The Mint List designed a London office with mid-century-style movable furniture, custom-built joinery to divide the space, and a palette of tactile and honest materials including sapele wood, oak, concrete, and burnished brass. The office was designed to respect the modernist nature of the industrial site while integrating a sense of creativity for the client.

Upcoming Industry Events

NeoCon 2023
June  12-14, 2023 | Chicago, IL
 
NeoCon has served as the world’s leading platform and most important event of the year for the commercial design industry since 1969. A launch pad for innovation—NeoCon offers ideas and introductions that shape the built environment today and into the future.  

Milan Design Week 2023
April 18-23, 2023 | Milan, Italy

Milan design week is the biggest annual design event in the world and takes place from 17 to 23 April 2023. The week includes the furniture fair Salone del Mobile, which takes place at the Fiera Milano exhibition centre and is the largest event to take place during the week. The selection of fringe events collectively named Fuorisalone also takes place across the city.

hd expo+conference
May 2-4, 2023 | Mandalay Bay, Las Vegas

HD Expo + Conference is the largest hospitality event of its kind in the country, showcasing the latest products, services, and innovative developments from the industry’s leading manufacturers.  

Clerkenwell Design Week 2023
May 23-25, 2023 | London

Clerkenwell is home to more creative businesses and architects per square mile than anywhere else on the planet, making it truly one of the most important design hubs in the world. To celebrate this rich and diverse community, Clerkenwell Design Week has created a showcase of leading UK and international brands and companies presented in a series of showroom events, exhibitions and special installations that take place across the area.

Orgatec 2024
October 22-26, 2024 | Cologne, Germany

Orgatec is the International trade fair for office and property equipment. Held in Cologne, Germany.

Industry Interviews

Andreu World, a major player in workplace furniture, has a history of good design and sustainability. The brand collaborates with designers such as Philippe Starck and Patricia Urquiola, and has expanded to the Indian market. The brand's Head of Design, Sergio Chismol, discussed the future of workplace environments and the circular economy with STIR's Founder and Editor-in-Chief, Amit Gupta. The presentation focused on three of Alfredo Häberli's designs for the brand, which emphasise modular design and adaptability. The brand's marriage of traditional craftsmanship and industrialised manufacturing was also discussed.
Jonathan Levien of the design duo Doshi Levien sat down with OnOffice to discuss his design process and their latest project for Arper, the Shaal sofa collection.
Patrick Jouin has been working with Pedrali for 10 years, and has designed furniture for restaurants and hotels. His most recent designs for Pedrali, "Reva Cocoon" and "Héra Lounge", are made with high quality materials and offer maximum utility. The furniture is designed to symbolize the joy of being together and provide comfort.
Find the best Contract Furniture Industry jobs and hire the best talent.
The Senator Group seeks a field service tech to perform both technical services as well as project management support of our dealers. Our Senator Group, technical products team is responsible for the sale and delivery of architectural and technical related products that create private and collaborative spaces for today’s workspaces. 
WIELAND is a leading provider of patient room and seating products to healthcare facilities across the country. We are seeking a sales professional to represent our healthcare products Washington, Oregon, Idaho and Alaska. Our continued growth provides significant income potential for the right individual. This is an employee position with full benefits. 
When you feel connected to your work, you feel more engaged. At Haworth, you can pursue a career that offers you ample opportunity to build your portfolio and expand your skillset in an exciting and inclusive environment. Join a company that values innovation, inspiration, and you!
CWC is based out of Atlanta, GA and we are celebrating our 94 th year as a premier office furniture dealership! We offer either a local in-office workspace or 100% remote work for non-Georgia residents. CWC Provides: Competitive Pay Excellent Health Benefits We are an Employee Stock Ownership Plan...
Indoff is expanding and in need of experienced outside sales professionals in your area. Indoff Offers: 50% commission on the gross profit - This is a straight commission position, and right now Indoff offers 70% commission for your first year with us.
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