Business conditions at architecture firms ended 2021 on a high note, with an Architecture Billings Index (ABI) score of 52.0 in December (any score over 50 indicates billings growth). Firm billings increased every month of the year except for January, as most firms experienced a strong rebound from the 2020 downturn. And despite a variety of concerns related to the omicron variant; prices/availability of construction materials; and labor shortages, firms also continued to report a robust supply of work in the pipeline, with inquiries into new work and the value of new design contracts both remaining strong, and backlogs remaining near the highest levels ever reported since we started collecting this data in 2010, at an average of 6.5 months.

End-of-year conditions vary by region and specialty

However, conditions were more variable by both region of the country and firm specialization in December. Firms located in the Northeast experienced their fourth consecutive month of declining billings, while firms located in the West saw billings decrease for the second month in a row. Firms located in the Midwest and South continued to report an increase in billings, but the pace of growth has slowed substantially at firms in the Midwest in recent months. Only firms located in the South have continued to report a consistently high level of billings recently. However, firms of all specialization reported a decline in firm billings in December, with only those with a mixed specialization (defined as those firms not having at least 50% of their billings in one of the other three categories: multifamily residential, commercial/industrial, or institutional) experiencing growth. Even firms with a multifamily residential specialization experienced a decline in billings for the first time in nearly a year, while firms with an institutional specialization reported their second straight month of softness. There is always some softness in firm billings at the end of the year, due to the holiday season and colder weather, but seasonal adjustment of the data typically smooths much of that out. But because of that, it is too early to say whether this is just a seasonal blip, or the start of a more concerning trend.

Staff recruitment continues to be key concern for firms

Staffing has been an issue of increasing concern for many firms in recent months, with one in five firms reporting staffing issues as a key concern for 2022 in last month’s survey. This month we asked firms more specifically about the seriousness of the issue, and the actions that they have taken to recruit and retain staff. Overall, firms are more concerned about recruiting architectural staff at their firm than retaining architectural staff, with 42% of responding firms indicating that recruiting architectural staff is a very serious problem at their firm, in contrast to just 14% who said the same about retaining architectural staff at their firm. In addition, 40% of firms said that recruiting staff is somewhat of a serious problem, while 18% said that it is not a problem. On the other hand, 42% of firms said that retaining staff was not a problem, and 44% said that it was somewhat of a problem. Firms located in the South, where business conditions have been strongest recently, were most likely to report having a serious problem with recruiting staff (48%), versus just 36% of firms located in the Northeast. Large firms were also more likely to report having a problem recruiting staff, as were firms with an institutional specialization.

Given anticipated project workloads over the coming months, more than eight in 10 responding firms indicated that they are at least somewhat concerned about being able to recruit and retain staff, with 27% indicating that they are quite concerned, and 10% indicating that they are very concerned. Once again, firms located in the South, as well as large firms, and those with an institutional specialization, were most likely to report a higher degree of concern about being able to recruit and retain enough staff to meet upcoming workloads.

When asked about what actions they have already taken in relation to current architectural staffing conditions, 90% of responding firms indicated that they have taken at least one action, with nearly half (49%) reporting that they have Increased salaries above typical levels to retain current staff. An additional 45% reported that they have offered additional employee perks (e.g., 4-day work week; ability to work remotely), while 39% have increased salary offerings above typical levels to attract qualified candidates. Firms have also made some project-related changes, with 31% indicating that they are not bidding on projects that their firm is otherwise qualified to handle due to staffing shortages, and 30% are extending/delaying project schedules on existing projects. Just under one quarter of firms (24%) have hired contract workers, but few have outsourced work either domestically or offshore.

However, of the steps that firms have not yet taken, one in five (21%) would consider hiring contract workers if the staffing situation becomes more serious in the coming months, and 18% would consider outsourcing work to other domestic firms. In addition, 20% would choose to not bid on projects that their firm is otherwise qualified to handle, 19% would extend/delay project schedules on existing projects, and 16% would increase firm revenue to help cover additional staff compensation costs. Fewer firms would make changes to current staff salaries/benefits, but that is because most of the firms that would make that change have already done so.

Finally, when asked about the effectiveness of making these changes to address staffing issues at their firm, most firms rated issues related to increasing staff and potential staff salaries, and offering additional employee perks and benefits, among the top three most effective changes that they have/could make, followed by making changes to projects/project schedules and hiring new employees/outsourcing work.

Just as businesses are starting to find their groove with hybrid working, the workplace has begun to evolve again with the emergence of the metaverse. New research from Lenovo claims that close to half of employees (44 percent) are willing to work in the metaverse and believe that it can deliver benefits like productivity to the workplace. The metaverse is primarily defined as a shared digital space with digital representations of people, places, and objects. In the future, the metaverse can be a highly immersive extension of the physical world, with its rich user interface. At the enterprise level, this opens up possibilities for businesses to create a more viable, interactive workplace.

However, there is skepticism on whether companies have the capabilities to pull it off. Two in five (43 percent) respondents believe their employers do not, or probably do not have the knowledge or expertise to enable them to work in the metaverse of the future.

Ken Wong, President, Lenovo Solutions and Services Group: “The pandemic challenged us all to adapt to new ways of work – forcing organisations of all sizes to evolve at an exponential pace. The metaverse presents businesses with new opportunities but also more complex technological challenges, such as the need for more computing power, better integrated hardware, and simpler and more flexible IT solutions.”

There is still a yet to be answered question of the remote working era: what happens to corporate culture when employees never meet face-to-face? As we enter year three of the pandemic, some workers have started new jobs and have never met a single co-worker IRL. This strange new reality prompted a recent New York Times article about the trend. Authors Kellen Browning and Erin Griffith wrote, “The phenomenon of job-hoppers who have not physically met their colleagues illustrates how emotional and personal attachments to jobs may be fraying. That has contributed to an easy-come, easy-go attitude toward workplaces and created uncertainty among employers over how to retain people they barely know.”

The specter of employees quitting because of these loose ties to a remote-only workplace is precisely what CEOs and senior executives dread and is one of the reasons that many think that permanent remote work isn’t feasible. Some companies are chomping at the bit to get back into the office, and a primary reason is the difficulty of maintaining corporate culture in a Zoom-only world. As the Omicron variant has spoiled return to office plans yet again, corporate retreats have sometimes become the only way employees have met in person. Companies have also used team-building retreats in the past, but over the past two years of the pandemic, the meetings in exotic locales have become more important.

 

And for employees who can work anywhere, there’s been a larger and increasing trend of ‘working vacations’ (or ‘workations’) that mix business and leisure. Working vacations and ‘bleisure’ trips were already catching on pre-pandemic, just like remote and hybrid work. But the pandemic made it the only option for many companies that found themselves without an office. During the first year of the pandemic, workers who were constantly hunkered down at home working long hours sought a change of scenery. The increase in short-term rentals is a testament to that. Whether they went with a spouse or group and friends, employees who could work from anywhere did just that, bringing laptops to Florida resorts or cabins in New York’s Finger Lakes.

Cynthia Milota of Ware Malcomb explores how slow forward momentum in workplace planning will ease adoption of the next normal.

Yaara Gooner, Head of Architecture and Design at flexible workspace provider LABS, shares her thoughts on likely design trends for 2022.

 

2021 has further accelerated the evolution of home and workplace design to build on the way in which we are adapting to new ways of working and the need for us all to be more considerate of the world we are living in.

Looking ahead to 2022, Yaara Gooner shares her top five design movements to watch out for in 2022.

Millennials have been burdened and blamed for societal shifts since emerging as a large part of the workforce. Now, Generation Z is taking the spotlight as these professionals make a significant impression on the workforce.

This younger generation is being heavily relied upon thanks to their digital nature and related skill sets that are needed for today’s technologically-driven work culture.

However, as a result of this focus on digitization, many Gen Zers lack the perks of in-person interactions. Still, these workers are aware of their surroundings, particularly in terms of the workplace and economic insecurities.

Moving forward, companies will need to adjust their operations, policies, and office design to address the evolving needs of this younger workforce.

Gen Zers have been at the forefront of conversation in terms of salary transparency, social responsibility, and technology-driven workspaces.

Five experts discuss what influence working from home has had on office interior design and what are the trends and predictions for 2022.

In a post-pandemic world, with many buildings standing empty or only partially filled, what trends can we expect to see in office spaces that will draw people back and ensure maximum occupancy in the office?

Searching for a new garden office? Look no further - OnOffice selects six of the most innovative and beautiful designs.

 

The pandemic has seen a spike in demand for garden studios as the space-strapped replace sheds and borders with more comfortable long-term workspaces. Architects inundated with requests for working-from-home solutions have kept step by developing a range of customizable cabins.

Yes, working from home has its benefits. The reduction of commuting is a big one. In 2020, Americans saved roughly $90 billion in commuting costs and an average of 49.6 minutes a day, according to research conducted by Upwork. There’s also a common thread of employees having a higher productivity output, since they have better control over their environment, they have better concentration. “It’s so much easier to finish a thought when the only thing you have to contend with is a Slack ping, as opposed to a co-worker tapping your shoulder,” said Bernadette, a video editor I talked to who became a remote employee thanks to the pandemic.

Remote work also has its allure for various demographics. Employees with chronic health conditions could monitor their well-being from the comfort of their own homes. Parents with young children who needed them throughout the day found remote work favorable, especially after it was reported that the cost of center-based child care leapt 47 percent higher during the pandemic. Neurodivergent workers were no longer forced to endure sensory overloads of a conventional office. It’s no surprise that a FlexJobs survey revealed that 58 percent of workers who responded said that they would “absolutely” search for a new job if they weren’t able to continue working remotely in their current role.

Remote working swiftly evolved from a stopgap lockdown solution into a globally successful workstyle – and it’s set to stay. According to research quoted by CityAM, “84 per cent of UK businesses plan on having a hybrid, flexible or remote workforce following the pandemic”. Some companies, like Deloitte, have placed all bets on remote in closing their offices and basing employees from home, enjoying a vast reduction in operational costs. This flexibility has offered immediate benefits for remote workers, ranging from lifestyle and financial to positive influences on wellbeing. Workers in particular social groups have experienced life-changing situations, securing work in previously inaccessible geographic locations.

But as excitement over this flexible way of working subsides, reality has kicked in – in the form of medical issues, mental health issues and workers’ increasing demands for more support from employers. There are significant well being implications for workers in terms of how they are being provided for by employers. In-office employer responsibilities that exist to provide for workers don’t extend to working from home and elsewhere. Lack of best practice guidelines to provide ideal remote workspaces puts workers’ health needs and long-term sustainability of this working model at risk.

Two of the world’s biggest sports brands have just debuted major designs for their staff: Olson Kundig’s LeBron James Innovation Center for Nike, and Lever Architecture and Studio O+A’s expansion of Adidas Village in Portland.

Hendy’s Sonaly Dudheker outlines the importance of creating environments that focus on improving mental and physical health for employees.

LPA designers use San Jose studio as a case study to explore design that incorporates remote working, increases mobility and brings new value to the workplace.

 

The future will most likely be a hybrid of studio and remote work.

Investors are now thinking differently about what sustainability looks like in today’s prime real estate. It means that factors like improving resilience, reducing carbon emissions, and promoting employee wellbeing are playing a bigger role in determining a building’s financial value and the income it generates. Indeed, the UK’s Royal Institute of Chartered Surveyors recently updated its valuations guidance to place greater emphasis on a building’s sustainability credentials.

One Wall Street provides a timely model for converting empty office buildings into residential units. The question now is how to create affordable adaptive reuse housing that won’t just cater to the elite.

More than $5B of office-backed CMBS loans are set to come due this year, and experts see many older buildings at risk of default.

Evidence grows that sustainability means better returns.

 

Buildings with strong green certification command higher rents and sales values, while other buildings are falling in value, according to growing evidence that cutting building carbon emissions makes financial sense.

While investors initially doubted the value of certifications like LEED and BREEAM, green certifications result in a rent premium of 6% and a sales premium of 8%, JLL says in a new report on sustainability and the growing value of green.

Longtime collaborator ARO helps the heritage brand refresh its New York and Washington, D.C. flagships with an eye toward the rapid shifts in workplace culture.

 

Multifaceted firm Architecture Research Office (ARO) has been essential in shaping the company’s ever-evolving identity. For a decade, the practice has worked closely with Knoll developing its showroom and office outposts in Houston, Los Angeles, Philadelphia, and San Francisco. These dynamic venues deftly blend immersive retail space with open-plan and private workspaces. First articulated in 2012, the format was ahead of the curve in its consideration of the hybrid environment.

The desire to incorporate the comforts of home into commercial spaces has become a central tenet of the heritage company’s ongoing rebranding. ARO recently built on this model by revisiting the Knoll New York and Washington D.C. flagships it originally designed a decade ago, transforming them into spaces that better reflect the resimercial trend. “Knoll has always challenged us to create spatial coherence within an environment that ultimately shows very diverse furniture and finishes,” says ARO principal Stephen Cassell. “That robust design framework has stayed consistent even as Knoll’s showrooms and offices have evolved in response to the changes in client preference.”

Brian Chen is CEO of ROOM, a furniture provider that specializes in prefabricated and modular products. He co-founded the company with Morten Meisner-Jensen in 2018 and has watched the uses of his products expand from office into multifamily, hospitality and even retail, part of what he sees as a larger shift in the industry. 

“We see the distinctions between asset classes blurring all the time, and I think we’ll see this trend accelerate, especially as momentum builds for the ‘work-from-anywhere’ trend,” he said.

Chen, an outdoorsy guy who loves to travel and who always dreamed of launching and leading his own firm, said it is easy to romanticize leaders and leadership. But the pandemic taught him to take a more practical view of the job and helped him distill some simple guidelines for management — be honest and be yourself. 

DIRTT Environmental Solutions Ltd. announced the departure of Kevin O’Meara as the Company’s CEO and as a director. Todd Lillibridge, the Board Chair, has been appointed Interim CEO, and will serve until his replacement is named. The Board also named Michael Ford as Lead Independent Director for the period Mr. Lillibridge serves as CEO.

The Board has retained an executive search firm to help it identify a permanent leader for the Company. Mr. Lillibridge does not intend to be a candidate for the permanent role.

Mr. Lillibridge has served on the DIRTT Board since 2017. He has over thirty years of executive experience in the healthcare real estate industry, having founded and built a multi-billion-dollar medical office building business. He is guided by passion, persistence, and humility, and has extensive experience in leadership roles, strategic planning, property investments, debt and equity financing, facility development and property operations.

Grand Rapids Chair Co. Introduces Rita: Their First Outdoor Lounge Seat

Commercial furniture manufacturer Grand Rapids Chair Co. proudly introduces Rita, the latest lounge seat in the newly revamped GRCC product family and the first designed for indoors and out. Known for imagining playful dining seats and tables, GRCC’s Rita Lounge represents their foray into outdoor lounge furnishings that maximize comfort and productivity. Crafted with sustainable, exterior-grade materials and an easily customizable design, Rita is a lively addition to hotel lounges, coworking offices, outdoor patios, and everything in between.

“Grand Rapids has completely redone its entire portfolio over the past seven years,” says Grand Rapids Chair Co. Creative Director, Dean Jeffery.

“We made a conscious effort to create a foundation, including chairs and tables for dining spaces, but now it’s time to put our stamp on lounge and outdoor areas.” Designed by long-time collaborator Filter Studio, Rita incorporates Grand Rapids’ signature powder-coated steel frames and rounded edges with additional comfort. Defined by two angular intersecting cushions, Rita is cozy yet sturdy for productivity and engagement in commercial spaces. Available in three variations—a base model with optional arm caps or a 10-inch side table—Rita is more than just a pretty chair; it can hold everything from laptops and notebooks to happy hour cocktails.

“After two years of remote work, we want Rita to attract people to communal spaces, whether it be a café, office, or hotel,” says Jeffery. “We love that Rita is designed for comfort, as well as work, conversation, and dining. It toes the line between what people love about home and what they need to be productive."

Espo Shifts the Concept of Precision-Focused Design Forward

Encore introduces Espo, a sophisticated executive/conference chair that combines well-defined lines with pillow-like shapes to create a concept that defies expectations.

Characterized by its sleek silhouette and signature polished aluminum cantilever arms, Espo lends a stylish presence to work environments that include executive offices, conference rooms and small meeting areas, in addition to outfitting more low-key spaces such as workstations and benching applications.

The distinctive metal arms trace the periphery of the seat and back, extending outward to form armrests that intentionally appear light while allowing for more freedom of movement when seated. Equally purposeful is the slender, subtly angled chair shape – a compelling visual element that also adds to the overall lightness of scale.

Underpinning all the aesthetic design elements is the skillful integration of comfort features such as an intuitive weight-activated synchro-tilt mechanism that automatically adjusts to individual body types, a t-arm option that allows for height adjustment, as well as softly rounded black polyurethane arm caps on cantilever models that provide for a smooth surface finish.

This collection marks Encore’s first collaboration with Henner Jahns of Gecco Vision, an award-winning designer recognized for his innovation and hands-on approach. “We were looking for a contemporary office chair that offered a fresh, on-trend look without any bulkiness, while at the same time providing effortless comfort”, states Tammie Alciatore, Director of Marketing. “Espo checked all those boxes and more with its architectural styling and thoughtful details throughout, delivering what we anticipate to be a very well-received series.” 

Allseating Debuts Eighty Two, a Return to Great Design in the Value Category

Allseating launched Eighty Two, a customizable and comfortable task chair at a highly affordable price point. This task chair was envisioned by the company’s CEO and founder, Gary Neil, to pay homage to Allseating’s 40th anniversary. Eighty Two celebrates the core values on which Allseating was built: stylish, intuitive, and affordable design.

“Eighty Two symbolizes a return to our roots here at Allseating, with its name being a direct reference to the year our company was founded, 1982,” says Gary Neil, the CEO and Founder of Allseating. “Eighty Two proves that innovative design should be accessible to everyone – and that 40 years later, Allseating continues to uphold this mandate.”

Stemming from an influx of home offices, Eighty Two is designed to solve a new employer dilemma: how to responsibly provide the necessary tools for employees to work safely and comfortably from home while keeping budgets reasonable. Eighty Two is the perfect solution for an affordable at-home office. Additionally, Eighty Two doubles as a great answer to employees who are returning to the corporate office. Eighty Two can be used in both permanent office seating as well as collaborative touch-down spaces, making this chair one of our most adaptable yet.

“The home office is one of the largest growing trends in our industry,” says Paul Vendittelli, President of Allseating. “Designers are looking for low-cost, highly-ergonomic seating solutions to populate these new spaces. Eighty Two’s combination of intelligent design and cost-effective engineering has it poised to hit the market with an impeccable value statement."

3form’s 2022 Color Collection Emulates the California Coast’s Majestic Landscape

3form has introduced their 2022 Color Collection, a palette of nine desaturated hues inspired by the California coastline. Complete with mossy greens, deep blues, cool grays, and sandy golds, the colors evoke a sense of calm and serenity that only derives from nature. Just like the ever-evolving shades of our world, this new collection is a muted iteration of 3form’s 2021 Color Collection, reflecting the need for grounded colors in shared spaces.

“As designers, we want to see things evolve,” says 3form’s Vice President of Design, Christian Darby. “We had a clear starting point for this palette, but we didn’t want to radically change it from previous years. There’s a subtlety from where we went from 2021 to 2022. This palette is more refined by softening the greens and blues to become even more sophisticated.”

Darby’s inspiration for the 2022 Color Collection derives from his childhood home near Monterey Bay, a beach town in central California. Unique for its white-sand beaches, organic rock formations, and cypress trees, this palette distills Monterey’s rolling hills, beaches, and lush foliage into nine distinct color identities. The palette also depicts the coastline in different seasons and weather conditions—as portrayed in soft blues and moody dark grays—to accommodate a variety of commercial interiors.

“One of the most beautiful things about the California coastline is the amazing blend of landscape, ocean, hills, mountains, and farmland,” says Darby. “There’s a beautiful cross-section between the land and the stormy sea that we tried to emulate in this palette."

Evolve Your Space with Tayco’s Enhanced Switch Panel System

Tayco has released ample new features for Switch on January 20. Switch, a two-inch panel system that has generated immense interest and sales across North America is now offering increased functionality, additional configurations and enhanced privacy all at a fantastic price point.

The ability to customize workspaces to every individuals’ function is key when planning today's office spaces. With panels up to 82” high and 72” wide Switch now offers even more ways to personalize. Additionally, laminate and fabric panels now include segmented glass and acrylic options in multiple heights, a rarity with a monolithic panel system. Together these can be used to create fully enclosed offices, offering a private office feel, without the need for permanent construction.

“The market has raved about Switch since its launch in 2017. Customers love the sleek design, high-quality metal-to-metal connections, and the ability to truly make it their own,” says Tayco CEO, Kevin Philips. “We wanted to bring even more to the line in 2022, as we set the trend for users wanting additional space division, larger spaces and more privacy. Expanding our size offering and adding swing and sliding doors was the perfect place to start. Now stunning private offices can be created quickly offering immediate privacy and safety.”

Switch is known for its intelligent design aesthetic, offering a sleek modern look while maintaining cost efficiency. Panels up to 72” high further enforce Switch’s identity giving users the ability to specify fewer panels for a seamless look. Integrated glass and acrylic segments also enhance Switch providing natural light to flow into each workstation.

Springboard’s GLOWI Brings Auto Industry Technology to Writable Surfaces

Springboard introduced GLOWI, a premium glass writing surface made with the same material technology found on touchscreen cell phones and high-end car dashboards. Designed with micro-thin glass—one of the thinnest glass materials to enter the working surface industry—GLOWI eliminates marker shadow for crisp, clear illustrations, like writing on a piece of paper. Unlike standard glass, GLOWI’s glass is rolled out and cut with a razor blade for a lightweight finish that is crystal clear and easy to install. GLOWI is the first signature material to join the Springboard family, expanding the company’s offerings in both collaboration tools and writing surfaces. Now specifiable in two wallboard sizes, GLOWI elevates whiteboards with the highest quality materials and minimalist design.

“GLOWI is a game-changer for the working surface world,” says Springboard’s Director of Marketing and Sales, Kirby Rea. “GLOWI’s glass technology is taking over the tech and auto industries, and we’re excited to be the first to introduce it to whiteboards.”

Standard glass writing surfaces are typically 4 mm thick, but GLOWI’s 0.5 mm surface prevents the shadowing that often makes whiteboard markers appear muted or desaturated. GLOWI’s non-reflective writing surface is also easier to see from multiple angles and far distances, which is ideal for open offices or university lecture halls. Plus, while standard glass can leave streaks behind after erasing, GLOWI’s ghost-free surface keeps whiteboards looking good as new after every erasure.

GLOWI’s high-end writing surface perfectly complements Springboard’s new ARCHYI. dry-erase pen: an incredibly saturated black marker. The ARCHYI pen appears bold on any whiteboard, but it performs best with GLOWI’s shadow-free surface. Available in the GLOWI accessory kit, which includes two ARCHYI. pens (one black and one blue), the markers complete the entire GLOWI experience.

Estonian rapper Tommy Cash (TOMM¥ €A$H) is no stranger to out-of-the-box collaborations. Take his 2021 project with adidas: the pair revealed an absurdly elongated version of the adidas superstar originals that made all kinds of headlines. Today, keeping up with his penchant for the extravagant, cash reveals the bread-loaf-inspired LOAFA sofa and rug designed by artist Gab Bois for IKEA.

Occupying the upper floors of Maison Manuvie in the city of Montreal, Behavox’s new office is an inspiring workspace with biophilic elements. Montreal-based design studio ISSADESIGN and integrated project management firm A+ have teamed up to collaborate on the new interiors of the research and development centre of Behavox, a data analysis company based on artificial intelligence.

Designed and built during the pandemic, the project aims to offer employees with a vibrant and inspiring place to work, with principles of community and collaboration being at the heart of the design concept.

The Oakland-based firm Arcsine specified the materials from other innovative, sustainability-minded brands and manufacturers.

Dear Stephen,

I'm an avid reader of your column and BoF. I read in “Ask Stephen” months ago when Haworth flipped the 110 year old NYC Herman Miller dealer WB Wood to Haworth that you predicted Franco Bianchi would be on a tear to “flip” more major line dealers to Haworth. Frankly, I thought you were crazy at the time. It did not seem realistic to me that any other major line dealer would switch to Haworth. I have seen HNI try to flip dealers to Allsteel with limited success, but come on; concerning Allsteel, as the cliché goes, “you can put lipstick on a pig but”…... Well, hey, there are some pretty rich pig farmers in Iowa so who am I to judge?

So, Systems Source, the largest Knoll dealer on the West Coast, is now a Haworth dealer? Offices in LA, San Diego, OC, Seattle, Portland. Are you kidding me?

What gives?

When the Herman Miller dealer, WB Wood in NYC became a Haworth dealer that was long before Herman Miller bought Knoll. Now the Herman Miller and Knoll dealers are all scrambling just like you predicted. Looks like one rich bastard talking to another worrying about if they should sell or merge with one another, to me.

They are making it easy for MillerKnoll to consolidate all the dealers without having to cut any of them. I think they're slitting their own wrists by merging, selling and staying in the same MillerKnoll family that screwed them to begin with. Nothing is bigger than a dealer owner’s ego - until they get an offer they can’t refuse. Now, the smart MillerKnoll dealers are saying NO to that formula - changing teams all together and becoming Haworth dealers, saying “fooled me once” to MillerKnoll. No merging or selling, they are flipping!

Anyway, back to my point, the Haworth/SSI deal is not a sale but a giant switch. Bianchi is the dealer bandit! And you called it. I have noticed that Steelcase lets one dealer do it’s dirty work for them by letting a big dealer buy another… but Haworth gets down in the weeds and makes it happen, by switching a major dealer to their dealer network.

Stephen, what do you make of all this?

Signed,
Amazed By It All


Dear Amazed,

Yes, you said it right and you heard it here first! Here’s my quote from BoF 11/3/21: “we expect the dealers will experience major changes, merging or even being flipped to a different major brand." You remember correctly. I explained to all my readers that Franco Bianchi, Haworth CEO, was focused on his distribution network and recruiting and flipping new dealers while his competitors were busy recruiting new salespeople. MillerKnoll was busy with the accolades, patting themselves on the back, and over-using the phrase “iconic brand." Nobody was minding the store – meaning the dealers. The contract dealers, both Knoll and Herman Miller, felt neglected and it was clear to them that the retail business was going to take a stronger role.

Steelcase seems mistakenly to be above the fray, growing sales by letting the already immense dealers acquire (eat) the smaller dealers. There’s possible danger ahead for Steelcase because when you don’t want to get your hands dirty, someone else will do it, and you may find that eventually the tail will be wagging the dog. Hey Steelcase! This is not just some Star Wars Episode V, sooner or later: The Empire Strikes Back!

Haworth jumped on the opening created by the Herman Miller and Knoll merger and started wining and dining dealer principles, and continues to to this day. If you do it enough, and if you have a good “value proposition” story to tell, you’ll eventually win them over. Franco Bianchi is a charismatic leader, subtle, smart, understated, but below the surface wielding the immense power of a $3B company. You know the history: Haworth is a privately owned family dynasty that outgrew most of its competitors. It began in G.W. Haworth’s garage, he was a shop teacher in Holland, MI and they’re still in Holland today. It's no secret to regular readers of this column that I went to work for Haworth as a sales Rep in New York City right after college. Then, when I left Haworth to form The Viscusi Group, they were my first major client and we recruited hundreds of salespeople and managers for Haworth, many of whom are still there today. This is way before Haworth became rich enough to buy some of the most beautiful global brands – Poltrona Frau, Cassina, Cappellini, Janus et Cie - to burnish it’s image.

Franco is the public face of Haworth but the real secret weapon is the Haworth family themselves. Dick Haworth was the boss when I worked there and remains one of the nicest and smartest people in our industry. Never mind he is also one of the richest – don’t hold that against him. He hires smart people and listens to them and that's what has allowed the company to grow. Dick’s father, G.W., started something very special by calling everybody that worked there “members” rather than employees. That word resonates with me today because when you work for any of the other major furniture manufacturers you're not a member of the company you're an employee of the company.

Once a dealer principal meets Franco Bianchi or Matt Haworth or any of the major executives that run that organization they see 'nice' - and dealer principals aren’t used to 'nice,' they’re used to the manufacturer executives sitting across from them making demands and nagging about quotas. As far as the actual Haworth product goes, all I can say is “it is what it is." It's practical, it sells, but it's not the iconic brands that you see at Herman Miller or Knoll. Haworth has attempted to buy its way into the A&D community through acquisition and that experiment remains to be seen. Haworth has high turnover in some parts of the country. Haworth has not been able to grab the residential retail market yet like MillerKnoll has with DWR – that formula escapes them. Yet, if you own a contract dealership and Haworth approaches you, you’ll listen. The combination of “nice” and maybe a big check is compelling.

I say, respect the contract dealers that built your business. Bianchi understands this and the Haworth philosophy is rewarding them in spades by giving them the avenue to continue to flip dealers. I see six more flips coming Haworth’s way in the next six months as the MillerKnoll dealers trip all over themselves to merge, sell, acquire, etc. Or maybe the owners just hide away in vacation homes while their employees toil away through the pandemic?

Sincerely yours,
Stephen

This year's Salone del Mobile.Milano will be postponed due to the ongoing pandemic. Originally, the 60th edition of the Milan Furniture Fair should have taken place in April 2022. Now the board of Federlegno Arredo Eventi, in agreement with Messe Milano, has decided to postpone the event and have it take place from June 07 to 12, 2022. Maria Porro, President of Salone del Mobile.Milano, explains the decision as follows: "The decision to postpone the event will enable exhibitors, visitors, journalists and the entire international furnishing and design community to make the very most of an event that promises to be packed with new things, in total safety."

Apple TV+ has announced a premiere date of March 18 for WeCrashed, a limited series depicting the rise and highly publicized fall of WeWork founder Adam Neumann and his wife, Rebekah Neumann, to be portrayed by Jared Leto and Anne Hathaway.

The series is "inspired by actual events," according to Apple TV+, namely the arc of WeWork as it grew from a single coworking space to a far-reaching real estate company with a theoretical valuation of $47B — and its ensuing fallout after a botched IPO in 2019.

A woman was fired after she took her office chair home to use whilst working from home during the lockdown regulations. The Labour Court ruled that firing her for doing so was illegal.

The Office of the Director of National Intelligence spent an exorbitant amount of taxpayer money on “executive furniture” for agency head Avril Haines, according to documents obtained by the Washington Free Beacon.

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