HNI to acquire Kimball International for $485M / Closed auto plant reborn as hub for HNI distribution network / Court official calls DIRTT’s legal action against Falkbuilt “a waste of time” / Working from Home More of a Big-City Phenomenon / Less than a third of businesses know how energy efficient their office is / Frövi calls Floor 11, Suite 101 of The Merchandise Mart their Chicago home / Adobe designed its new color-coded office tower with neuroscience / 


The Working Space
Monday, March 13, 2023

Industry News

HNI Corporation will acquire Kimball International in a cash and stock deal valued at about $485 million. Kimball International shareholders will receive $9.00 in cash and 0.1301 shares of HNI common stock for each share of Kimball International common stock they own. 
 
The combined company will have a stronger platform for growth, delivering significant benefits for shareholders, members, dealers, and customers. The deal will result in Kimball International shareholders owning approximately 10% of the combined company.
 
The acquisition will allow HNI to incorporate Kimball International's well-established family of brands and extensive expertise in the workplace, health, and hospitality segments. A combined HNI and Kimball International will have a broader, more comprehensive product offering, tailored go-to-market strategies, and enhanced manufacturing capabilities.
 
Kimball reported a $17.1 million loss in 2022. Kimball's financial report was weighed down by a $34.1 million goodwill impairment last year, the result of accountants determining that Kimball overvalued Poppin when it purchased the company for $110 million in November 2020. In their annual report, executives blamed "revised sales forecasts primarily attributable to changes in demand due to the ongoing COVID-19 pandemic and supply chain constraints."
 
The combined companies will have an annual run rate of approximately $3.1 billion per year, making HNI the second largest contract furniture maker ahead of both Steelcase and Haworth, but behind MillerKnoll.

Court official calls DIRTT’s legal action against Falkbuilt “a waste of time”
A court official has recommended that DIRTT withdraw its summary judgment application against Falkbuilt, calling it "a waste of time." The official warned DIRTT that it could be liable to pay Falkbuilt's legal costs. Falkbuilt has stated that the U.S. courts have dismissed every case against it with no finding of wrongdoing or liability, and that it hopes DIRTT's leadership will recognize that its litigation against Falkbuilt will not succeed.
HNI Corporation has transformed a former auto plant in Iowa City into a distribution center for its North American network. The 364,000-square-foot facility will allow HNI to adjust inventory levels to respond to changes in demand and minimize supply chain disruptions. The company is still scaling the operation and expects to employ 40 to 50 lift truck operators and warehouse workers when fully operational. HNI leases the facility from Phoenix Investors, a commercial real estate firm that revitalizes former manufacturing facilities throughout the US.

Frövi calls Floor 11, Suite 101 of The Merchandise Mart their Chicago home
Frövi, a UK-based furniture designer, has chosen Floor 11, Suite 101 of The Merchandise Mart in Chicago as their North American home. Their showroom, opening at NeoCon 2023, offers a fully immersive experience with nine separate zones showcasing furniture designed for real-life scenarios. The product selection is carefully considered, with the vast majority being manufactured locally and shipped to customers in just 6 weeks, reducing lead times and environmental impact.
DIRTT Environmental Solutions Ltd. has been notified by the Nasdaq Stock Market that it is eligible for an additional 180-day period, until September 5, 2023, to regain compliance with the Nasdaq Listing Rule 5450(a)(1). The company's common shares were transferred to the Nasdaq Capital Market on March 9, 2023, but the transfer does not affect the company's business operations or commitment to delivering value to its stakeholders.
According to a study by WFH Research, working from home is more common in big cities such as New York, Los Angeles, and Chicago. The study also found that employers who prioritize employee output and performance over time spent in the workplace are succeeding most. Additionally, age plays a factor in wanting to work remotely, with the desired amount of remote work increasing among those who are able to. However, 35% of respondents say their employer would do nothing if they or their coworkers failed to come into the workplace as many days as requested.
Commercial real estate brokers are facing challenges in securing long-term leases during the current period of financial instability and uncertainty around the future of remote work. Brokers are spending more time on sensitivity analysis around potential real estate footprints due to shifts in the workforce, and are focusing on client services, workplace analysis, and long-term planning. The number of great deals on the table simply can’t entice a client that isn't ready, and office deals are few and far between. However, brokers are optimistic that as the year progresses, they will have a better sense of real, long-term office demand.
CBRE, a commercial real estate firm, has decided not to build a new tower for its global headquarters in Dallas, instead opting to relocate its executive offices to the Park District building in Uptown Dallas. The company will occupy 67K SF of former coworking space in the building, which was built out in 2019 for CBRE’s coworking operation, Hana. CBRE's development arm, Trammell Crow Co., developed the Park District building, which is owned by MetLife. The move is expected to take place by late summer or early fall.
A survey commissioned by Irwin Mitchell found that only 32% of UK businesses are aware of the new Minimum Energy Efficiency Standards (MEES) legislation, which requires properties to have a minimum EPC rating of E from 1st April 2023. The survey of over 500 office property decision makers also revealed that only 31% knew what EPC rating their office needs to be in April, and 19% did not know their office's EPC rating at all. The survey also highlighted concerns about the new legislation, including the cost of upgrading buildings and the potential for landlords to pass on these costs via service charges or dilapidations claims.

Features

Adobe's new office building in San Jose uses color to help employees understand how each part of the building is meant to be used. The building was designed in collaboration with a color consultancy to reflect the neuroscience behind color's effects on the mind and elicit emotive responses based on the space. The building includes three distinct color schemes for focused work, collaboration, and community building, and employees can find spaces for a variety of tasks within each colored node. The building also includes employee amenities like meditation rooms, music studios, and a craft room, arranged with purpose to help employees feel well from a neuroscience point of view.
Juan Carlos Baumgartner, founder of SpAce, believes that workplaces should prioritize supporting employees' psychological needs rather than solely focusing on productivity. He emphasizes the importance of understanding the connection between human behavior, wellbeing, and the built environment, and advocates for a human-centric approach to workplace design. Baumgartner also discusses the rise of spatial agility and the need for diversity in the workplace to cater to a variety of needs.
Brunner has collaborated with design duo osko+deichmann to create the "boards" collection, a set of lightweight and flexible whiteboards that can be easily moved and stored. The collection includes accompanying furniture and accessories, such as workstations and storage trolleys, and can be adapted to suit different workflows and office setups. The furniture is also sustainable, with materials that can be separated for recycling and disassembled for repair or recycling.

Workspace News

There are challenges and opportunities presented by the "hybrid" work model, which combines remote work with in-person office time. The author argues that creating a successful hybrid office experience requires reimagining old paradigms and creating services and features that most offices never had. This includes redesigning the receptionist role to create a Hybrid Office Manager, engaging a multidisciplinary team to plan for hybrid function, and creating new positions such as a change management champion and a Hybrid Manager to ensure a high-performing office environment.
It's important to support mental health in the workplace, as evidenced by a survey showing that 81% of individuals seek out such support when applying for jobs. One way employers can support mental health is by providing access to meditation apps like Headspace for Work. However, it is important to note that meditation apps are just one of many resources, and access to medical coverage and professional support is crucial. While meditation apps can help employees manage stress, they are not a substitute for therapy or medication. Employers must prioritize employee wellbeing to attract and retain talent.
As companies try to bring workers back to the office, an increasing number are considering on-site daycare centers as a workplace amenity. This shift is in response to parents leaving the workforce or going part-time during the pandemic due to a lack of affordable, high-quality childcare. However, set-up and operating costs for on-site daycare can be high, and there is a shortage of childcare workers. Despite these obstacles, more companies are exploring similar initiatives to retain employees and draw working parents back to the office.
A new poll from GRiD shows that employers and employees have differing opinions on the health and wellbeing impact of hybrid working. While 64% of employers believe that hybrid working has had a positive impact on their employees' health and wellbeing, only 53% of employees agree. Mental wellbeing was the area that employees felt was most improved, followed by social, financial, and physical wellbeing. The report emphasizes that hybrid working should not be considered a benefit in itself and that employers should provide a comprehensive program of benefits to support health and wellbeing.
A new study by IWG suggests that hybrid working has led to a healthier workforce, with more time being dedicated to exercise, sleep, and healthy eating. The average hybrid worker is now getting 4.7 hours of exercise a week, compared to 3.4 hours before the pandemic, with the most common forms of exercise being walking, running, and strength training. Eating habits have also dramatically improved, with workers eating more fresh fruit and vegetables, and one fifth eating more fish. More exercise, better sleep, and healthier eating has led to more than a quarter of workers saying they’ve lost weight since the start of the pandemic. Hybrid working is also delivering productivity gains, with almost four in five saying they have been more productive since pre-2020 as a result of less work-related stress and having more time to relax and unwind after work.
According to data from CBRE, the technology, media, and telecoms sector dominated activity in the European flex office space market in 2022, accounting for 52% of transactions by number of deals and 62% by number of seats acquired. Financial and professional services accounted for 21% by number of deals and 27% by number of seats acquired. CBRE predicts that life sciences will be the sector to watch as it expands in the flexible office market. Despite economic uncertainty, flexible office space continues to grow in appeal, with a 37% increase in transactions completed across the whole market in 2022 compared to 2021.
A new report from Asana shows that despite the rise of hybrid working, workers still spend most of their time on "work about work" rather than skilled, strategic jobs. Unnecessary meetings are a major time drain, with executives missing deadlines due to too many video calls or meetings. The report suggests that effective cross-collaboration, with clear, connected goals, can boost employee retention and benefit the business itself, with collaborative organizations seeing higher revenue growth and better-preparedness to respond to challenges.
According to a report from CBRE Institute and CoreNet Global, utilization has become the most common metric for guiding corporate real estate operations and performance, surpassing occupancy costs and employee engagement/satisfaction. The survey of 186 CRE leaders found that 47% of respondents mentioned utilization as one of the top five metrics used by their organizations, up 7.7 percentage points from last year. Additionally, 65% of respondents said they are considering a consolidation strategy to support efficiency, and 64% plan to analyze the impact on real estate portfolio strategy of a larger remote workforce.
According to a survey by ResumeBuilder, 90% of companies plan to require employees to return to the office in 2023, with 73% of companies that allow remote work planning to change their policies within six months. Employers cite improved communication, creativity, productivity, company culture, and employee oversight as reasons for wanting workers back in the office, but 88% are offering incentives to encourage employees to return. The push back to the office will have implications for office space, with 67% of companies planning to have more office locations in six months.
The COVID-19 pandemic has changed the way we live and work, and how it has impacted the real estate industry. The rise of the liquid workforce and ongoing technology shifts have forced marketers to explore new strategies, mediums, and methods of communication to ensure their messages are resonating with key audiences and driving demand generation. The article outlines three key trends for marketing office space in 2023: remaining agile to meet changing hybrid workforce needs, expanding technology capabilities to build deeper customer intelligence, and reshaping brand identities amid the race to net-zero.

Design

This article discusses the current state of the design and tech industry, which is facing layoffs, burnout, and the increasing role of AI. The author argues that instead of striving for relevancy, designers should strive for maturity, which involves careful consideration of relationships, communal care, and boundary-setting. The article provides examples of how designers can mature their approach in terms of problem-solving, leadership, and self-care to create a more equitable and responsible industry.
Interface's Q1 2023 Design Trend Index highlights six overarching themes driving the evolution of interiors towards resilience, adaptability, and sustainability. These trends include a touch of texture, the third space, digitizing design, retro refresh, bold marble, and climate-conscious consumerism. The report recognizes design innovations that merge aesthetics and function to create beautiful, customizable spaces that reflect new patterns in how people live, work, and play.

Trends

Large companies are redesigning their corporate headquarters to better align with their brand identity and promote their image. The focus is on creating dynamic spaces that offer a variety of workspace options, collaborative spaces, and health and wellness offerings. Sustainability is also a major focus, with companies using materials that reflect their sustainability commitments. These headquarters serve as a branch of companies’ marketing campaigns and need to connect to the company’s overall identity by serving as a billboard for the brand.

Latest Products

AIS has expanded its product line with new lighting options and dry planters to enhance the workplace experience. The new personal task lights, Pixo Plus and Talia, were created in partnership with lighting designer Pablo Pardo and offer flexibility, efficiency, and adaptability. All three task lights are energy-efficient and highly sustainable, using 90% less energy than comparable lights. 
AIS has expanded its product line with new lighting options and dry planters to enhance the workplace experience. The new personal task lights, Pixo Plus and Talia, were created in partnership with lighting designer Pablo Pardo and offer flexibility, efficiency, and adaptability. All three task lights are energy-efficient and highly sustainable, using 90% less energy than comparable lights.
Shaw Contract has launched BottleFloor, a new hybrid flooring collection made from post-consumer recycled PET bottles. The collection is crafted from an average of 62 bottles per square yard of PVC-free flooring and is the first collection from Shaw Contract to launch on its ReWorx™ hybrid flooring platform. BottleFloor offers the durability of a hard surface with the comfort of a soft surface and is an ideal choice for high-traffic office environments and education settings.
HBF Textiles has introduced a new woven fabric collection called In Your Skin, designed by Erin Ruby. The collection features five sensorial textiles with unique patterns, including Matriarch, a twill weave with strong, bold color combinations. Produced in 46 colorways, the collection has a handmade quality and is certified Indoor Advantage Gold. The collection marks Ruby's third collaboration with HBF Textiles and celebrates being comfortable in your own skin while having the durability for contract and hospitality environments.
Humanscale has updated their wireless charger, NeatCharge, with a new sensor to accommodate bigger work surfaces up to 1.5" / 38mm thick. The compact design attaches to the bottom of a desk or tabletop, allowing for a neater workspace with fewer touchpoints. The price has been reduced to $199.00.
The Toní collection is a reinterpretation of the classic bistro set designed by Erik Stehmann for Dutch furniture brand Fatboy. The chairs and tables are designed for outdoor use, made entirely from lightweight and durable aluminum, and finished with a high degree of exterior coating. The chairs are stackable, UV- and weather-resistant, and retail for $339, but can be found for less at certain retailers.
Geiger, part of the MillerKnoll collective, has launched its first outdoor collection, the Geiger Crosshatch Outdoor Collection. The product line includes a lounge, ottoman, settee, coffee, and side tables, all featuring intricate wood joinery and sculpted forms. The collection is designed to complement the beauty found in nature while maintaining style and durability, and is crafted with durable solid teak and weather-resistant Sunbrella fabrics.
EzoBord has launched PrivaSeat, a universal office chair accessory designed to provide acoustical privacy to workers in hybrid settings. PrivaSeat creates a cocoon-like shelter that provides visual and audio privacy, empowering people to focus on their immediate tasks. The product can be easily affixed to most commercial and residential task chairs and comes in a variety of colors. EzoBord's Furniture Program includes PrivaSeat and many more products, making it easier for dealers to sell and for customers to buy.

Other News

The Women of Steel initiative at the Steelcase Plant in Pune, India, aims to increase the number of women in manufacturing and provide support and opportunities for them. The initiative has led to the production of the Steelcase Series 1 chair entirely by women and has removed barriers to opportunity, offering safety, security, education, training, support, and wellbeing services for dozens of women and their families across the region.

Trends in Commercial Projects from Around the Globe

Mustard Made, a UK-Australian company that specializes in lockers, recently launched its new London HQ, which features the brand's signature lockers in a variety of colors and styles. The interior design, created by Born + Bred, is minimalistic and highlights the lockers while celebrating the Mustard Made palette. The space includes various functional zones, such as a kitchenette, meeting room, break-out area, and collaborative working spaces, and amenities such as shower facilities and bike storage. The HQ is located in a gated mews community near Regents Canal and between Primrose Hill and Camden.
International law firm Orrick worked with Unispace to design their new LA office, with a focus on collaboration, innovation, inclusion, community impact, and sustainability. The space is designed to be inclusive and accessible to all, with single-size offices, multi-use accessible spaces, and technology for hybrid work. The office also features original murals by LA-based artist Robert Vargas, reflecting Orrick's partnership with the nonprofit A New Way of Life. Unispace's construction team delivered the project on budget despite pandemic challenges, and the design serves as a benchmark for other law firms to prioritize DEIB goals.

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.
In a recent episode of the Workplace Geeks podcast, Kate Lister, president of Global Workplace Analytics, discusses the State of Remote Work 2022 report and broader conversations around hybrid and remote working. Lister is a recognized thought leader on workplace trends and has testified before the U.S. Senate about expanding federal telework programs post-COVID-19. She has also authored several books and is a trusted media source on workplace issues.
Find the best Contract Furniture Industry jobs and hire the best talent.
Dear Stephen, I love my job, and I love my immediate work group. I'm in sales and marketing support at a major manufacturer in #Michigan. We're a publicly traded company, and we have cool products and a welcoming work culture. It's just a great place to work.
ORI, Inc. is an insights led commercial furnishings dealer that provides knowledge, products, and services to help our customers achieve their desired business results. We are the exclusive Platinum Steelcase dealer. This position is an opportunity for a highly organized and driven sales professional to manage and grow a major healthcare account.
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% year one if you can substantiate sales of $500K in the year prior.
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!
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