Italian Design Brands (IDB) Establishes US Presence with New Flagship Showroom for Meridiani and Davide Gropp / ABI September 2023: Architecture firm billings decline sharply / Pacific Office Interiors Joins Unisource Solutions / Here’s What We Do and Don’t Know About the Effects of Remote Work / Come in Three Days or Just Quit: Some Companies Give Remote Workers an Ultimatum / What real estate trends tell us about the return to office / Industry insiders at High Point hold out hope in spite of tough conditions / JLL: Growing Tenant Demand, Shrinking Supply Point To Office Market Stabilization / Purpose of Place: Why Place Branding Matters / and much more…


The Working Space
Monday, October 23. 2023

Industry News

Pacific Office Interiors Joins Unisource Solutions

Unisource Solutions is proud to announce its partnership with Pacific Office Interiors (POI), a distinguished Haworth Best in Class dealership. This strategic move strengthens Unisource Solutions' presence in Southern California and demonstrates its commitment to serving clients nationwide.

With the addition of POI, Unisource Solutions expands its reach from Los Angeles to Santa Barbara and San Luis Obispo, providing clients in the region with a wider range of workplace solutions. This includes office furniture, strategic design, and facility management services.

"This partnership represents a significant milestone in our growth journey," said Jamal Nasserdeen, COO at Unisource Solutions. "Together, we will continue to deliver exceptional workplace solutions and exceed our clients' expectations."

The partnership also brings valuable resources to both companies, as Unisource Solutions is Haworth's largest presence in Southern California. This collaboration will deliver exceptional solutions and service to clients of all sizes.

Unisource Solutions remains committed to innovation, sustainability, and excellence in serving clients across California. For more information about the partnership, visit unisourceit.com.

Business conditions at architecture firms deteriorated in September, with the AIA/Deltek Architecture Billings Index (ABI) score reaching its lowest level since December 2020. The decline in billings and hesitance among clients to commit to new projects indicate a potential slowdown in the commercial real estate market. Backlogs at architecture firms have also fallen to their lowest level in the third quarter. The slow return to office and a rise in interest rates have further impacted the industry. The West region has been particularly affected, and multifamily residential construction has seen a decline, potentially affecting future activity in the sector.

Italian Design Brands (IDB) Establishes US Presence with New Flagship Showroom for Meridiani and Davide Gropp
Italian Design Brands (IDB), a diversified industrial Group known for high-end design, is opening a US headquarters and two flagship stores in the US market. The 5,500 square-foot showroom in New York City will showcase the residential and contract collections of Meridiani and Davide Groppi. The opening of the New York office highlights IDB's commitment to supporting the global growth of its brands. Meridiani's space features clean lines and graceful volumes, while Davide Groppi's showroom showcases a range of lighting designs. The joint showroom reflects IDB's mission to boost competitive strength while maintaining each brand's distinctive identity. Meridiani and Davide Groppi have established themselves as leaders in the high-end furniture and lighting industries, respectively. The New York flagship store will provide A&D professionals with the opportunity to experience the quality, craftsmanship, and heritage of these brands.

HNI Corporation Named to U.S. News & World Report’s 2024 List of Best Companies to Work For
HNI Corporation has been named to the U.S. News & World Report's 2024 List of Best Companies to Work For in the Miscellaneous Products & Services Industry. The company is recognized for creating a positive work environment and is committed to being a great employer. The selection is based on employee sentiment and factors such as pay and benefits, work-life balance, and career opportunities.

Steelcase Named to U.S. News & World Report’s 2024 Best Companies to Work For
Steelcase has been named to U.S. News & World Report's 2024 Best Companies to Work For list. The rankings consider factors such as work environment, employee experience, and industry standing. Steelcase has also received recognition as a Best Employer for Women, Best Employer for New Grads, and Best Place to Work for LGBTQ Equality.
Steelcase Inc.'s stock has experienced a significant increase over the past three months. However, this article highlights the weak fundamentals of the company, particularly focusing on its low return on equity (ROE) of 6.6%. The article suggests that the lower ROE may have contributed to the decline in net income and questions the sustainability of the company's dividend payments. Investors are advised to carefully consider these factors before making any investment decisions.

Fall High Point Market Report

The Stump team pounded the pavement for 6 straight days over the semiannual High Point Market, where reportedly 50,000 people showed up to purchase (or at least look at!) furniture. Most attendees would dispute that number and suggest a decline in attendance. At least the weather was nice.

Most exhibitors will privately admit that revenues are down significantly over last year. Consumers continue to be moving away from durable goods and redirecting their dollars towards travel, hotels, and experiences ($2,000 Taylor Swift concert tickets, anyone)?! By the way, we will be in New York in 2 weeks for the BDNY hospitality show - that part of the furniture market is booming.

As is often the case, the higher-end of the market is performing better than the lower-priced/promotional world, and designer/trade-focused businesses are outperforming their peers that sell retail stores. Key Takeaways

Political Risk

Of course, the Middle East strife was top of mind. Many believe the turmoil in Israel could affect consumer confidence well into 2024. China was frequently mentioned as manufacturers continue to seek production elsewhere. Vietnam and India are the common names, and we heard about several fantastic new factories in Cambodia. Mexico was a clear focus for sourcing 1-2 years ago during the supply chain crisis, but dramatically lower ocean container rates has caused an abatement there, for now. And our own US political turmoil and election noise is not helping consumer confidence.

Showrooms

With the musical chairs of big movements in showroom positions, there are now many vacant spots for new entrants or legacy players looking to move showrooms to a more prominent position. Key spots include the now vacant Klaussner showroom on N. Hamilton, as well as the old Hooker (moved to Showplace) and Vaughan-Bassett (spearheading the new Furniture First building) spots on IHCF C-10. As well as Mahwah’s old spot in the Plaza building. And with Home Elegance going to the Zaki building on S. Main, what happens to their old location?

Bankruptcy

This downturn and economic turmoil have created tremendous business pressure and failures, and Stump is in the middle of most. We have pulled out our M&A toolbox for distressed sales and bankruptcy proceedings. MG+BW and Noble House have been extremely visible and challenged companies, and just this week Stump was retained to sell Z Gallerie as it entered Chapter 11. While selling big multiples of EBITDA is more fun, our firm has a long history of managing these distressed situations. Call us if you are interested in acquiring businesses in turnaround mode.

When will our industry get its mojo back? Early in the year, we thought Q4-2023 would be the rebound time; then shifted that expectation to Q1-2024; now we hear more skepticism, and most are looking to 2025 as the breakout year.

Quote of the Market: "Survive to 25’….then thrive."

Despite the lesser attendance and somewhat gloomy business outlook, we heard of many success stories and many of our clients continue to achieve growth and solid profitability. Our industry is still producing fantastic companies, and is blessed with some of the best people in the business world. We enjoyed our time with our clients and friends and look forward to better times ahead.

Based in Charlotte, NC Stump & Company is the leading investment bank providing mergers and acquisitions advisory services to companies in the global furnishings and home décor industry. 

A new report from JLL suggests that the U.S. office market is on the path to stabilization. The report highlights an increase in return-to-office mandates, growing tenant requirements, declining sublease additions, and shrinking high-end availability as indicators of market stability. Tenant requirements have risen, and gross sublease volume has decreased. The report also notes that new supply is shrinking, with conversions removing inventory and new-construction volume hitting record lows. Despite an overall national vacancy rate of 21%, the report suggests that stability may be achieved as demand increases and supply decreases.
The return to office (RTO) trend is gaining momentum, with new in-office policies impacting millions of workers. Research from real estate firm JLL indicates a decline in remote work and a growth in in-office work. Predictions for RTO planning include near pre-pandemic office occupancy levels on certain days, the continuation of hybrid work, and a demand for high-quality office spaces. The workplace of tomorrow is expected to feature collaborative spaces and a balance between "we space" and "me space." Companies are adapting to the RTO push by implementing new policies and amenities to enhance the office experience.
Companies are implementing strict mandates for employees to return to the office, with some offering ultimatums and severance packages for those who refuse. While companies like Roblox are requiring three days a week in the office, others like Google and Meta Platforms are mandating at least a few days. Many companies warn of job loss or disciplinary action for non-compliance. Despite company claims of increased innovation and collaboration, many workers argue they can competently work from anywhere and avoid long commutes and high costs. Office occupancy rates in major U.S. cities remain around 50%, with some companies monitoring attendance through badge swipes. Various companies, including Roblox, Amazon, Apple, Google, Grindr, JPMorgan Chase, Meta Platforms, Tesla, and SpaceX, have implemented return-to-office rules.

The push to bring American workers back to the office has shown results, as fewer than 26% of US households have someone working remotely at least one day a week, a significant decline from the peak of 37% in early 2021. This decline reflects the efforts made by employers to encourage their staff to return to the office, with remote employees being blamed for declining profits and costing cities billions. The ability of remote workers to demand telework perks has diminished due to fears of a recession and a shift in the labor market. While some companies, like Goldman Sachs, anticipate a return to five days in the office, there is disagreement on the topic, which is seen as a potential source of leadership conflict.

The data shows that work-from-home rates have dropped in all 50 states from their pandemic highs, but the decline varies across states due to factors such as migration, socio-economic dynamics, gender, race, and even politics. Democratic states tend to have higher remote-work rates than Republican ones. States like Mississippi and Louisiana, which rely on in-person industries like manufacturing and oil and gas, have experienced significant drops in remote-work rates. However, even states like California and Connecticut, which embraced remote work, have seen declines. The pandemic led to an exodus of New York City workers to places like Greenwich, Connecticut, resulting in a boom in home sales and remote-work rates. The demand for remote jobs among employees is surpassing the number of companies offering them, as seen in applications for fully remote or hybrid roles exceeding 50% in many metro areas. Some areas, like Alabama, are capitalizing on this scarcity by offering incentives to remote workers who relocate to specific regions.

Despite tough conditions in the furniture industry, there is a sense of hope at the High Point furniture market. The market is experiencing a shift in demographics, with interior designers becoming the largest group in attendance. Suppliers are adapting their business models and changing showroom locations. However, there are concerns about potential bankruptcies and a lingering industry slump. Overall, market attendees are cautiously optimistic about the future.
Despite leading companies in the U.S. implementing return-to-office mandates, the country continues to lag behind other regions in office attendance. The Americas have been the slowest in getting employees back to the office, with only 49% attending in August 2023 compared to 76% in Asia Pacific and 73% in Europe. Factors such as longer commutes, larger home sizes, and cultural preferences contribute to the resistance to return to the office. However, the U.S. is pushing forward with the return-to-office movement, with millions of workers already subjected to new attendance policies, and more expected to follow. While the U.S. has a long way to go, the gap in office attendance between regions is expected to decrease.
With the rise of hybrid work, many offices are downsizing and leaving behind unused furniture. Continental Office and JK Moving are helping firms repurpose, reuse, and recycle office furniture to reduce landfill waste. They consult with clients on reconfiguring office spaces and offer services such as storage, selling, donating, and recycling furniture. The demand for office decommissioning services has increased as companies downsize and adapt to the hybrid work environment. While traditional workstations are less favored, chairs, tables, and private office furniture have potential for reuse. The changing demands of workers and employers indicate a continued need for flexible and customized office spaces.
The effects of remote work during the pandemic have been mixed. Brick-and-mortar businesses in urban downtowns suffered as people stopped commuting, while some businesses, like grocery stores, thrived in the suburbs. Working mothers benefited from the flexibility of remote work, but women faced penalties in terms of career advancement. Studies on productivity varied, with some showing declines and others showing gains. The new normal appears to be a hybrid work model, with offices at about half their pre-pandemic occupancy levels. Remote work may lead to changes in housing affordability and a decrease in burglaries. The key to successful remote work lies in good management and occasional in-person meetings.
The Boston Planning & Development Agency has launched the Downtown Residential Conversion Incentive Pilot Program, which offers tax incentives to developers who convert downtown office buildings into apartments. The program aims to increase housing stock downtown and support underutilized building owners. Approved projects can receive up to a 75% tax reduction for up to 29 years. Skepticism remains in the commercial real estate community regarding the program's viability due to factors such as building suitability, high interest rates, and construction costs.
Investors are hesitant to jump back into the office market due to ongoing declines in deal volume and pricing. The CBD office sector has experienced the harshest decline, with August seeing the worst activity on record. The average size of sold properties has also decreased significantly. Year-to-date volumes show a significant decrease across all office categories. The lending market has played a role in the challenges faced by the CBD office market, with a drop in the number of active lenders. The relationship between transaction activity and lending availability remains unclear.

Features

Place branding is a strategic approach to shaping people's perceptions about a city or town and driving its competitive identity. Beyond visual identity, a successful place brand is built on experiences and engagement. It communicates a unique story, celebrates the uniqueness of the place, and creates a sense of community and pride. Place branding is important because it connects with people on a personal level and influences their decision to return or not. The most successful place brands are attached to emotion, build ideas around people, and invite them to be part of the place's heritage and culture.

The future of place branding will be more dynamic and flexible, allowing visitors and residents to shape it and share their personal experiences. As cities and towns compete for global commerce, investment, and talent, place branding will evolve to invite people to shape it physically and emotionally. The rise of technology and the desire to work and play in different cities will bring constant changes in the types of experiences a city offers. Ultimately, place branding celebrates human traits and characteristics and tells the authentic story of a place, celebrating its location, culture, history, community, and future ambitions.

The workplace is experiencing a significant evolution, with the pandemic challenging the traditional understanding of work. To entice employees back to the office, companies must prioritize creating an attractive and satisfying workplace experience. The concept of the return-on-commute (ROC) highlights the value of physical workspaces and the correlation between a fulfilling workplace experience and employees' willingness to commute. Designing workspaces that prioritize comfort, flexibility, and location can enhance engagement, workplace culture, collaboration, and overall work experience. By providing amenities that rival the comforts of home, offering flexibility in workspace design, considering convenient office locations, and fostering a sense of purpose and community through meaningful events, organizations can make the commute a valuable and enriching part of the overall work experience.

In conclusion, the ROC emphasizes that the journey to and from the office should offer more than just a physical transition; it should provide a meaningful return on the investment of time, effort, and cost for employees. Companies are increasingly compelled to create offices that go beyond being mere workspaces but become destinations worth the commute. By focusing on factors such as comfort, flexibility, location, and community-building initiatives, organizations can elevate engagement, workplace culture, and collaboration, making the commute a valuable and enriching element of the overall work experience.

Workspace News

The WORKTECH New York 2023 conference brought together interdisciplinary speakers to discuss AI, people, place, and technology in the workplace. Key takeaways include embracing AI, accommodating different employee needs, creating intentional workspaces, and prioritizing ease of technology use. Additional insights include the case for a four-day work week and the importance of integrating technology into work solutions.
According to a report from Yoh, approximately 1 in 7 employed Americans want to leave their current job within the next year. A quarter of respondents said they would only leave if they received a higher salary or better benefits. On the other hand, 28% of workers love their job and wouldn't leave for any reason. The report emphasizes the importance of companies understanding their workforce's feelings and engaging with employees to ensure satisfaction and loyalty. Older employees appear to be more loyal than younger ones. High turnover rates highlight the need for retention strategies, such as comprehensive benefits and compensation packages, pay transparency, and effective communication with remaining employees.
A survey of CEOs suggests that a full-time return to the office will happen by 2026, but employees are pushing for a hybrid work model. While bosses want employees back in the office, many workers prefer a combination of in-office and remote work. The survey also shows that CEOs still hold traditional office-centric thinking, despite the positive impact of hybrid work on productivity. The benefits of flexible work have been widely recognized, with increased performance and work-life balance. However, not all CEOs support remote work, and some companies are requiring employees to return to the office. The outcome of the return-to-office debate remains uncertain, but CEOs may reward employees who return with better assignments, raises, and promotions.
A poll by Indeed reveals that two-thirds of British workers would be willing to take a pay cut for a better job, with greater flexibility and shorter hours being the main drivers. The most desired factors include a four-day work week, better work-life balance, and more flexible working opportunities. The average pay cut workers are willing to take is 9.2 percent, equivalent to £3,036 per year. The research also highlights the importance of flexible hours and the growing trend of offering a four-day week. Additionally, women and ethnic minority workers place more importance on flexible working options. Job satisfaction is highest among engineering and architecture workers, while retail workers are the least satisfied.
Remote work trends are shrinking, with office return policies predicted to impact 500,000 more people by year-end. Companies should focus on optimizing hybrid work policies, planning for team gatherings, and refreshing their mission and values to reflect commitment to employees. Workers should prepare for a push to return to the office.
A study by psychologists at Durham University found that having a visual background of house plants and books, especially real ones, creates a good first impression on Zoom calls. The research also showed that bookcases, plants, and blank walls were rated as the most competent backgrounds, while comedic or living room backgrounds scored the lowest. Additionally, women were consistently seen as more trustworthy and competent than men, regardless of the virtual background. Smiling and happy facial expressions were found to enhance the impression of trustworthiness and competence.
A survey conducted by Accenture reveals that nearly half of UK workers are using generative AI to improve work-life balance. By outsourcing repetitive tasks to chat bots, productivity has increased. The survey also shows that AI efficiency gains are helping employees focus on life outside of work, which is particularly important given the rising mental health issues in the UK. AI is most popular for administrative and operational processes, and there is a generational gap in AI usage, with younger workers embracing the technology more than older workers.
Workplace wellness and eye health are deemed essential for millennials and Gen-Z workers. With the increase in these generations in the workforce, employee well-being is decreasing, making workplace wellness initiatives crucial. Eye health is particularly important due to the prevalence of screen usage among young professionals. Undiagnosed eye issues can lead to serious conditions and reduced productivity. Employers can help by offering vision insurance, covering eye exam costs, and promoting the use of prescription glasses. Implementing breaks and the 20/20/20 rule, ensuring good lighting, and assessing work setups can also aid in eye safety. Prioritizing workplace wellness and eye health is crucial for employee satisfaction and business success.
Hybrid working requires changes in management, training, and communication. Many bosses want employees to return to the office full-time, but there is a disconnect with employee desires. A significant number of offices lack a hybrid working policy, leading to inconsistency and lower morale. Leaders and teams should collaborate to develop a strategy that considers principles, practices, policies, skills, places, and technology. Hybrid working is becoming the norm, and organizations that resist risk damaging morale and losing top talent.

Trends

The concept of retrofitting existing buildings instead of demolishing and building new ones is gaining momentum in the UK and the US. In the UK, there is a campaign to make retrofitting the default approach, backed by trade magazine Architects' Journal and construction company Mace. The urgency of retrofitting is highlighted by the debate surrounding the demolition of the Marks & Spencer building on Oxford Street. In the US, there is a need to diversify midtown office blocks to combat high vacancy rates. Ideas for renewing aging office blocks include activating underused roof spaces and creating more collaborative work environments. The rush to retrofit is leading to innovative interior designs, with architects and spatial designers embracing the constraints of older buildings. Examples include the light-touch reworking of 210 Pentonville Road and the Bloqs makerspace in London.
Saudi Arabia is building two city-sized buildings called "The Line" and "Mukaab" as part of its NEOM project. These megastructures aim to blend innovation, sustainability, and advanced technology in the future of work. The Line will be a linear city accommodating 9 million people, while the Mukaab will be the world's largest single-built structure. Work within these buildings is expected to involve remote work, green jobs, technology and innovation jobs, service and tourism jobs, and community services. These developments align with Saudi Arabia's Vision 2030 to diversify the economy and improve the quality of life.

Design

Designing work environments that promote happiness, well-being, and productivity is crucial. Creating spaces that trigger the release of happiness hormones like oxytocin, dopamine, serotonin, and endorphins can have a positive impact. Elements such as surprise and delight features, color-changing lights, haptic technology, and access to nature can contribute to employee happiness. Well-being can be fostered through welcoming environments that promote joy, commitment, and emotional connections. Confidence can be enhanced by incorporating natural light, outside access, and positive imagery. Inspirational design can stimulate creativity and meaningful experiences. Ultimately, designing for happiness requires understanding the unique needs and goals of each project and putting people at the center of the design process.
As work patterns normalize and hybrid work models become more prevalent, the quality of the workplace experience is becoming a key factor in determining whether a commute to the office is worthwhile. Organizations are focusing on creating dynamic and amenity-rich offices that foster social interaction, team building, and cultural engagement. By offering diverse work environments and choices, organizations promote productivity, creativity, and overall well-being. This shift in workplace dynamics also has a positive impact on neighborhoods and redefines the concept of a commute-worthy destination. Embracing these concepts unlocks the full potential of the workforce and fosters a culture of innovation.
Haworth's DesignLab initiative brings together a team of talented artists and designers, including Patricia Urquiola, to create future-focused concepts for office spaces. The project encourages unrestricted creativity and pushes the boundaries of traditional workplace design. The power of group dynamics is evident as the team collaborates and celebrates their individuality. The DesignLab showcased at NeoCon 2023 offered a glimpse into the future of workspace design, with prototypes ranging from innovative couches to room-spanning carpets. Looking ahead, DesignLab will continue exploring in 2024, reaffirming Haworth's commitment to innovation and elevating the human experience in the workplace.
The competition for tech talent is driving banks to restructure their real estate portfolios, with a focus on markets that offer scalability and affordability of diverse tech talent. Technology is shaping bank office strategies, with selective expansion in markets for tech operations and robust talent pipelines. Banks are also investing in artificial intelligence (AI) to reduce costs, with the banking industry expected to spend an additional $31 billion on AI by 2025. The need to attract and retain top tech talent and create flexible workplaces is crucial for banks to remain competitive in the digital age.
Post-pandemic, companies need to rethink their office design to accommodate hybrid work and future objectives. The traditional office layout is no longer suitable, and flexibility, adaptability, and employee wellbeing should be prioritized. Communal spaces and technology-enabled connectivity are crucial. The inclusion of these elements has doubled since pre-COVID times. Transforming office spaces to be agile and future-proof can increase efficiency and resilience. The case study of Hiscox's new London headquarters at 22 Bishopsgate demonstrates the successful implementation of a hybrid working model and the importance of engineering and sustainability considerations in office design.

Coworking

WeWork's president and COO, Anthony Yazbeck, is leaving the company, according to a Securities and Exchange Commission filing. The departure is not due to any disagreement and Yazbeck will receive a $1.5M exit package. This comes after David Tolley was named permanent CEO. The personnel shake-up is the latest in a series of challenges for WeWork, including leadership changes, financial concerns, and missed interest payments.
WeWork has appointed David Tolley as its permanent CEO, who had been serving as interim CEO since May. Tolley's background in satellites and his experience leading a successful acquisition in the past suggest that WeWork may be pursuing a similar strategy to turn the struggling company around. Finding a private equity partner to purchase controlling interest could help WeWork improve its financial situation and lease renegotiations. However, the fact that Tolley was initially interim CEO raises concerns about the company's search for a new leader. WeWork's Board of Directors expresses confidence in Tolley's leadership and ability to drive the company's transformation.
As WeWork faces financial difficulties, other exclusive and expensive flexible workspace providers are stepping in to fulfill the promise of a high-end co-working experience. Private work clubs offer upscale amenities, social activities, and wellness programs, creating a refined work environment. Companies like Knotel, Life Time Inc., Colette, and Round Table Studios are leading the trend, providing members with exclusive workspaces, conference rooms, and access to fitness centers. These private clubs aim to curate a community of like-minded professionals, making them attractive options for those seeking a more refined co-working experience.
Hospitality startup Anyplace has transitioned into an operator model, offering furnished apartments with fully equipped home offices for remote workers and corporate travelers. The company has raised $8.27 million in Series B funding, led by Jason Calacanis' LAUNCH Fund, and is on track to hit $10 million in annual revenue run rate by early 2024. Anyplace plans to expand into new markets and enhance customer experience by providing personalized local concierge services. Despite the return to office work, the company believes there is still a market for digital nomads and remote workers.
Caleb Parker, the Founder of Bold, has launched Brave Corporation, a real estate company that aims to bridge the gap between office supply and demand by repositioning assets to meet ESG standards and dynamic customer demand. The company will focus on high-demand markets and offer space-as-a-service led asset management strategies. Parker's previous experience includes helping IKEA develop their Hej!Workshop brand and launching AXA IM's coworking brand, XCHG. Brave Corporation will create vibrant, community-driven campuses that prioritize hospitality and flexibility. The company's Full Stack Real Estate Platform and strategic partnerships will be unveiled soon.

Podcasts

In this episode of Clever Podcast, Amy Devers interviews Patricia Urquiola, a highly influential and acclaimed designer known for her contributions in architecture, interiors, product design, and more. They discuss Urquiola's diverse portfolio, collaborations with international design companies, and her unique design thinking that merges humanistic, technological, and social approaches. The episode provides a glimpse into Urquiola's extraordinary life and her fascination with various interests, offering a captivating and insightful conversation for design enthusiasts.
Listen Here

Green / Sustainability

MillerKnoll Issues 2023 Better World Report, Detailing Strides to Design a Better World
MillerKnoll has released its 2023 Better World report, highlighting its commitment to sustainability, community impact, and diversity, equity, inclusion, and belonging (DEIB). The report showcases progress in reducing the company's carbon footprint, promoting diversity and inclusion, and making a positive impact in communities. Key achievements include reducing packaging waste, investing in renewable energy, supporting diverse suppliers, and engaging in philanthropic initiatives. The complete Better World Report can be viewed at millerknoll.com/environmental-social-impact/better-world-report.

Teknion Renews JUST 2.0 Label
Teknion has renewed its JUST 2.0 label, a nutrition label for socially just and equitable organizations. The label, presented by the International Living Future Institute, recognizes Teknion's progress in diversity, equity, and inclusion (DEI) in areas such as pay-scale equity, physical health, well-being, animal welfare, and equitable purchasing. The label is valid until September 2025 and allows Teknion to continuously discuss and update its DEI policies.
Google's 2023 Environmental Report outlines its efforts to decarbonize its facilities and achieve net-zero emissions by 2030. The company aims to operate all data centers and office campuses on carbon-free energy 24/7 by 2030. Google is implementing various initiatives such as smart temperature and lighting controls, power purchase agreements for clean energy, and heat recovery from servers to heat offices. The company is focused on reducing combined scope 1, 2, and 3 emissions by 50% by 2030 and has achieved 64% of its goal in 2022. Google is also prioritizing energy management strategies, facility electrification, and green building certifications for its offices.
John Costello, a junior at the University of St. Thomas, has successfully run a company called West Metro Solutions, which refurbishes discarded office cubicles and resells them. The company has generated over $1 million in sales so far. Costello's business model involves recycling used furniture to help the environment while making a profit. He has expanded his sales and is securing a cubicle manufacturing partner overseas. Despite the challenges in the industry, Costello has managed to make his business work and plans to run it full-time after graduation.
The number of lighting products with Declare labels has significantly increased, indicating a growing commitment to sustainability and transparency in the commercial and architectural lighting industry. While the adoption of Declare labels in the electrical and lighting category still lags behind other construction material sectors, the material transparency movement is gaining momentum. Declare labels provide comprehensive product data and highlight potential chemicals of concern, helping designers and property owners make eco-conscious choices. Manufacturers are embracing sustainability and engaging in rigorous processes to obtain Declare labels. The lighting industry's interest in Declare labels is rising, but widespread adoption among designers is still in progress. However, as the world becomes more eco-conscious, the trajectory towards transparent and sustainable choices in the lighting industry is expected to continue flourishing.

Other News

Google has been approved to demolish the exterior and atrium of the Thompson Center in Chicago as part of its plan to transform the building into its new headquarters. The estimated cost of the project is $6 million, and Google anticipates moving into the Thompson Center in 2026. The building's location, with access to six L train lines, will provide employees with convenient public transit access.
PitchBook's report reveals the fastest-growing startup cities globally, with several U.S. cities making the top 20. Dubai takes the lead, followed by Detroit as the fastest-growing U.S. city. Other notable U.S. cities on the list include Raleigh, Houston, Indianapolis, Miami, Philadelphia, and St. Louis. U.S. cities make up 35% of the fastest-growing startup markets, while Europe and U.S. cities combined make up 65%. The report aims to identify areas of potential growth for venture investors, highlighting VC clusters that have been growing at a faster rate than more established locations.

Latest Products

Artcobell offers heavy-duty mobile storage solutions that are designed to withstand the rigorous daily wear-and-tear of student use. Their Maker Space collection provides flexible and multifunctional storage options for educational spaces. The collection includes Maker Space Cubbies, which come in two-column and three-column configurations, offering six or nine individual spaces for storing backpacks, lunch boxes, and supplies. The cubbies can also be equipped with locking door kits and customizable features like writable surface doors and peg boards. Additionally, Maker Space Tray Cabinets have built-in rails that accept tote trays in three different heights and can be arranged in two-column or three-column setups. These cabinets allow for easy movement of tote trays to student desks during the day and secure storage in the cabinets after learning hours.

Artcobell understands the importance of maximizing space in educational facilities while ensuring durability and longevity of their products. With budget constraints in mind, they strive to provide trustworthy and multi-faceted furniture solutions. The Maker Space storage solutions have proven to stand the test of time and busy students, making them a reliable choice for educational settings. To explore the Maker Space collection and learn more about Artcobell's offerings, visit their website at artcobell.com.

Ultrafabrics has upgraded its Promessa collection, introducing new colors, a backcloth made of eight recycled plastic bottles, and removing anti-microbial additives. The collection offers durable fabric solutions for commercial interiors, furniture, and healthcare applications. The new colors reflect biophilic design trends, and the collection now incorporates recycled materials. The removal of antimicrobial additives expands Promessa's suitability for projects where such technology is not permitted. The collection is also PFAS-free, low VOC, and has undergone rigorous testing for durability and ease of cleaning.

Nicole Meier, Director of Branding at Ultrafabrics, says: “Promessa embodies the Ultrafabrics offering perfectly: unrivalled haptics, performance, and beauty. In the same breath we never rest on our laurels and continue to innovate. We are proud to add new colors, a new recycled backcloth and, as a response to feedback in the healthcare market, we have removed anti-microbial additives. Whether it’s clinical settings and airports, to restaurants and higher education, Promessa always exceeds expectation.”

Less is More: HBF Introduces the Karina Armless Guest Chair
Inspired by the mid-20th century designs of modern Danish icons, Glyn Peter Machin designed the Karina guest chair to celebrate beautiful organic forms combined with superior craftsmanship - now launching in a new armless version. Each element of Karina Armless is carefully shaped: not one straight regular-cut component exists within the design of the chair. All elements flow effortlessly from leg to seat to backrest, making each chair appear to be a single molded entity—strong, yet almost weightless. The design is also defined by its exposed tenons, clean lines, lightweight construction, highly detailed curvaceous forms, and floating, finely tailored leather upholstery. Equally at home in the conference room or the dining room, Karina Armless is made with premium joinery and solid wood in HBF’s North Carolina factory.
3form Elements has expanded its Hush Blocks Collection with new sound-absorbing, wall-mounted felt blocks. The collection includes 24 new shapes and six standard configurations, allowing designers to create visually stunning and high-performing configurations. The new Hush Blocks have a higher acoustic rating and are available in thicker depths. They are easy to install and come with small design elements to hide exposed hardware. Made from 50% post-consumer recycled PET, the blocks are now available for purchase with a four-week lead time.
Glyph, designed in collaboration between RBW and Yabu Pushelberg, is a lighting fixture inspired by minimalistic art of the 1960s and 1970s. It features simple shapes, bold colors, and industrial materials, with the ability to be oriented horizontally or vertically. The design combines RBW's high-performance lighting technology with Yabu Pushelberg's design ethos, and offers four finishes with textural contrast.
Carnegie has introduced the Full Spectrum collection, a consciously curated series of high-performing, easy-to-maintain fabrics at various price points. Guided by community-based design principles and committed to sustainability, the collection offers durability, style, and performance for education, hospitality, healthcare, corporate, and multifamily settings. The collection includes PVC-free, finish-free, PFAS-free fabrics that are antimicrobial and antibacterial, with easy cleaning and maintenance. It also features new patterns, including Ion, Nebula, and Precision, offering a range of colors and textures. The Full Spectrum Collection showcases Carnegie's commitment to responsible innovation and sustainable solutions. For more information, visit www.carnegiefabrics.com.
USM is introducing a limited-edition olive-green finish to its modular furniture collection, available from November 2023. The Swiss design brand's Haller system, known for its versatility and unique engineering, will feature the new color on four furniture configurations. The olive-green finish adds a nostalgic, retro ambiance to contemporary interiors. Customers who purchase from the collection will also receive a set of martini glasses as a gift. The timeless design and adaptability of the system make it a practical and sophisticated storage option for both home and office spaces.
Here's a wall-mounted desk with a semi-circular drawer by Teixeira Design Studio. The desk offers additional surface area when needed, but operating the rotating sections might be challenging. The author discusses the need for a modification that would allow smooth manipulation of the sections without the need for push and pull actions.
Architect Hiroshi Nakamura designed a co-working space with a massive single room divided by large, semicircular glass walls. The glass was produced using three-dimensional heat-shaping technology by artisans who make windshields for high-speed train cockpits. The highlight is the enclosed conference room with a round table designed to promote active participation in discussions.

Trends in Commercial Projects from Around the Globe

Bohlin Cywinski Jackson redesigned the Genstar Capital offices in San Francisco, creating a more open and collaborative space with floor-to-ceiling glass offices and a warm, neutral palette. The new design emphasizes personal connection and transparency, with communal spaces relocated to the perimeter to take advantage of panoramic views and natural light. The office features a gallery-like circulation spine, state-of-the-art conference center, and a warm, neutral palette with locally sourced artwork. The project was managed by Summit Construction Management and constructed by Skyline Construction.
Architecture firm Superlimão designed a modern office for construction company Escritório da Engenharia in São Paulo. The office highlights industrial elements like brick, concrete, and metal mesh, using them in eye-catching ways. The space features event areas, podcast recording studios, and flexible workspaces with natural lighting. The design incorporates exposed wiring and geometric patterns, creating a unique and visually appealing environment.
CannonDesign partnered with Electric Works to create a high-performance workplace in Fort Wayne, Indiana. The project transformed a historic General Electric site into a mixed-use district of innovation, culture, and community. The design includes diverse office spaces, conference facilities, amenities, and a focus on preserving the legacy of GE while fueling entrepreneurship and fostering connections. The redevelopment is a multi-phase effort that aims to redefine the purpose of the campus and drive the community forward through work and ingenuity.

Upcoming Industry Events

EDspaces 2023
November  7-9, 2023 | Charlotte, NC
 
There has never been a better time to move forward; to reset the places where teaching and learning happens, and to create inspiring spaces for better experiences and learning outcomes.If you play a part in the learning process, from educator/administrator, architect or interior designer, to distributor, integrator, or supplier, EDspaces is the can’t miss event driving the expectations for what the learning experience will be in the future.

Clerkenwell Design Week 2024
May 21-23, 2024 | 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.

NeoCon 2024
June 10-12, 2024 | 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.  

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

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

Industry Briefing

Thinkspace Welcomes Maria Jones as Inside Sales Coordinator to Elevate Expanded Product Offerings
Maria Jones joins Thinkspace as the Inside Sales Coordinator, bringing six years of experience in the furniture industry. Her expertise and passion for product knowledge will contribute to Thinkspace's expanded product offerings and market position. Sid Meadows, Vice President of Thinkspace, praises Maria's analytical and creative mindset and her ability to effectively position products in a competitive market. Maria's personal interests include the arts and photography.

Kimball International Announces Third Season of the Alternative Design Podcast and New Blog
Kimball International announces the third season of the Alternative Design podcast and a new accompanying blog. This season focuses on foresight and empowering designers to improve the human experience through the spaces they design. The podcast kicks off with an episode exploring the importance of foresight in design and envisioning a future where decentralized organizations and AI clients contribute to the profession. Episodes can be accessed on podcast apps such as Spotify, Apple iTunes, and Google Podcasts.

Configura Highlights CET Experience and Honors 2023 CET Award Winners
Configura hosted its annual CET Experience, bringing together over 350 attendees from around the world for hands-on workshops, breakout sessions, and networking events. Key highlights included a keynote speech by Ben Nemtin, the announcement of upcoming updates to Configura's platform, and the recognition of talented professionals at the CET Awards. The event was praised for its community-building efforts and inspiration for creating extraordinary spaces. Plans are already underway for next year's CET Experience. iew the full CET Award ceremony here: https://www.youtube.com/watch?v=HkUcV15b_b4.

Dealer Management Development Program for Steelcase Dealers
Solomon Coyle is accepting dealer registrations for the Dealer Management Development (DMD) program for Steelcase-only dealers. This 3-month virtual learning experience is designed for management-level individuals to deepen their understanding of the business. The program includes assessments, classes held online twice a week, and a cost of $7,500. For more details and registration, visit the Steelcase DMD Winter 2024 website.

IIDA Announces Best of Competition and Transformation and Innovation Award Winners For the 12th Annual Healthcare Design Awards
The International Interior Design Association (IIDA) has announced the winners of the Transformation and Innovation Award and the Best of Competition for the 12th Annual Healthcare Design Awards. Gensler received the Transformation and Innovation Award for the Community of Hope Family Health and Birth Center in Washington, D.C., while EwingCole won the Best of Competition for their Essentia Health, St. Mary's Medical Center in Duluth, MN. The awards recognize creative design in healthcare facilities across various categories. The winning projects were praised for their technical knowledge and ability to create comforting and healing spaces.
Find the best Contract Furniture Industry jobs and hire the best talent.
Dear Stephen, Several years ago, our company, which makes a unique product sold within the contract furniture space, was acquired by private equity. The original founders bolted, and immediately PE brought in a CEO from outside the industry to help grow revenue, cut costs, and prepare us for eventual resale. That was 3 CEOs ago!
RT London is seeking a Regional Sales Manager to cover the Pacific Northwest. They will be responsible for developing new business, managing the sales process and providing excellent customer service to our customers.
Intelligent Office Furniture is seeking experienced individuals and established groups within the Eastern USA, Midwest, and Southern Markets who are looking to grow and diversify their portfolio.
As an On-Site Client Design Specialist, you will play a key role in partnering directly with our clients in the field at their facilities to achieve seamless moves, adds, and reconfigurations of their existing workspaces.
OED, one of the industry’s leading Independent Manufacturer’s Rep organizations, is looking for a Representative to enhance our Georgia coverage. Position is based in our premier Midtown Atlanta showroom.
OCI Seating a leading mid-market contract furniture manufacturer is rapidly growing and is in need of experienced sales reps for several open territories across the US.
Rightsize Facility is excited to invite a charismatic and strategic sales leader to join our vibrant team.
MOD, a leader in power and lighting components for furniture in the workplace, hospitality, education furniture industry is seeking an energetic and motivated individual to join our team as a Territory Sales Representative.
Working with our education sales & design teams, we are currently seeking an interior designer to provide software & design expertise in presenting furniture solutions for today’s classrooms.
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