ERG International Announces Acquisition of West Coast Industries  / TOKO honored with Best of Products Award by Architects Newspaper / Mitchell Gold + Bob Williams files for bankruptcy - is Steelcase to Blame? / Herman Miller Announces Launch of Herman Miller Vintage / DIRTT to Voluntarily Delist from Nasdaq Exchange / Phase Two of the Merger between Officescapes, Floorz and Elements / Storm Clouds Gathering Over Sun Belt Office Markets As Pace Of Migration Slows / Remote Work And Rising Interest Rates Are Changing The Landscape Of Commercial Real Estate / New research explains why returning to the office will be a struggle for our brains / Working from home won’t last forever… will it? / Here are the winners and losers of RTO mandates / Not many people want fully remote work, but nearly everybody wants a better office / and much more…


The Working Space
Monday, September 11. 2023


Industry News

ERG International Announces Acquisition of West Coast Industries
ERG International has acquired West Coast Industries, Inc. (WCI), a contract and hospitality furniture company. This acquisition builds on WCI’s foundation in these markets, positioning ERG International for growth across the United States. WCI will continue as a division of ERG International, with independent product offerings and brands. WCI’s craftsmanship and design expertise will complement ERG International’s portfolio, adding value for clients in various sectors. The acquisition will ensure a smooth transition, with the WCI brand and employees remaining intact. ERG International is a family business that has been offering seating, lounges, and tables for over 40 years to the Workspace, Education, Healthcare, and Government sectors.

DIRTT to Voluntarily Delist from Nasdaq Exchange
DIRTT Environmental Solutions Ltd. announced that it will voluntarily delist from Nasdaq to save approximately USD $400,000 in annual costs. The company's business operations and commitment to delivering value to customers, partners, employees, and shareholders will not be affected. DIRTT CEO Benjamin Urban stated that maintaining a dual listing on both Nasdaq and TSX did not provide enough value to the company and its shareholders. The decision to delist is part of the company's strategy to streamline and simplify its business. The company remains confident in its order pace and future growth opportunities. However, it is worth noting that the company is still struggling and trying to cut costs wherever possible.

Phase Two of the Merger between Officescapes, Floorz and Elements includes a new Business Structure

Elements, a Denver-based integrated interiors partner focused on human-centered design and placemaking, merged with OfficeScapes and Floorz. Now, they are creating a new brand and business strategy centered on the client experience. Elements is the parent company with five studios under it: Slate (formerly OfficeScapes), Constructive (formerly Manufactured Construction), Floorz, 3D Identity, and PeopleLab. This rebranding came from market research that revealed clients' desire to work with one company without compromising each studio's expertise. The new brand architecture is built on the collective capabilities of Elements' employees.

“The name Constructive represents the next chapter for our studio and clients,” said Cody Roberdeau, President of Constructive. “We will continue to deliver solutions that advance and solve construction industry challenges in a more comprehensive way than ever before.” In addition to prefabricated construction products, Constructive offers window coverings, access flooring, timber structures, and acoustic solutions for the built environment.

The announcement also includes new names for two of Element's studios: OfficeScapes is now Slate and Manufactured Construction is now Constructive. The studios of Elements focus on creating memorable experiences for all clients and partners through thoughtful design, consulting, furnishings, and construction. For more information, visit www.elementsofplace.com.

TOKO honored with Best of Products Award by Architects Newspaper
TOKO, a collection of self-supporting structures designed by Carl Gustav Magnusson, won the Best of Products Award by Architects Newspaper. The freestanding design enables relocation or reconfiguration as well as independence from traditional building architecture, without incurring the costs associated with conventional drywall construction. Available in a range of different combinations of materials, Toko's wall structure provides excellent visual and acoustic separation, making it an ideal solution for video conferencing hubs. With no electricity constraints and no floor-to-ceiling partitions, Toko is purposeful modular architecture that offers companies an affordable, sustainable and flexible alternative to fixed construction and traditional office design.
Furniture manufacturer Bisley has seen an increase in orders from government agencies for products to help deal with humanitarian disasters and emergencies, such as custom-designed lockers for refugee centres. The company has also received large orders for furniture from the NHS during the COVID-19 pandemic and for custom cupboards for new Brexit Customs offices. Bisley's ability to pivot and evolve its product offerings in response to changing global forces is seen as key to its success in an unpredictable global marketplace.
Mitchell Gold + Bob Williams filed for Chapter 11 bankruptcy last week, listing 200-300 creditors owed between $10-50 million. Among them: Transportation Insight, Ryder Last Mile, Kravet, Moore & Giles, and Cylindo. The company has $10-50 million in assets. Dalton Edgecomb, senior managing director of Riveron, will be the chief restructuring officer. M&A firm Stump & Company will supervise a potential sale of assets. The company ceased operations less than two weeks ago due to a disagreement between private equity owners and its lender, PNC Bank. The company is still looking for investors to finance revitalization and has secured a loan to preserve its assets. There have been multiple expressions of interest regarding groups of assets.
 
it was just a year ago that Steelcase forged a relationship with Mitchell Gold + Bob Williams

Steelcase said at the time that it would offer a collection of Mitchell Gold + Bob Williams products throughout the U.S. and Canada, with availability expected in November (2022). 

“We were drawn to the Mitchell Gold + Bob Williams vision of creating comfortable and stylish home furnishings, which can now translate into inspiring, informal work environments,” said Allan Smith, VP, global marketing at Steelcase. “We are excited about the convenience this relationship brings to architects, designers and clients as they create the kinds of places where people can unleash their best thinking, collaborate more comfortably and work in a variety of informal postures.”

It is unknown at this time how the Steelcase relationship played into the failure of Mitchell Gold + Bob Williams, but it obviously didn't help.

The bankruptcy of Mitchell Gold + Bob Williams has created opportunities for retailers to pick up market share, particularly those with a similar distribution strategy. The company's own retail stores generated a large percentage of its annual sales, estimated at $150 million to $200 million. Possible contenders include RH, Arhaus, Ethan Allen, Crate & Barrel, CB2, Pottery Barn, and Williams-Sonoma Home, as well as regional furniture chains and smaller retail operations. Interior designers who previously worked with in-house MG+BW designers may also benefit. The future of the company is uncertain, with the possibility of a white knight investor or the company being scrapped and sold for parts.
Contract Furnishings has opened a design center at the Western Auto Building in Kansas City. The design center aims to be an “educational epicenter for both furniture and interior design,” with fabric samples, digital resources, and a team of 12 employees and designers available to clients on a walk-in and appointment basis. The location was chosen because it perfectly represents what Contract Furnishings is about. The company has been in business in Kansas City for 30 years and also operates a design center in Overland Park and a warehouse sales center in Kansas City.

Herman Miller Announces Launch of Herman Miller Vintage
Herman Miller Vintage is a new program created by Herman Miller in partnership with Wright auction house. The program features 100 rare vintage pieces from Herman Miller's rich history, including iconic and hard-to-find pieces. The collection will be available online starting September 20, and select pieces will be showcased at Herman Miller stores and Wright's showroom. The launch of Herman Miller Vintage may be an attempt to increase revenue, as the company's results have been sagging. However, the program also celebrates the timelessness and craft that are innate to every Herman Miller product and offers a new channel for those who are passionate about sustainability and preservation.
The return to the office after the pandemic has varied across regions, with factors such as housing density, length of Covid lockdowns, and cultural norms affecting remote work levels. The study found that the US, Canada, and the UK had the highest levels of remote work, while Asian countries had the lowest. Housing played a role in return-to-office patterns, with densely populated cities seeing higher rates of return. Long-term investment in hybrid work routines also affected return-to-office plans, with companies delaying plans due to the pandemic. Cultural norms and worker associations also influenced return-to-office policies.
Many landlords are facing maturing loans on Class B and C office properties, which are becoming functionally obsolete due to their age, while new Class A towers with better layouts and amenities are tempting workers to return to work. Cities with the most Class B office pain include Atlanta, Denver, Seattle, Washington D.C., Los Angeles, Chicago, and Pittsburgh, with Manhattan having the largest volume of Class B office space facing the challenge.
Sun Belt cities in the US have seen a slowdown in office leasing activity and migration, with a wave of new inventory coming online as demand has fallen. Markets that saw the most activity since the start of the pandemic have seen the largest declines. Economic uncertainty and rising costs of living across the Sun Belt are driving the slowdown, with tenants more likely to renew or extend leases than they were a year ago. While Sun Belt cities continue to grow, they still have smaller talent pools and fewer college graduates than their more established peers in the North.
New jobless claims in the US fell to the lowest level since February, indicating a relatively tight job market despite recent indications of softening. Meanwhile, the number of people continuing to receive jobless benefits fell to the lowest level since July 15. Additionally, worker productivity in Q2 increased at a 3.5% annualized rate, the highest since Q3 2020, while labor costs rose at a 2.2% annualized rate, the slowest since Q4 2022.
Commercial real estate is facing challenges as interest rates increase, making it difficult for investors and lenders to generate profits from debt-based investments. The work from home trend has also led to less use and less finance-ability of commercial real estate. However, long-term investments in commercial real estate are still trending up, and recessions have minimal influence on the long-term value of real estate investments. As companies create strategies to integrate remote and in-office working styles harmoniously, we’ll see an increase in corporate activities in key urban centers that include a significant amount of commercial real estate activity.
Extreme heat is slowing down construction and decreasing productivity, with physical work taking 36% longer to execute during heat waves. While firms have invested in worker safety and comfort, experts predict that the impact of heat on productivity will only increase as temperatures continue to rise. This will add to the tension between hitting deadlines and keeping workers safe, and may require firms to add more workers during cooler hours or offer more breaks, adding time and cost to projects. Worker advocates are pushing for new rules to protect construction crews and other outdoor laborers, while construction companies may need to adjust their schedules to avoid working during peak heat.

Features

Tokyo is adopting hybrid work to support a diverse workforce and companies are creating modern workplaces that meet modern expectations for work-life balance. Japanese office workers are working from home around 30% of the time, and hybrid work is expected to remain a trend for both social and economic reasons. Companies are modernizing to address challenges such as labor shortages, an aging population, employee well-being, gender equality, and diversity in the workplace.

Hybrid work creates accessibility that supports a diverse workforce and traditional underrepresented groups have expressed stronger preferences for the flexibility that comes with hybrid work. The inclusive hybrid workplace creates trust and support for employees, increases productivity and retention, and empowers employees to do their best work.

Design trends for high-performing hybrid workplaces in Tokyo include collaboration, focus space, wellness, sense of belonging, and improved technology. Collaborative pilots and adaptation are critical for empowering change and engaging stakeholders and end-users in the final decision-making for workplace design.

Creating inclusive workplaces that support a variety of work styles and employee priorities like mobility, choice, privacy, and working with others virtually is critical for the future of hybrid work in Tokyo and beyond.

Workspace News

This Bloomberg article explores the return-to-office (RTO) debate, interviewing bosses and workers to examine how the issue is playing out globally. The article finds that office-occupancy rates in the US lag behind those in Europe and Asia, and that cities around the world will see less demand for office space. The article also notes that Lisbon and other European cities became a haven for digital nomads during the pandemic, but Portugal and Ireland have recently tightened their remote-work visa policies, sending nomads to Asian cities like Seoul and Manila.
The shift to remote work during the pandemic has conditioned our brains to work in a quiet, controlled environment, making it difficult to adjust to the noise of the traditional office environment. Research has shown that open office layouts significantly worsen occupant productivity, with sound and acoustic strategies being crucial for office design. A more nuanced approach is needed, such as the flexible hybrid work model, which allows for focused individual work at home and collaboration in the office. This approach respects the neuroplasticity of our brains, acknowledges the value of in-person interactions, offers flexibility, and is future-proof.
The return to office and pushback on working from home has become a polarizing topic in workplace strategy, with some supporting the back-to-office mandate for productivity and others accusing companies like Zoom of hypocrisy. However, every business has different objectives, and a one-size-fits-all approach to working patterns no longer holds water. It's important for CEOs and HR leads to reflect on their own business needs and create workplace policies that work for both the specific business and its people, whether that be a hybrid model, fully-remote, or fully-return-to-office.

Fellowes: Only 29% of American and Canadian Workers describe the Indoor Air at their Workplace as very Clean
A recent survey of American and Canadian workers who work on-site indoors at least one full day a week found that only 29% described the air quality in their workplace as "very clean." The vast majority (91%) expressed that clean air should be a fundamental right for all workers, and 89% reported that clean indoor air helps them perform their best at work. Respondents whose workplace was not considered very clean identified several factors contributing to poor indoor air quality, including stagnant air or inadequate circulation, humidity levels, manifestations of mold, stains, dust, and airborne particulates, and perceptible odors. Employers can protect workers from airborne viruses, bacteria, pollution, allergens, and volatile organic compounds (VOCs) by investing in air purification with HEPA filters, upgraded HVAC systems, and improved ventilation.
As companies navigate return-to-office mandates, winners include real estate companies, nostalgic bosses, recruiters for competitors, commute-worthy offices, and companies that address workforce pain points. Losers include Amazon, AT&T, Meta, and Google employees, chief people and HR officers, working mothers, and the mandates themselves. The best approach will likely be a mixed bag of working models that deliver the best outcome for each company's culture, people, and business.
The shift to remote work is impacting both commercial and residential real estate markets, creating opportunities and challenges for entrepreneurs. Key takeaways include the rise of home offices, the evolution of flexible workspaces, the decentralization of office locations, and the need for adaptation in commercial real estate. Entrepreneurs who recognize and respond to these trends will position themselves at the forefront of an expanding market.

Coworking

WeWork is renegotiating almost all of its leases and exiting underperforming locations to reduce lease liabilities, according to CEO David Tolley. The company lost 15,000 physical memberships in Q2 and had a net loss of $397M. WeWork is still planning to stay in a majority of its buildings and markets, but will let members know about closures and offer alternatives to minimize disruptions.

Other News

Furniture quality has declined over time. Today's consumers tend to dispose of furniture quickly, while companies rely on cheap labor and materials to keep costs down. Even higher-end furniture chains may not offer high-quality furniture. Most furniture today is made of inexpensive materials such as Chinese-made press board and plywood. Rubber wood and other cheaper materials are used to reduce costs. The use of lightweight materials for shipping furniture contributes to the decline in quality. Consumers now expect furniture to be cheap and disposable. This has created a culture of waste. To ensure furniture lasts, consider buying pieces made of solid wood or domestically-made furniture. Custom furniture is also a good option, but it is more expensive. It is important to invest in quality furniture that can be passed down as an heirloom.

Trends

America's aging population is a demographic shift that will affect every part of society. With a drop in the working-age population, labor shortages, productivity declines, and slower economic growth are expected. The strains are showing in everything from health care and housing to employment and transportation. By 2053, more than 40 percent of the federal budget will go toward programs for seniors, primarily Social Security and Medicare, but those programs are not designed for or prepared to handle the new demographic reality. A broad-based response is needed to address the challenges of an aging population, including who will care for older people, where they will live, how our cities are designed, and how businesses will adapt.

Design

Only 7% of UK office workers are in favor of fully remote work, with 41% preferring to work from a company office. However, 79% of workers are calling for improvements to their offices and more support for flexible working. The Sony State of Offices Report 2023 also reveals that over half (56%) of CEOs and business leaders in the UK plan to incorporate co-working spaces in the future, despite only 15% of employees preferring this setup. The biggest barriers to making office spaces work for employees' current working habits are a lack of appropriate real estate solutions, budget, and a disparately located workforce. Over a quarter (28%) of UK office workers are still entirely office-based, and 85% of all meetings include at least one remote work participant. Asynchronous working is becoming increasingly popular, with 44% of people wanting complete flexibility over where and when they work. The report also highlights the importance of technology setup, with many workers having better technology at home than they do at work. Employers need to focus on providing the right workplace, equipment, and flexible hours to ensure they get the most from their people.

Latest Products

Keilhauer has launched Foryu, an ergonomic office chair designed by German designer Martin Ballendat, which features a self-weighted mechanism that automatically adjusts to the user's weight and size. The chair is available in black or white nylon frames with black casters and an upholstered cushion in standard black or grey textiles or any COM textile. Foryu is BIFMA Level 2 certified and carries an SCS Global Services certification for Indoor Air Quality at the Indoor Advantage Gold level. It is shipped from zero-waste-to-landfill facilities and is supported by Keilhauer's 10-year warranty.
Frövi, a UK-based commercial furniture designer, has launched Sail, a contemporary seating range that allows flexibility and consolidation of workspace in a given area to collaborate, concentrate, and create. Sail's soft edges, continuous curved corners, and elegant design create a welcoming space without the need for partitioning or division. It can be used in a multitude of locations, including open-plan offices, atriums, and hotel lobbies, and is available in combinations from a one-seater sofa to a four-seater booth with a table and laptop holder.
Frövi has launched the Isle table, designed by their in-house UK team, which adds a softer, more domestic feel to modern commercial furniture. Made from solid ash, the table is available in seven sizes and features concealed functionality for everyday use, including cable management and below-surface power. The table is suitable for use in a variety of commercial environments and can be integrated into most interior design schemes.
These blue street furniture pieces in Barcelona are actually ergonomic supports designed by architect and ergonomist Antonio Bustamante and industrial designer Marc Llagostera. The supports are designed to induce a balanced posture and relieve tension in the vertebral musculature, and are produced in 2mm-thick machined and welded sheet metal.
The Butler Chair, designed by Rikke Frost, is a laminated veneer chair that includes storage for jackets and bags. The design was inspired by the challenge of finding space for personal belongings in public spaces. The chair has gone through several iterations, including the use of floating tenons instead of screws to join the back. While it has been exhibited with Danish Design Makers, it does not appear to be in production.

Trends in Commercial Projects from Around the Globe

AstraZeneca has designed its new office in Finland with a focus on health and wellness, using nature-inspired design elements such as green living walls to purify the air and provide a calming visual environment. The layout was designed to provide comfort and space for both collaborative and individual work, and the biophilic design concept was used throughout the office. The company's efforts to focus on employee health and encourage a stronger return-to-office in their hybrid workplace is a strategy that many big companies are taking, with biophilia becoming part of the lexicon of the office sector over the last couple of years.
ATB Financial has created a unique hybrid work environment that optimizes for both performance and employee experience. The company has learned from real-time data and team member feedback to inform future efforts, including adapting to team member preferences around furniture functionality, power inclusion, confidentiality, and meeting spaces. The physical space is designed to be flexible, agile, and diverse, with integrated signage and infographics to navigate through colored zones, a variety of meeting and collaboration spaces, and dedicated quiet zones. The company also provides the right technology and digital infrastructure to enable an effective and seamless hybrid environment, including space booking software, space utilization sensors, ergonomic assessments, and a home workplace setup allowance. ATB continues to push the boundaries and rethink how they work based on feedback and data, positioning them to drive greater value over the long term.
Atelier Cho Thompson redesigned 750 square meters of a historic shoe factory building in Boston's central business district for client EQ Office, creating functional spaces for flexible everyday office life. The architects balanced old and new, uncovering the building's rich history while meeting the needs of the post-pandemic workplace with a multi-layered composition of narrative and tactile layers. The resulting space features a playful juxtaposition of materials and patterns, bringing the ornamental elements of the exterior into the core of the building.

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


Landscape Forms Wins Four Red Dot Awards
Landscape Forms, a designer and manufacturer of high-design site furniture, structure, LED lighting and accessories, won four Red Dot Awards in Product Design in 2023 for its Profile lighting family, Typology ribbon bench, Typology lighting, and Take-Out connected seating. The Red Dot Award: Product Design is an international competition honoring excellence across 51 categories, and Landscape Forms' Director of Design, Ryan Heiser, notes that the award sets the standard for all other design awards. The winning products are recognized for their combination of beautiful, sculptural form and innovative function, and the company's collaborative design process with experts in lighting technology, engineering, manufacturing, and high-quality craftsmanship.

DIRTT Continues Expansion Across Construction Partner Network
DIRTT has welcomed two new DIRTT Construction Partners to its network, CMS Interiors and Al-Kaws, as well as forming a partnership with iMOD Systems. The company believes that these additions "ensure smart, sustainable construction is more accessible than ever, not just in North America, but globally, and will bring DIRTT's dynamic construction system to more projects and people worldwide."

LightCorp - New website/tagline launch
LightCorp has launched a new website with a clean design and a new brand message of "good energy". The website showcases the company's catalog of lighting and power products and Most Modest brand accessories, all designed to deliver and generate good energy. LightCorp's product development philosophy supports a collaborative approach, resulting in lighting, power, and accessory products that support individual choice, control, personalization, well-being, and connectivity.

IIDA NY Presents 8th Annual BuffCon
The International Interior Design Association of New York (IIDA NY) will host its 8th Annual BuffCon on September 14th, featuring Western New York's largest commercial interior design trade show at The Powerhouse by Rich Entertainment Group venue. Attendees can explore various booth sizes and layouts, with food and beverage available on site. Registration is available at https://www.eventbrite.com/e/buffcon-2023-registration-640141559637.

Find the best Contract Furniture Industry jobs and hire the best talent.

Dear Stephen, I'm a sales rep at a contract furniture dealership. I've been working here for almost five years. Honestly, the first two years were very rough, but I was given a guarantee, and by the third year, I started to make some traction and build my own clientele.

TREMAIN is rapidly growing in the US market and in need of experienced sales reps for several different markets across the country.
We are currently looking for a Business Development Executive to join our sales team. This position will have new business development responsibilities for San Antonio, TX.
The Senator Group has an immediate career opportunity for a Territory Sales Rep in the Baltimore/Washington DC area.
Our product offering is ideally suited to Rep Groups who have strong A&D relationships with a focus on project sales cycles.

Indoff is expanding and in need of experienced outside sales professionals in your area. If you’re tired of missing out on money due to low commission rates or you’re sick of quotas, then Indoff is the perfect solution for you.

The Regional Sales Manager will be responsible for the sales and sales growth of The Senator Groups products in the region of the country outlined.
Baresque, a leading supplier of architectural acoustical solutions for the hospitality, contract furniture, public space-site furniture, commercial, education and healthcare markets, is seeking an experienced Project Manager to join our team in Farmers Branch, Texas.

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