The long-anticipated combination of Steelcase and HNI Corporation officially closed Wednesday, completing a $2.2 billion transaction that reshapes the top tier of the North American contract furniture industry—and immediately raises thorny questions about brands, dealers, and channel conflict.

 

Under the terms of the deal, HNI shareholders now own roughly 64% of the combined company, with Steelcase shareholders holding the remaining 36%. The merged organization is expected to generate approximately $5.8 billion in annual revenue, placing it firmly among the industry’s largest global players. HNI will maintain its corporate headquarters in Muscatine, Iowa, while Steelcase will retain its headquarters in Grand Rapids, Michigan. The Steelcase brand survives intact, at least on paper, even as Steelcase CEO Sara Armbruster exits following the close - tens of millions of dollars richer.

 

Strategically, the logic is easy to articulate. HNI gains deeper reach into healthcare, education, and hospitality, while Steelcase adds scale, operational leverage, and balance-sheet reinforcement. Chairman and CEO Jeff Lorenger, who will lead the combined company, described the transaction as a phased, disciplined integration designed to preserve iconic brands while unlocking long-term synergies through digital investment, operational improvements, and enhanced buying experiences.

 

Where the narrative becomes more complicated is at the dealer level.

 

For decades, Steelcase and HON—HNI’s largest and most influential workplace brand—have operated with fundamentally different go-to-market philosophies, dealer economics, and cultural expectations. Steelcase’s dealer network is tightly controlled, design-forward, and often deeply embedded in architectural and enterprise accounts. HON’s and Allsteel's dealer ecosystem is broader, more transactional, and historically oriented toward value, speed, and programmatic selling.

 

Bringing those two worlds under one corporate roof is not just an operational challenge—it is a political one.

 

Dealer principals are already quietly asking questions about brand boundaries, line overlap, pricing discipline, rebate structures, and sales-force alignment. Will Allsteel continue to compete aggressively in mid-market projects where Steelcase dealers have long defended premium territory? How will national accounts be managed when both brands already touch the same customers through different channels? And perhaps most sensitive of all: whose dealers win—and whose lose—when inevitable consolidation begins?

 

HNI has said it will retain multiple brands and leverage “highly complementary portfolios and distribution networks,” but history suggests that portfolio overlap is easier to describe in press releases than to manage in the field. Even small changes in discounting, program rules, or product positioning can quickly ripple through dealer P&Ls, especially at a time when order volumes remain uneven and competition for fewer large projects is intense.

 

Internally, the integration task is equally complex. Steelcase brings a global research, design, and insight-driven culture, while HNI has long emphasized operational discipline and margin management across a wide portfolio. Aligning those approaches without dulling either edge will test leadership, particularly as customers demand faster delivery, more customization, and clearer value propositions amid accelerating return-to-office mandates.

 

For now, the industry is watching closely. The deal is done, the brands remain, and the scale is undeniable. But the real work—harmonizing dealer networks, managing channel conflict, and proving that one parent company can successfully steward both Steelcase and HON without destabilizing either—has only just begun.

Virco Reports Loss of $1.3 Million in Third Quarter as Cyclical Decline Begins to Slow

Virco Mfg. Corporation reported a net loss of $1.3 million in the third quarter, with sales declining to $47.6 million from $82.6 million the previous year. Gross profit fell to $18.1 million, reflecting a gross margin of 38%, compared to 44.4% last year. Year-to-date, the company recorded a net income of $9.6 million on sales of $173.5 million, down from $27.4 million on $237.8 million in the same period last year. The decline is attributed to lower sales and production levels, influenced by the expiration of pandemic recovery stimulus funds and a cautious attitude from school administrators. Despite the downturn, the company’s balance sheet metrics improved, with a current ratio reaching 3.98, and a quarterly cash dividend of $0.025 per share was declared.

DIRTT Announces Financing from BDC and Refinancing of Debentures

DIRTT Environmental Solutions Ltd. has entered into a financing agreement with the Business Development Bank of Canada (BDC) for up to C$15 million to optimize its capital structure. The loan will be disbursed in two parts: C$10 million initially and C$5 million later, with an interest rate of 6.55% minus 0.75%. The company plans to use the funds to refinance its outstanding convertible debentures due January 31, 2026. DIRTT, a leader in industrialized construction, focuses on creating adaptable interior environments across various sectors, including workplace, healthcare, and education.

US furniture manufacturers are facing significant challenges due to rising tariffs and economic uncertainty. With potential increases in furniture tariffs set for January 2026, companies are struggling to adapt to rapidly changing costs of imported materials. Leaders from firms such as Humanscale express frustration over the difficulty in making long-term decisions in this volatile environment, with tariffs ranging from 10% to 25% currently, and possibly reaching 50% for certain items.

 

Manufacturers are implementing surcharges to offset rising costs instead of permanently raising prices, while striving to maintain affordability for consumers. Brands like IKEA emphasize their commitment to providing quality goods despite the economic pressures. The industry is also closely monitoring ongoing legal challenges regarding tariffs, which may impact future pricing and manufacturing strategies. Overall, the situation remains tense as manufacturers navigate these complex and shifting dynamics.

Manhattan's office market shows contrasting trends in November. While availability has decreased to 14.2%, the lowest since November 2020, signings fell sharply to 2.99 million square feet, a 17.9% drop from the previous month and a year-over-year decline. Leasing activity in Downtown halved compared to October. Despite this decline, the market is projected to exceed 40 million square feet of signings for the year, the highest since 2019. Millennium Management secured the largest signing in November with a 438,000 square foot extension in Midtown, followed by Rippling and Robinhood with deals of 132,693 square feet and 125,392 square feet, respectively.

SouthLoft Crafted Concepts To Open New Warehouse and Workshop in Dallas-Fort Worth

SouthLoft, a custom furniture manufacturer based in Dallas-Fort Worth, has acquired a 16,000 sq ft warehouse and workshop in Euless, TX, to support its rapid growth. Founded in 2014 by Colby Murphy, the company began in his garage and has since become nationally recognized for its bespoke furniture, serving both commercial and residential clients, including notable brands like Fogo de Chão and Gordon Ramsay Burger. The new facility will enhance production capabilities with expanded workstations and advanced machinery, allowing for quicker turnaround times and the ability to take on larger projects. The team has also grown, adding new members to assist with project management and production. SouthLoft remains committed to delivering high-quality, durable furniture tailored to the unique needs of its clients.

As artificial intelligence (AI) evolves, the emphasis on human connection, curiosity, and shared spaces is vital for fostering learning, creativity, and meaningful work. While AI can perform various tasks, it should not replace the essential human learning process. Physical spaces are critical for team interactions, allowing ideas to spark and connections to form. The shift to hybrid work raises questions about the necessity of dedicated office environments, yet in-person interactions provide collaborative energy that virtual meetings cannot replicate.

 

Future workplaces should support right-brain skills—empathy, storytelling, and meaning-making—while emphasizing purpose, belonging, and team identity. Successful organizations will invest not only in technology but also in their people and the spaces that facilitate human connection. The future of work lies in leveraging both technology and humanity to inspire creativity and meaning.

The term "fatigue" has become increasingly relevant in 2025, with a 41% rise in its mentions on Glassdoor, reflecting employee overwhelm due to factors like economic uncertainty, political tensions, and rapid AI advancements. Political discussions have intensified in workplaces, with terms such as "inauguration" surging 875%, while concerns about stagnant wages and inflation have led to a threefold increase in mentions of "stagflation." The rapid integration of AI has heightened job insecurity, evidenced by a 2,200% increase in mentions of "agentic." Despite these challenges, employees are finding ways to cope, showing a shift towards optimism in their communication and implementing strategies to manage stress and prevent burnout.

Humanoid robots are expected to play significant roles in coworking spaces by 2030, enhancing productivity while raising concerns about community dynamics. Their integration should align with the values of the coworking community, with managers defining the community's nature before introducing robots. Effective deployment involves using robots for routine tasks, fostering human-centered interactions, maintaining ethical practices, and engaging members in defining robot roles. Ultimately, successful integration can enhance collaboration and trust, ensuring robots complement rather than disrupt human connections.

A recent analysis reveals the best U.S. cities for new businesses, highlighting the importance of local conditions such as costs, talent, and support networks. In major cities, Phoenix leads with strong startup density and growth, while San Antonio excels in affordability. Dallas, Fort Worth, and Jacksonville also show promising conditions for startups. In mid-sized cities, Austin stands out for its high startup share and educated workforce, followed by Nashville and Indianapolis, which boast excellent support metrics. Overall, cities combining affordability, talent, and community resources are likely to attract the next wave of startups.

In 2025, layoffs surpassed 1.1 million, marking a significant shift in white-collar employment characterized by "forever layoffs," which involve frequent, smaller job cuts rather than large-scale reductions. The technology sector was notably affected, with over 150,000 job losses, as companies adapt to automation. Economic conditions have led to a bifurcated economy, where wealthier consumers thrive while lower-income workers face increasing insecurity. Trust in leadership has declined, and hiring plans are at their lowest in over a decade, forcing many to accept jobs they previously would have rejected. The ongoing uncertainty is contributing to widespread anxiety among workers about job security.

The modern workspace industry is fragmented, with numerous names like office centers, serviced offices, and coworking spaces complicating communication and marketing. This lack of standardization leads to challenges in SEO, sales processes, and operational consistency. A proposed solution is to adopt the term "Flexible Workspace," which encompasses the various offerings and reflects the industry's evolution toward flexibility. This single term could enhance marketing clarity, streamline sales conversations, enable standardized operations, improve financial comparability, and foster a cohesive industry identity. By uniting under this term, the sector can present a unified voice and establish itself as a recognizable asset class, much like the hotel and multifamily industries.

Workplace design is shifting from standard corporate branding to character-driven environments that embody beliefs and values. In 2026, the emphasis will be on creating spaces that invite employees to connect and express their individuality. Architectural details, art, and accessories will play crucial roles in enhancing workplace authenticity and engagement.

 

Subtle incorporation of corporate identity through intricate design elements will replace overt branding. Thoughtful styling will encourage employees to engage with their surroundings, fostering a sense of belonging and pride. Art programs will become integral, reflecting regional culture and employee values, while enhancing well-being and creativity.

 

Successful workplaces will feature layered designs filled with care and character, transforming traditional offices into meaningful spaces that employees are drawn to repeatedly.

A recent analysis from JLL reveals that global occupiers are rethinking corporate real estate as a strategic asset for talent, culture, and performance rather than merely a cost factor. The report highlights five key priorities influencing workplace strategy in the coming year, emphasizing the need for flexible "elastic portfolios" that can adapt to market conditions and workforce requirements. As office utilization remains low, organizations are moving away from long-term leases.

 

Additionally, the quality of workplace environments is gaining importance as employers increasingly require on-site attendance, linking workplace design to employee retention. The adoption of AI in corporate real estate is also on the rise, though many initiatives remain experimental due to integration challenges with legacy systems.

 

Facilities management faces pressures to balance costs with safety and well-being expectations, leading to an emphasis on value beyond price. Furthermore, energy performance is becoming a critical component of sustainability strategies, with organizations looking for efficiency upgrades that enhance the employee experience. These trends signify a shift in corporate real estate perspectives, focusing on agility, performance, and employee experience rather than just cost.

As health insurance costs rise, organizations are exploring biohacking as a design-driven approach to improve employee well-being and reduce healthcare visits. This involves creating workspaces that promote physical and emotional health through interventions like ergonomic furniture, standing desks, and dedicated wellness areas for meditation. Employers are also emphasizing nutrition by providing healthy food options and hydration stations. Implementing these initiatives requires careful planning to address logistical challenges, such as accessibility and maintenance. By prioritizing employee health, companies can enhance productivity, lower healthcare costs, and create environments that align with natural workflows, ultimately fostering a culture of wellness.

High-performing teams thrive in environments that support various work modes, such as deep focus, creative collaboration, and sensitive discussions. Purpose-built spaces enhance productivity by reducing distractions, fostering trust, and ensuring equitable hybrid interactions. Neuroscience supports the need for intentional design, showing that well-structured spaces can lower stress and boost creativity. Companies are increasingly redesigning their offices to create environments that maximize talent density and operational efficiency, leading to sustained competitive advantages.

Data-driven design is transforming workplaces into adaptive environments that enhance motivation, connection, and well-being. Utilizing advanced tools like AI and wearables, designers are creating gamified spaces that boost engagement and foster collaboration. Strategies include analytics for optimizing layouts, wellness tracking systems for health support, and ethical considerations regarding privacy and consent. The goal is to develop responsive workplaces that reflect company culture and promote employee satisfaction while navigating the implications of new technologies.

Snøhetta and Citterio have collaborated to create Borealis, a modular seating system designed for various environments such as offices and public spaces. The design emphasizes architectural logic, flexibility, and a calm material expression, allowing it to complement different interior styles. Key features include a robust oak frame, high-quality materials, and the ability to reconfigure the system as needs change, ensuring longevity in both function and aesthetics.

Actiu has launched the TNK 500 AUREA task chair, featuring a new aluminium structure for enhanced durability and aesthetics. This evolution retains the award-winning ergonomic features of the original TNK 500, promoting healthy posture and comfort. Designed by Alegre Design, AUREA emphasizes balance and proportion, making it suitable for various work environments. Actiu's commitment to sustainable and human-centered design is reflected in this new model, aligning with their Life-Friendly Spaces philosophy.

Herman Miller has launched the Land Table & Storage Collection in Europe, designed by Norwegian designer Stine Aas. This new furniture line includes a dining table, credenza, and console, all made from solid hardwood with artisanal detailing. Inspired by the pastoral landscapes near Bergen, the collection features robust timber construction and traditional joinery methods, ensuring durability for generations. The Land Table is available in three lengths, while the credenza offers optional wine and glass storage and functions as both a sideboard and display cabinet. The console is a slimmer piece ideal for hallways. All items come in white oak and umber-stained oak finishes, sourced from local hardwood forests to promote sustainability. The collection is now available through Herman Miller stores, online, and via MillerKnoll dealers for contract customers.

Hightower introduces the Mixis Chair, designed by Mario Ferrarini in collaboration with Crassevig, to the North American market. The chair features a 21-inch-wide seat, an open backrest for ease of movement, and is made from solid wood and plywood. It emphasizes craftsmanship, comfort, and sustainability, being produced in a facility powered by solar energy. The Mixis Chair is stackable, BIFMA certified, and available in various finishes, with an optional upholstered seat. Hightower, a women-owned business, focuses on meaningful design and sustainability in its products.

Luum Textiles has introduced Chenille Appeal, a plush upholstery fabric designed to invite touch. This textile is part of the Five Elements collection and is made from SEAQUAL® YARN, which is derived from marine plastic, helping to reduce ocean litter and promote awareness. Woven in North America, Chenille Appeal features a rich texture created from recycled chenille yarns, where lighter weft yarns overlap with darker warp colors for added depth. The fabric combines softness with durability and is available in 12 bleach-cleanable colorways.

What’s in a lamp? Foscarini’s most notable designers in portrait with the lamps they created

Foscarini, a legacy Italian lighting brand, has launched a new edition of its experiential project, "What’s in a Lamp?" This initiative brings together various artists and designers to reinterpret lighting through Foscarini lamps. The series showcases works by prominent designers like Rodolfo Dordoni, Ferruccio Laviani, Patricia Urquiola, Eliana Gerotto, and Marc Sadler, alongside emerging talents Felicia Arvid and Francesca Lanzavecchia. Each piece features vibrant hues and a balance of graphic precision and narrative sensitivity, creating dynamic portraits that emphasize the connection between the lamp and its designer, with light taking center stage in their storytelling.

A variety of new and classic furniture designs from 2025 showcase innovative concepts by both established and emerging designers. Highlights include Matthias Pleissnig's steam-bent masterpieces, Ronan Bouroullec's elegant Ancora Tables, and the antelope-inspired Nyala Chair by Jomo Tariku, which raises awareness about animal extinction. Other notable pieces are the quirky Macaron by Mavimatt and the timeless Trea series of chairs by Todd Bracher. The summary also revisits mid-century classics, including the Eames Lounge Chair and Børge Mogensen's Hunting Chair, along with quirky stories about furniture design history, showcasing the ongoing evolution and impact of furniture design.

Innovative furniture designs in 2025 include pieces made from recycled materials, such as Bultan seating from crowd control barriers and self-supporting Lecrase stools from leather offcuts. Notable designs feature the Loopy Chair inspired by bike racks, a Bubble Stool with an inflated seat, and the Marble Bookmark, a striking three-foot-tall piece. Other unique concepts include a window-mounted object for inviting birds, a FoldSeat that fits in a FedEx box, and modular PIXEL furniture for adults, showcasing a blend of creativity and functionality in contemporary design.

ABK Imports' new headquarters, designed by The Arch Studio, is a pet-friendly workspace that balances a vibrant and calm environment. Spanning 11,000 sq. ft. in Pune, India, the design emphasizes a people-first approach while accommodating pets, featuring a central breakout area called "The Savannah." The office promotes collaboration and comfort through intentional design choices, including acoustic control and flexible work zones. Since moving in, employee morale has improved significantly, with positive feedback highlighting the space's communal feel and enhanced productivity.

Ater Architects transformed an office for the creative agency Banda in Kyiv to resemble a cozy apartment, featuring vintage furnishings, contemporary furniture, and artistic touches. The design includes an oak-lined reception, a spacious main hall for collaboration, and various seating areas styled like a home. Additional features include a kitchen with vintage chairs, private meeting rooms, and a workshop for creative exploration, all aimed at fostering a relaxed and inviting work environment.

tp bennett has transformed 77 Grosvenor in Mayfair, London, into a modern office complex that blends historical textile heritage with hotel-like interiors. The building offers 53,000 sq ft of premium office space across seven floors, featuring luxurious materials and high-end amenities. The reception area is designed to create both open and intimate spaces, and amenities include a business lounge, a rooftop pavilion, and private terraces. Natural materials like stone and timber, along with bronze accents, enhance the design, which pays homage to the area's silk merchant history through a unique twisted rod motif. The project aims to support various businesses while respecting the existing architectural character.

K&L Architekten designed a timber headquarters for Blumer Lehmann in Gossau, Switzerland, emphasizing collaboration and connection among employees. The building features an open foyer, multifunctional spaces, and a central atrium crafted from innovative cross-laminated timber. The design incorporates visual contrasts and natural materials, with a unique exterior cladding inspired by timber drying racks. A steel-clad tunnel connects to an adjacent building, showcasing the company's commitment to timber innovation and design excellence.

Ankrom Moisan Opens Austin, Texas Office to Serve Region’s Growing Development Market

Ankrom Moisan has opened a new office in Austin, Texas, marking its first location in the state to meet the growing demand for design services. Led by Principal Jason Lamb, the office will focus on multifamily housing and urban redevelopment, emphasizing community engagement and strategic design. The firm aims to help clients navigate challenges and enhance livability while delivering impactful housing solutions across Texas.

Nook Launches the Nook Neighborhood: A Community for Sharing Stories of Inclusive, Human-Centered Design

Nook has launched the Nook Neighborhood, a community focused on sharing stories and ideas about inclusive, human-centered design. This platform connects various organizations—such as workplaces, schools, and healthcare facilities—that use Nook products to create adaptable environments. Members can share their experiences, challenges, and successes in implementing flexible designs that promote accessibility and wellbeing. The Nook Neighborhood, hosted as a LinkedIn Group, encourages open discussion and resource sharing among participants dedicated to fostering intentional environments. Interested organizations can join through the LinkedIn Group or visit the launch blog for further information.

Austin American-Statesman Names Formaspace a Winner of the Greater Austin Top Workplaces 2025 Award

Formaspace has received the Top Workplaces 2025 award from Austin Top Workplaces 2025, based on employee feedback collected through a third-party survey by Energage LLC. The survey evaluates key aspects of the employee experience, such as respect, support, growth opportunities, and empowerment. Eric Rubino, CEO of Energage, emphasized the importance of companies giving employees a voice. Formaspace Chairman Jeff Turk highlighted that being ranked among the top 25 workplaces out of over 3,000 participants reflects the team's commitment and strong culture. Formaspace specializes in designing and manufacturing high-performance laboratory and commercial furniture, focusing on durability and customization.

Ask Stephen - It's That Time of Year Again!

A sales representative for a manufacturer feels complacent despite meeting sales goals and anticipates a commission bonus. As recruiters begin to reach out about job opportunities, the representative hesitates to explore these options due to concerns about confidentiality and potential repercussions with their current employer. They worry that if they decline opportunities, recruiters may stop contacting them. The response advises that it’s beneficial to take interviews, as they provide insights into other companies and help build a professional network. It reassures that declining an offer doesn’t diminish value, and encourages considering interviews as a way to stay informed and engaged in the job market, especially during the high turnover season from Q4 to Q1.

District Sales Manager Southern California