DIRTT Environmental Solutions Ltd. reported another difficult quarter as revenue fell sharply and profits evaporated under the weight of tariffs, delayed projects, and restructuring expenses.

 

For the third quarter of 2025, the Calgary-based modular construction company posted revenue of $37.7 million, down 13% year-over-year from $43.4 million. The company swung to a net loss of $3.5 million, compared with a $7.1 million profit in the same quarter last year. The slide comes as DIRTT grapples with a 50% tariff on Canadian aluminum exports to the U.S. — a significant cost headwind for its prefabricated interiors business — and as its customers slowed projects amid construction delays.

 

Gross margins also weakened to 30.4%, down from 38.8% a year ago, though slightly improved from the prior quarter as tariff mitigation efforts began to take effect. Adjusted EBITDA tumbled to $1.2 million, or 3.1% of revenue, less than one-third of last year’s level.

 

CEO Benjamin Urban attempted to strike an optimistic tone, highlighting a growing twelve-month forward pipeline of $333.5 million and incremental improvement from a newly established “Transformation Office.” But the results show a company still struggling to regain footing after several quarters of volatility and operational reset.

 

Reorganization expenses surged to $2.6 million, up from $0.6 million a year earlier, tied to consulting and severance costs from the transformation program. DIRTT’s liquidity position — $32.3 million in cash and available borrowings — remains stable but down from $39.3 million at the end of 2024.

 

CFO Fareeha Khan said DIRTT expects to bolster its balance sheet through a proposed C$15 million financing deal with the Business Development Bank of Canada to help retire upcoming debt maturities. Meanwhile, the company extended its credit facility with RBC to November 2026.

 

DIRTT expects a rebound in the fourth quarter, projecting revenue between $48 million and $52 million and Adjusted EBITDA of $5 million to $7 million. But after a quarter marked by shrinking sales, thinner margins, and a widening loss, investors may need more than optimistic guidance to be convinced the turnaround has truly begun.

The wave of consolidation reshaping the contract furniture dealer landscape continues, as Creative Office Resources (COR), a major MillerKnoll Certified Dealer and WBENC-Certified Women’s Business Enterprise, announced its acquisition of Continental Office, a long-established MillerKnoll dealer based in Columbus, Ohio. The deal, effective October 29, marks COR’s first move into the Midwest and another step in the accelerating merger and acquisition activity sweeping through the dealer ranks amid growing manufacturer integration.

 

Founded in 1939, Continental Office employs more than 80 people and has long served the Columbus region with furniture, interior construction, and branding solutions. The company has earned a reputation for creating “purposeful work environments” and maintaining deep relationships with clients across sectors. Under the new ownership, it will operate as Continental Office, A COR Company, combining COR’s national resources with Continental’s local expertise.

 

“Paul, Kevin, and I are thrilled to welcome Continental Office to the COR team,” said Denise Horn, CEO and Partner of Creative Office Resources. “This partnership represents an exciting step in our company’s growth and reflects our ongoing commitment to creating environments where people connect, collaborate, and thrive.”

 

From MillerKnoll’s perspective, the acquisition aligns with the manufacturer’s broader strategy of strengthening regional market coverage through its top-performing dealer network. “Creative Office Resources’ acquisition of Continental Office will fuel continued growth in the region,” said John Michael, President of the Americas at MillerKnoll. “Continental is now in an even stronger position to provide clients with the expertise and insights needed to create innovative workspaces that meet the evolving demands of today’s offices, schools, and healthcare facilities.”

 

Ira Sharfin, CEO of Continental Office, and Kyle Johnson, its president, described the merger as both strategic and cultural. “Joining COR gives our team access to broader resources, deep industry expertise, and the strength of a national organization,” Johnson said. “At the same time, it preserves the local relationships and client-focused approach that have defined our success.”

 

The acquisition continues a trend of consolidation across the MillerKnoll and Steelcase dealer networks, as large independents seek scale, operational efficiency, and capital strength in an increasingly competitive and vertically integrated industry. For COR—which already employs more than 400 people across New England and the Tri-State area—the move into the Midwest extends its service reach nationwide and positions it to support national clients with greater consistency.

 

As manufacturers expand through mergers and alliances of their own, from HNI’s pending acquisition of Steelcase to MillerKnoll’s ongoing dealer realignment, the pace of consolidation in the dealer channel shows no signs of slowing. COR’s move into Columbus underscores that, in today’s contract furniture market, regional independence is giving way to national networks built for scale.

Pedrali debuted at Interihotel, showcasing immersive hospitality installations that blend indoor and outdoor spaces. The stand featured collections emphasizing wellbeing, comfort, and sustainability, including the Anemos table, Lamorisse armchairs, and the Reva Cocoon outdoor sofa. The design highlighted high-quality Italian craftsmanship and created inviting atmospheres across various settings.

Major hotel operators are facing challenges due to economic anxiety and a decline in international tourism, leading to flat or declining revenue per available room. Government travel reductions and a recent government shutdown have exacerbated these issues, with significant drops in bookings reported. Despite a growing economy, the correlation between GDP growth and hotel demand has weakened. Many operators are offloading assets to manage debt as a wave of hotel loans matures, while some are pausing expansion plans, contributing to a stable room supply that may help the industry.

Chicago's office utilization is gradually increasing, with the central business district reaching 63.5% occupancy as of September 2025, up from previous months but still below the national average. The Fulton Market, West Loop, and Central Loop areas show the highest activity levels. A more empathetic workplace culture in Chicago contributes to lower office usage compared to cities like New York. Employers are beginning to seek early lease renewals and expansions, anticipating changes in office presence. However, there is a gap between landlord offerings and tenant expectations, especially regarding design and amenities. The impact of artificial intelligence on workspace planning is becoming a topic of discussion, as firms explore how to enhance efficiency with technology.

Airport lounges have evolved from exclusive spaces for VIPs to accessible destinations for all travelers, driven by credit cards and loyalty programs. Modern lounges are expanding creatively, personalizing experiences with regional food and art, and integrating local culture. Innovations include vertical expansions, repurposing unused areas, and offering grab-and-go options. The focus has shifted from luxury to unique, curated experiences, exemplified by British Airways' new lounges that resemble five-star hotels.

Savo, a Scandinavian office chair company, has focused on human-centric design for 80 years, innovating ergonomic solutions like the Floating Tilt mechanism. Under CEO Craig Howarth, the brand emphasizes sustainability and adaptability, creating chairs suited for hybrid workspaces. Celebrating its anniversary, Savo aims to develop a 100-year chair, achieve climate neutrality by 2040, and ensure all products are modular and recyclable by 2030, reflecting a commitment to evolving with workplace needs.

The workplace is transforming through digital technologies and changing employee expectations, necessitating a reevaluation of physical office spaces. Organizations are leveraging data from advanced networks and sensors to optimize real estate, enhance productivity, and support employee well-being. This data-driven approach allows for continuous monitoring and dynamic adjustments in space usage, leading to improved efficiency and sustainability. AI is further enhancing workplace data management, enabling autonomous systems to optimize operations and facilitate collaboration between human and digital agents. The future workplace will prioritize adaptability and learning, integrating technology seamlessly into the work environment.

In this episode of WTF is Happening to the Office? Bob Fox sits down with generational researcher Warren Wright to explore how Gen Z is changing the workplace.

Office tenant improvement allowances have plateaued after significant increases, driven by rising costs and cautious landlords. While top-tier properties see reduced TI spending due to confidence in securing tenants, Class-B and C buildings face challenges with escalating expenses, leading to a focus on longer free rent periods or lower base rents. The correlation between TI spending and lease length suggests that landlords are investing to secure long-term tenants, despite the uneven recovery across markets. New regulations may provide financial relief, but many properties risk falling behind in necessary upgrades.

Countries are increasingly adopting shorter workweeks, demonstrating that reduced hours can enhance productivity and improve work-life balance. Nations like Japan, the Netherlands, New Zealand, and the UK are leading this trend, with positive outcomes such as higher morale and job satisfaction. The shift is driven by a strategic focus on maximizing productivity while minimizing burnout, with various pilot programs showing promising results across Europe, Asia, and beyond.

A survey reveals that 82% of women in tech face mandatory return-to-office policies, with many prioritizing flexibility and remote work to balance personal responsibilities. This shift in priorities has led to increased resignations as women seek better work-life balance. Organizations are encouraged to adopt inclusive hybrid models to retain talent and support long-term career growth.

John Santora, CEO of WeWork, emphasized the urgent need for the flexible workspace industry to adapt to rising corporate demand during his keynote at the GWA Conference. He outlined seven key insights: the industry must move faster, WeWork's identity is rooted in real estate rather than technology, profitability should be prioritized in every deal, operators need to ensure demand before expanding, collaboration among competitors is essential, the company aims to revive its cultural identity, and technology remains crucial for operational efficiency. These insights serve as a roadmap for the coworking sector's future.

Los Angeles-based architect Michael Williams emphasizes the importance of architectural design that prioritizes employee well-being, especially as companies shift towards increased return-to-office policies. During a recent session at the CoreNet Global Summit, he, along with Lori Cook and Julie Gauthier, highlighted the need for mental breaks to combat stress. They discussed the significance of color, texture, and lighting in office environments, noting that blue tones can reduce stress and that biophilic design elements like wood and plants contribute positively to well-being.

 

Williams advocated for clear zoning within office spaces to differentiate functions, enhance navigation, and create a sense of familiarity. He recommended using consistent layouts, clear signage, and physical barriers to define areas effectively. The collaboration of architecture, science, and office policies is essential for fostering a productive and comfortable work environment.

Burnout is primarily a workplace design issue rather than an individual weakness. Employees thrive when they feel energized, included, and trusted, necessitating empathetic leadership and regular feedback. Flexibility is crucial for caregivers, with policies like extended parental leave and hybrid work options helping to retain talent. Intentional boundary-setting and small practices contribute to sustainability, while organizations must share the responsibility for burnout prevention. In a shifting job market, upskilling and soft skills are essential for employee engagement and success.

Modern workplaces should prioritize emotional engagement over mere productivity metrics. Effective data visualization enhances understanding and decision-making, enabling teams to respond quickly to insights. Tailored visualizations cater to diverse cognitive styles, fostering clarity and empowerment. As organizations shift towards human-centered design, visualization becomes essential for building trust, collaboration, and a thriving workplace culture where employees feel valued and connected.

A majority of companies are adopting hybrid work models, prompting a need to reimagine office spaces as attractive destinations. Employees now seek not just office amenities but also vibrant neighborhood features that enhance their work experience and social connections. Access to local cafes, parks, and shops can significantly improve employee satisfaction and retention. Companies should focus on creating environments that foster social ties and well-being, integrating office design with the surrounding community to support a balanced work-life experience.

Cities are experiencing extreme heat, impacting public health and workplace design. Offices need to adapt to warmer conditions, as rising temperatures can decrease productivity and affect neurodivergent workers more severely. Modern glass buildings may exacerbate heat issues compared to older concrete structures. Solutions include flexible office layouts, smart building systems, and potentially seasonal approaches to office attendance, prioritizing adaptability to ensure comfort and efficiency in a hotter world.

Maximalism in workplace design embraces diversity and individuality, moving beyond minimalist aesthetics to create environments that reflect the richness of employee backgrounds. By using contrast and layering, designers can foster inclusivity and equity, making spaces that celebrate both personal and collective narratives. This approach not only enhances employee engagement but also supports sustainability through thoughtful curation of existing materials and art, ultimately transforming offices into vibrant, meaningful places that resonate with the organization's culture and values.

Innovative designs that integrate neuroscience and biophilic principles enhance brain function by reducing stress and improving focus. Key products include adaptive classroom seating, wallcoverings with fractal patterns, calming flooring, dynamic skylights for natural light simulation, and sensory office pods that promote mindfulness and creativity.

Coworking spaces are evolving into learning ecosystems that promote continuous professional development through workshops, mentorship, and peer-to-peer learning. Their flexible design fosters collaboration and knowledge exchange, making learning an integral part of the work culture. Proximity to universities enhances access for students, while innovative programs and technology integration position these spaces as hubs for industry-focused education and skill development, preparing professionals for a rapidly changing workforce.

Adult Lego enthusiasts are transforming their homes to accommodate expansive Lego creations, often dedicating entire rooms or basements to their hobby. This trend has led to the design of specialized Lego rooms, with architects advising on display and maintenance. Many fans invest significantly in their collections, creating vibrant displays that bring joy and nostalgia, despite some resistance from spouses regarding aesthetics and space. The adult Lego market has grown since 2020, with products catering to this demographic, blending playfulness with home decor.

Concertex Honored with Nightingale’s Sustainability Award at HCD Expo 

Concertex debuted its Ellipse Collection, a bio-attributed silicone hybrid upholstery, at the Healthcare Design Conference, winning the Nightingale Sustainability Award for its sustainable design. The collection features a U.S.-industrial corn-based polyurethane core, a 100% silicone surface, and a recycled polyester backing, meeting CAL 01350 standards and resisting stains. Designers praised its vivid aesthetics and trompe l’œil effects, highlighting the growing demand for textiles that combine performance and sustainability.

Samuelson Furniture has launched the Wallace Rocking Settee, a two-seater designed for comfort and balance, featuring a patent-pending "Rock Stopper" mechanism for safety. The settee combines modern elegance with ergonomic support, enhancing relaxation while ensuring stability. The company, a fourth-generation family-owned business, specializes in high-end furniture for the hospitality and senior living sectors.

Marco has launched the GRAVIT8 STEM/STEAM Table and Minute Stool, designed to enhance flexibility, creativity, and collaboration in classrooms. The GRAVIT8 table features a sturdy design with integrated shelving and optional erasable surfaces, while the Minute Stool is height-adjustable and supports various postures. Both products aim to foster focus and adaptability in learning environments, reflecting Marco's commitment to quality educational furniture.

Unika Vaev has launched the Pelle Collection, an acoustic line created in collaboration with Pavoni, featuring Italian leather craftsmanship. The collection combines acoustic performance with aesthetic design, available in three styles: Affarone, Strisce, and Volante. Each piece is designed for effective sound absorption while enhancing interior spaces, and the materials used are environmentally compliant.

Hyphyn™ is a biodegradable vinyl designed for hospitality upholstery, prioritizing sustainability and guest wellness. It biodegrades over 90% within two years in landfill conditions without releasing harmful residues. The material meets strict safety standards, is stain-resistant, and offers durability for high-traffic environments. It features a patented enzyme system that activates in landfills, ensuring safe disposal and energy recovery. Exclusive distributors include several leading textile companies, showcasing Hyphyn™ at Boutique Design New York.

The F1 Cockpit Gaming Chair combines ergonomic design with a racing-inspired aesthetic, offering gamers an immersive experience. Tailored for comfort and support, it features adjustable elements to accommodate various body types and preferences, enhancing gameplay. The chair reflects the essence of Formula 1 racing, appealing to both enthusiasts and casual gamers who seek an authentic racing cockpit feel in their gaming setup.

Form Us With Love has reimagined the Nomad Collection in collaboration with Forming Function, introducing taller lamps and new colors aimed at enhancing modern workspaces. The collection focuses on integrating electricity, charging, and lighting into a visually appealing and sustainable system, addressing the need for design-driven power solutions. The new designs feature handcrafted, recycled materials and innovative features like magnetic bases for easy placement, reflecting a commitment to both aesthetics and functionality in hybrid work environments.

Pantone has launched a generative AI tool that creates color palettes, trained on six decades of proprietary color research. The tool, integrated into Pantone Connect for Adobe apps, aims to alleviate the time-consuming task of palette creation for designers. It operates like a chat-based AI, providing palettes along with rationales and supporting links. The model uses only Pantone's data and will be regularly updated, with positive initial feedback highlighting its ethical approach. The generator is now available to all Pantone Connect users, including those on the free tier.

The Flexi Light chair by LD Seating won the German Design Award 2026 for its outstanding design in the Office Furniture category, recognized for its elegance, functionality, craftsmanship, and sustainability. Designed by Orlandini Design, the chair features a refined four-legged base, stackable functionality, and customization options, produced locally in Boskovice to ensure quality and reduce environmental impact. The award ceremony will be held in February 2026 during the Ambiente fair in Frankfurt.

Colebrook Bosson Saunders (CBS) has announced that its Flo Monitor Arm has won the Good Design Award (GDA) 2025 from GDA Japan. This recognition highlights the product's excellence in aesthetics, usability, and innovation, contributing to enhanced daily life and professional environments. The Flo Monitor Arm, redesigned for hybrid work settings, supports screens up to 34 inches, including flat and curved monitors. It features advanced adjustment mechanisms for optimal ergonomics and productivity, along with a smart cable management system. Made from 49% recycled materials and with plastic-free packaging, the product emphasizes sustainability and longevity. Founded in 1990 and part of the MillerKnoll collective, CBS aims to improve user experience while considering the social and environmental impact of its products.

Wilkhahn's WiChair has won the 2026 German Sustainability Award for its innovative design that combines ergonomic comfort, longevity, and resource efficiency. The chair features a modular construction, high repairability, and uses minimal recyclable materials, significantly reducing waste. CEO Götz Stamm emphasized the company's commitment to sustainability, highlighting the WiChair as a blend of aesthetics and environmental responsibility. The chair is now available through authorized dealers and online platforms.

Sotheby’s has transformed the Breuer building into its new global headquarters, aiming to create a cultural destination for exhibitions, art fairs, and high-end experiences. The renovation, led by Herzog & de Meuron, respects the building's architectural history while adapting it for modern auction needs. This shift reflects Sotheby’s strategy to enhance its appeal amid a challenging art market, offering a unique blend of art appreciation and commercial sales in a space designed to attract both collectors and the general public.

Humanscale partnered with Broadway Interiors to create an ergonomic workspace at the Mohammed Bin Rashid Space Centre, enhancing productivity for critical operations in UAE's space programs. The design features Humanscale's Freedom and Liberty chairs, which support healthy posture and reduce fatigue. The project has received awards for its innovative design, emphasizing the importance of ergonomics in high-performance environments to maximize comfort and focus.

Actiu has transformed the new Elisava Madrid campus into an innovative and flexible learning environment, moving away from traditional classrooms. Located in Legazpi, the 300 m² space, designed by Arquitectura-G with Folch, features no fixed classrooms, allowing for reconfiguration throughout the day with lightweight, mobile furniture like Fluit chairs and Talent height-adjustable tables. This setup promotes collaboration and adaptability for various activities. The Fluit chairs are made from 100% recycled materials, while the Talent tables facilitate easy transitions between different work styles. The campus focuses on postgraduate studies in business design, leadership, and branding, aiming to foster critical thinking, teamwork, and communication skills among creative professionals. Actiu emphasizes the importance of space in shaping educational experiences, committing to designs that support dynamic and participative learning models.

M Moser has unveiled its new London living lab, showcasing innovative design concepts and collaborative workspaces. This initiative aims to explore the future of office environments, emphasizing adaptability and the integration of technology to enhance employee experiences. The living lab serves as a testing ground for ideas that can be implemented in various projects, reflecting M Moser's commitment to creating functional and inspiring spaces.

Shea Cohen, 18, is a content creator and freelance designer who has gained over 100,000 subscribers on YouTube with his concept videos. He is transitioning to full-time YouTube work, focusing on tech product deep dives. His workspace features high-end hardware, including a custom PC and Apple Pro Display XDR, and he utilizes software like Premiere Pro and Blender. He emphasizes productivity through walking and uses Telegram for file storage and transfer.

Robinhood and Dick's Sporting Goods have each signed leases for 125,000 square feet at Vornado's Penn 2 office tower in Midtown Manhattan. Vornado has invested nearly $750 million in the redevelopment of the building, which is now 78% leased. The average rent has increased to over $112 per foot, and overall office leasing in Manhattan remains strong, with significant absorption of office space in 2025.

Jaclyn Logan has been appointed Vice President of Marketing at Performance Office Furnishings, where she will lead national marketing strategies and digital initiatives. With over a decade of experience in retail, ecommerce, and manufacturing, she previously served as Vice President of Marketing & Ecommerce at Coast Appliances, transforming omnichannel marketing programs. At OK Tire Stores Inc., she managed national campaigns and launched an ecommerce platform. Jaclyn is known for connecting data-driven insights with creative storytelling, specializing in brand strategy and digital transformation. She aims to strengthen the Performance brand as it expands in North America.

Artcobell Welcomes Christa Chadwell as West Coast Business Development Manager

Artcobell has appointed Christa Chadwell as the Business Development Manager for the West Coast. With over ten years of experience in the education sector, she aims to enhance learning environments through innovative furniture solutions. Chadwell emphasizes collaboration and innovation, aligning with Artcobell's mission to support diverse learning needs. The company, established in 1965, focuses on providing durable, American-made school furniture.

DARRAN adds Lela Gudgel of Palette Collection as Sales Representative for Central Texas

DARRAN has appointed Lela Gudgel from Palette Collection as the new Sales Representative for Central Texas. With over a decade of experience in the A&D and dealer markets, Gudgel is expected to enhance DARRAN's presence and provide innovative furniture solutions in the region. Her commitment to quality and customer service aligns with DARRAN's values.

Henricksen Names Katie Szpyrka As New Director of Business Development

Katie Szpyrka has been appointed as the new Director of Business Development at Henricksen, bringing over 25 years of experience in commercial real estate. She aims to enhance client partnerships and drive growth in key markets. Previously, she held leadership roles at Savills North America and Cushman & Wakefield. Szpyrka is focused on leveraging her industry knowledge and relationships to strengthen Henricksen's presence in the market.

Stacy Elliston Founds HIVE Collaborative, A New Philanthropic Full-Scale Design & Project Management Firm

Stacy Elliston has launched HIVE Collaborative, a full-service design and project management firm focused on philanthropy and collaboration. The studio offers comprehensive design services and aims to support clients while donating twice a year to selected causes. With experience in various sectors, HIVE Collaborative has already undertaken significant projects, including hotel conversions and luxury condo developments, all while promoting a sustainable and supportive work culture.

Peopledesign to Host “Budgeting for Growth” Webinar to Help Commercial Interiors Manufacturers Navigate 2026 Marketing Budgets

Peopledesign will host a complimentary webinar titled “Budgeting for Growth” on November 18, 2025, at 1:00 PM ET. This session is designed for growth leaders in commercial interiors manufacturing, aiming to enhance strategic budget decisions for 2026 and beyond. The webinar will discuss insights from a recent survey indicating challenges in developing effective marketing budgets for sustainable growth. Participants will learn to adopt a forward-looking budgeting approach, rethink marketing's role, maximize budgets by reallocating funds, map their budgets across the marketing funnel, and align marketing investments with broader business strategies. Registration is free via their website.

FCA Receives 2025 AIA Pennsylvania EPiC Firm Recognition 

FCA has been recognized as a 2025 AIA Pennsylvania EPiC Firm for its commitment to mentorship, inclusion, and professional development of emerging architectural professionals. This honor reflects the firm's supportive culture and dedication to empowering staff through collaborative learning and growth opportunities. FCA will be formally recognized during the AIA Pennsylvania Architectural Excellence Broadcast on December 4th.

HB Flooring Solutions Rebrands as HB Surfaces, Expands Comprehensive Offering Across Southern Utah

HB Flooring Solutions has rebranded as HB Surfaces, expanding its offerings to include a full range of surface solutions such as countertops and exterior finishes. The company aims to serve Southern Utah’s construction market with comprehensive services, including product consultation and installation, while maintaining in-house project management for quality control. This evolution reflects a commitment to enhancing construction standards and meeting the growing demand for premium materials in the region.

A luxury furniture manufacturer expresses frustration over losing business to Restoration Hardware (RH), which is perceived as a premium rather than true luxury brand. Designers report clients favoring RH for its accessibility and marketing appeal, despite its outsourced production. The response emphasizes the need for luxury brands to innovate and offer customization, highlighting that RH's success lies in providing everything customers want under one roof, regardless of manufacturing origin.

The Senior Accountant is responsible for managing key components of the financial reporting process on behalf of client accounts, ensuring the timely and accurate preparation of financial statements in accordance with US GAAP.