TRG | The Bottom Line – 6/14

TRG attended NeoCon in Chicago this week, in which large office furniture manufacturers featured key products to the dealer and design community. The working world has settled into hybrid. While office space is less settled (Class A demand is robust, while B and C is weak), companies continue to invest in their office footprint to make it functional and attractive in order to foster collaboration and culture. As we have said many times, the large office furniture manufacturers serve a key strategic role as consultants and providers to companies’ outfitting their offices. Steelcase and HNI Corp. fit this key role and have executed well at improving their profitability, even though industry volumes are not back to pre-COVID levels. Simply stated, we don’t see the office furniture market showing further declines. Instead, we see it as holding the line and more likely to rise from here.