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Google Plans to Design the Future of the Workplace Itself! Photograph Cayce Clifford Cayce Photograph to Us, Chair Parts Have Their Own Beauty rback te Morning Quar ay QB The Contract Furniture Weekly The Mond Since 1990 | 05.03.2021 Thanks for nothing… Google Plans to Design the Future of the Workplace Itself! Photograph Cayce Clifford Cayce Photograph To us, chair parts have their own beauty. We love making them. DISCOVER DONATI’S NEW PRODUCTS IN OUR VIRTUAL SHOWROOM ON DONATI-INDUSTRIES.COM Donati supplies components to many renowned office seating manufacturers – globally and just in time. Your Furniture Industry. Our standard catalogue includes chair bases, mechanisms, seats, backs, armrests and castors. We also team up with our industry clients to develop their own tailor-made components. [email protected] — www.donati-industries.com Donati – Brescia, Lombardy, Italy Donati Industries – Holland, Michigan, USA Zhongshan Donati — Guangdong, China rback te Morning Quar ay QB The Contract Furniture Weekly The Mond Since 1990 | 05.03.2021 Thanks for nothing… Google Plans to Design the Future of the Workplace Itself! The Monday Morning Quarterback | May 3, 2021 Serving Manufacturers, Dealers, Suppliers and the A&D Commercial Furnishings Community The MMQB Cheat Sheet Salone del Mobile to go ahead in A rundown of everything of note during the week in the September 2021 contract furniture industry. ►4 The fair will be held from September 5 - 10, 2021. ►16 HNI Sales Climb 3.3% in Latest Quarter Google’s Plan for the Future of Work: There were also signs of improvement in Workplace Privacy Robots and Balloon Walls Furnishings. First quarter 2021 revenue was down Google is creating a post-pandemic workplace that will approximately 12 percent from the first quarter of 2020, on accommodate employees who got used to working from an organic basis. ►6 home over the past year and don’t want to be in the office all the time anymore. ►18 Knoll Sales Drop 22.3% posts Loss in First Quarter Products Sales to residential end-users represented almost 40% of This weeks pick of the best new products ►22 our revenue, up from 20% a year ago. ►8 The Week on Instagram The $4 billion problem designers can't QB editors picks for Best of the Week ►24 shake The Eames lounge chair is one of hundreds, if not Reading List thousands, of designs counterfeited then sold to A curated list of relevant industry related stories from consumers.… ►10 around the globe. ►26 The office of the future is outdoors Industry Briefing | Events | Odds & In buildings across the country, new and renovated offices are being designed to include more options for workers to Ends ►28 get away from their desks and go outside. ►12 Marketplace & Help Wanted ►31 Contract.Careers Microsoft Makes a Serious Help wanted advertising can now be placed directly via Commitment to Hybrid Work Contract.Careers, our new jobs board which is syndicated to Microsoft was one of the first companies to send employees a number of different industry websites and newsletters. home in 2020, as the scope of the pandemic became apparent. ►14 The Monday Morning Quarterback | Copyright © 2021 MMQB | All rights reserved. | Subscribe instantly at http://www.mmqb.com Editorial / Sales office: 888-259-0213 • Email: [email protected] • http://www.mmqb.com • Job Placement - Contract.Careers - 3 - The Monday Morning Quarterback | May 3, 2021 QB CHEAT SHEET The Quarterback Reviews the Past Week Thanks for nothing…Google Plans to Design the Future of the Workplace Itself! Suppose you're sitting on the contract furnishings industry bus as a manufacturer, interior designer, even a sales rep. In that case, you might have noticed that we were just passed, not by another bus, but by the entire tech industry, or at least one of its most prominent participants. Yes, that was Google. The same company that helped popularize open office plans and lavish employee perks is now going to reinvent office spaces, all by themselves, to cope with workplace sensibilities changed by the pandemic. They are serious. Just read the article. Without any apparent help from the usual suspects (i.e., Gensler, Perkins&Will, et al.) or any of the makers who love to tout their research capabilities, Google has embarked on a journey to change everything about the workplace from now on. In doing so, Google is creating a post-pandemic workplace that will accommodate employees who got used to working from home over the past year and don't want to be in the office all the time anymore. Over the next year or so, Google will try out new office designs in millions of square feet of space as it seeks a solution. A solution without any of the obvious industry folks involved. Truth be known, Google was already planning major workplace changes before the coronavirus arrived. They even used sociologists to study "Gen Z" and how junior high students socialize and learn - to imagine what future workers want. Yes, that's right, junior high. Where were we (as an industry) on that? So what is Google's solution? Well, to some, it might seem pretty familiar. Google is designing "Team Pods." Each pod is a blank canvas: Chairs, desks, whiteboards and storage units on casters can be wheeled into various arrangements, and in some cases, rearranged in a matter of hours. Somewhere Haworth's Crossings product designers Jeff Reuschel and Brian Alexander (circa 1992), and the Jim Hackett greenlit - but failed Pathway's product for Steelcase (circa 2000) are smiling (or crying). In a further insult to Steelcase, a la Turnstone, they call the new meeting rooms they are creating, Campfire. And, naturally, they are building lots of outdoor workspaces as well. In this workplace redesign, Google focuses on three trends: Work happens anywhere and not just in the office; what employees need from a workplace is constantly changing; and workplaces need to be more than desks, meeting rooms, and amenities. In a slap to the face to full height wall makers, Google is even developing an array of different movable walls that can be packed up and shipped flat to offices around the world. Hardly an original idea. Wait, by now, you've probably realized that we have already heard all of these ideas before. Sure, we have promoted one or more of Google's "ideas" over the past few decades in great detail. Now along comes Google, inventing the future of the workplace that we already invented! No doubt we're going to witness the rise of the Google workspace design system. Such is the power of Google to tell a story and steal all the glory. MW Stocks at Friday's Close 4 The Monday Morning Quarterback | SUBSCRIBE | May 3, 2021 START YOUR DAY IN THE COMFORT ZONE www.officestar.net QB NEWS HNI Sales Climb 3.3% in Latest Quarter HNI CORPORATION LAST WEEK REPORTED SALES for the first quarter ended April 3, 2021 of $484.3 million and net income of $15.0 million. GAAP net income (loss) per diluted share was $0.34, com- pared to $(0.56) in the prior year. Non-GAAP net income per diluted share was $0.36, compared to $0.21 in the prior year. In the first quarter the company reported strong results in Residential Building Products. First quar- ter 2021 revenue grew 39 percent on a year-over-year basis, and operating margin expanded 600 basis points from prior-year, pre-COVID levels. This fueled a greater than 90 percent year-over-year increase in segment operating profit to a first quarter record of $39.8 million. There were also signs of improvement in Workplace Furnishings. First quarter 2021 revenue was down approximately 12 percent from the first quarter of 2020, on an organic basis. This rate of decline was, however, the lowest since the beginning of the pandemic. “This quarter, our members again demonstrated much of what is unique about HNI. We delivered sub- stantial profit improvement, highlighted by strong revenue growth and expanded profitability in Resi- dential Building Products. Although the pandemic continues to negatively impact demand in Work- place Furnishings, particularly in the contract market, we benefited from our reset cost structure and improving top-line performance in our brands focused on small to mid-sized customers. Overall, the first quarter shows the power of our diversified revenue streams, our ability to react quickly to chang- - 6 - The Monday Morning Quarterback | May 3, 2021 QB NEWS ing market dynamics, and our overall operational capability,” stated Jeff Lorenger, Chairman, Presi- dent, and Chief Executive Officer. The company said that the acquisition of Design Public Group ("DPG") in the fourth quarter of 2020 increased year-over-year sales by $6.4 million, and the acquisition of residential building products distributors in 2020 and 2021 increased year-over-year sales by $2.4 million. Selling and administrative expenses as a percent of sales decreased 310 basis points compared to prior-year quarter. The decrease was driven by lower core SG&A, higher Residential Building Products volume, and freight and distribution productivity, partially offset by lower Workplace Furnishings volume and higher variable compensation. Included in current year quarter SG&A was $0.7 million of one-time costs from exiting Workplace Furnishings showrooms, driven by conditions related to the COVID-19 pandemic. The prior-year quarter included $5.0 million of one-time costs incurred as the result of the COVID-19 pandemic (of which $1.6 million was recorded as a corporate charge). Orders in the Workplace Furnishings segment declined 10 percent year-over-year. Within the seg- ment, orders to small to mid-sized customers were down less than the segment overall and improved through the quarter. Demand in the contract market remained soft with orders down over 20 percent.
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