Weekly Editorial

Stronger Than You Think

Written By Rob Kirkbride, Editor-in-chief, OI Publications • July 7, 2025

The Insider_Weekly_7.07

It’s easy to let the headlines fool you.

Interest rates are high. Political tension seems endless. Layoffs continue in tech and media. If you only read the surface stories, you’d think we were teetering on the edge of something bad. But talk to the people designing workplaces, managing commercial real estate portfolios, building products, or even just grabbing a sandwich at the neighborhood deli and a different story emerges.

The American economy is doing surprisingly well and with it, the office furniture industry. In fact, it might be stronger than we know.

Let’s start with the numbers. GDP grew at a solid pace in the first half of 2025. Unemployment remains historically low. Wages are climbing, not surging, but steadily, suggesting a labor market that is healthy and competitive, not overheated. Consumer spending is up, even if it’s a bit more selective than it was during the stimulus-rich days of the pandemic. In short, this is not an economy limping along. This is an economy standing firmly on two feet.

Closer to home, evidence is even more convincing. Both MillerKnoll and Steelcase recently released their latest quarterly earnings reports and both were surprisingly strong.

“We are very pleased with our strong finish to fiscal 2025, with our Q4 results significantly exceeding our expectations,” according to CEO Andi Owen, during a call with investors and analysts following the earnings release. She highlighted the opening of new flagship locations in London and New York, noting these moves “have meaningfully elevated how we present the collective strength of our brands and products to customers.” She referenced the debut of the Chicago Fulton Market design center and the introduction of over 30 new products at Design Days 2025, with appointments up 11% year-over-year.

Chief Financial Officer Jeffrey Stutz provided first quarter fiscal 2026 guidance: “We expect net sales to range between $899 million and $939 million, up 6.7% versus the prior year at the midpoint of $919 million.”

Sara E. Armbruster, president and CEO of Steelcase, told analysts and investors during the company’s quarterly conference call that the company had  “a very strong start to the first quarter with the majority of our businesses and geographies performing well,” highlighting 7% revenue growth and strong earnings improvement.

David C. Sylvester, senior vice president and CFO said: “We expect to report revenue in the second quarter within a range of $860 million to $890 million, which represents organic growth of up to 3% compared to the prior year, with expected growth from large corporate customers projected to more than offset expected declines in the Education and Government segments.”

The design world is busy again. Furniture makers are launching new collections with confidence. Real estate developers are betting big on amenity-rich buildings. Architects and designers are reportedly busy. That activity doesn’t happen in a weak economy. It’s fueled by demand, optimism and investment.

We’ve also seen a quiet resurgence in American manufacturing. No, it’s not the mass-market production of yesteryear. It’s smarter. It’s regional. It’s often vertically integrated, tech-enabled, and focused on customization. Whether it’s furniture, textiles, acoustic solutions or lighting, manufacturers are doing more in less space, with fewer hands and greater precision. That efficiency is adding resilience to the economy and it’s making our sector more sustainable in the long run.

Another factor worth mentioning: the post-pandemic office is finally settling into something resembling a new normal. Hybrid work, for all its early awkwardness, has matured. It’s no longer an experiment; it’s a strategy. Companies have stopped waiting for a mythical return to 2019. Instead, they’re investing in spaces that support how people actually work today. That shift is creating steady demand for smart workplace design, not just in Silicon Valley or Manhattan, but in secondary markets, growing suburbs and regional hubs.

Of course, challenges remain. Inflation isn’t gone, even if it’s cooled. Interest rates are still pinching certain sectors. Political uncertainty looms large, especially concerns over tariffs, which remain on everyone’s mind in the industry. But for now, the U.S. economy appears to be weathering it all fairly well.

There were examples of our industry’s resilience in Chicago during Design Week. You can also find it by visiting just about any factory floor of a mid-sized company in Michigan. Or talk to a workplace designer juggling five projects at once. You’ll see it: quiet growth, calm confidence and a willingness to adapt.

So, no, the sky isn’t falling. The economy is strong not because everything is easy, but because we’ve learned how to operate in complexity. We’ve turned uncertainty into a design challenge. And like any good designer, we’re sketching the next version of success with sharper pencils and clearer intent.

That’s the real story, even if it doesn’t fit into a headline.

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