TRG | The Bottom Line – 6/13

TRG made the annual pilgrimage to Chicago this week to see what products office furniture producers are showcasing to dealers. Return to Office (RTO) remains a slow yet positive trend and we still believe larger producers are well-positioned to serve that trend. An important nuance for these larger companies is that they serve a wide set of industry verticals that are further along in RTO or workers never left (healthcare settings). Themes we encountered at Neocon were products that enable both openness and privacy, increased flexibility for different verticals, and large conference rooms accommodating both in-person and video meetings. Office furnishing volumes are still down an estimated 25-30% from the prior peak. Even if industry volumes never return to prior peak, getting 40-60% back to peak is a rising tide.