Kickstart: An uncomfortable position for office furniture makers

Office furniture makers and their suppliers are bracing for a financial hit from tariffs.

The industry hasn't been in the spotlight as much as the auto industry, but it also has been through a series of shocks. Its biggest adjustment has been a reduced demand for office space — and furniture — from companies that implemented work-from-home options at the start of COVID-19.

Now it's having to plan for 25 percent tariffs on steel and aluminum that will only add to worries for big companies such as Steelcase Inc. and MillerKnoll Inc. as well as a their suppliers of injection molded chairs, extruded trim and other parts.

Grand Rapids, Mich.-based Steelcase expects to have to pay an extra $9 million in tariffs for the current fiscal quarter, our sister paper Crain's Grand Rapids Business writes.

MillerKnoll, based in Zeeland, Mich., says it expects $5 million to $7 million in tariff costs for the three-month period that ended March 1.

"We will partner with suppliers, leverage value engineering and available flexibility within our supply chain and manufacturing footprint to offset cost impacts wherever possible. And we will also consider incremental price surcharges if necessary to manage this period of volatility," MillerKnoll President and CEO Andi Owen told analysts during a March 26 conference call.

MillerKnoll plans to implement a 4.5 percent price increase in June, but officials noted that tariffs are just one part of the reasoning behind the change. Chief Financial Officer Jeff Stutz warned that things could change.

"The wild card is what happens in April. There's a whole slew of potential tariff changes that seem to be changing a bit by the day," Stutz said.

Medical injection molder and toolmaker Plas-Tech Engineering Inc. has been named the Wisconsin Manufacturer of the Year for 2024 for companies with 100-249 employees.

Lake Geneva, Wis.-based Plas-Tech was honored for its for its financial growth, technology, product development and sustainability. The company molds medical devices and has its own branded injection syringe, Equinox Syringe.

Plas-Tech also was a finalist for the award in 2023. It recently completed a 25,000-square-foot warehouse to keep up with growth and is in the planning stage for a second 25,000-square-foot facility in Lake Geneva.

Honeywell International Inc.'s advanced materials business has a new name lined up for itself: Solstice Advanced Materials.

The industrial and materials giant said in 2024 that it would spin off the materials business, and earlier this year said it would also divide its automation and aerospace businesses, meaning that the company that had nearly $39 billion in sales last year will be split in three.

The materials side of the business already shed much of its plastics operations, although it will continue to have a presence in the industry.

The new name, Solstice, copies its brand of refrigerants already on the market as well as Solstice Air, a propellant for items such as asthma inhalers.