Steelcase

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Steelcase Inc.
FormerlyMetal Office Furniture Company
TypePublic
NYSE: SCS (Class A)
Russell 2000 Component
IndustryFurniture
FoundedMarch 16, 1912 (1912-03-16) in Grand Rapids, Michigan, United States
FoundersPeter M. Wege, Walter D. Idema, David D. Hunting
Headquarters
Grand Rapids, Michigan
,
United States
Number of locations
80 (2014)
Area served
Worldwide
Key people
James Keane CEO
ProductsOffice furniture, architectural and technology for office environments and the education, health care and retail industries
RevenueUS$ 3.75 Billion (2020)
Number of employees
12,650[1] (2017)
Websitesteelcase.com

Steelcase is a United States-based furniture company founded in 1912 in Grand Rapids, Michigan.[2] The company produces office furniture, architectural and technology products for office environments and the education, health care and retail industries. It is the largest office furniture manufacturer in the world.[3] The company has approximately 80 locations and 11,000 employees worldwide.[4][5] Its locations include Global Business Centers in Mexico, Malaysia, and Romania that provide support to local Steelcase dealerships and offices; showrooms called WorkLife Centers across the United States, Europe, and Asia, and in Toronto, Mexico City, Sydney, Melbourne, and Dubai; and manufacturing facilities in North America, Europe, the Middle East, and Asia.[5][6] In 2017, Steelcase opened a 14,400 square meter space to promote learning and spark innovation in their newest Learning + Innovation Center (LINC)[7] in Munich, Germany.

The Steelcase Corporate Development Center near Grand Rapids, Michigan: opened in 1989 at a cost of $111 million, vacated by Steelcase in 2010, sold for $7.5 million in 2014 — and as of 2016, sold to Switch as a datacenter.
Victor wastebasket

History[]

Steelcase was founded as the Metal Office Furniture Company in 1912 by Peter M. Wege in Grand Rapids, Michigan. Wege was a veteran of the sheet metal and fireproofing industry and had filed approximately 25 patents prior to starting the company. The Metal Office Furniture Company's first products included fireproof metal safes and four-drawer filing cabinets, which Wege invented and manufactured for the Macey Company.[8]

In 1914, the company received its first product patent for "The Victor," a fireproof steel wastebasket. The Victor gained popularity due to its light weight—achieved through a patented process of bending flat steel at right angles to create boxes—and its ability to prevent fires at a time when smoking was common indoors, particularly in the workplace.[9][10] In 1915, the company began manufacturing and distributing steel desks after designing and producing 200 for Boston's first skyscraper, the Custom House Tower.[9] In 1937, the company collaborated with Frank Lloyd Wright on office furniture for the Johnson Wax Headquarters. The partnership lasted two years and resulted in some of the first modern workstations.[9][11]

The name Steelcase was a result of an advertising campaign to promote metal office furniture over wood and was trademarked in 1921.[12] The company officially changed its name to Steelcase, Inc. in 1954.[10][11]

1977 Series 90001

The company became known as the leader of the furniture industry in the late 1960s due to the volume of its sales.[10][5] Steelcase expanded into new markets during the 1970s, including Asia, Europe, and North Africa.[5] In 1973, the company debuted the Series 9000 furniture line, an office system that became a best seller and the company's flagship brand.[13][14] That same year, the company delivered the largest single furniture shipment to the then-new Sears Tower. The delivery included 43,565 pieces of furniture and furnished 44 floors.[11][5]

During the 1980s and 1990s, Steelcase shifted its approach to designing and creating products in response to changes in the workplace and economy. The company also focused on creativity and internal innovation by working closely with architects and interior designers to develop products as well the company's own workspace in Grand Rapids.[12][13] The company's current headquarters were built in 1983 on 901 44th St. SE in Grand Rapids, Michigan.[11] In 1989, Steelcase opened the pyramid-shaped Steelcase Inc. Corporate Development Center. The center contained ten research laboratories and workspaces meant to encourage interdisciplinary collaboration on product development.[12][13] Steelcase vacated the Pyramid in 2010, and the Pyramid was sold to Switch (company) in 2016.[15] In 1996, Steelcase became the majority stakeholder in design firm IDEO and the firm's CEO, David M. Kelley, became Steelcase's vice president of technical discovery and innovation.[16][17] Steelcase sold its shares back to IDEO's managers starting in 2007.[18]

In 1996, Steelcase was found at fault in a patent infringement suit brought against them by Haworth, Inc., another furniture company. Steelcase was ordered to pay $211.5 million in damages and interest, thus ending a 17-year dispute with Haworth.[19]

Steelcase became a publicly traded company in 1998 under the symbol SCS.[12] During the 2000s, Steelcase reorganized its workforce and began integrating modern technologies in its products.[20] In 2000, the company opened Steelcase University, a center for ongoing employee development and learning.[21] Steelcase's wood furniture plant in Caledonia, MI earned LEED certification in 2001, becoming the first plant to receive the certification.[22] In 2002, Steelcase partnered with IBM to create BlueSpace, a "smart office" prototype designed using new office technologies.[23] In 2010, Steelcase and IDEO launched new models for higher education classrooms called LearnLabs.[24]

Brands[]

The three main brands of Steelcase Inc. are Steelcase, Coalesse, and Turnstone. The company also has several other brands and subsidiaries, including Designtex and Steelcase Health and Education.[10]

Steelcase acquired Designtex in 1988. Designtex offers interior textiles and upholstery.[25] The company established its office accessories brand, Details, in 1990.[26] In 1993, the company launched Turnstone, a line of furniture designed for small businesses and home offices.[20] In 2006, Nurture was founded to create products for the health care industry, including furniture and interiors for waiting rooms, offices, and clinics.[27] The brand became Steelcase Health in 2014.[28] Steelcase merged three of its subsidiaries, Brayton International, Metro Furniture and Vecta to form Coalesse in 2008. Coalesse products are meant for what the company calls "live/work” spaces, a result of the frequent overlap of home and office in modern working habits.[29]

Company culture[]

The WorkCafe in Steelcase Corporate Headquarters, Grand Rapids, Michigan

In 1985, Steelcase purchased the Meyer May House designed by Frank Lloyd Wright and restored it, opening it to the public in 1987.[30][5] A corporate art program has resulted in a collection including pieces by Pablo Picasso, Andy Warhol and Dale Chihuly.[31][32]

The company employs a research group called WorkSpace Futures to study workplace trends.[33] In 2010, Steelcase underwent a three-year project to update its Grand Rapids headquarters to promote employee productivity and employee well-being, including redesigning a cafeteria into an all-purpose work environment that provides food service and space for meetings, socializing, and independent work.[34][35]

Steelcase's sustainability efforts have included reducing packaging, using regional facilities to reduce shipping distance, cutting greenhouse gas emissions and water consumption, and a goal to reduce its environmental footprint by 25 percent by 2020.[32][36][37] As of 2012, Steelcase had reduced its waste by 80 percent, greenhouse gas emissions by 37 percent and water consumption by 54 percent since 2006.[37] According to the company's WorkFutures group, the company also analyzes its supply chain and materials chemistry to determine product sustainability. As of 2014, the company leads its industry in Cradle to Cradle-certified products.[32] In 2016, Steelcase employees volunteered 38,913 hours and the Steelcase Foundation donated more than US$5.7 million.[38]

Over the course of many years, Steelcase has been fighting against climate change in many different ways. They became Carbon Neutral on August 25, 2020 with the plan of becoming Carbon Negative (eliminating more carbon than they produce) by 2030.[39] As a company they have a focus on green chemistry and have stopped manufacturing with many chemicals like polyvinyl chloride (PVC).[40]

Covid-19 Response[]

Office redesign around Covid-19
Office design around Covid-19

Steelcase has been redesigning around COVID-19, as of March 2020 they are manufacturing equipment for health care providers and creating solutions for medical facilities. Although these solutions are focused around PPE,[41] they are not just limited to masks but also face shields and social screens (desk top or floor mounted for various types of communication in a space).[42]

This focus of redesign is not just limited to the health care industry, Steelcase is also redesigning offices layouts to create a work space that can adapt to the ongoing Covid regulations. To keep interaction up in the work place, they have installed social screens to divide desks/workspaces and are planning on implementing more technology to enhance communication whether the staff is in office or working from home. Not only will desks be six feet apart as per the United States CDC guidelines[43] but there will also be a huge focus on sanitization stations.[44]

Noteworthy products[]

Leap chair
Gesture seating
Multiple 15 desk
1945 Steelcase Metal Office Furniture

Steelcase released Multiple 15 desks in 1946, which introduced standardized desk sizing and became a universal industry standard.[9][12] Series 9000 was released in 1973 and became Steelcase's most popular line of office systems.[13][14] The Leap chair, introduced in 1999, sold 5,000 units a week during its first year and became the company's most popular release. The ergonomic office chair was designed with eight adjustable areas for users to control, including chair height, armrest positioning, lumbar support, seat depth, and back positioning. The chair was developed over four years, cost $35 million to design, and resulted in 11 academic studies and 23 patents.[45][46] The company released the Gesture chair in 2013, which is designed to support the way workers naturally sit.[46]

Steelcase innovates the industry with the 1945 Metal Office Furniture Company[40] path in an attempt to be more sustainable. The idea started when Steelcase saw the need for furniture to be personalized for custom size spaces with ability to be able to fix a broken part if necessary. This series then came to be over 200 compatible arrangements for tables and desk. The process for this simple assembly of parts fort the new design was to repair, replace or recycle as many times the user needs.[40]

Awards[]

2019 Red Dot Award Winning SILQ Chair

Company Awards:

The company won the Editors' Choice award at the 2014 NeoCon product competition for "Quiet Spaces," a series of workspaces designed for introverts and a collaboration with Susan Cain, author of Quiet: The Power of Introverts in a World That Can't Stop Talking.[47]

Steelcase was named The World's Most Admired Company by Forbes in 2018, 2019 and 2020.[48] They earned the 2020 Civic Award.[49]

Design Awards:

Steelcase's SOTO II Worktools won a Silver Award in the Office Accessories category from Editor's Choice.[47]

Steelcase won the Red Dot Award in 2019 for their SILQ chair design.[50]

References[]

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