THE COSTS ARE JUST UP, UP, UP.
LIZ: WARREN BUFFETT DID NOT
SUGAR COAT WHAT HE’S SEEING ON
THE INFLATION FRONT SAYING COSTS
FOR EVERYTHING FROM HOME
BUILDING AND FURNITURE MATERIALS
TO STEEL ARE RISING
PERSISTENTLY.
BUT LEADING FURNITURE MAKER
STEELCASE SAYS FOR NOW SALES ARE
FAR OUTPACING INFLATION.
THE COMPANY HAS SEEN A 500% JUMP
IN HOME OFFICE SALES DURING THE
PANDEMIC.
WHAT HAPPENS AS THE NATION HEADS
BACK TO WORK?
CEO JIM KEANE JOINS US LIVE IN A
FOX BUSINESS EXCLUSIVE.
FIRST OFF, ARE YOU SEEING WHAT
WARREN BUFFETT -- WHO OWNS COURT
FURNITURE AND NEBRASKA FURNITURE
MART -- IS SEEING AS FAR AS
RISING COSTS?
>> THANKS FOR HAVING ME, FIRST
OF ALL.
AND, YES, OF COURSE, WE’RE
SEEING THE SAME THING WHEN IT
COMES TO FREIGHT, FIRST OF ALL.
IS SUPPLY CHAIN COSTS, ROAD
FREIGHT, OCEAN FREIGHT, ALL OF
THAT HAS BEEN RISING, INCREASES
IN STEEL PRICES, MORE RECENTLY
IN SOME OF THE PETROLEUM-BASED
PRODUCTS THAT WERE AFFECTED BY
THE FREEZE IN TEXAS A WHILE AGO.
SO, YEAH, WE’RE SEEING INFLATION
ACROSS THE BOARD BUT AS WARREN
SAID, WE’RE AJUSTING, AND
WE’VE -- ADJUSTING.
WE’LL CONTINUE TO KEEP AN EYE ON
IT.
THIS ISN’T OUR FIRST RODEO, SO
WE’LL CONTINUE TO MANAGE PRICE.
AND THE ONLY ISSUE YOU FACE IS
TIMING, SHORT-TERM TIMING,
SUPPLY/DEMAND IMBALANCE WITH THE
STEEL SUPPLY RIGHT NOW IS
DRIVING SOME UNUSUALLY HIGH
PRICE INCREASES.
THERE’S SOME DELAY UNTIL WE CAN
PASS ON THOSE INCREASES, BUT
OTHER THAN THAT IT’S JUST THAT’S
THE WAY BUSINESS HAS ALWAYS
BEEN.
LIZ: WELL, THAT IS EXACTLY WHAT
I SUPPOSE JAY POWELL SAYS, THAT
IT’LL BE TRANSITORY ONCE THINGS
WORK THROUGH THE SYSTEM, BUT
IT’S A LOT EASIER TO RAISE
PRICES, IT’S A LOT HARDER TO
THEN CUT THEM ONCE AGAIN, RIGHT?
ARE YOU GOING TO CUT YOUR PRICES
ONCE THING WORK THEIR WAY
THROUGH?
>> IN THE PAST WE’VE SEEN
SOMETIMES AN OCCASIONAL SPIKE IN
A COMMODITY PRICE, AND WE’VE
DONE TEMPORARY SURCHARGES AND
REVERSE WHEN THOSE COME DOWN.
I THINK IT’S GOING TO BE MORE OF
A TYPICAL INCREASE AND, FRANKLY,
IF I HAD A CHANCE BETWEEN
MANAGING THROUGH COVID AND
THROUGH THIS, I’LL TAKE
INFLATION BECAUSE WE’VE BEEN
THROUGH THAT ONE BEFORE.
LIZ: OKAY.
YEAH, BECAUSE WE’VE SEEN LUMBER
AND STEEL JUMPING ABOUT 20% IN
RECENT MONTHS.
LET’S TALK ABOUT THE RETURN TO
WORK.
YOU GUYS HAVE DONE A BANG-UP
BUSINESS, UP 500% SINCE THE
START OF THE PANDEMIC AS PEOPLE
MOVED VERY QUICKLY TO FILL THEIR
HOME OFFICES WITH FURNITURE AND,
YOU KNOW, STUFF THAT THEY WOULD
NEED THAT YOU SELL.
HOW DO YOU MAKE THE TRANSITION
BACK TO IN-OFFICE FURNITURE?
>> WELL, WE’VE BEEN SELLING
IN-OFFICE FURNITURE THROUGH THE
WHOLE CRISIS.
WE HAVE HELPED OUR CUSTOMERS,
EDUCATION CUSTOMERS, LOTS OF
SMALL BUSINESSES THAT WEREN’T AS
AFFECTED, ESSENTIAL BUSINESSES,
ESSENTIAL INDUSTRIES.
AND SO THAT REMAINS AN IMPORTANT
PART OF OUR BUSINESS ALL THE WAY
THROUGH.
WE AWE ABOUT A 35-40% -- SAW
ABOUT A 35-40% DROP OVERALL
BECAUSE PEOPLE WEREN’T, IN
GENERAL, WORKING IN OFFICES, BUT
A LOT OF CLIENTS WERE.
WHAT WE DID WAS INVESTED IN
PRODUCT DEVELOPMENT.
WE’VE CONTINUED TO LAUNCH NEW
PRODUCTS THAT ARE FOCUSED ON
PRODUCTIVITY, FLEXIBILITY AND
THE KINDS OF WAYS WE THINK
PEOPLE ARE GOING TO WORK
DIFFERENTLY AS THEY COME BACK TO
THE OFFICE AFTER COVID ARE.
LIZ: YEAH.
STAND-UP DESKS.
GOT THOSE AT FOX BUSINESS, WHICH
I LOVE, BECAUSE YOU CAN, YOU
KNOW, JUST GET A LITTLE BIT OF
EXERCISE OR CHANGE YOUR
POSITIONING, WHICH I THINK A LOT
OF US HAVE GOTTEN USED TO,
CERTAINLY WORKING FROM HOME.
SPEAKING OF WHICH, MAYOR BILL DE
BLASIO HERE IN NEW YORK CITY WAS
ALL READY TO WELCOME 80,000
WORKERS BACK TO -- AND I’M
TALKING CITY WORKERS -- BACK TO
OFFICES AROUND TOWN, BUT SOME
NEW YORK WORKERS ARE DIGGING IN
THEIR HEEL, THEY DON’T WANT TO
GO BACK.
THEY WERE THE SAME ONES PROBABLY
COMPLAINING WHEN THEY FIRST HAD
TO STAY HOME DURING ALL OF THIS.
DO YOU THINK THIS IS GOING TO
BECOME A NATIONWIDE TREND WHERE
PEOPLE STILL ARE WORRIED AS TO
WHETHER IT’S SAFE TO GO BACK?
>> WE’VE BEEN THROUGH A LOT
TOGETHER, SO PEOPLE ARE GOING TO
COME BACK TO THE WORKPLACE WITH
A NEW SENSETIVITY.
WE’VE INTERVIEWED 32,000 PEOPLE
THROUGH SURVEYS OR INTERVIEWS
THE LAST YEAR, AND THEIR NUMBER
ONE PRIORITY IS SAFETY.
THEY WANT OFFICES THAT ARE SAFE.
WE’VE BEEN HELPING CLIENTS WORK
ON THEIR OFFICES TO MAKE SURE
THAT IT’S SAFE IF THEY RETURN,
AND WE THINK THAT CAN BE DONE
SAFELY.
PEOPLE ARE WORRIED ABOUT
PRODUCTIVITY.
YOU KNOW, SOME THINGS WORK
BETTER AT HOME.
SOME PEOPLE WERE ABLE TO
CONCENTRATE BETTER, WORK IN AN
UNINTERRUPTED WAY, SO A LOT OF
OUR CLIENTS ARE SAYING, OKAY,
HOW CAN WE MAKE SURE PEOPLE WORK
BETTER WHEN THEY RETURN TO THE
OFFICE.
EVEN BEFORE THE OLD DAYS.
SO THERE’S A LOT OF FOCUS ON
COLLABORATIVE SPACES, SPACES
THAT BLEND THE PHYSICAL AND
DIGITAL SO REMOTE WORKERS CAN
CONTINUE TO PARTICIPATE IN
MEETINGS, A LOT OF PEOPLE
PHYSICALLY TOGETHER IN THE
OFFICE.
SO AS PEOPLE COME BACK, THEY CAN
DO WHAT THEY MISSED THE MOST
WHICH IS BE ABLE TO INTERACT
WITH THEIR COLLEAGUES, SEE
PEOPLE THAT MAYBE WEREN’T ON
THEIR IMMEDIATE TEAMS WHO THEY
WERE ON ZOOM CALLS AND SO ON
WITH, BUT OTHER PEOPLE THEY
DON’T GET A CHANCE TO TALK TO
VERY OFTEN.
LIZ: WELL, IF I INSTALLED A
VENDING MACHINE RIGHT HERE WITH
RICE KRISPIE TREATS IN MY
HOUSE --
[LAUGHTER]
WHEREAS I HAVE THAT AT FOX
BUSINESS, I THINK I MIGHT BE
HAPPIER HERE, BUT I’M READY TO
GO BACK.
JIM, THANK YOU.