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Vertical integration triggers growth for an L.A.-based office furniture provider
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Vertical integration triggers growth for an L.A.-based office furniture provider

How Joe Lozowski transformed a struggling furniture distributor into a $180M enterprise by listening to clients and expanding beyond traditional boundaries.

March 3, 20204 min read

## From Struggling Distributor to $180 Million Success Story

When Joe Lozowski took the reins at Tangram Interiors fifteen years ago, the Los Angeles-based office furniture distributor was struggling to find its footing in an increasingly competitive market. Founded in 1963, the company had been operating as a traditional furniture provider, but Lozowski recognized that this approach wasn't sustainable.

**"Just being a furniture provider was not an exciting story,"** Lozowski recalls. His first move was to reach out directly to architects, designers, and clients to understand what they really needed from companies like his.

That simple act of listening transformed everything.

## Building a Multi-Faceted Enterprise

Today, Tangram Interiors operates six furniture dealerships across southern California with 300 employees. The company has grown into the region's second-largest flooring contractor and expanded into five distinct divisions:

- **Furniture customization** with more than 40 dedicated designers - **Fabrication services** - **Technology integration** - **Move management** through Tangram Onsite - **Traditional furniture distribution**

The numbers tell an impressive growth story. Revenue jumped from $127 million in 2014 to a projected $180 million in 2017, with an additional $20 million from direct Steelcase sales.

## The Power of Custom Solutions

Lozowski's diversification journey began with an unusual client request around 2004. Someone wanted furniture that looked like it was "made at Home Depot" – rough-hewn with a DIY aesthetic. Rather than dismissing this unconventional ask, Lozowski saw opportunity.

**"Maybe this is something we can make a business from,"** he thought.

That insight led to the creation of Tangram Studio, the company's custom furniture division. Studio sales have grown from $7.75 million in 2014 to a projected $12 million in 2017.

## Technology Integration Fills Market Gap

Tangram Technology, launched in 2013, emerged from another client pain point. Lozowski kept hearing complaints about the difficulty of finding reliable contractors who could coordinate office design with technology requirements.

**"Beside your chair, there's nothing in an office that isn't attached to a wire,"** Lozowski observes.

This division has grown from $2.3 million in its first full year to $5 million in 2017, addressing what remains a highly fragmented market outside of two major providers.

## Designing for Modern Work Patterns

Tangram's approach centers on what Steelcase calls "resilient workplaces" – adaptable office ecosystems that evolve with changing needs. The company's 45-person consulting team works with manufacturers, client designers, architects, and project managers to create spaces focused on employee wellbeing and choice.

A recent collaboration with Boston Consulting Group and Shubin Donaldson exemplifies this philosophy. When Tangram Studio's research revealed that BCG consultants spent only 25% of their time in the office, they designed a 45,000-square-foot space that includes:

- 130 traditional workstations - 80 "touchdown" spaces with standing-height stations - Flexible seating integrated into metal railings - Semi-private spaces throughout - 24 private offices and 30 meeting rooms positioned to maximize perimeter views

## National Expansion Through Co-Design

Lozowski's current focus is expanding Tangram Studio nationally. The company is already working on projects in Seattle, Portland, San Francisco, Dallas, Chicago, and New York. In Seattle, they're partnering with biotech firm Juno Therapeutics to co-design furniture for 12 floors while integrating technology directly into the pieces.

The client roster includes notable names like Perkins + Will, Hulu, Experian, Intuit, and UCLA Health. Loyola Marymount College has been a partner for over a decade.

## The Future of Office Design

Lozowski believes the key to successful office furniture design is **"mass customization"** – the ability to create tailored solutions at scale. What sets Tangram apart, he says, is their collaborative approach.

**"People love that we're co-designing with them."**

He notes that many office designs still lack vision because clients remain focused primarily on minimizing costs. However, the companies willing to invest in thoughtful, customized workplace solutions are seeing the benefits in employee satisfaction and productivity.

## Lessons for the Industry

Tangram's transformation offers several insights for commercial design professionals:

**Listen first.** Lozowski's success began with understanding what clients actually needed, not what his company traditionally provided.

**Embrace unusual requests.** That "Home Depot" furniture request became the foundation for a multi-million-dollar division.

**Integration matters.** Modern offices require seamless coordination between furniture, technology, and space planning.

**Flexibility is essential.** With remote work patterns changing how offices are used, adaptable designs serve clients better than rigid solutions.

Tangram Interiors' journey from struggling distributor to thriving multi-faceted enterprise demonstrates that success in commercial design often comes from expanding beyond traditional boundaries – and never being afraid to ask what clients really want.

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