The only item that needs to be close is the blower thing for the forge. Frankly it looks pretty good when set up.

The other things do have a radius but it isn't too bad to work with. A lot of my workbench stuff ends up behind a wall or on a roof above it.

Tool racks can be hung and look pretty good as well.

Forge I started to place away from any walls. One close enough to hang boxes and stand between the boxes and the forge or use forge from other side if I am just repairing. Then again I build more for ergonomics than fashion.

Black Forest stone tower
https://steamcommunity.com/sharedfiles/filedetails/?id=2552726554