IKEA is preparing for a significant shift in how it supplies American stores, reports Reuters.
The Swedish company, with its US headquarters in Conshohocken, plans to source far more products from US factories. The move comes as rising tariffs continue to drive up the cost of importing furniture like bookcases, sofas, and mattresses.
Global Supply Manager Susanne Waidzunas said the strategy is focused on making IKEA’s supply chain faster, more resilient, and less dependent on overseas shipping.
While the company once operated a factory in Virginia before closing it in 2019, it is now moving back toward domestic production as demand grows across the U.S., Canada, and Latin America.
One early example is a new $70 million furniture factory in North Carolina, backed by IKEA supplier SBA Home, which is expected to produce up to 2 million pieces annually, including popular KALLAX shelving units. Currently, only about 15% of IKEA’s U.S. products are domestically made, compared to 70% in Europe.
While producing in the U.S. carries higher labor costs, IKEA believes the savings on shipping and improved response time will help stabilize prices and inventory long term, a strategic shift with major implications for its Conshohocken-based operations.
To learn more about IKEA’s plans to source US material, visit Reuters.
