To counter rising import tariffs and supply chain costs, IKEA announced plans to significantly expand its manufacturing operations in the United States. The company aims to increase production in existing U.S. facilities while exploring new plant investments to localize key furniture lines, such as producing almost all mattresses for U.S. in-country.
Localization Offers Several Advantages
IKEA’s decision reflects a broader trend among global retailers seeking to shorten supply chains, mitigate external risks, and respond to growing consumer demand for locally produced goods. Increasing domestic production will likely enhance resilience, reduce lead times, and limit currency exposure — although it may temporarily raise operating costs.
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