Wedoany.com Report-Dec.8, IKEA intends to significantly increase local production in the United States, according to Susanne Waidzunas, Global Supply Manager at Inter IKEA, in an interview with Reuters. The shift is designed to reduce reliance on long-distance imports and improve supply chain responsiveness for the North and South American markets.

The decision follows rising transportation costs and helps mitigate the impact of higher import tariffs on furniture such as bookcases, mattresses and sofas. Although the strategy to produce closer to customers began before recent tariff increases, the current environment has made local sourcing more advantageous.

"We are designing our supply chain network to be much more resilient, robust, and responsive," Susanne Waidzunas said, noting that stores in the Americas currently depend heavily on overseas shipments with extended lead times. "The closer we can build, the faster we can react from a supply perspective, both when it goes up in demand but also when it goes down."

Only 15 percent of products sold in U.S. IKEA stores are currently manufactured domestically, compared with 70 percent regional production in Europe and 80 percent in Asia. The company aims to raise the U.S. share by expanding purchases from existing American suppliers and adding new ones, particularly for large-volume and bulky items such as mattresses.

One example is SBA Home, a long-term IKEA supplier based in Lithuania, which is completing a new $70 million factory in Mocksville, North Carolina. The highly automated facility will produce popular items including KALLAX shelving units and is expected to reach an annual output of two million furniture pieces.

IKEA previously operated its own factory in Danville, Virginia, until 2019, when production was relocated to Europe. The retailer, which counts the United States as its second-largest market, also operates stores in Canada, Mexico, Chile and Colombia and plans further expansion in Central America.

While manufacturing costs in the United States remain higher than in some other countries, shorter shipping distances and greater supply flexibility are expected to offset part of the difference, especially as global freight expenses and delivery times have become less predictable since the COVID-19 pandemic.

The company continues to maintain strong sourcing relationships worldwide, with its largest supply countries currently including China, Germany, Italy, Lithuania and Poland. The increased focus on U.S. production forms part of a broader global effort to build more regionally balanced and adaptable supply networks.