We're sure there is a bigger story here, but Sauder, the fifth-largest residential furniture manufacturer, announced Wednesday they will begin manufacturing frames and shelves (the "guts") for kitchen cabinetry sold by Ikea.
The Sweden-based home-furnishings retailer Ikea has over 39 stores in the United States and Canada with plans to open three to five stores annually in North America. Los Angeles has several locations including Burbank, City of Industry and Irvine, CA.
Sauder Workworking Company is North America's largest maker of ready-to-assemble furniture (RTA). Headquartered in Archbold, Ohio, Sauder produces nearly 25 percent of all RTA furniture sold in the United States. Sauder and Ikea spent seven months handling specifications for the components, which were formerly made in Eastern Europe.
Why do we feel this is a major shift in corporate strategy?
Ikea's North America distribution of kitchen cabinetry needs help. Having a local (US) manufacturer may cut down on wait time when you're stuck for one more door or drawer.
The guts will be produced here in America, which will help their marketing ease the feeling that we're supporting the world economy but not our local.
Any thoughts on this?
Source: Toledo Ohio Blade