Ikea planning more U.S. production, including in N.C.

Ikea is planning to source more products from U.S. factories, including a new one that is expected to produce more than 2 million pieces of furniture each year in North Carolina.

Noting that President Trump’s tariffs are increasing the cost of importing bookcases, mattresses and sofas, one of the Swedish furniture group’s top supply chain executives told Reuters that the move is a big shift for Ikea.

Inter Ikea, brand franchiser, closed its U.S. factory in Danville, Va., in 2019 and moved production back to Europe. Now the group is planning to produce from SBA Home, a Lithuanian supplier to Ikea, which is opening its first U.S. factory in Mocksville, N.C. The $70 million investment in the North Carolina factory was supported in part by Inter Ikea.

See also: Ikea returns to Miami Week with playful, colorful new collection

SBA Home’s first U.S. furniture facility in Mocksville will create an estimated 250 jobs over four years, beginning in 2026. SBA had chosen the Davie County location before U.S. tariffs created trade upheaval, according to the Triad Business Journal. Ikea representatives said the plan to produce closer to U.S. consumers also predates this year’s tariff hikes and is part of the company’s global initiative.

Inter Ikea Group reported total revenues of EUR 26.3 billion for financial year 2025 in early November, compared to EUR 26.5 billion in FY24. Company representatives noted that sales volumes are up while gross margin is back to normal levels following the continued effect of wholesale price decreases in FY24, a planned development that officials said support the Ikea “affordability ambitions.”