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From Home Furnishing Business

Ashley Furniture Industries Offers Retailers Advantage in Adaptability

December 9, 2024  by Karen Parrish in Business Strategy, Industry   

Guided by its Massively Transformative Purpose "To inspire the love of home and enrich the lives of those around us by being the most innovative and competitive furniture company on the planet," Ashley's business philosophy centers on prioritizing customer and dealer success in every strategic decision. Throughout its nearly 80-year history, Ashley has demonstrated remarkable adaptability, reinventing itself 19 times to meet evolving market demands - from expanding product assortments and enhancing manufacturing capabilities to strengthening distribution networks and developing its workforce.

The company has invested over $2 billion in recent years into its operations. This substantial companywide investment has significantly enhanced its U.S. manufacturing infrastructure, positioning Ashley to better navigate potential tariff impacts and market shifts while maintaining supply chain reliability. These strategic initiatives have secured Ashley's position as the world's largest home furnishings manufacturer, a title held since 2005.

At the core of Ashley's operational strategy is its focus on GMROI, a cornerstone of retailer success. Through expert forecasting and inventory management, Ashley helps retailers optimize their largest investment - inventory. By maintaining tight, lean stock levels while ensuring product availability, retailers achieve higher turn rates and increased profitability. Strong dealer relationships and an integrated global supply chain further enhance this strategic approach.

"When we invest in our manufacturing and distribution network, we're really investing in our retailers' success," said Todd Wanek, president and CEO of Ashley Furniture Industries. "While no one can predict future tariff impacts with certainty, our extensive domestic production capabilities give us the flexibility to adapt quickly to market changes and maintain reliable supply for our retail partners."

"We're proud to be a manufacturer in the U.S., and our free-market system lets us be nimble and competitive. Being number one isn't something we take for granted – it's something we work for every single day. That's why we're always adapting, always improving and always focused on finding better ways to support our customers."

Ashley's manufacturing capabilities stand unmatched in the furniture industry, operating an extensive network of state-of-the-art facilities with advanced manufacturing processes. The recent implementation of nearly 500 robots since 2017 exemplifies the company's commitment to cutting-edge automation.

The company's manufacturing excellence includes the country's largest casegoods facility in Arcadia, Wisconsin; the largest mattress manufacturing plant in Saltillo, Mississippi; and the largest upholstery facility in Ecru, Mississippi. Recent strategic expansions include new facilities in Spanaway, Washington and Chippewa Falls, Wisconsin, while an $80 million investment in Mississippi operations reinforces Ashley's commitment to domestic manufacturing growth.

Through an affiliate of Ashley, the acquisition of Resident Home in March 2024 has significantly enhanced Ashley's product portfolio, allowing the company to offer an even broader selection across their 20 product categories.

As a global leader in logistics and distribution, through an affiliated company, Ashley operates one of the most sophisticated supply chain networks in the furniture industry. The company's transportation infrastructure includes the furniture industry’s largest fleet, featuring over 1,500 tractors and 5,000 trailers that deliver to 95% of North America weekly.

Advanced logistics management systems optimize route planning, load efficiency and delivery scheduling, while strategically positioned distribution centers ensure rapid response to market demands across multiple continents.

“Our vertically integrated approach, from manufacturing to delivery, allows us to maintain superior quality control while offering retailers competitive pricing and reliable service,” noted Todd Wanek. “This comprehensive infrastructure enables Ashley to serve both domestic and international markets with unprecedented efficiency.”

Ashley’s commitment to innovation and excellence enables the company to provide the best designs, best value, best speed and best service in the industry. To learn more about Ashley Furniture Industries and how to become a retailer, visit ashleyglobal.com.