Sauder Woodworking Co., North America's leading manufacturer of ready-to-assemble (RTA) furniture, has been a supplier to IKEA US since 2007. Currently Sauder manufactures kitchen cabinets for IKEA US. Under the terms of the new contract, Sauder will be producing four furniture families for IKEA US including bedroom furniture, office, entertainment and children's storage furniture.
"We have been successfully supplying IKEA its AKURUM kitchen cabinets for the last seven years, so when IKEA was looking for North American partners to help them sustainably supply their North American stores with quality furniture, they looked to Sauder," Kevin Sauder, President and CEO of Sauder, said.
"IKEA strives for long-term partnerships with suppliers to secure efficient production and growth. The relationship between IKEA US and Sauder Woodworking is a good example of that," said Rob Olson, CFO, IKEA US. "With our planned growth in the US, we are looking to expand our manufacturing base here, so that we can deliver our products economically and sustainably."
The expansion of the IKEA and Sauder relationship is a business decision that also has environmental benefits. By increasing US sourcing, IKEA is able to shorten transport distance between the manufacturing site and stores, thereby reducing carbon emissions.
IKEA is planning to grow its US presence and will open three new stores in 2014 and 2015; Miami, Florida, Merriam, Kansas and St. Louis, Missouri. In 2013, 25 US suppliers, including the IKEA Industry factory in Danville, Virginia, supplied approximately 19% of the cubic meter volume sold in IKEA US stores. Supply from North America (US, Canada and Mexico) equals approximately 31% of the cubic meter volume sold in US stores. Products currently produced in the United States include kitchen cabinets, mattresses, sofas, entertainment furniture, shelving units and appliances.
