Manufacturers in the RTA segment seek market share with new production capacity

USA - According to Furniture today Competition in the ready-to-assemble segment has intensified over the past 18 to 24 months as companies have taken steps to solidify their presence in the category with new plants, product lines and positioning in the marketplace.

RTA2Although much of the category is still imported, a relevant part of the story is the expansion of domestic production. Combined with the enhancement of warehouse and quick-ship capabilities, this lets companies be closer to the markets they serve.

Headlines in the RTA category have included Canadian manufacturer Bestar’s early 2020 acquisition of Bush Inds. and the subsequent rebranding of the company to eSolutions Furniture Group, Blackstone’s recent investment in Walker Edison and Prepac Manufacturing Ltd.’s new plant just outside High Point announced last summer.

Leading RTA manufacturer Sauder Woodworking is also investing in capacity.  In September, it plans to open a 9,000-square-meter plant near Fort Wayne, Indiana., about an hour west of its Archbold, Ohio, headquarters and main manufacturing operation.

Ashley Furniture also invested in RTA the category just over two years ago, launching more than 400 SKUs across different categories including bedroom, home office and home entertainment among others.

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