Ashley will ramp up its new 225,000-square-foot Tolleson, Ariz., factory later this month.
By Alan Wolf, YSN
- Expands capacity at Arizona upholstery plant
- Third major production buildout this year
- Will also add 50% capacity to truck fleet
Ashley Furniture is ending a year marked by an aggressive manufacturing buildout with news of another capacity expansion.
The world’s largest home furnishings manufacturer will start up production at a new Phoenix-area upholstery factory later this month as part of a multi-million-dollar investment in plant and equipment.
The 225,000-square-foot leased facility represents Ashley’s third major U.S. production expansion this year, following the launch of a Pottsville, Pa., factory in February and a new Wisconsin plant last summer. The buildout is part of a $1 billion investment in manufacturing, distribution and labor through next year with the goal of achieving a 95-percent level of in-stocks and ready-to-ship inventory, president/CEO Todd Wanek said.
See: Ashley Aiming for 95% In-Stocks with Billion-Dollar Investment
“The high demand for furniture has led us to increase our manufacturing, distribution and retail operations,” Wanek noted. “We couldn’t be more thrilled to expand operations into the state of Arizona. Local leadership has been very welcoming, and we look forward to working together on this landmark project.”
In a related development, Ashley has also entered into an agreement to purchase the West Coast fleet of Wilson Logistics as part of a plan to strengthen its supply chain capabilities, according to a report in Home News Now. The move represents Ashley’s first ever logistics acquisition and will add about 50 percent capacity to Ashley’s current fleet, Wanek told the industry news site, for a total of approximately 2,000 trucks and 5,000 trailers. Wilson is a family-owned trucking company based in Springfield, Mo.
The expansions follow an unparalleled period in the home furnishings industry, when pandemic-related restrictions and personal savings have led to historic consumer demand and unprecedented bottlenecks and backorders.
