Tariff Uncertainty Central Theme at the Fall High Point Market

Charlotte, NC, November 3, 2025-Analyst Stump issued the following summary of the fall 2025 High Point market.

“Clearly, no one knows how to account for, or understand, the precise math of the ever-changing tariff situation. As one CEO told us, ‘We are playing ‘Whack a Tariff,’ and don’t know what’s coming tomorrow."

“The furniture industry is in the crosshairs of a trade war, and President Trump has singled out the Furniture Industry-and North Carolina (and Michigan), in particular-in his use and justification for tariffs on the category. Domestic manufacturers are enjoying a lift in business inquiries while importers are working to quantify the impact on their costs and decide how much to increase prices. Mexican and Canadian manufacturers are still trying to understand if USMCA will apply. And how will the Supreme Court rule on these issues in the coming weeks?

TOPICS OF SHOW

“Distress-Plenty of companies are closing or liquidating, choosing to stop the pain [wrought by tariffs], stop losing money, and exiting altogether. Bank restructurings, ABC transactions, and bankruptcies have been common occurrences these past few years, particularly in the promotional segment of the market. There will continue to be some of these, although our sense is most have now occurred and the worst is behind us.

“Designers-The high end remains strong and there are more than 100,000 design professionals in the U.S.; vendors are running to capture more of this lucrative and growing channel. Innovative technology is aiding the connectivity between the designer and manufacturer, and some new emerging tech companies are arising to try to streamline this purchasing process further. Equally interesting is the back end/logistics of the purchase-since most designers have small businesses with little to no infrastructure, they must rely on third parties for receiving, storing, and installing their clients’ purchases. Several innovative new companies are working to consolidate this vital commercial service-keep an eye out for this space.

“New Materials-We are seeing the introduction of non-wood materials to add structural strength to products and aid in potential tariff workarounds. We think this innovation is particularly important and will lead to more modernization in manufacturing-perhaps with the help of robotics, digital printing, and other technologies.

“Mergers & Acquisitions-Domestic upholstery is benefitting from tariffs-or at least the perceived risk of tariffs. We have plenty of requests from buyers (both domestic and international) for USA-made upholstery.

 “Bigger companies are looking for deals to add capacity or products to their core business segments.

“We are also seeing larger multi-brand companies thinking about exiting non-core divisions, brands, and/or poorer performing segments.

 “Many Buyers-both Strategics and Financial-are now communicating they are looking for bigger deals of healthy, profitable companies with in-place management teams-at stronger valuations than what we’ve been seeing for the last one to two years.

 “Older owners with no succession plan are anxious to sell and exit for a peaceful retirement (many have commented how stressful the past five years have been, and that they do not want to face another five years equally as challenging)

 “PE sponsors still have meaningful ownership in the furniture industry; many will sell in the coming months and year(s) ahead; other new sponsors will buy and enter the industry.

Expect to see several announcements in this space in the coming months.

“Offshore furniture companies still want to be in the U.S. and will invest to get money out of their home country and into the U.S.”