Supply Chain Warnings, Store Closings, and Domestic Manufacturing

Originally published December 9, 2024. This version was rebuilt from the ILA's message to members, the American Freight closing announcement and Ashley's release for the FIN archive, and the facts are as of that date.

Early December 2024 brought a fresh port strike risk, the end of a discount furniture chain and a big domestic manufacturer making the case for U.S. production.

The short version

• The ILA said talks broke down when employers raised their intent to implement semi-automation.
• American Freight began store closing sales at all 328 locations.
• Ashley said it had invested over $2 billion in recent years in its operations.

East Coast ports brace

The International Longshoremen's Association told members that talks with port employers broke down when management introduced their intent to implement semi-automation, which the union said contradicted earlier assurances.

The union said it supports technology that improves safety and efficiency only when a human being remains at the helm. Importers faced the possibility of a second East and Gulf Coast strike within months of the October walkout.

Update. On January 8, 2025 the two sides reached a tentative agreement on a new six-year contract.

American Freight closes

American Freight began store closing sales at all 328 locations and online, with Hilco Consumer-Retail running the sales as the business wound down nationwide.

The chain sold discount furniture, mattresses and appliances. Its closing put more inventory on the market at clearance prices during the holiday season and opened room for other value retailers.

Domestic manufacturing commitment

Ashley said it had invested over $2 billion in recent years into its operations, strengthening its U.S. manufacturing infrastructure and positioning it to better handle possible tariff impacts.

With tariff threats on the table, companies with domestic plants and automation had a story to tell retailers about supply reliability.

Industry outlook

Port risk, a major closing and a push for domestic production all pointed to the same lesson for 2025. Supply reliability was becoming as important as price.

Related on FIN

• The Freight Mafia's New Playbook
• Every Door in Town

Sources

• International Longshoremen's Association, Message to members on the breakdown of negotiations with USMX
• International Longshoremen's Association, ILA and USMX tentative agreement (Jan. 8, 2025)
• Hilco Consumer-Retail, American Freight store closing sales begin (Nov. 6, 2024)
• Ashley Furniture Industries, Release on retail success and manufacturing innovation (Dec. 9, 2024)