Welcome to Furniture Industry News for Thursday, December 19, 2025.

I'm glad you're joining us today as we wrap up another busy week in our industry.

We've got a lot to cover, from major acquisition news to tariff developments to what the latest sentiment data tells us about where we're headed in 2026.

Let's dive right in with some big news on the manufacturing side.

Manwa holdings has completed its acquisition of Gainline Recline Intermediate Corp.

Which includes both Southern Motion and Fusion Furniture.

The deal closed yesterday for $32 million, but when you factor in the debt that was retired at closing, the total value comes to approximately $58.7 million.

This is a significant move that brings together Manwa's global manufacturing scale with Southern Motion's domestic production capabilities in northern Mississippi.

Why does this matter for retailers?

According to company executives, this acquisition creates what they're calling a one stop upholstery partner.

Manwa can now offer Motion and stationary seating, both offshore and domestic production, quick ship programs and customized solutions, all from a single platform.

Zoe Wang, executive director of Manhwa, emphasized that SouthernMotion brings capabilities that complement Manwa's global scale and engineering expertise.

The domestic footprint also helps retailers navigate tariff uncertainty and supply chain volatility while supporting faster product development cycles.

Gabriele Natale, president of Manhwa, pointed out that this gives retailers more flexibility.

National accounts get scale and efficiency, while independents and regional chains can take advantage of the speed, customization and service benefits that come with domestic production.

Southern Motion's distribution network reaches over 1,000 furniture retailers, so there's real potential for cross selling opportunities here.

Speaking of tariffs, let's turn to what's happening in Washington.

The President Trump posted on Truth Social this week touting his tariff strategy, claiming that recently released numbers show tariffs have reduced the US Trade deficit by more than half.

He's urging the Supreme Court to uphold the administration's authority to impose these duties.

Here's what you need to know about the legal side of things.

The Trump administration is reportedly racing to deposit tariff revenue into the U.S. treasury.

And that timing matters.

Customs and Border Protection has been denying or limiting requests from importers to to delay what's called liquidation of tariff payments.

Once those payments are finalized and transferred to the treasury, importers lose the ability to seek routine corrections.

Instead, they'd have to pursue formal protests or litigation to recover their money if the Supreme Court ultimately rules against the tariffs.

More than 100 companies have filed or are considering legal action to preserve refund rights.

Costco is among the firms that asked the US Court of International Trade to fast track arguments on an injunction that would prevent liquidation of the tariffs they've paid.

As of the end of October, the federal government had collected more than $88 billion under these disputed tariffs, including 29 billion from China and Hong Kong, nearly 5.7 billion from Mexico and almost 52 billion from other countries.

The Supreme Court heard oral arguments earlier this month and has until the end of its term this summer to rule on the shipping front.

Container spot rates rose sharply again this week.

According to Drury's World Container index.

Rates increased 12% to $2,182 per 40 foot cont.

That's the third consecutive weekly increase.

Routes from Shanghai to New York jumped 19% to $3,293 per container, while rates to Los Angeles climbed 18% to $2,474.

What's driving this carriers have tightened capacity, with 10 blank sailings announced for the coming week on the Trans Pacific Trade lane.

Drury is also seeing a shift in seasonal demand patterns on Asia Europe routes.

Over the past three years.

They've recorded double digit month over month demand growth in December, and that trend is continuing with early bookings ahead of the lunar New Year in February.

Drury expects rates to edge up slightly again next week, though they caution that broader market fundamentals remain fragile.

Now let's talk about how the industry is feeling as we close out the year.

The latest Furniture Today Home Furnishing Sentiment Index shows some encouraging signs.

Prospects for the next six months moved into the positive range for the first time since the first quarter, posting a score of 103.

That means more respondents project conditions improving than those who see them getting worse.

Plans for capital investments rose by 13 points to 75, getting close to the high score of 82 from earlier this year.

The view on current business conditions is still skewing toward fair or poor assessments, with only 1% giving the home furnishings business an excellent rating.

But the overall rating did rise to 46 from last quarter's low of 38.

What's on everyone's mind?

91% of respondents cited tariffs as a factor they're watching, and 81% flagged housing issues.

Consumer sentiment was mentioned by 75%, inflation by 60% and supply chain issues by 46%.

Labor concerns actually rose by 9 percentage points this quarter.

In company news, Millennol reported mixed results for its second quarter ending November 29th.

Net sales came in at $955.2 million, down about 1.6% from the prior year.

But here's the positive.

Orders grew 5.5% to $972.5 million, with strength across all segments.

Their global retail business had record performance during the Black Friday and Cyber Monday period.

CEO Andy Owens said the results reflect improving industry trends and positioned the company for further growth.

Finally, a retail note from Tusker's Home Store and Tusker's Furniture and Patio outlet in the Miramar beach area announced their closing after almost 20 years in business.

The owner is retiring.

The company opened during the Great Recession in 2008 and grew rapidly as the Emerald coast market rebounded.

Final liquidation sales at Both locations begin December 26, and the 28,000 square foot showroom is for sale.

That's your wrap up for this week.

We've seen a major acquisition that reshapes the domestic upholstery landscape.

Ongoing tariff uncertainty as we await the Supreme Court's ruling.

Rising shipping costs, but also genuine optimism building as we look toward 2026.

The industry has navigated a challenging year, and the sentiment data suggests many of you are feeling cautiously hopeful about what's ahead.

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Thanks for listening and we'll see you next time.