Food for Thought: The Elephants in Your Rooms

The benefits of applying circular economy principles are clear across any market: avoid waste, extend the useful life of assets you already own, and, when additional inventory is needed, consider purchasing remanufactured office furniture to reduce costs and support sustainable practices.

But this is not just any market. We're in a time of uncertainty, driven by shifting factors such as tariffs and broader economic pressures affecting inflation and business growth. Like other durable goods sectors, office furniture manufacturing is beginning to feel the strain in multiple ways.

The full impact of tariffs and rising labor costs on the price and availability of new office furniture remains uncertain. But that very unpredictability makes planning your workplace design and procurement strategies even more complex.

Let’s take a closer look at some of the hidden challenges—and how you can proactively manage them.

What to expect if you are planning to buy newly manufactured office furniture?

In February, BIFMA (the not-for-profit trade association representing business and institutional furniture manufacturers) issued a statement outlining its perspective on the potential impact of tariffs on its members. This includes 175 furniture manufacturers and their materials and component suppliers across North America.

While many high-end office furniture brands are based in the U.S. and maintain domestic manufacturing operations, they have increasingly diversified their strategies. This includes partnering with manufacturers and establishing facilities in regions that may be affected by evolving tariff policies. Even furniture assembled or manufactured in the U.S. often relies on materials and components, such as aluminum and steel, sourced from overseas, particularly from countries like China that are frequently targeted by tariffs.

The BIFMA statement reports the following: “Many furniture manufacturers have strategically developed hybrid production models and supply chains within Mexico and Canada and other countries. New tariffs could force costly and disruptive restructuring of these networks, potentially reversing the benefits gained from recent reshoring efforts.”

According to the IBIS World report from April of 2025 addressing the Office Furniture Industry in the U.S.: “Rising costs and unpredictable trade rules are making life hard for domestic furniture makers. These producers are facing higher prices for materials and labor amid tariffs and heightened global instability.”

Regardless of the specific tariff implications on materials and components, the broader financial context is telling. According to IBIS World, profit margins for major industry players like Steelcase and Miller Knoll are typically capped between 4.7% and 5%. With such slim margins, there’s little room for these companies to absorb the increased costs associated with offshore sourcing and tariffs—making it likely that price hikes will be passed on to corporate buyers.

Tariffs may also lead to unintended consequences, such as longer delivery times for newly manufactured furniture. In a recent post titled "Impact of Tariffs on American Manufacturing," sourcing software provider Jaggaer noted that rising component costs are prompting manufacturers to reconsider their supply chains. Many may be forced to seek out new suppliers in lower-cost countries less affected by tariffs. However, working with untested or more distant suppliers could introduce new challenges, including extended lead times and complex shipping logistics. 

As a result, even products labeled “Made in America” may experience delays due to shifts in global sourcing strategies.

Is Reusing or Remanufacturing Office Furniture a Viable Solution?

We can all embrace the aspiration to bring more manufacturing jobs back to American soil, which is reasoned to be part of the strategy behind the proposed tariffs and trade negotiations. However, rebuilding domestic manufacturing capacity to meet the current demand for office furniture is a long-term endeavor, one that could take years. Even then, fully "Made in America" products are likely to come at a higher cost. In the face of ongoing uncertainty and market volatility, it’s difficult for manufacturers to justify major investments in new factories—especially when tariff policies remain in flux, and their long-term resolution is far from guaranteed. Given these realities, reusing or remanufacturing office furniture offers a practical, cost-effective, and sustainable alternative.

The Elephant in the Room is more immediate: How will you source the furniture you need today, for ongoing buildouts and retrofits, at a price you can afford?

Discussions around the circular economy and remanufactured office furniture often focus on sustainability—and rightfully so. But in today’s climate of tariff uncertainty and economic pressure, facilities managers need more than just an environmental win. They need a practical, cost-effective solution for sourcing furniture in newly leased or renovated workspaces.

That’s where TFX comes in. Our approach has always centered on extending the useful life of office assets by remanufacturing inventory that would otherwise end up in landfills. We breathe new life into premium items from brands like Steelcase and Miller Knoll, restoring them through expert repair and refurbishment.

The result? High-end furniture—refinished to your corporate design standards—delivered faster, with extended warranties, and at a fraction of the cost of new. Think of it as transforming "elephants" into "gazelles": agile, elegant, and ready to perform.

Oh, and by reusing rather than replacing your office assets, you can confidently check the sustainability box too. 

That’s why we encourage our clients to stop viewing their old furniture as “elephants,” and instead see them as key components of a circular solution, especially in today’s environment of tariff uncertainty. If this sounds like a fit for your current challenges, reach out to us at inquiry@ftxfurniture.com. Let’s start planning together, today!

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Food for Thought: Reflections from NFMT 2025