Canadian Furniture Makers Choose the U.S.

In a decisive win for American manufacturing, Prepac, a prominent Canadian furniture maker, has shuttered its long-standing facility in Delta, British Columbia, and shifted all production to its plant in Whitsett, North Carolina. This move, finalized in March 2025, underscores how U.S. economic policies are luring foreign companies south of the border, bolstering American jobs and industry. For a nation committed to revitalizing its manufacturing base, Prepac’s relocation is a shining example of how strategic trade measures can tilt the scales in favor of the U.S.

Founded in Vancouver in 1979, Prepac built its reputation crafting ready-to-assemble furniture for retail giants like Walmart, Target, and Amazon. For decades, it thrived in British Columbia, even earning accolades as BC Exporter of the Year in 2017. But the tides turned. Facing an ’altered economic environment,’ as the company put it, Prepac ceased operations at its Delta plant on March 14, 2025, with plans to terminate all 170 employees by May. Meanwhile, its four-year-old North Carolina facility—opened in 2021 with a $27 million investment—is now the sole hub of production, employing over 200 American workers.

The catalyst? Many point to U.S. trade policies, including President Trump’s aggressive tariff stance. Canadian union Unifor blames these tariffs, claiming they’ve made production north of the border uncompetitive. Prepac’s CEO, Nick Bozikis, sidesteps this narrative, insisting the decision predates recent tariff threats and reflects a need to be closer to the company’s largest market—70% of which lies on the U.S. East Coast. Regardless of the stated intent, the economics tell a compelling story of why the U.S. is the smarter choice. Here’s why manufacturing stateside is more cost-effective:

1. Proximity to Market Reduces Logistics Costs: With 70% of Prepac’s sales on the U.S. East Coast, producing in North Carolina cuts shipping costs and delays compared to British Columbia. The Whitsett plant’s location near highways and ports boosts efficiency for retailers like Walmart.
2. Lower Operational Costs in the U.S. South: North Carolina offers cheaper labor, weaker unions, and lower real estate costs than British Columbia. The U.S. facility employs over 200 workers at a likely lower per-worker cost, with affordable energy adding to savings.
3. Currency and Market Stability: The strong U.S. dollar (around 1.35 CAD to 1 USD) reduces exchange-rate risks for U.S.-based production. Aligning expenses and revenue in one currency stabilizes cash flow for a U.S.-centric market.
4. Tariff Avoidance and Trade Incentives: Proposed U.S. tariffs, like the 25% levy on Canadian imports, make manufacturing in Canada costlier. Producing stateside avoids these duties, while U.S. tax incentives for job creation further lower costs.

This isn’t an isolated case. Prepac’s move aligns with a broader trend of manufacturers reevaluating their footprints amid U.S.-Canada trade tensions. For American workers, it’s a boon—more jobs, more investment, and a stronger industrial backbone. For Canada, it’s a stark reminder of the stakes in this economic chess match. As the U.S. continues to flex its manufacturing muscle, Prepac’s journey from British Columbia to the Carolinas stands as a testament to the power of policies that prioritize American prosperity.