La-Z-Boy is moving forward with a $23 million investment to expand its U.S. manufacturing and distribution operations in Neosho, Missouri.
According to a news release from the Missouri Department of Economic Development dated Aug. 31, the furniture manufacturer plans to expand its existing manufacturing operations and develop a new 150,000-square-foot distribution center.
The new facility will serve as a key hub in La-Z-Boy’s supply chain network in the U.S. It will be built on the same site as one of the company’s oldest manufacturing operations, which produces a large percentage of the custom furniture sold under the La-Z-Boy brand.
“The decision to expand in Neosho was based on the operational efficiencies of combining manufacturing and distribution capabilities at the site,” said La-Z-Boy president and CEO Melinda Whittington.
“We realized that when we increased our presence in the city with a distribution center, we would improve operational efficiencies for the enterprise, and also enhance an already strong consumer experience,” said Whittington.
The project is expected to generate up to 100 new jobs. La-Z-Boy also could receive $356,304 in withholding or tax credits through the Missouri Works Program, provided the project meets program requirements.
The expansion is especially important to the local economy as La-Z-Boy is now the top manufacturing employer in Neosho.
A major step in a wider distribution network upgrade
The announcement comes as La-Z-Boy is in the midst of an ongoing multiyear transformation of its distribution network.
The company is consolidating 15 regional distribution centers throughout the United States into three centralized hubs for the West, Midwest and East regions as part of an overall strategy.
La-Z-Boy opened its western distribution hub in Arizona in 2025 and expects to substantially complete the build-out of the other hubs this year.
The restructuring of the distribution network is anticipated to bring substantial operational and financial gains. The company said on a recent earnings call that it expects the transformation to cut warehouse square footage by 30% and heavy-furniture delivery mileage by 20%.
La-Z-Boy is streamlining its operations to a smaller number of strategically located hubs to improve supply chain efficiency, reduce costs and increase its ability to serve customers.
Accelerating distribution consolidation across sectors
La-Z-Boy is not the only major company changing its distribution network to improve operations and finances.
Other brand manufacturers are also moving to more centralized logistics models.
This year Hasbro opened a 600,000-square-foot distribution facility in Georgia, seeking to cut its distribution nodes from five to three.
Procter & Gamble also has begun a multiyear restructuring plan to link 50 distribution centers in Europe to one warehousing center.
PepsiCo, meanwhile, is experimenting with warehouse consolidation across its North American snacks and beverages business units.
These initiatives are part of a general trend by major manufacturers to streamline their distribution networks as companies seek to cut warehouse capacity, transportation distances and operating costs while improving the speed and efficiency of their supply chains.
