The second day of the International Housewares Association’s 2025 CHESS (Chief Housewares Executive SuperSession) turned its focus to the external forces and emerging opportunities shaping the housewares business.
Sessions examined the impact of tariffs and trade policy, the complexities of sourcing from China, evolving consumer sentiment and the role of innovation in driving growth. Industry leaders and experts offered actionable insights to help companies navigate volatility and position for the future. CHESS is IHA’s strategic networking event for chief officers and top decision-makers of IHA member companies.
CHESS is sponsored by Wholescale, Creative Planning, LaTeam, Pattern, JPalmer Collective and J.B. Hunt.
Read a recap of the day-two sessions at CHESS:
IHA Government Affairs Update
From left: Craig Brightup, Rafe Morrissey
Tariffs, taxes and tightening regulations were front and center in the IHA Government Affairs Update, where Craig Brightup, CEO of The Brightup Group, and Rafe Morrissey, president of Morrissey Strategic Partners, broke down the political and regulatory forces shaping the business environment for housewares suppliers.
Morrissey described the current climate as “tumultuous,” with a mix of promising developments and persistent uncertainty. On the upside, a favorable Supreme Court ruling and new legislation (H.R. 2665/S.1272) could support future tariff remedies. But tariff revenues remain high, refund status is still unclear, and alternate trade mechanisms, including Sections 301, 232, 122 and 338 of U.S. trade law, leave the door open for additional duties. Morrissey cautioned that major tariff changes before 2028 are unlikely, and some duties could become permanent.
Brightup turned the focus to tax policy, pointing to a “supersized” update to the Tax Cuts and Jobs Act under discussion in Washington. Provisions under consideration would extend bonus depreciation, expand pass-through deductions, and allow for 100% deductions on new manufacturing facilities through 2029. It would also raise the SALT deduction cap and create tax exemptions for tips and overtime pay, signaling potential cost shifts for businesses and consumers alike.
PFAS regulations continue to add another layer of complexity. At the federal level, the EPA’s April 2024 drinking water standard is tied up in legal challenges, while state-level bans and labeling requirements are rolling out unevenly. California, Maine and Minnesota have taken particularly aggressive steps, with some enforcement delays already in play due to pushback from businesses.
Beyond trade and environmental policy, Brightup and Morrissey also highlighted growing enforcement around counterfeits under the INFORM Consumers Act, including a $2 million settlement with Temu, and evolving labor rules tied to independent contractors, workplace heat standards and warehouse ergonomics.
While sweeping tariff relief may not arrive soon, companies need to stay alert, engaged and prepared to navigate shifting rules on multiple fronts.
Keynote: Navigating Trade Tensions with China — Strategic Choices for U.S. Importers and Manufacturers
Allen Morrison
Allen Morrison, Senior Professor at Thunderbird School of Global Management, presented a keynote session designed not just to help importers and manufacturers navigate today’s global trade uncertainties, but also to build lasting resilience amid the context and evolution of the U.S.-China economic relationship.
A globally recognized authority on U.S.-China trade relations, Morrison is the former CEO and Director General of the Thunderbird School of Global Management at Arizona State University (ranked No. 1 in the world for international trade). He has authored 14 books, including the recent bestseller Enterprise China: Adopting a Competitive Strategy for Business Success, served on the board of a NASDAQ-listed Chinese technology company, and has advised and led executive programs for more than 50 of the world’s largest corporations.
Morrison began his presentation by saying that tariffs are critical, but the China sourcing story is much more complex. “My goal today is to move beyond the headlines and focus on how you can navigate global trade from a strategic perspective,” he said.
According to Morrison, China has three strategic goals: to eliminate dependencies on the West, to dominate domestically and to win globally. For 900 years, he said, China was the world’s number-one economy; its vision is to return the country to its rightful place at the “center” of the world.
China has been on a roll for 40 years, Morrison said, dramatically increasing its share of global manufacturing, becoming the world’s largest e-commerce market and leading the world in 37 out of 44 critical technology areas. “We in the U.S. have been slow and naïve in responding to China,” he commented.
According to Morrison, many Western companies have misplayed their cards in dealing with China, long holding out hope that the Western model of capitalism and democracy would eventually prevail there. “That’s been our biggest mistake,” he said. “(The Chinese enterprise system) is an enduring model for them.”
Morrison highlighted many common misperceptions about Chinese trade, including the notion that China is a low-cost provider. Since 2016, China’s labor cost advantage has dropped significantly. He said China’s manufacturing labor cost is around $6.50 per hour (2020); by comparison, it’s $3.00 in Vietnam, $2.30 in India, $3.40 in Guatemala and $5.10 in Mexico. The real advantage in China is skill depth, scale, supplier density and infrastructure… advantages which are difficult to replicate in lower-wage countries.
To build a long-term strategy for success, he advises home and housewares companies to act now. “In an uncertain world — where we certainly are today — no matter what the issue is, you’d better have options,” he stated, while acknowledging that change can be costly, time-consuming, and difficult.
His recommendations for U.S. companies are to map their exposure to China’s supply chain beyond Tier 1 and classify each input by technology intensity and business criticality. From there, he laid out five strategic options for supply chain sourcing, along with the reasons to consider each and the keys to their success.
Rather than trying to perfect the existing business model, Morrison encouraged attendees to create a new one, to essentially change the paradigm. “I’m not suggesting you walk away from China entirely,” he said, “but you’d better have a foot outside of China.”
The Reshoring Rebound: What You Need To Know To Secure Value-Added Domestic Production
From left: David Duecker, John Hermann
As tariffs, supply chain instability and consumer demand for “Made in the USA” products reshape sourcing strategies, many housewares suppliers are taking a closer look at domestic production. In a CHESS session titled “The Reshoring Rebound: What You Need to Know to Secure Value-Added Domestic Production,” industry veterans David Duecker, president of SynergyOps, and John Hermann, executive advisor at Design Molded Products, explored the opportunities and realities behind bringing manufacturing closer to home.
Duecker, whose company evolved from producing exclusively for Regal Ware brands to a full-service contract manufacturer, said reshoring is being driven by a combination of tariffs, supply chain volatility and brand interest in local quality and control. “It’s about mitigating risk,” he emphasized. Still, he noted, U.S. manufacturers are not immune to tariff impacts and must balance transparency, communication and long-term collaboration with brand partners to make domestic production sustainable.
Hermann outlined how cost and value differ when evaluating reshoring decisions. Importing goods involves numerous hidden costs — from tariffs and duties to logistics, warehousing and decontainerization — that contract manufacturing can help streamline. “We’ll never be the cheapest,” he said, “but we can be competitive when you factor in time, service and responsiveness.”
Both speakers underscored that reshoring success depends on partnership, not just proximity. Effective collaboration includes demand planning, clear communication on minimum order quantities, shared quality standards and open discussion around inventory strategies. “When your partners are successful, you’re successful,” Duecker said.
Ultimately, the speakers agreed reshoring is not just about moving production, it’s about redefining relationships between brands and manufacturers. With the right alignment of capacity, quality and trust, domestic production can deliver speed, flexibility and value that go beyond cost alone.
Deciphering the Housewares Consumer
John Dick
Drawing on up-to-the-minute market research and consumer sentiment analysis, John Dick, Founder & CEO of CivicScience, shared the latest consumer attitudes shaping buying behavior in the coming months. His talk included the effects of economic uncertainty, people’s ongoing search for emotional well-being, and a decline in trust.
The CivicScience Economic Sentiment Index has been trending down again in the last 60 days, driven mainly by consumers’ negative perceptions of the job market. Consumers’ debt outlook has been declining all year, except for a slight bump in September when interest rates eased.
CivicScience’s Well-Being Index has also been declining since a brief uptick in July. Yet, the aspiration to feel emotionally well is strong. “What we’re seeing is a type of post-pandemic stress disorder that kind of stuck with people, whether we realize it consciously or not,” he said.
As a result, health and wellness is the one spending category CivicScience sees increasing in 2025 (+7%). Their surveys also show Americans leaning into rest and relaxation at home as a form of self-care.
When it comes to influences, only 40% of consumers trust companies, leaving family, friends, and social media influencers with a significant opportunity to drive buying behavior. Dick noted the percentage of people following influencers has increased significantly over the past year, even among older consumers.
“This crisis of trust is creating a void,” he commented. “It’s a drag on our emotional well-being.”
That may explain consumers’ changing opinions about the kind of advertising that resonates with them. While humor remains the top-rated response at 42%, that’s a significant decline from 54% just five months earlier. Meanwhile, an increasing number of consumers are appreciating ads that are emotional, informational or inspirational.
Unlike some other forecasts, CivicScience’s surveys show lower-income consumers are the most likely to spend more this holiday season (though Dick acknowledged this may be an age proxy).
But it all comes down to emotional well-being again, he pointed out. “The holidays have become the ultimate barometer of well-being,” said Dick. Even if consumers have had a tough year or are worried about their economic future, there’s a motivation to be able to say, ‘At least I’m going to end the year on a positive note.’”
According to their data, consumers intend to spend 1% more on home and outdoor-related gifts this holiday season and 3% more on food and cooking items (compared to 2024). Also of note for this holiday season: Consumers intend to shop slightly more at both dollar stores and local small businesses, and slightly less at big-box chains.
Reinforcing a Culture of Innovation
From left: moderator Peter Giannetti, Jack Hough, Warren Tuttle
Innovation isn’t just about creating something new — it’s about building the mindset and structure that make breakthrough ideas possible, especially in a volatile market. That was the message in the session “Reinforcing a Culture of Innovation,” where Warren Tuttle, founder of Aspire Open Innovation, and Jack Hough, partner at Grove Product Group, explored strategies to drive disciplined, high-impact innovation inside and outside company walls.
Hough outlined Grove’s “Catalyst Art + Science” innovation model, which blends creativity with data-driven insight to help companies unlock growth. In today’s climate, incremental moves aren’t enough. Companies need to identify unmet needs, disrupt with purpose and build processes that connect innovation to growth, margin and enterprise value.
The Catalyst Model starts with understanding the “why”: uncovering consumer pain points and delights through deep qualitative and quantitative research. It then maps the “where” by analyzing market dynamics, growth adjacencies and size-of-prize opportunities. Finally, the “what” focuses on brainstorming, refining and positioning differentiated ideas for the market, merging creative exploration with analytical rigor.
Hough emphasized the most effective innovations are disruptive and disciplined — bold ideas backed by insight, strategy and process. He also pointed to a McKinsey & Company study that found companies that invested in innovation during the 2008–09 recession outperformed peers by more than 30% in shareholder returns during the recovery. “Pulling back on innovation may protect short-term earnings,” he noted, “but it erodes long-term competitiveness.”
Tuttle turned the lens to Open Innovation, emphasizing the power of searching for and securing new ideas outside company walls, whether through inventors, product designers or crowdfunding platforms. He discussed the internal and external challenges companies face when adopting open innovation, including legal hurdles and building trust with the inventor community.
“If I could leave you with one thing today,” Tuttle concluded, “it’s this: spend time learning about food. That’s where the trends are for housewares.”
