What are the biggest industry changes in the past year?
News Type: Marketing News
Source from : Woodworking Network
Every year the FDMC 300 group of companies is different. There are closings, consolidations and other changes. Overall, sales for the FDMC 300 group of companies grew 4.75 percent in 2018, to reach $54.691 billion.
The FDMC 300 is a group of the 300 largest cabinet, furniture, millwork, store fixture, office/contract and component producers in North America. This summary of wood manufacturing firms' sales performance is published annually by FDMC magazine.
There were adjustments in some company information in 2018 due to new data, mergers and consolidations. Also, there were several companies listed last year that are no longer included, along with new companies and a few name changes. Here is a summary of some of the largest changes.
--- Heritage Home Group LLC and its affiliates sold the company's Broyhill, Thomasville and Luxury Group business units as the residential furniture producer filed Chapter 11 bankruptcy. HHG announced that an affiliate of Authentic Brands Group and the Schottenstein Organization was the winning bidder for the intellectual property assets of the Broyhill and Thomasville business lines. Hamilton Square, LLC, an affiliate of Samson Furniture, purchased the Lenoir upholstery manufacturing facility, and VLR, LLC, an affiliate of Hale Partnership, purchased the equity of the company’s Mexican manufacturing operations.
Earlier, Century Furniture parent company RHF Investments Inc. signed an agreement to acquire HHG’s Luxury business, which included the Hickory Chair, Maitland-Smith and Pearson brands and related operations in Hickory, North Carolina, and throughout the United States. HHG was formed in November 2013 following the purchase by KPS of the bankrupt Furniture Brands International. Also, HHG sold its physical assets in a live auction in December, including machinery and equipment.
--- American Woodmark Corp. announced that it entered into an agreement and plan of merger with RSI Home Products, Inc., a large manufacturer of kitchen and bath cabinetry and home storage products. RSI grew to be one of the largest in-stock and value-based cabinet makers in North America, providing kitchen, bathroom, home and garage organization cabinetry, countertops and accessories to home centers, builders, dealers and remodeling contractors.
The acquisition boosts American Woodmark to the second biggest cabinet manufacturer in the United States, according to our records and the FDMC 300. RSI will operate as a subsidiary of American Woodmark following the transaction with its existing brands, channel strategy and operational philosophy remaining.
--- Wellborn Cabinet, Inc. announced the planned sale of Rutt Handcrafted Cabinetry in New Holland, Pennsylvania, to Birch Holdings of PA, LLC, a wholly owned subsidiary of Birch Investment Partners, LLC. Birch has a plan to grow Rutt’s business and build on the tradition represented by the Rutt name.
Wellborn Cabinet also owns Cabinetry by Karman, located in Salt Lake City, Utah, as well as their own semi-custom Wellborn Cabinet brands in Ashland, Alabama. According to Wellborn, the selling of Rutt Cabinetry will give their people more time and energy to focus on the core semi-custom products.
--- MasterBrand Cabinets closed its Auburn, Alabama, manufacturing plant in June, leaving 445 people unemployed. A statement issued by the company said that market conditions and consumer tastes changed over the last few years. Products manufactured in Auburn will be produced at other MasterBrand U.S. manufacturing locations.
The company produces kitchen and bath cabinetry under the brands Homecrest Cabinetry, Cabinetry by Diamond, Schrock Cabinets, Artistokraft Cabinetry, Kemper Distinctive Cabinetry, Kitchencraft Cabinetry, Cabinetry by Decora and Omega Cabinetry. 2017 cabinet sales for the group rose 4 percent, to $2.467 billion. Tru Cabinetry and Wellborn Cabinet announced plans to hire many of the laid-off workers.
--- ACProducts, Inc. (acpi ) entered into an agreement to acquire Elkay Wood Products Co. a large manufacturer of kitchen and bath cabinetry. The new company combines two of the largest cabinet companies on the FDMC 300 list. The combined company will serve the dealer, direct-to-builder, and home center channels.
The move combines the former Armstrong Cabinets business (spun off in 2012 by American Industrial Partners) with the cabinet business of Elkay Manufacturing, known for commercial drinking fountains and plumbing fixtures. Elkay Wood Products brands include Medallion, Design-Craft, Yorktowne, Schuler, Medallion at Menards, MasterCraft, and American Cabinetry Collection. The transaction was expected to be completed by the end of the first quarter of 2019.
--- Earlier, Master WoodCraft Cabinetry was acquired by ACProducts Inc.Based in Marshall, Texas, Master WoodCraft Cabinetry was founded in 2008 by Gene and Patsy Ponder. The loss last year of their son, Kenny Ponder, executive vice president, was instrumental in their decision to retire and sell the cabinet firm, a statement from the company said. The two will serve on acpi's board of directors.
The company will continue to manufacture stock and semi-custom kitchen cabinetry for the multi-family market under its brand name and at its current facilities. In addition to the main plant in Marshall, Texas, the company also has a facility in Jefferson, Texas, and more than 500 employees. Since opening in 2008, Master WoodCraft Cabinetry has grown significantly in size and scope. The company recently completed a $2 million expansion at its main facility in Marshall, which was projected to increase capacity by 15 percent.
--- VT Industries Inc. announced in October that it had acquired Eggers Industries, a national door and millwork manufacturer based in Two Rivers, Wisconsin. Eggers was a privately held company having two manufacturing facilities located in Two Rivers and Neenah, Wisconsin. Eggers manufactures architectural flush doors, stile and rail doors, door frames, veneered plywood panels, ceiling tiles, and custom veneered components for high-profile commercial projects.
Since 2007, VT Industries has completed three acquisitions. A family-owned company headquartered in Holstein, Iowa, VT Industries is a major manufacturer of architectural wood doors, VT Dimensions countertops, and A’vant Vanity Surfaces. The company has 14 locations in the U.S. and Canada.
---JSJ Corp. planned to close office furniture maker izzy+ after 17 years of operation. JSJ, a manufacturing holding company, announced that it would discontinue production of izzy+ branded products and refocus its resources on other manufacturing segments in its portfolio, including automotive, medical and equipment, according to a report on mibiz.com.
The company planned to repurpose an izzy+ location in Spring Lake, Michigan, and plans to transition as many employees as possible to other company businesses in the area. Another izzy+ plant in Middlebury, Indiana, is expected to close. The company had Abco Office Furniture, izzy, HAG, Harter, Fixtures Furniture and Zoom Seating divisions.
--- Harden Furniture closed its McConnellsville, New York, residential furniture plant. Phil Ison, CEO of Ison Furniture manufacturing, acquired Harden's equipment and assets and planned to move Harden's production to North Carolina, but later decided that this would not be possible, according to a report in Furniture Today.
Harden Furniture started production in 1844. The company's assets were in a foreclosure auction to Big Shoulders Capital, a loan company. After closing the plant briefly, Harden announced weeks later that it would resume limited production, but operations were then suspended.
--- Kimball International, Inc. announced that it signed an agreement to acquire the assets and assume certain specified limited liabilities of David Edward, a designer and manufacturer of contract furniture, sold in the healthcare, corporate, education and premium hospitality markets. The product portfolio consists of classic and contemporary designs in the seating, tables and related furniture categories.
Kimball planned to lease the two existing David Edward production facilities in Baltimore and Red Lion, Pennsylvania, totaling 235,000 square feet. The company employs 170 craftspeople. David Edward will continue to operate independently.
--- Aterian Investment Partners, a private equity firm, announced that one of its affiliates, Standard Furniture Manufacturing Co., LLC, acquired Albany Industries, Inc. to expand into the stationary upholstery market, collectively becoming one of the largest value-oriented residential furniture players in North America.
Albany is a large manufacturer of value-oriented stationary upholstery furniture. The business has manufacturing locations in Mississippi, Virginia, Vietnam, and Mexico with more than 600 employees making sofas, sectionals, and recliners. The combination of Standard Furniture and Albany Industries creates a top 10 industry supplier with a full range of home furnishing products and services. (Standard Furniture recently announced it will cease manufacturing laminated casegoods at its Bay Minette, Alabama, location on or about March 31.)
--- Safco Products Co., a Minneapolis office furniture and products manufacturer, planned to close its three Sheboygan, Wisconsin, locations, according to a notice filed with state officials and a news story in Milwaukee Business News.
Work from Sheboygan was expected to move to northwest Iowa or the Minneapolis area. Earlier, Safco purchased FDMC 300 company Mayline Co. Headquartered in Sheboygan, Mayline manufactured workspaces, desks and storage systems, seating, tables and other contract furniture items.
--- Window and door manufacturer Andersen Corp. announced that it signed an agreement to sell its hollow core vinyl window and patio door business, including the Silver Line and American Craftsman brands, to Ply Gem, according to PRNewswire. This divestiture was reported to be part of Andersen's strategy to sharpen focus on the Andersen, Renewal by Andersen and specialty brands, and continue to make the significant investments to support Fibrex engineered composite products. Ply Gem was to acquire the four Silver Line manufacturing plants, distribution and support services.
--- Also, Andersen Corp. announced the acquisition of Heritage Windows and Doors, a manufacturer of custom, high-quality aluminum windows and doors in Gilbert, Arizona. Heritage specializes in the luxury residential and commercial market creating aluminum windows and doors designed to be resistant to the desert’s natural forces. The Heritage product line includes sliding glass doors, French doors, bi-folding doors and glass only stack and slide doors. The owner of Heritage was Tashco Industries, Inc., a private company founded in 1979.
--- U.S. Lumber Group, LLC and Alexandria Moulding announced that they signed an agreement under which U.S. Lumber will acquire Alexandria Moulding. U.S. Lumber, based in Atlanta, is a distributor of specialty building products in the eastern and midwestern United States. Alexandria Moulding, headquartered in Alexandria, Ontario, is a manufacturer and distributor of mouldings and accessories across Canada and the northern United States. Alexandria Moulding will continue to be led by its existing management team from its current headquarters in Ontario.
---After a 100-year history of making furniture in the Los Angeles area, Sandberg Furniture announced in March that it is ending domestic production to focus on its imported Martin Svensson Home line of bedroom, occasional and entertainment furniture made in Vietnam, according to a report in Furniture Today. Sandberg was renamed Martin Svensson Home and said it planned to shut down production of its laminate bedroom line in Vernon, California. The plant reportedly employed about 100 down from a peak of 450 in 2008.
--- Exemplis Corp., the California-based parent company of SitOnIt Seating and Ideon, announced its acquisition of Symmetry Office, a Florida-based provider of training, multi-purpose and height-adjustable tables and workspace accessories. The acquisition expands Exemplis' product offerings beyond seating into adjacent categories.
See the full list of FDMC 300 companies at https://www.woodworkingnetwork.com/fdmc-300.
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