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MAY 2005

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WOOD PRODUCT INDUSTRY REVIEW



Cabinet Manufacturers
Are Headed South and West
Kronotex USA, a division of the Swiss KronoGroup, is developing a large manufacturing complex in Barnwell, S.C.

    An abundance of new cabinet manufacturing projects around the U.S. over the past year seems to back up Freedonia's findings that most of the expansions are coming in the South and West. One of the latest is in Utah, where KraftMaid Cabinetry, one of the country's largest cabinetry manufacturers, plans to build a facility in West Jordan, just outside Salt Lake City. It's the company's second major capacity expansion in two years. The company recently completed a $25-million capacity increase at its three facilities in its home state of Ohio.
      KraftMaid is scheduled to break ground on the 700,000-sq-ft. (65,000-sq.-m.) Utah facility during the second quarter of 2005. The project is one of the largest job generators in recent years in Utah, as Kraftmaid projects an employment of 1,300. Company officials say they chose Utah for its "abundant labor base" and its proximity to its markets.
      Business is good at KraftMaid as demand for built-to-order cabinetry has more than quadrupled over the past seven years. This has been fueled by increased spending on kitchen remodeling, says KraftMaid president Tom Chieffe.
      Back east, that same demand for cabinetry has met up with a work force looking to be in demand. Danville, Va., a city hard-hit by the demise of the U.S. textile industry, got some good news in February 2005 with an announcement by Yorktown Cabinetry that it will bring an investment of $19 million and 540 jobs to the city. Fast-growing Yorktown has outgrown its facilities in Mifflinburg, Pa.
     
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