By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
ELKHART -- More saws will be buzzing at American Millwork Corp. next week as the manufacturer continues its turnaround by increasing output and payroll.
During February 2009, American Millwork, which makes mouldings from hardwoods, had most of its production moved to a sister company, Ferche Millwork, Inc., in Rice, Minn., and laid off nearly 100 local workers. Recently the owner of both milling operations, RAF Industries, has decided to shift work back to Elkhart and hire more employees.
"I'm so excited about hiring people back," said Tom Harper, president of American Millwork. "It's a good feeling because it was awful when we had to let those people go."
To the workforce that remained at American Millwork, the company is currently adding 12 more, all in production. Harper, conceding he is being optimistic, said up to another 20 could be hired by the end of 2010.
Jan. 4, the new hires will are expected to be in place and output at the facility on Beck Drive will increase two and a half times, Harper said.
American Millwork supplies primarily custom home builders, remodelers and do-it-yourselfers with most of its customers east of the Mississippi River. A slight upswing in the housing market coupled with some employee wage concessions helped return production to Elkhart.
Also, in a written statement, RAF Industries noted that "options and incentives not available to us previously" prompted the company to reconsider its plans to close the Elkhart facility.
"There's not one person here that hasn't sacrificed," Harper said. "I have confidence in the investment group that owns us. I'm confident they'll treat us fairly."
RAF Industries acknowledged the shift in production will result in layoffs at the Minnesota facility. However, the equity firm stated ramping up the Elkhart plant "represents the best long-term positioning of the combined businesses when our industry recovers from the current economic conditions."
A few days before Christmas, employees were busy inside the American Millwork plant. Forklifts were hauling stacks of lumber between stations while workers milled the wood into mouldings, handrails and other items.
While the market for hardwoods has shrunk, so has the number of lumber companies competing for orders, Harper. American Millwork has improved efficiencies inside the facility and is emphasizing different products to capture more marketshare.
Pointing to a darkened part of the plant, Harper said the lights would be on after the holidays and all the stations would be operating with the new workers.
"I'm pretty optimistic we're going to see a good sales growth this year," Harper said. "As we grow, we've got plenty of space here."