JASPER — Kimball International has announced the planned consolidation of its metal fabrication production from its operation in Post Falls, Idaho, into existing production facilities in Indiana. The move will bring jobs to Kimball facilities in both Jasper and Salem.
Citing improvement of customer delivery, supply chain dynamics and transportation costs as key factors in its decision, Kimball noted that 80 percent of its installed base of customers is east of Denver.
The transfer of work from Idaho will involve the start-up of metal fabrication capabilities in a company-owned facility, along with the transfer of certain assembly operations into two additional company-owned facilities in Jasper and Salem. Kimball officials said this morning the company hopes at add about 160 jobs by 2015, although the number of jobs at each facility has not yet been determined.
“We’re actually looking at two facilities in Jasper — the 15th Street and 16th Street facilities, and one facility in Salem,” said Martin Vaught, director of public relations. “There’s a lot that has to be done before we can say for sure what those numbers will be.”
The manufacturing capacity realignment will be managed over a period of seven to eight quarters to ensure no customer disruptions. The consolidation activities will begin immediately and the company is actively marketing for sale the Idaho facility.
“Today’s announcement to better optimize our supply chain and manufacturing footprint, and to reduce our cost structure post-spin, reflects our focus on our markets and positions Kimball for long-term growth,” said Bob Schneider, Kimball International CEO and chairman of the board. “Savings from this plan will, in part, be redeployed into enhancing our marketing and new product development.”
Schneider emphasized the decision was based on economics and was not a reflection on the employees.
“Our employees at Post Falls have a great work ethic and an excellent record for quality, reliability and dedication. I’m proud of their service to our customers,” Schneider said. “The timing of the manufacturing realignment will allow our Post Falls employees an extended period of time to find other employment. Kimball is dedicated to assisting our team members with this transition.”
While some employees at Post Falls have been invited to relocate, Vaught said, he expects most of the 160 jobs to be filled by area residents.
“I think we’ll be looking at mostly new jobs here,” he said. “Right now it’s all a moving target.”
Herald Staff Writer Jonathan Streetman contributed to this report.
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