By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
ELKHART -- American Millwork Corp. has begun ceasing manufacturing operations and laying off production employees, providing another indication that the downturn in the housing market will not reverse itself in the foreseeable future.
Greg Clark, president of American Millwork, confirmed Thursday the local business is moving the hardwood molding manufacturing to its sister company, Ferche Millwork Inc., headquartered in Rice, Minn. American Millwork's outlet warehouse and sales office will remain in Elkhart.
The consolidation will displace 67 employees, 49 of whom were released Monday, Clark said.
The rest of the workers will be let go by the end of February. Employees were offered severance packages.
"Sales operations will continue," Clark said. "We will continue to serve our customers and provide them with the level of service they've become accustomed to receiving from American Millwork."
As a supplier of wood moldings and other architectural wood products to residential home builders and big-box retailers, American Millwork has seen its revenues drop with the slump in the housing market, Clark said.
Since home construction is practically at a standstill, demand for American Millwork products is not enough to support the current work force.
RAF Industries, an equity investor with American Millwork in its portfolio, does not believe the market will return in the spring or summer. So it has decided to make the drastic move, Clark said, to close the Elkhart plant.
The local manufacturing operation has only been idled. Equipment will not be taken from Elkhart and if the housing market comes back "very quickly, very robustly," the decision to close the local facility could be reconsidered, Clark said.
Vaughn Nickell founded American Millwork more than 30 years ago. It was sold to RAF in 2003.