Custom Millwork & Display Inc., South Bend, IN — Sales for the architectural millwork and custom products manufacturer rose 3.2% in 2013, and the company looks to grow even more as it plans for 2015.
Among the decisions undertaken to improve the company’s profit margins was to outsource more components, says President Jerrel Mead. “We have learned that it often makes sense to outsource even though you can make it yourself. For instance, I have one of the best solid surface fabricators around, but we only fabricate the truly custom, complicated items. All the standard tops are bought out. This allows us to increase our output without increasing our in-house production,” he says.
Other improvements made inside and outside the shop walls have also had a positive impact on the bottom line. For example, Mead adds, prior to purchasing a 24-foot box truck with a lift gate, Custom Millwork & Display would rent trucks for deliveries exceeding 100 miles round trip. “Now we don’t have that added expense and coordination hassle,” he says.
The company also plans to improve its manufacturing capabilities in 2014, including upgrading its edgebander, Mead adds.