LIVONIA, Mich. – Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, hosted a ribbon-cutting ceremony to celebrate the opening of its newly-constructed corporate headquarters in Livonia, Mich.
About 220 employees recently moved to the 91,220-square-foot facility situated on a 12-acre site between Six and Seven Mile Roads, adjacent to Schoolcraft College. It is about one-fourth the size of the previous location in Taylor, Michigan.
The event arrives as Masco reports higher second quarter sales and earnings for most of its major market segments - plumbing, windows, Behr paints and decorative products - as cabinet revenues decline.
Cabinetry products’ net sales decreased 4 percent (3 percent excluding the impact of foreign currency translation), a drop Masco has been attributing for several quarter to the exit of lower margin business in the builder channel, and lower sales in its United Kingdom cabinet operation. In an earnings call, CEO Keith Allman said results fell compared to a double-digit rise the year prior. Masco will now emphasize repair and remodel cabinet sales with a launch of Kraftmaid lines.
In our Cabinetry segment, we grew our repair and remodel business despite being up against a difficult double-digit comp. This growth was more than offset by losses in our new construction business as we exited certain low-margin builder accounts. We’re now pivoting towards growth in cabinetry as we described during our recent Investor Day. In the third quarter, KraftMaid, our leading repair and remodel brand, will capitalize on its already strong performance with one of the largest new product launches in the brand’s history. New door styles and decorative accessories will address the growing consumer trend towards transitional style, and new finish options will be expanded to provide designers with a more robust finished pallet. We are confident that our growth strategy of new product introductions, customer program alignment and selective new construction gains will result in growth for 2017 and margin expansions for the full year. Transcribed courtesy Seekingalpha.com
At its new headquarters, Masco’s brands and products are featured throughout the building, including vibrant walls finished with Behr paint; BrassCraft plumbing products; KraftMaid cabinets; Delta, Brizo and Hansgrohe faucets and Liberty bath accessories. The building also features a history room showcasing milestones and artifacts from the Company’s 85+ year history and over 40 conference rooms, both traditional rooms with advanced technology and more modern break-out spaces to encourage informal collaboration.
“I would like to thank everyone involved in this project, both inside and outside of our organization, who supported us in the creation of a brand new workspace customized for Masco,” said Keith Allman, President and CEO. “We are pleased to provide our employees with the modern, comfortable and open office environment expected by today’s workforce, and are excited to start this new chapter in Livonia.”
Employee amenities include a 24-hour state-of-the-art fitness center, adjustable workspaces to allow for work while seated or standing, 24/7 fresh food market and a patio for employees to utilize for outdoor work or relaxation. Masco moved to Livonia from a 400,000+ square-foot building in Taylor, where the company spent nearly 50 years. The Masco Research and Development Center will remain at 26855 Trolley Industrial Drive in Taylor, Mich. www.masco.com.