DUBUQUE, IA â
Residential, hospitality and contract furnishings manufacturer Flexsteel Industries Inc., the nationâs eighth largest furniture maker, has announced plans to construct a $12 million, four-story, 40,000-square-foot global corporate building in Port of Dubuque, IA.
Construction is set to begin July 2011 and is expected to take one year. According to a release by Flexsteel, the construction is contingent upon the approval and financial assistance from state and local governments.
âOur corporate offices have been at the north Jackson Street location since 1936,â Ron Klosterman, Flexsteel president and CEO, said in a statement. âAfter 75 years, the office facility is out-of-date both structurally and technologically.â
Flexsteel said the design of the new building will be environmentally friendly and will solidify its commitment to sustainability. The new global corporate headquarters will incorporate Flexsteel's office, hospitality and home furnishings products, as well as those of its wholly-owned subsidiary DMI.
Flexsteel recently achieved Sustainable by Design status by the American Home Furnishings Alliance (AHFA) for its environmental achievements. Throughout its U.S. facilities, the company implemented AHFA's Enhancing Furniture's Environment Culture (EFEC) program for reducing the carbon footprint and implementing standards for continuous improvement.
Financially, things are upbeat for the company. Flexsteel's net sales for the six months ended Dec. 31, 2010, rose 6.6% compared to one year ago, despite a drop in the second quarter sales. Year-to-date fiscal 2011 net sales were $170.1 million, with a net income posted of $4.5 million for the period, Residential net sales for the six months rose 8.4% compared to the previous year, reaching $128.8 million. Commercial net sales rose 1.6% to $41.3 million for the six-month period, compared to $40.7 million a year ago.
In its fiscal statement, Flexsteel noted part of the sales increase was due to a backlog of orders, which slowed slightly in the first quarter but improved by the second. Commercial sales are projected to remain slow, but steady.
Worldwide, the company employs 1,250 people at facilities located in: Iowa, Arkansas, California, Georgia, Indiana, Kentucky, Mississippi, Pennsylvania, Mexico, China, Thailand and Vietnam. The Dubuque, IA, facility has 315 employees; approximately 100 are expected to relocate to the new building.
Have something to say? Share your thoughts with us in the comments below.