Amid a projected slowdown in apartment construction, a Michigan-based cabinetry company plans to shutter a plant in Juniata County.
Cabinetworks Group is closing the factory near Thompsontown and laying off 420 employees, a tally that includes 110 who were already laid off, according to a notice sent to state and local officials.
The notice did not cite a reason for the shutdown, and efforts to reach the company yesterday were not successful.
But in announcing the closure of two Texas plants this summer, Cabinetworks cited changing customer needs, a desire to increase operational efficiency and a forecasted slowdown in apartment construction.
Multifamily builders are among the customers for the company’s cabinets, which carry brand names such as KraftMaid, Merillat and Yorktowne.
After several years of growth, multifamily construction starts have been falling and are expected to drop 17.8% this year compared to 2023, according to estimates by Fannie Mae.
What’s next: Layoffs are expected to occur in a pair of two-week phases starting Dec. 9 and Dec. 21, according to the notice from Cabinetworks.
Production workers are represented by the Eastern Atlantic States Regional Council of Carpenters of the United Brotherhood of Carpenters and Joiners of America Local 426.
“We are actively exploring available support resources to help our highly trained, skilled members find work,” union senior council representative Rich Foley said in a statement. “We acknowledge the difficult road ahead and encourage any inquiries or offers of support to be directed to our office. We stand united in this effort to mitigate the impact on the lives of our members and the overall Thompsontown community.”
The plant is at 12393 William Penn Highway, just off U.S. Route 22 in Delaware Township.
The background: Cabinetworks employs more than 7,000 people and operates 16 factories, counting the Thompsontown plant.
The privately owned manufacturer has three additional plants in Pennsylvania, in Mifflinburg, Mount Union and Sayre.
In 2022, Cabinetworks announced a $23 million expansion project at the Mount Union plant, which it bought in 2016 for $10.7 million, according to news reports at the time.
The state kicked in grants of more than $1.6 million toward the project, which created more than 300 jobs.
