Article Number : 5274 |
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| Date | 2/12/2010 3:03:51 PM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=5274 |
| Abstract | JOHNSON CITY, TENN.—Mullican Flooring is growing its workforce and adding another production line for solid prefinished hardwood flooring at its headquarters and manufacturing site here. The expansion represents a... |
| Article | JOHNSON CITY, TENN.—Mullican Flooring is growing its workforce and adding another production line for solid prefinished hardwood flooring at its headquarters and manufacturing site here. The expansion represents a $6 million investment. Mullican officials plan to kick off the company’s 25th anniversary this year by adding 25 jobs in the first quarter. An additional 50 jobs will be created over the next two years. In total, the local facility’s labor force is expected to grow more than 50% by 2012. Neil Poland, Mullican’s president, said the new production line, to be operational by March 1, will also bolster the site’s manufacturing capacity of solid prefinished flooring by 50%. Mullican has other production sites in Norton, Va.; Holland, N.Y., and Ronceverte, W. Va. “The past year was extremely difficult for our nation’s economy, especially the building industry, so it’s rewarding to bring some positive news to our region and our industry as we begin 2010.” He said the new pre-finished line is not a case of transferring capacity from another plant. Mullican’s other facilities will continue producing unfinished flooring, but a greater percentage of that will undergo finishing in Johnson City before being shipped. Poland pointed out the new production line enables the company’s Johnson City plant to produce enough solid prefinished flooring in less than two days to cover the infield at NASCAR’s Bristol Motor Speedway—the “World’s Fastest Half-Mile.” The expansion project is being partially funded through a Tennessee Valley Authority (TVA) loan. “TVA and other local service providers, such as the Johnson City Power Board, are glad to partner with area businesses so they stay and thrive in our community,” said John Bradley, TVA’s senior vice president of economic development. Brian Greenwell, Mullican’s vice president of sales and marketing, maintained that although 2009 was a difficult year for the hardwood industry, Mullican planned accordingly. One of the mill’s strategies was to focus on developing prefinished green flooring for the remodeling market. “Our research indicated several years ago there would be an increased demand for wood products that would bring sustainability to our forests,” he explained. “Although wood floors are a naturally green product, we took things a step further by developing several new products that meet the strictest standards being mandated in the building industry.” According to a report in the Johnson City Press, the strategic change that resulted in Mullican’s expansion began shortly after the company began production in the former Gordon’s Furniture plant on University Parkway in 2003. Poland said the new line is helping buffer the company from the pain of the housing downturn. “Our industry and many of our customers are down in excess of 30%. We don’t see much of a bounce in the new construction market in 2010. We see that holding where it is as it relates to our business, but we do feel like we’re poised to experience an increase in the remodeling segment.” The new housing market began to turn in some parts of the country as early as 2004, Poland said, and that prompted Mullican’s strategic shift. It took a long time, he said, but the company’s penetration of the remodeling segment has progressed to the point of needing the extra capacity for prefinished flooring. “With new housing completions bottoming, remodeling has become an important option, and we have to add equipment and production capacity in order to meet the demand.” More importantly, he added, pre-finished flooring produces higher revenues than equivalent volumes of unfinished product. And even in the new construction market, “many national homebuilding companies are turning more to prefinished floors, leaving unfinished producers to fight for the much smaller custom building market.” Recognized as one of the nation’s largest manufacturers of 3/4-inch solid hardwood flooring, Mullican displayed its emphasis on green in 2009 by introducing its Green Haven line, prefinished floors that are certified 100%-PURE by the Forest Stewardship Council (FSC), an international organization that promotes environmentally appropriate management of the world’s forests. For more information on Mullican and its products, call 800.844.6356. |