Log In   |  Register Free Newsletter Subscription
Skip navigation
Zibb
Subscribe to Furniture Today
Resource Center graphic
RSS
Reprints/License
Print
Email

Oakwood shifts back to solid-wood bedroom

By Thomas Russell -- Furniture Today, January 20, 2008

A streamlined Oakwood Interiors has returned to its roots in solid-wood bedroom after an unsuccessful merger with home office and home entertainment producer Creative Ideas.

The spring 2006 merger between the two California companies was aimed at expanding each company's domestically produced case goods. But making a broad line of home office and entertainment products in over 20 finishes proved too complicated, said Oakwood President and CEO Nick Lanphier.

Production of the Creative Ideas line was halted in July 2007. As of early December, the company had about $100,000 worth of inventory to sell, down from $250,000 in the summer.

Oakwood is now focusing on its four domestic bedroom groups and has taken steps to become more efficient, including scaling back the plant from 200,000 square feet to about 100,000, Lanphier said. The plant has about 90 workers, down from over 300 following the merger.

The company also has spent about $400,000 to automate production, and moved administrative offices closer to manufacturing. "This makes communication easier," he said.

Oakwood imports about 35% of its mix, or two bedroom groups, through its Alan Morgan division. The future percentages of domestic product versus imports will be determined by sales, Lanphier said, adding that in December, year-to-date import sales were up 10% while domestic sales were down just under 10%.

He wants to keep as much of the domestic operation running as possible. "I feel we're ... flexible enough to keep our domestic manufacturing," he said. "We can find some niches not served by foreign countries."

He cited Oakwood's use of oak, alder and cherry solids, particularly for the tops and drawers of case pieces, as a key advantage. "That is our niche, and we still feel the supply side in the oak business has gone away faster than the demand side," he said.

The company also uses computer-controlled equipment to achieve hand-carved looks in some components, and has cut lead times from eight weeks before the merger to three weeks or less on made-to-order goods. In-stock product is available for immediate shipment.

Oakwood is weighing its marketing options. It hasn't shown in High Point for three years and last showed in Las Vegas in July 2006. Instead, it has focused on showing its product on the road. That could change this year, Lanphier said.

"We would like to grow the business everywhere," he said, noting that while the company has dealers in every state, a hefty 20% of its business is in California. "We are reformulating our marketing plans to start growing the business in a simpler, controlled manner."

RSS
Reprints/License
Print
Email
Talkback
Related Content
Also by Tom Russell

Reed Business Information Resource Center

Featured Company


Most Recent Resources

Advertisement

Related Microsite Content

Related Links

  • No Related Content Available

More Content
  • Blogs
  • Photos

Sorry, no blogs are active for this topic.

VIEW ALL BLOGS RSS
GuildMaster chest

Best of Market: More market highlights

Here is a sampling of some of the stylish new products catching dealers' eyes at the October High Point Market. For more coverage, see Furniture/Today's Nov. 2 print issue. When you're done viewing the photos in this Slideshow, more images of hot introductions also are available on the Furniture/Today Web site by clicking here.

 

 

High Point Market scene, 1955

Scenes from the High Point Market's past 100 years

The High Point Market is marking its 100th anniversary this April. To help celebrate this milestone, Furniture/Today presents some pictorial highlights of the past 100 years.

WMC-Videos_160x160
Advertisement
WMC-Videos_160x160
eNewsletters
Furniture Today eDaily
Furniture Today eClassifieds
Bedding Today
Furniture Today Green
Casual Living eWeekly
Home Accents Today eWeekly
Home Accents Today Product Line
Home Textiles Today Extra
Gifts & Dec Direct
Gifts & Dec Product Wire
Kids Today eWeekly
Playthings Extra



Please read our Privacy Policy

About Us   |   Advertise   |   Site Map   |   Contact Us   |   Subscription   |   Affiliate Links   |   RSS
© 2010 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy