Fresh off the heels of announcing significant layoffs, Associated Materials LLC of Cuyahoga Falls, Ohio, has announced it's investing $100 million in its manufacturing operations and future growth.
The integrated buildings products company announced Tuesday, April 16, that it "has committed over $100 million to investments in equipment, digital technologies, and new work methods as part of its ongoing transformation strategy."
The company makes an array of products, many of them designed for residential construction such as vinyl windows, siding, doors and composite cladding. The company said it will invest the $100 million "to further enhance the company's portfolio, strengthening the customer experience, optimizing operations and increasing capacity across all major product categories."
Many of the planned investments seem aimed at improving the company's efficiency and manufacturing prowess. For instance, Associated Materials said in a news release that it will use the capital to install new laser, camera and welding equipment; to automate some of its assembly and manufacturing processes; and to accelerate the adoption of lean standards at its operations.
The company said it's positioning itself for expected growth in its end markets.
"A confluence of trends in the current housing market leads us to believe that people will be more likely to remodel their homes in the coming years," Associated Materials CEO James Drexinger said in announcing the investments. "We believe these investments will provide our customers with a competitive advantage to meet increased consumer demand for our products across the U.S. and Canada."
The company did not specify over what time period it will make the investments, but Drexinger indicated that they will be substantial and broad-based.
"We will be installing new lines, upgrading existing ones, and adding automated technologies," he said. "These investments are part of a long-term strategic move to meet the evolving demands of the market and the changing needs of our customers, assuring that they and us stay ahead of the curve and are ready for the future."
Some of the money will also be invested in building up the company's engineering team, data technology systems and experts, and training employees in lead manufacturing strategies, Associated Materials stated.
The company said the investments are part of its "ongoing transformation strategy" and they follow job cuts that Associated Materials announced in March, when it said it would be laying off 190 workers in Cuyahoga Falls on or around May 20.
In a required filing on the pending layoffs with the state of Ohio, Associated Materials said it was aligning its production locations with demand.
"As part of the company's long-term plan, it is concentrating windows production in the U.S. to locations strategically aligned to growth opportunities in the market and where it can continue to service existing customers," the company told the state in a Worker Adjustment and Retraining Notification (WARN) Act filing.
Owned by SVP Global LLC, Associated Materials is the 18th largest pipe, profile and tubing extruder in North America with related estimated sales of $405 million, according to Plastics News' latest ranking.