Grand Rapids, Mich.-based UFP Industries Inc. will spend $77 million to establish a new factory making composite decking products in western New York.
The company will make the Deckorators branded "Surestone" product in Lackawanna, N.Y., a suburb of Buffalo, where it plans a manufacturing and warehouse complex covering more than 240,000 square feet, according to a statement.
The 30-acre site includes a 168,000-square-foot existing facility that will be expanded as part of the project.
UFP Industries received a $1.8 million incentive package from the Erie County Industrial Development Association to support the Deckorators investment. The company said the incentive was "a sign of the local community's commitment to the project."
"Expanding into this region grows Deckorators' market reach and helps us meet the aggressive demand for our new Surestone product," UFP Industries CEO Will Schwartz said in a statement. "We had said at the start of this year that our focus will be on delivering quality products our customers value. This expansion — driven by customer demand — is proof positive of that commitment."
UFP expects to begin construction in April and have the plant fully operational by year's end. It anticipates creating approximately 60 jobs at the facility, including production support, logistics and administrative roles.
According to filings with Erie County, the positions at the plant would have an average wage of $90,000.
The plant will double production capacity for the Surestone product, according to the company.
"We are pleased to welcome Deckorators to Erie County," John Cappellino, president and CEO of the Erie County Industrial Development Agency, said in a statement. "Their new operation in Lackawanna [will] make Deckorators a major contributor to improving economic growth in Western New York."
County filings indicated that $45 million of the planned investment at the site would be in manufacturing equipment.
According to a report by Buffalo Business First, the facility previously was used as a fiberboard manufacturing plant and later a glove factory, but struggled to find long-term users. The report noted that UFP's investments include new utilities and a rail spur.
UFP said the Deckorators investment, the brand's first in New York, is part of a $250 million plan over the next five years to grow and expand the brand's product line. Along those lines, Deckorators highlighted new products and had an expanded presence at a recent industry trade show, with plans for more debuts later this year.
"Our investment in this project reflects the strength of the Deckorators brand and our commitment to anticipating customer needs as demand for outdoor living products grows," said Landon Tarvin, president of UFP Retail Solutions. "This facility will initially double our Surestone production capacity, with space to continue expansion, and give us better proximity to key markets."
Deckorators makes a range of composite decking, railing and accessories. For the 2024 fiscal year, organic net sales for Deckorators dipped 3 percent as full-year sales for the broader UFP Retail Solutions division declined 12 percent to $2.6 billion.
For the year, UFP's overall net sales dipped 8 percent to $6.7 billion while earnings fell 19 percent compared to the previous year. The company attributed the revenue decline to softer unit sales and a 7 percent decrease in selling prices, driven by a lower cost of lumber.
