Building Materials Holding Corp. is quickly following through with its consolidation plan revealed earlier this week, announcing today its BMC West subsidiary will close millwork and building materials distribution faculties in Merced and Bakersfield, Calif.
Operations in Modesto and Fresno will serve these markets, while the existing sales force will remain in place, according to a statement released by the San Francisco-based company.
The closures, which should be complete within the next 60 days, will affect about 30 employees.
"The difficult decision to close our facilities in Merced and Bakersfield is a necessity based on today's challenging business environment and weakness in the housing markets in California's Central Valley," said Stanley Wilson, president and chief operating officer.
In the Central Valley markets, single-family housing permits fell nearly 62% to 1,877 in the first quarter of 2008 from 4,905 in the first quarter of 2007. "We are no longer able to justify the costs associated with operating these two facilities," Wilson said.
On May 12, BMHC said it will combine its BMC West distribution business with its SelectBuild framing and construction services subsidiary. Just two days later, BMHC announced May 14 it will close its SelectBuild framing and construction operations in Tucson, Ariz.