Forbes Cabinets>
Apex, NC
www.forbescabinets.com
Year Founded: 1985
Employees: 10
Shop Size: 9,000 square
feet
FYI: Under new
ownership since 2002, the
company narrowed its focus to
medical and dental commercial
casework and pursued larger jobs
to increase profits. |
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When Jim Bendel bought Forbes Cabinets in late 2002, he
had never built a cabinet, the U.S. economy was still in
a slump and the dot.com meltdown had left empty office
space all over the company's home area of
Raleigh-Durham-Chapel Hill, NC. Not very fortuitous for
a commercial casework company.
Today, Bendel still has not built a cabinet himself.
But he has seen the company's sales grow from the
$700,000 to $800,000 range to more than $1 million last
year. This year, he says, "We will again top the $1
million mark."
The company, in the community of Apex just outside
Raleigh, has added two fabricators and a part-time
office manager, bringing the total number of employees
to 10, counting Bendel. It recently purchased a CNC
router from Stiles Machinery in order to do nested-based
production. It is a brand-new model from Weeke, the BHP
200 Optimat, and is due to arrive by the end of the
year, to great anticipation on the part of Bendel.
"We will be the first shop in the United States to
have one," he says. "It is our expectation that this new
CNC, in conjunction with a new software package
(Microvellum) we recently purchased, will not only help
us become more productive and efficient but will also
ensure that our quality remains top-notch."
Of course, equipment isn't everything. When Bendel
bought Forbes Cabinets, the company came with a couple
of human assets that have been invaluable in the quest
for success, he adds, namely Director of Project
Management Keith Hill and Senior Production Manager Mel
Manning. Between them, they have 27 years with Forbes,
and Bendel says their skill and experience helped
convince him to buy the company.
 |
| This reception desk for a Cary, NC,
orthopedics and sports medicine clinic features
cherry veneer and stainless steel panels.> |
Bendel himself had spent the previous 15 years in the
health-care industry. With the kind of commitment
brought by Hill and Manning, Bendel says he felt he
would have ample time to bring himself up-to-speed in
his new field. However, his own background was also a
help as he pursued his vision for the company's future.
He had trained in economics at the University of
Maryland and worked in sales and management jobs at an
HMO. He was vice-president there before buying Forbes.
This background meshed nicely with Forbes Cabinets,
which did a lot of work for medical and dental offices.
Bendel had valuable contacts in the industry and says,
"I also knew doctors like to upgrade their offices
periodically."
Being in the medical market also helped the company
weather the slow economy. Although businesses in the
area struggled and left much office space vacant,
"medical is basically recession-proof," Bendel says.
Recently, the overall space glut has begun to ease,
he adds. "It has started to come back now, which we
expected."
Long accustomed to looking closely at the bottom
line, Bendel brought that type of focus to
cabinetmaking, to Forbes' advantage. "A lot of our
competitors are cabinet shops run by cabinetmakers who
are not really business people," he says. "Their focus
is not what my focus is. Every minute you spend doing
something, you need to figure out how much you are
making on it."
Focusing in on a Narrower Market
When it comes to sales, the company continues to do most
of its work for a dozen or so general contractors with
whom it has established long-term relationships. "If we
give them quality, service and a fair price and live up
to our commitments, there is a good chance they will
keep coming back," Bendel says. He suspects that there
are several dozen other contractors to whom he could
pitch the company's work, but he has been so busy with
existing jobs that he hasn't had the time.
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| This sterilization room in a dental office
features patterned plastic laminate casework and
a bright blue laminate countertop. About 50
percent of the plastic laminate Forbes uses in
its projects is from Nevamar.> |
One thing he, Hill and Manning have done is narrow the
scope of what Forbes does, limiting it to the types of
work employees like to do and do well. When he first
bought the company, "We were bidding on everything under
the umbrella of architectural woodworking," Bendel says.
"During my first 60 days, we were in the middle of a
small restaurant project that had taken way too long to
complete. There was a tremendous amount of detail
required for such a small space. It drove everyone nuts
and took much longer to complete than anticipated. We
lost money on the project. We don't do many restaurants
anymore."
They shifted focus, and Forbes now does mostly
laminate casework for medical and dental offices and
office fit-ups.
In addition to laminate casework, it also fabricates
wood veneer reception desks and sales centers. "We can
provide standing and running trim," says Hill. "But we
try to stay out of the panel business." There are so
many other companies that do a good job of paneling,
that Forbes avoids it, he adds. "Our forte is casework."
Forbes does all its own installation, even when the
job is out of its home area. The company tried
subcontracting its installation, Manning says, but
missed the degree of control and quality it has when it
uses its own employees. Now the only jobs subbed out are
granite and solid surface.
Typically, cabinet interiors are melamine-coated
particleboard and exteriors are plastic laminate. To
avoid waiting on shipment of pre-laminated panels for
smaller jobs, Forbes bought its own vacuum laminating
press from Vacuum Pressing Systems, which has been a
tremendous help, Bendel says.
Forbes prefers to stay in its own geographical area,
but does travel outside of North Carolina for one
customer that is building a chain of retail stores.
"They use the same store fixtures at each store ,"
Manning says. "The customer gets the quality they want,
delivered when they want. In a nutshell, they know what
to expect from us.
"We are going to build them all, even if they go out
West," he adds.
Bendel handles the sales, marketing, estimating and
finances for the company. Hill and Project Manager Amy
Le Westray do the design drawings, order materials and
manage production scheduling. Once drawings are
approved, they create the cutlist, which is sent to the
9,000-square-foot shop. There, Manning parcels out the
jobs.
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| The red oak veneer used in this reception
counter and desk area of a dental office
features decorative mouldings in a contrasting
species. The mouldings were laminated in layers
to form the curves.> |
Employee Appreciation
In the six-person shop, everybody is crosstrained. Even
the two installers come into the shop to assemble pieces
when they are not working on-site. But, says Manning, "I
try to keep assignments to what employees prefer to do.
Some like to do countertops. Others would rather cut."
Bendel is equally conscious of employees' needs. The
company has managed to keep good people, he says, by
providing a safe working environment, a terrific benefit
package (employees get medical, dental and life
insurance coverage at no cost), bonuses and
above-average pay.
"It makes more sense to spend a little more to have a
dedicated employee, than to keeping churning through
employees just so I can personally make a little more,"
he says.
"We are very lucky to have skilled workers here in a
market that really appreciates good workmanship in
woodworking," Hill adds. Unhappily, not all shops offer
that kind of environment to woodworkers, he says. He has
a good vantage point for observing other cabinet shops
across the country. Currently he is president of the
Cabinet Makers Association and was one of the
organization's founders in 1998.
Forbes also belongs to the Architectural Woodwork
Institute. Bendel says he joined after he bought the
company "to help me get a better understanding of the
whole industry." The company became a certified
participant in AWI's QCP program last year. "I thought
that was very valuable and important to us," Bendel
says. "The certification assures customers that they are
getting a quality product from a quality shop."
The company's average job size has been climbing,
from $10,000 to between $20,000 and $25,000. Smaller
jobs are frustrating for a shop the size of Forbes,
Bendel says. Customers think that because the jobs are
small, they can be finished in a week, forgetting the
time involved in ordering material, designing the
project and scheduling.
Bigger jobs have a considerably longer lead time,
Bendel says. This past summer the company tackled the
biggest job in its history, $200,000 worth of casework
for a two-story building. When asked how he planned to
do the project, Bendel responded, "How do you eat an
elephant? One bite at a time." The job went smoothly, he
says, and the general contractor and owners were happy
with the end result.
An Upgrade in Equipment
For many projects, Forbes relied on a ShopBot router
that Bendel bought shortly after he purchased the
company. He accurately predicted it would pay back its
$10,000 purchase price in a year's time. He also bought
a Brandt edgebander and the vacuum press during his
first six months. The company already had two Altendorf
sliding panel saws, two Brandt boring machines and a
Rockwell shaper.
With the company's uptake in business and larger
jobs, Bendel decided to replace the smaller router with
a new Weeke CNC machine. He says he made the decision
even before tackling the $200,000 job. "I felt that we
either had to add more employees or upgrade to a CNC
router," he adds.
Now Forbes can more efficiently pursue its revenue
goals, he says. "We will focus on profitable jobs and
manufacturing the projects we are good at and employees
enjoy, which will help us become the market leader in
the segments we are pursuing." |