Monday, August 4, 2025
UFP Industries has confirmed the closure of two key manufacturing facilities, including the Edge Prefinished facility in Bonner, Montana. According to company executives during a recent earnings call, the Bonner facility will shut its doors permanently on September 27, 2025, resulting in the layoff of 104 employees.
The decision is part of a broader effort by UFP Industries to improve its financial health, consolidate operations, and optimize costs across its woodworking and manufacturing sectors. While all positions at the Bonner facility will be eliminated on the closure date, the company has indicated that some employees will remain temporarily to assist with the “winding down” and “decommissioning” processes. Mike Cole, Chief Financial Officer at UFP Industries, addressed the reasons behind this decision during the earnings call, noting that the closures are expected to lead to a significant boost in operating profits by 2026. The company anticipates that these strategic closures will generate cost savings in the range of $16 million, with the full impact expected to be realized by 2026.
As part of the restructuring plan, UFP will transition the business conducted at its Bonner Trim plant to other existing manufacturing facilities. This move aims to increase operational efficiencies and lower the company’s overall cost structure. Additionally, UFP Industries will exit the coated siding business, which has struggled to scale in recent years.
“We are taking the necessary actions to close our two Bonner manufacturing facilities in 2025,” said Cole. “These closures are part of our ongoing effort to enhance efficiency, reduce operational costs, and improve profitability.” The closures, however, will come with one-time expenses. UFP Industries expects between $15 million and $17 million in impairment charges and other costs related to the facility closures during the third quarter of this year.
UFP Industries’ long-term growth strategy
Despite the immediate challenges posed by the closures, UFP Industries remains optimistic about its long-term prospects. CEO Will Schwartz reinforced the company’s commitment to navigating these uncertain times with resilience, saying, “Tough times, tougher people. The uncertain times will pass, and we will come out on the other side stronger.”
Looking ahead, UFP Industries is placing a strong emphasis on its growth strategy, planning to invest $1 billion in growth capital over the next five years. This investment will focus on expanding the company’s core business segments, particularly in areas that align with the company’s long-term goals. “We are focused on strengthening our existing business model and exploring potential deals that complement our core strategies,” added Schwartz.
UFP Industries also reported a decline in its net sales for June, totaling $1.8 billion, which marks a 3.5% decrease from the previous year’s $1.9 billion. This decline was attributed to a combination of factors, including a 3% decrease in unit sales and a 1% decrease in pricing. The company noted that recent acquisitions provided some offset, but the overall performance was weighed down by weaker demand across key market segments.
The decrease in selling prices was primarily attributed to increased competition in the market, which has intensified in response to lower demand across several of UFP’s key business areas. Specifically, the company saw pressure in its site build, structural packaging, and pallet business units. The decline in sales, along with the ongoing economic uncertainties, has led to more competitive pricing in these sectors, further impacting profitability.
Despite the current challenges, UFP Industries is optimistic about its ability to recover and grow in the coming years. The company’s ongoing restructuring efforts, including the closure of underperforming facilities, are expected to improve overall efficiency and profitability.
Moreover, UFP Industries’ aggressive $1 billion investment plan demonstrates its confidence in future growth and its commitment to sustaining long-term success. By reallocating resources, optimizing operations, and focusing on scalable growth, UFP is positioning itself to emerge stronger from the current economic challenges.
The closure of UFP Industries’ two Montana facilities marks a significant step in the company’s efforts to optimize its operations and improve financial performance. While the immediate impact includes employee layoffs and one-time restructuring costs, the long-term outlook remains positive as the company shifts focus to its core business segments. With a strong commitment to growth and efficiency, UFP Industries is well-positioned to weather current market challenges and continue its leadership in the woodworking and manufacturing industries.
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Tags: Bonner manufacturing plant, business transition, economic challenges in woodworking industry, employee layoffs, Montana facility closure, restructuring, UFP cost optimization, UFP Industries, UFP sales decline, woodworking industry
