Bailey Wood Products of Kempton, Pennsylvania in historic Berks County, has a well-established history in the Kempton area.
The company is currently in the fourth generation of family ownership. The Bailey family started the business in 1928, then known as Bailey Lumber Company, and operated as a regional sawmill serving the rural construction community for farmhouse and barn construction. As the population grew in central Pennsylvania, demand for lumber for furniture and cabinetry increased. Bailey currently employees 6 people.
“MRC really spent a great deal of time with us to understand our business and help us with the vision and tools to turn our business around. I think we understand our customers pretty well. However, MRC assisted us in gaining a better understanding of the bigger marketplace and how to focus on our strengths. They helped us create an action plan to improve our business practices and focus on the most profitable market segments. We now have a website and can promote our products to a much wider geographic area.”
Situation
Bailey Wood Products was faced with a crisis in December of 2005 when their sawmill facility burned to the ground and most of their equipment was damaged. Bailey Wood Products was forced to reduce its staff from 11 to five people. After funding was secured, Bailey Wood Products requested support from MRC to develop a comprehensive Market Assessment and Strategic Business Plan to assist in growing its business.
Solution
MRC assigned two internal Professional Business Advisors within the Business Growth Services Group to assess the current market situation for Bailey Wood Products and formulate a three-year business growth plan to identify markets, the best pricing strategy and appropriate sales goals.
Results
Bailey Wood Products completed construction of a 7,500 square foot manufacturing facility in February of 2007, with new equipment to address value-added markets for custom moulding, flooring and custom dimension hardwood lumber used in the renovation of historic structures. Additionally, MRC partnered with the Delaware Valley Industrial Resource Center (DVIRC) to develop a comprehensive website to promote the new value-added product line. A new retail store was added to accommodate the weekend woodworker, which has been an established market for the Bailey business. The aggressive three-year business plan focuses on a 75% increase in sales and the addition of six employees over the same period.
For more information about Bailey Wood Products, visit their website at www.baileywp.com.