With 88 years in the custom furniture industry, American Atelier Inc. (AAI) has seen its share of economic downturns. However, since the company’s core market – hospitality – has grown in an ever broader sense, Jim DeCamp, vice president of sales, says the family business is as busy as ever.
“The economy here in the U.S. is in a slump,” DeCamp says. “Certain key market segments are inactive, whether it is large casino operations or vacation ownership.
“On the positive side,” DeCamp continues, “the new products that the flags have come out with have created another group of hotel types that are growing everywhere.” Among these products are timeshares, resorts and casinos, DeCamp says.
Based in Allentown, Pa., AAI’s capabilities range from custom manufacturing for architects and furniture designers to a standard line of products. The company is in its fourth generation of family ownership serving the hospitality industry, including hotels, resorts, casinos and timeshares.
New Addition
AAI has about 240 skilled craftsmen in its work force, and it is in the midst of doubling its manufacturing space to more than 250,000 square feet by then end of 2009. DeCamp says the company will bring in an additional 100 to 150 employees once the addition is complete.
Even though the economy has many other manufacturers downsizing, DeCamp says this expansion will help the company live up to its pledge of nine to 10 weeks’ lead times.
“We have to continue to develop,” he says. “The new factory will allow us to continue working on our four-weeks model. Everything we’re making has never been made before. It’s 100 percent custom; that’s from cocktail napkin into the hotel.”
AAI bought a facility that once housed a food-processing plant, also located in Allentown. DeCamp says the layout of such a facility lends itself well to AAI’s purposes.
“The fact it was a food-processing plant makes it perfect,” he says. “The construction of the factory itself lends itself to a dust-free environment, which allows us to make even better finishes.”
DeCamp also searched for a facility with additional acreage for potential growth. If AAI’s growth plans come to fruition, DeCamp says the company will need the space to add to its capacity because all the equipment must be on the same floor.
“We were looking for something with land associated with it so we could continue to expand,” he adds. “We were looking to be on one floor. We were looking for something to support our CNC machines and large saws that we use, and it had to have the utilities and the floor to make it happen.”
Dealing with Globalization
DeCamp says AAI globalization of the furniture industry has led to demands for new designs. There were more demands for European design and craftsmanship. Aside from being 100 percent American-made products, AAI is also 100 percent custom ordered, if necessary. DeCamp says this means the company can make anything and everything.
“If I look at how we are placed against others, we’re willing to make virtually anything,” he says. “As a result, people rely on us to make something that has never been made before, and know that it will perform to the demand of any type of hospitality products.”
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