RAWLINGS — Gov. Martin O’Malley toured American Woodmark’s local cabinet manufacturing plant Wednesday, telling management there that state and federal legislation he envisions could result in substantial tax breaks for the company when it hires new employees.
O’Malley said he is hoping for a state-level tax break of $3,000 and a $5,000 break on the federal level for each employee hired.
Plant Manager Chris Kester told the governor that the local plant has grown from 130 hourly employees in March to 265 now.
Matt Diaz, Allegany County’s director of economic development, said the surge in employment at the local plant comes because American Woodmark has shut down other facilities and directed more production to this location, one of the company’s more modern facilities.
County Administrator David Eberly said the plant has room to expand by 250,000 square feet, a capacity that could necessitate employment of a work force of 500.
“We have a three-year contract with NBR, a national builder, to supply 100 percent of their cabinets,” Kester explained. Kester said American Woodmark is among the top three cabinetmakers in the country, but is first among companies that manufacture only cabinets.
Kester told O’Malley that 40 percent of the company’s business comes from supplying cabinets for new houses.
O’Malley noted that the timing of the employment surge at the local plant coincides with the first year of President Barack Obama’s American Recovery and Reinvestment Act. “Just think how it would be if we had done nothing to deal with the recession,” he said, referring to what is commonly called stimulus funding.
Kester agreed that there was good news Wednesday with the announcement that housing starts had increased. “Our growth, of course, will be based on the performance of the economy,” he said.
American Woodmark’s Allegany County plant was built six years ago.
Contact Michael A. Sawyers at msawyers@times-news.com.
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O’Malley visits American Woodmark
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