Katahdin Cedar Fence marks best year

    OAKFIELD — For the first time in more than 30 years of operation, Katahdin Cedar Fence is operating two night shifts in its Oakfield mills and has started the seasonal operation of its Ashland mill three weeks earlier to meet increased demand for fencing products. The company’s other subsidiary, Katahdin Cedar Log Homes, is also based in Oakfield.
    Strategic planning and efficiency measures implemented in 2004 bore fruit for Katahdin Cedar Fence (KCF) as the company marks some record firsts in the first quarter of 2011, including a 75 percent increase in sales over the previous year. The fencing manufacturer has been able to weather the poor business climate of the past three years to emerge into one of the most successful periods of the company’s history.
    According to Brian Holyoke, vice president of cedar fencing, there were several market factors on which KCF capitalized, including the 2009 purchase of its Ashland mill situated on a primary north woods logging route. Being able to pre-process roundwood at the edge of logging areas for finish milling at Oakfield’s plant enabled the company to maximize what was a disappointing cedar harvest in 2010.
    A program to reinvest capital to upgrade and modify equipment enabled the Oakfield mill to increase its production by 30-40 percent. Finally, a program of cross-training workers in related positions on both the fencing and housing sides gave Katahdin the flexibility to keep production levels high and bolster employee morale.
    According to Holyoke, “The demand is driving our schedule. We’ve doubled the number of workers to meet higher replacement fencing orders created by severe winter weather.”
    Holyoke also said that a more focused, regional approach to marketing has also added market share.
    “Our pricing has been competitive and we’ve instituted a unique multiple drop ship approach so that our customers can slowly rebuild inventories as demand increases,” he said.
    Katahdin is also one of a small number of wood products companies that has earned Forest Stewardship Council (FSC) Chain-of-Custody certification from the Rainforest Alliance’s SmartWood program. This certification enables the mill to offer northern white cedar used in fencing and log homes from responsibly managed forests. The FSC certification is an essential element in meeting several green certification programs in building, including LEED.
    “We are ecstatic that our diversification in housing and fencing has paid off so well,” said David Gordon, president, Katahdin Forest Products. “Purchasing the Ashland mill and reinvesting dollars into equipment was a calculated risk at the time, but it’s paid off in reducing our raw material costs and increasing productivity.”
    Founded in 1973 by Foster Gordon and two associates, Katahdin Cedar Log Homes is one of the largest log home manufacturers in the U.S. and is the largest processor of northern white cedar in the world. The parent company, Katahdin Forest Products, also operates Katahdin Cedar Fencing and Cedar Ideas, a garden accessories company. David Gordon continues his father’s legacy by providing high quality, cedar log homes, fencing and other products at affordable prices. Based in Oakfield, Katahdin Forest Products has more than 80 employees.
    For more information, visit their website: www.katahdincedarloghomes.com.