Building Materials Holding Corp., San Francisco, CA, a provider of building materials and construction services to professional residential builders and contractors, announced its subsidiary BMC West will close its millwork and building materials distribution facilities in Merced and Bakersfield, CA.
Both markets will be served from nearby operations in Modesto and Fresno.
The difficult decision to close our facilities in Merced and Bakersfield is a necessity based on today's challenging business environment and weakness in the housing markets in California's Central Valley," said Stanley M. Wilson, president and COO.
"Single-family housing permits in the Central Valley markets we serve have fallen sharply from 4,905 in the first quarter of 2007 to only 1,877 in the first quarter of 2008. At these greatly reduced volumes, we are no longer able to justify the costs associated with operating these two facilities."