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Eauro Assembly Systems, Inc.

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Euro Assembly Systems, Inc.

4115 24th Avenue
Forest Grove, OR 

P: 503.357.0939
TF:  877.375.4401
F: 503.359.3812 

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The Cabinet Industry 01-13

The future belongs to the ones focused on sales

The very first crucial responsibility for the survival of the shop is to increase sales. For the last few years and most likely the for the next few years means the owner is spending more time in production. That means less time is focused on doing the most important thing required - securing more work by increasing your customer base. The future belongs to the ones focused on sales. Increasing volume in requires a decision between overtime and training new employees. Overtime causes fatigue, burnout, more frequent mistakes and loss of productivity. The production cost is higher whereas the selling price remains the same guarantying a lower profit margin per job. Adding employees means removing workers from production to train and supervise the newly hired adding cost to produce the job.  

Higher profits are available to the forward thinking shop that is responding to the economic reality that need not be endured any more by increasing sales, concentrating on higher dollar custom work and utilizing EASI System cabinets.

During the past 30+ years, I’ve had the opportunity to discuss even the smallest aspects of the cabinet business with over 175 cabinet shops and general contractors that use the EASI System. These communities of craftsmen and women are passionate about what they do for a living. It is our customers who have guided us to the product that they want and we supply. We believe the insight they provide as to what works for them, works for the industry as a whole. I can say we all face the same challenges of getting the most from our individual resources.  

Two conversations stand out in my mind. One with the owner of a 26 person shop who revealed the major problem he faces is not parts but moving the cabinets through the many phases on their way to completion. They sometimes have to move something to work on something else or everyone is packed into the space remaining because most of the shop is filled with machinery. The owner of a furniture shop’s examination of this problem said the machine room is where he chooses to work because it is always empty. He also said that machining parts is only 10% of their work.

Both owners face the same problem. They’ve tied up the largest portion of their capitol and facilities with big machinery. The largest part of the shop sits idle 80% to 90% of the time. The smallest part of the shop is used most and operates in a less than optimum manner. In both cases taking on more work makes the problem worse. 

The 80% of cabinet production is Design, Specialty Work, Finishing and Installation. Parts demand the largest capitol investment taking resources that could be better spent on the 80% of the more profitable segments of your business.

We have been raised on machinery as the solution to our productivity problems and take great pride in the accomplishment of a well tooled shop, as well we should. The changing business climate, expansion expense, big box retailers, foreign imports and spread of technology bear upon on how we evaluate machinery today.    

Early adopters of machinery made up for this inefficiency by the production capabilities of these behemoths along with a smaller workforce to manage. But now everyone has these machines. They are aging and may well need replacing. What are you going to do? The first time facing big ticket machinery purchases you received a massive production boost before everybody else. Now all you get is an enormous payment. 

Some of the hidden expenses of machinery are:

  1. The huge footprint of machinery with infeed and outfeed space requirements essential to efficiency.
  2. Excess production capability.
  3. Resale value.
  4. New and bigger equipment is putting pressure on smaller shops with older technology.
  5. Buying software required for running and integrating machinery.
  6. Upgrading computers, software, operating systems along with constant updates.
  7. Power, vacuum, dust extraction, set up, maintenance and training.  

Money spent for insurance on machinery and space, all the heat and lighting is uselessly wasted month after month. Thousands of dollars of equipment and shop space at $.40, $.50 or $.60 a square foot are sitting idle and diverting money from activities that can help your business grow, prosper or increase personal profitability.

The term outsourcing implies sending jobs and wealth outside the USA.  So I say - Insource.  Insource in your city, in your state or region. Keep that work right here at home. We at EASI are here to work for you.  

By insourcing you will be able to utilize your shop to its maximum potential.

  • Key employees producing higher dollar custom work.
  • Realize a greater return on Investment.
  • Free up space for more efficiency.
  • Reduces machinery requirements.
  • Reduced capitol investment.
  • Exact cost means knowing exact profit.
  • More time for marketing.
  • Better control over product costs. 
  • Cleaning shop with high cost labor reduces income.
  • Less waste will lower garbage costs.
  • Save on time spent doing cut lists.
  • Save on time spent ordering & handling raw material.
  • Save on time spent on training costs.
  • Save on time spent on unproductive labor.
  • Save time and money on inventory costs.

To stay competitive we need to continually improve the efficiency of our businesses. It means looking at the way we have done work, the way we do work now and project that into a direction that will insure our continued success.

Jim Guzy
Euro Assembly Systems, Inc.

Call EASI today for help with your next project and see how EASI it is to deliver Custom European cabinetry to your customers!! For orders or quotes, call us at 503- 357-0939 or fill out an on-line order form from our Catalog, or print and fax it to 503-359-3812.


After the long and successful association we have established with EASI I couldn’t imagine working without them.

-- Jim Duncan, Weston Homes