Local Wood Manufacturing Company To Close Its Doors

STAMFORD –  For a couple of Stamford business owners, the lyrics to the Kenny Rogers song, the Gambler, "You have to know when to hold them and know when to fold them" is ringing true. After three-quarters of a century, they are folding their cards, phasing out their business and putting it on the market.

Catskill Craftsmen has been a staple of the local economy for 75 years, but the post-pandemic market and the increased minimum wage have been too much for them to try to keep playing their hand. Ten employees were laid off two weeks ago, three left last week and the plant that put Stamford on the map in wooden butcher block and cutting board sales, will be down to a skeleton crew. Soon, only the office will be open to continue sales to get rid of the remaining inventory.

It was one of the biggest butcher block manufacturers in the United States, but got its beginnings with encyclopedias. Local benefactor, Fred P. Murphy, started the company in 1948 to make shipping crates for Grolier Enterprises, which sold encyclopedias. He was the chairman of Grolier Enterprises. The manufacture turned from shipping crates to bookcases that would hold a complete set of the encyclopedias. The bookcases were made for all the major encyclopedia companies, with the exception of Brittanica. At the peak, they made 2,000 bookcases per day.

The Govern (Will Sr. and Eugene Sr.) brothers, who formed a partnership as building contractors in the early 1900's purchased the old grandstand and a pair of lots from what was the Stamford Fairground. It was operated by the Govern Brothers for several years. At times the company hired as many as 30 to 40 employees for the mill and contracting jobs. It was later owned by Vic Mahler, then Harry Peterson and  then John Tuit.

In 1945, Hector Taylor sold some property to Herbert Stewart, who opened a small woodworking shop at the site and built an addition in 1947. Tom Govern purchased it in 1950 and hired Stewart to serve as shop foreman. Each brought a brother into the operation and in 1952 it was sold to the Grolier Society. All of the employees were kept on and in organizing Catskill Craftsmen, Tom Govern was chosen president and director. Eugene Sr. was the chairman of the board. Jim Govern and their Uncle Will Sr. were vice presidents.  Eugene Jr. joined later and served as treasurer. The second generation, three Govern brothers, were involved in the business.

At Catskill Craftsmen, they first made shipping boxes for American Books-Stratford Press. It wasn't long before they began building the bookcases for the Grolier Encyclopedia. Hundred of thousands of bookcases were shipped from local post offices, according to a 1960s Mirror Recorder article.

The encyclopedias were sold by door-to-door salesmen and by the late  1960s, that changed. As microwaves became popular, so did the microwave carts that were then produced by Catskill Craftsmen. There were more than 80 people working over two shifts, most of them skilled craftsmen, employed by the company as they switched to microwave carts, cutting boards and butcher block tables. They produced a number of products, including breakfast bars, spice racks, towels bars and other items. They have also produced data movers and clocks.

The Govern brothers operated the company for Murphy, then Vic Mahler came in the mid-1970s. In 1988 Dave Carley, Dick Carpenter and Duncan Axtell took over ownership and then Axtell and Smith in 2001.

Axtell has been there since 1978, starting as an employee. Smith has been there for 33 years.

In 1995 they added equipment to turn their scrap wood into high quality wood pellets, selling them to employees and the local community. It eliminated the waste and provided a much-desired product. "We have already been getting calls from people who have had to switch to other wood pellets," said Smith. "Ours were made from solid wood, without any dirt or bark. They were made of solid wood, which burns hot and produced more heat."

"Since 2001, we have had a $1.5 million payroll annually," said Smith, who is the guy who crunches the figures. "They say that is multiplied seven times in the local community." With most of their sales to online retailers, they drew money from outside New York State and used local hardwood, hardware and labor. 

"At first Covid was a good thing," said Axtell. "People were staying at home and cooking, our warehouse was emptied during the pandemic."

When the pandemic was over, they worked hard to get people back to work and to get the products they needed to build back their inventory.

However, they will both tell you the increase in minimum wage from $9 to $15 per hour, hurt them most, creating a  $600,000 cost they couldn't pass on to consumers, as online retailers wanted prices dropped, not increased. "Our suppliers were going through the same thing and passing that cost on to us, but we couldn't pass it on. It was hard for us to absorb. Internet customers don't accept price increases," said Axtell.

"We have done well, except for the past five years or so," said Smith. "It has been a very painful decision to cease production and close operations."

They will now try to sell the business. "We just don't see any light at the end of the tunnel and we will sell the facility."

They feel they have done everything. They have tried to think of other products they could manufacture, adjusting as they have in the past. They added new equipment for production efficiency, a new cutting machine, a new sanding machine, attempting to become more efficient - then Covid happened and now they are battling inflation. That brand-new equipment now sits idle.                   

Before the minimum wage hike they employed 48 people. They purchased 500,000 board feet of lumber annually from local sawmills. We all know how the price of wood escalated, with lumber costs up 85 percent. Cardboard cartons, another item they used for shipping, increased substantially, along with the hardware and other items. The Deposit company that manufactured key component parts, went out of business.

"With inflation, people are spending their money on groceries, gas and heating oil," said Smith. "There is limited expendable income."

They are hoping there is another manufacturer out there with a more profitable woodworking operation and purpose. It is a turnkey woodworking operation. If that doesn't work, they will sell the 100,000-square-foot facility that sits on two parcels, totaling 13 acres.

The employees have been given severance pay. Some, like Axtell, have been there for decades. Many will be able to collect retirement.

It's priced to sell rapidly," said Smith. "We are hoping someone will buy it and do something with it that will hire people back."

The company now consists of a huge complex of buildings that Axtell and Smith are hoping will not sit idle for very long.