Universal Forest Products splits Eastern Division

Grand Rapids, Mich.-based Universal Forest Products is getting a structural makeover, the company announced.

Beginning Jan. 1, the forest product and building material manufacturer's Eastern Division will be divided into two entities: a Northern Division and a Southern Division. Scott Greene, currently president of the Eastern Division, will become president of the Southern Division. Robert Lees, a 32-year Universal veteran and regional VP of the company’s Northeast Region, is being promoted to president of the Northern Division.

The move is described by Universal as a strategy to enhance growth and profitability. In the company's third quarter, net earnings were $10.3 million, compared with a loss of $1.8 million in the prior-year quarter. Sales in the most recent quarter were $458 million, down 25.0% from the year-ago quarter.

“This puts field leadership in a stronger position to help our operations drive profitability, to spend more time assisting the company with strategic growth initiatives, and it allows us to respond more quickly to the many growth opportunities we see in the field every day,” said Pat Webster, president and COO.

Universal also announced the appointment of Michael Mordell to executive VP purchasing. Mordell, an industry veteran and 16-year Universal manager, will oversee the newly integrated purchasing company, and replaces David Phelps, who is retiring. Additionally, the company’s legal entity structure is being modified to more closely reflect its management structure.

Added Scott Greene: “We are making these changes to drive faster growth. By concentrating on a smaller entity, I’ll be able to have a bigger impact on our facilities’ success. I’ll also have more time to spend with customers and on potential acquisitions, and I look forward to the challenges and opportunities these changes present.”