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Knock On Wood

If remodeling stays hot, this cabinet company could see solid profits.

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This story appears in the December 1997 issue of Entrepreneur. Subscribe »

The company: As one of the largest U.S. kitchen cabinet manufacturers, Winchester, Virginia-based American Woodmark Corp. assembles cabinets and sells them in stores like 84 Lumber, The and . A vertically integrated manufacturer, the company not only constructs its cabinets but also processes the lumber. It sells 60 percent of its cabinets to people remodeling their homes and 40 percent to home builders.

The markets: Kitchen cabinet manufacturing is a slow-growth industry. Still, American Woodmark is an interesting because of its consistent market-share gains, profit-margin improvement and willingness to explore new markets.

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