Woodworking Company — Woody ized custom furniture and cabinet making company, with ive Offi The Custom Woodworking Company is a small-to-medium head-office and a spacious plant site at Industrial Estates. 1's Chairman and Chief Exe: cer is Ron Carpenter how in his late-sisties, His wife Mrs. Emelia Carpenter, being an aggressive business woman and somewhat your than her husband, now effectively runs the company. Ron Carpenter is affectionately known to all as "Woody" and so the company is generally known as "Woodys". Woody, afler an apprenticeship as a cabinet maker, started his small furniture manufacturing business back in 1954 and he and his wife moved to their present location in 1959. More recently their son, John Carpenter, has joined the company's inanagement alter having obtained a commerce degree at the local university. At John Carpenter's insistence, lured by longer production runs and higher and more consistent anarkeups, the company has moved into subcontract work supplying and installing counter-tops, cabinets and similar fixtures for new commercial construction. To date, Woody's has established a well-founded reputation for supplying jom millwork, and milhvork to the construction industry, Woody's business profile is Furniture manufacturing, cu hardwood importer; federal charter 1960; privately held; number of employees approx. $50. Major Shareholder Emolia Hollings Lid, At December 31, 199X. total assets were $181,000,000. In fiscal 199X, sales was $93.250,000 with net earnings of $6,540,000. In 1989 there was a mini-boom in commercial construction in south-western BC. With the possibility of a major airport expansion, and free-trade opportunities south of the border, Bruce Sharpe (VP Sales and Estimating) persuaded Woody's directors that they were well placed to expand their manufacturing business. Miles Faster (VP Production), he regularly complainin jeney was t 12 thwarted by lack of manufacturing space. that the company’s production & Je pitels to John Carpenter for moving to" completely new and more madern facilities. John Carpenter, with a vision of rowth basec! on computer controtled automation, taiked over the idea with his father, Woody discussed it swith his wife who in turn brought Kim Cashman (Executive Vice President) and Spencer Moneyworth (VP Finance and Administration) into the debate. It was agreed at the meeti would be added 12 that additional production capacity equivalent to 25% of the existing Noor area, The opportunity would also be taken to install air-conditioning and a dust- fice paint aad finishing shop complete with additional compressor capacity. Equipment would include a semi- automatic woodworking production train, requiring the development and installation of software and hardware to run it, The President and Executive Vice Presidents’ offices would also be renovated. At the meeting, the total cost of the ‘work, not including office renovation, was roughly estimated at $17 million, Woody agreed to commit the company’ to 4 budget of $17 million as an absolute maximum for all proposed work and the target date for produetion would be ciahteen months trom now. To give Woods's personnel a feeling of ownership, Molly Bussell proposed that the project Juouldl be galled Woodly 2000, Spencer Moneysworth would take responsibifity for Project Woody 2000. ow his adminis Moneysworth was keen to s rative abilities, He decided not to involve the production people as they were always too busy and, anyway, that would only delay progress. So, not one for wasting time (on Page 1 of 2planning) Moneysworth immediately invited Expert Industrial Developers (FID) to quote on the planned expansion. He reasoned that this contractor's prominence on the industrial estate and their knowledge of industrial work would result in a lower total project cos Site clearing was tackled early on with little difficulty. However, as the main construction got into full swing some eight months tater, more significant problems began to appear. The change in production train specification made it neces ry to add another fi feet to the length of the new building. This was only discovered when holding-down bolts for the new train were laid out on site, long after the perimeter foundations had been poured. The catalogue deseriptions and specifications for other equipment selected were similarly not received and reviewed until after the foundations had been poured. Page 2 of 2