According to Manufacturing.net, Modular Closets, a manufacturer of customizable closet systems, is relocating its primary manufacturing operations from New Jersey to Kernersville, North Carolina. The company expects the $30 million development to create 100 jobs in the first year, with the new facility occupying a former Sara Lee manufacturing plant. Renovations are scheduled to begin in 2026, continuing the company’s onshoring strategy that began in 2020. CEO Bernard Warman stated the move will help scale production, reduce delivery times, and continue offering closet solutions nationwide through the company’s direct-to-consumer platform. This strategic relocation reflects broader manufacturing trends worth examining.
The Southern Manufacturing Migration Accelerates
Modular Closets’ move from New Jersey to North Carolina represents a well-established pattern of manufacturing migration to the Southeast that has accelerated post-pandemic. The region offers significant advantages including lower operating costs, more favorable regulatory environments, and access to growing consumer markets. What’s particularly interesting is their choice to repurpose a former Sara Lee facility – this adaptive reuse of existing industrial infrastructure has become increasingly common as companies seek to balance expansion speed with cost efficiency. The timeline for renovations beginning in 2026 suggests careful strategic planning rather than reactive decision-making.
Onshoring Momentum Meets Operational Reality
The company’s previous onshoring move in 2020 positioned them well for this expansion, but the transition from New Jersey to North Carolina presents both opportunities and challenges. While labor costs may be lower, the company will need to navigate workforce development and training in a new region. The planned mix of on-site, hybrid, and remote positions indicates they’re thinking strategically about talent acquisition in a competitive labor market. This approach could help them attract workers who might otherwise be drawn to the region’s growing tech and research sectors.
Supply Chain and Distribution Advantages
North Carolina’s strategic location offers significant logistics advantages for a company serving customers nationwide. The state’s extensive highway network and proximity to major East Coast ports could indeed help reduce delivery times as the CEO indicated. However, the transition period will be critical – maintaining production continuity while relocating manufacturing operations requires sophisticated supply chain management. Companies making similar moves often underestimate the complexity of transferring specialized manufacturing processes and maintaining quality standards during transition periods.
Impact on the Custom Storage Market
This expansion comes at a time when the custom storage and organization market is experiencing significant growth, driven by housing trends and increased focus on home improvement. Modular Closets’ ability to scale production could position them to capture more market share from both traditional closet companies and emerging direct-to-consumer competitors. The $30 million investment suggests confidence in sustained demand, but also raises questions about whether the custom closet market can support such capacity expansion across multiple competitors.
Broader Economic Development Implications
The creation of 100 jobs represents more than just employment numbers for the Kernersville area. It continues the transformation of former food manufacturing facilities toward different types of production, reflecting broader economic shifts. For North Carolina, this adds to the state’s growing manufacturing ecosystem beyond its traditional tobacco and furniture strengths. The success or challenges Modular Closets faces in this relocation could influence other companies considering similar moves and inform economic development strategies across multiple states competing for manufacturing investment.
