According to Manufacturing.net, Modular Closets is relocating its primary manufacturing operations from New Jersey to Kernersville, North Carolina in a $30 million development project. The company expects to create 100 jobs in the first year at the new facility, which will occupy a former Sara Lee manufacturing plant with renovations scheduled to begin in 2026. CEO Bernard Warman stated the move will help scale production, reduce delivery times, and continue offering closet solutions nationwide. This relocation follows the company’s previous onshoring initiative in 2020, marking the latest phase in its domestic manufacturing strategy. The company plans to offer a mix of on-site, hybrid, and remote positions at the new North Carolina hub.
The Evolution of Reshoring Strategy
Modular Closets’ move represents the maturation of reshoring from a defensive reaction to global supply chain disruptions into a sophisticated operational strategy. The company’s initial 2020 onshoring effort likely focused on basic supply chain security during pandemic-era disruptions. Now, they’re optimizing for long-term efficiency and growth by selecting a location that offers better logistics, labor markets, and operational costs. This pattern mirrors what we’re seeing across multiple industries—companies that initially brought production back for survival are now strategically relocating within the U.S. to maximize competitive advantages.
The Southern Manufacturing Corridor Emerges
North Carolina’s growing appeal for manufacturing relocations extends beyond simple cost advantages. The state has developed specialized infrastructure for furniture and component manufacturing, with established supply networks and skilled labor pools familiar with woodworking and assembly operations. The choice of a former Sara Lee facility is particularly telling—these existing industrial properties often come with pre-approved zoning, utility connections, and transportation access that can shave months off development timelines. We’re witnessing the formation of specialized manufacturing corridors where companies can tap into regional expertise while maintaining proximity to both raw materials and major markets.
The Hybrid Manufacturing Workforce
The company’s plan to offer “a mix of on-site, hybrid and remote positions” signals a fundamental shift in how manufacturers approach talent acquisition. Traditional manufacturing operations demanded 100% on-site presence, but forward-thinking companies are recognizing that certain roles—from design engineering to customer support and administrative functions—can effectively operate in hybrid models. This approach dramatically expands the potential talent pool, allowing companies to attract workers who might otherwise be unwilling to commute to industrial parks while maintaining core production teams on-site. Expect this blended workforce model to become standard across the manufacturing sector within three years.
Recalibrating National Distribution Networks
CEO Warman’s mention of reducing delivery times highlights how companies are rethinking national distribution strategies in the post-pandemic landscape. The Kernersville location positions Modular Closets more centrally within Eastern seaboard markets, potentially cutting shipping times to Southern and Midwestern customers by days while maintaining reasonable access to Northeast population centers. This geographic optimization reflects a broader recalculating of distribution economics, where the savings from reduced shipping costs and faster delivery times can justify significant relocation investments. Companies are increasingly willing to make substantial capital investments today to secure permanent operational advantages tomorrow.
Broader Implications for Domestic Manufacturing
This relocation exemplifies a trend that will accelerate through 2024-2025 as companies complete their post-pandemic strategic reviews. The combination of available industrial real estate, state-level incentives, and evolving workforce expectations is creating compelling business cases for manufacturing relocation within the U.S. We’re likely to see similar moves across consumer goods, electronics assembly, and automotive components as companies seek to balance cost efficiency with supply chain resilience. The successful execution of this strategy could position Modular Closets for accelerated market share growth while providing a blueprint for other mid-sized manufacturers considering similar geographic optimization.
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