Building Materials closing two Calif. facilities

The housing market has still struggled nationwide, with California being one of the worst markets. Single-family housing permits in the area serviced by the two facilities being shut down declined to 1,877 during the first quarter, from 4,905 during the year-ago period, Stanley Wilson, president and chief operating officer of Building Materials, said in a statement.

With declines that sharp, Wilson said the costs of operating the facility were too high.

Building Materials will still provide services in the region through its facilities in Modesto, Calif. and Fresno, Calif.

About 30 employees work at the two facilities being shut down. Building Materials expects to complete the closures within two months.

Building Materials announced the plans to shut down the operations as a new report from the Commerce Department report showed new housing construction posted its biggest increase in more than two years. The growth in housing starts was mainly attributable to a spike in apartment construction, which can be volatile.