UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the Quarterly Period Ended December 30, 2000

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


   For the Transition Period From ____________________To ____________________

                         Commission File Number 2-18868

                       KNAPE & VOGT MANUFACTURING COMPANY
             (Exact name of registrant as specified in its charter)

              Michigan                                  38-0722920
      (State of Incorporation)                (IRS Employer Identification No.)

        2700 Oak Industrial Drive, NE
           Grand Rapids, Michigan                         49505
  (Address of principal executive offices)              (Zip Code)

                                 (616) 459-3311
                               (Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                             YES __X__   NO ______

        2,266,932 common shares were outstanding as of January 26, 2001.
        2,350,207 Class B common shares were outstanding as of January 26, 2001.
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                                      INDEX

                                                                        Page No.

PART I.  FINANCIAL INFORMATION

    Item 1.  Financial Statements.

             Condensed Consolidated Balance Sheets
             --December 30, 2000 and July 1, 2000..............................2

             Condensed Consolidated Statements of Income
             --Six Months and Three Months Ended December 30, 2000
             and January 1, 2000...............................................3

             Condensed Consolidated Statements of Cash Flows
             --Six Months Ended December 30, 2000 and January 1, 2000..........4

             Notes to Condensed Consolidated Financial Statements............5-7

    Item 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations............................8-10

    Item 3.  Quantitative and Qualitative Disclosures About Market Risk.......11

PART II. OTHER INFORMATION

    Item 4.  Submission of Matters to a Vote of Security Holders..............12

    Item 6.  Exhibits and Reports on Form 8-K.................................12

SIGNATURES....................................................................13


                                       1
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
                                                                                  (Unaudited)            (Audited)
                                                                                Dec. 30, 2000         July 1, 2000
                                                                              ---------------       --------------
<S>                                                                            <C>                  <C>
Assets

Current assets
         Cash and equivalents                                                  $    2,496,026       $    2,351,622
         Accounts receivable - net                                                 19,389,316           20,631,951
         Inventories                                                               16,063,404           15,092,393
         Prepaid expenses and other                                                 3,160,807            3,133,098
                                                                               --------------       --------------
Total current assets                                                               41,109,553           41,209,064
                                                                               --------------       --------------
Property, plant and equipment                                                      78,821,261           73,632,488
Less accumulated depreciation                                                      38,056,161           35,270,625
                                                                               --------------       --------------
Net property, plant and equipment                                                  40,765,100           38,361,863
                                                                               --------------       --------------
Goodwill                                                                            5,320,127            4,978,420
Other assets                                                                        3,308,206            3,738,305
                                                                               --------------       --------------
                                                                               $   90,502,986       $   88,287,652
                                                                               ==============       ==============

Liabilities and Stockholders' Equity

Current liabilities
         Accounts payable                                                      $   11,645,678       $   12,833,665
         Other accrued liabilities                                                  9,291,806           11,997,006
                                                                               --------------       --------------
Total current liabilities                                                          20,937,484           24,830,671
                                                                               --------------       --------------
Long-term debt                                                                     24,130,000           20,050,000
Deferred income taxes and other long-term liabilities                               8,614,945            8,700,351
                                                                               --------------       --------------
Total liabilities                                                                  53,682,429           53,581,022
                                                                               --------------       --------------
Stockholders' Equity

Common stock (Common - 2,266,932 and 2,222,852 shares issued,
       Class B common - 2,350,207 and 2,392,853 shares issued,
       Preferred - unissued)                                                        9,234,278            9,231,410
Additional paid-in capital                                                          8,493,446            8,482,908
Unearned stock grant                                                                  (94,500)             (94,500)
Accumulated other comprehensive income:
       Foreign currency translation adjustment                                        (65,814)             (39,172)
       Derivative adjustment                                                         (217,592)                   -
       Minimum supplemental executive retirement plan
          liability adjustment                                                     (1,129,914)          (1,130,405)
Retained earnings                                                                  20,600,653           18,256,389
                                                                               --------------       --------------
Total stockholders' equity                                                         36,820,557           34,706,630
                                                                               --------------       --------------
                                                                               $   90,502,986       $   88,287,652
                                                                               ==============       ==============
</TABLE>
See accompanying notes.

                                       2
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
<TABLE>
                                                           For the Six Months Ended                 For the Three Months Ended
                                                           ------------------------                 --------------------------
                                                    Dec. 30, 2000          Jan. 1, 2000         Dec. 30, 2000         Jan. 1, 2000
                                                   ---------------        ---------------      --------------        --------------
<S>                                                <C>                    <C>                  <C>                   <C>
Net sales                                           $   72,660,202        $   71,486,514       $   35,702,652        $   35,798,890

Cost of sales                                           52,484,402            52,169,347           26,100,578            25,875,233
                                                    --------------        --------------       --------------        --------------
Gross profit                                            20,175,800            19,317,167            9,602,074             9,923,657

Selling and administrative expenses                     13,468,904            12,166,141            6,702,758             6,268,392
                                                    --------------        --------------       --------------        --------------

Operating income                                         6,706,896             7,151,026            2,899,316             3,655,265

Other expenses                                             855,429               689,871              418,744               371,922
                                                    --------------        --------------       --------------        --------------

Income before income taxes                               5,851,467             6,461,155            2,480,572             3,283,343

Income taxes                                             2,055,000             2,286,000              865,000             1,153,000
                                                    --------------        --------------       --------------        --------------

Net income                                          $    3,796,467        $    4,175,155       $    1,615,572        $    2,130,343
                                                    ==============        ==============       ==============        ==============
Basic earnings per share:
Net income per share                                $         0.82        $         0.89       $         0.35        $         0.45
                                                    ==============        ==============       ==============        ==============

Weighted average shares outstanding                      4,616,037             4,708,559            4,617,075             4,696,450

Diluted earnings per share:
Net income per share                                $         0.82        $         0.89       $         0.35        $         0.45
                                                    ==============        ==============       ==============        ==============

Weighted average shares outstanding                      4,618,595             4,713,030            4,618,174             4,699,685

Cash dividend - common stock                        $          .33        $          .30       $         .165        $          .15

Cash dividend - Class B common stock                $          .30        $         .273       $          .15        $         .136
</TABLE>
See accompanying notes.

                                       3
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
                                                                                Six Months Ended
                                                                                ----------------
                                                                     Dec. 30, 2000           Jan. 1, 2000
                                                                    ---------------         --------------
<S>                                                                 <C>                     <C>
Operating Activities:
         Net income                                                 $    3,796,467          $    4,175,155
         Non-cash items:
             Depreciation and amortization                               3,077,111               2,909,397
             Deferred income taxes                                        (168,000)               (177,000)
             Other long-term liabilities                                   196,818                 232,024
             Loss on disposal of fixed assets                              114,821                   3,947
             Changes in operating assets and liabilities:
                     Accounts receivable                                 1,222,982                (385,370)
                     Inventories                                          (971,011)               (294,933)
                     Other current assets                                  (29,532)                (35,660)
                     Accounts payable and accrued expenses              (5,122,829)              1,317,205
                                                                    --------------          --------------
         Net cash provided by operating activities                       2,116,827               7,744,765
                                                                    --------------          --------------

Investing Activities:
         Additions to property, plant and equipment                     (4,563,460)             (3,522,911)
         Net cash paid for acquisition                                           -              (5,267,877)
         Changes in other non-current assets                               (19,414)                107,366
                                                                    --------------          --------------
         Net cash used for investing activities                         (4,582,874)             (8,683,422)
                                                                    --------------          --------------

Financing Activities:
         Cash dividends paid                                            (1,452,203)             (1,343,915)
         Proceeds from issuance of common stock                             15,922                 184,741
         Repurchase and retirement of common stock                         (20,537)             (1,000,258)
         Borrowings on long-term debt                                    4,080,000               3,070,000
                                                                    --------------          --------------
         Net cash provided by financing activities                       2,623,182                 910,568
                                                                    --------------          --------------

Effect of Exchange Rate Changes on Cash                                    (12,731)                 17,849
                                                                    --------------          --------------

Net Increase (Decrease) in Cash and Equivalents                            144,404                 (10,240)

Cash and equivalents, beginning of year                                  2,351,622               1,621,002
                                                                    --------------          --------------

Cash and equivalents, end of period                                 $    2,496,026          $    1,610,762
                                                                    ==============          ==============

Cash Paid During the Period - interest                              $      749,970          $      664,351
                            - income taxes                          $    2,530,000          $    2,440,000
Non-Cash Activities:
      Accrual of purchase price earn-out                            $      505,745          $            -
      Accrual of capital expenditures                               $      752,696          $      135,674
</TABLE>
See accompanying notes.

                                       4
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note 1 - Basis of Financial Statement Preparation

The  accompanying  unaudited  condensed  consolidated  financial  statements and
related notes have been prepared  pursuant to the rules and  regulations  of the
Securities  and Exchange  Commission.  The  information  furnished  reflects all
adjustments,  which are,  in the  opinion of  management,  necessary  for a fair
statement  of the results of  operations  and  consist of only normal  recurring
adjustments.  Interim results are not necessarily  indicative of the results for
the year-end and are subject to year-end  adjustments,  and audit by independent
public  accountants.  The balance sheet at July 1, 2000, has been taken from the
audited financial statements at that date. The condensed  consolidated financial
statements  and notes  should be read in  conjunction  with the  Company's  2000
annual report.

Effective  July 1,  1999,  the  Company  adopted a 52- or 53-week  fiscal  year,
changing the year-end date from June 30 to the Saturday nearest the end of June.

Certain prior year  information has been  reclassified to conform to the current
year presentation.

Note 2 - Common Stock and Per Share Information

Common  stock  is $2 par - shares  authorized  6,000,000  of  common  stock  and
4,000,000 of Class B common stock.

The following  table  reconciles  the numerators  and  denominators  used in the
calculations of basic and diluted EPS for each of the periods presented:
<TABLE>
                                                   For the six months ended                     For the three months ended
                                                   ------------------------                     --------------------------
                                               Dec. 30, 2000        Jan. 1, 2000            Dec. 30, 2000          Jan. 1, 2000
                                              --------------       --------------          --------------         --------------
<S>                                           <C>                  <C>                     <C>                    <C>
Numerators:
  Numerator for both basic and
  diluted EPS, net income                         $3,796,467           $4,175,155              $1,615,572             $2,130,343
                                              ==============       ==============          ==============         ==============
Denominators:
  Denominator for basic EPS,
  weighted-average common shares
  outstanding                                      4,616,037            4,708,559               4,617,075              4,696,450
  Potentially dilutive shares
  resulting from stock option plans                    2,558                4,471                   1,099                  3,235
                                              --------------       --------------          --------------         --------------
  Denominator for diluted EPS                      4,618,595            4,713,030               4,618,174              4,699,685
                                              ==============       ==============          ==============         ==============
</TABLE>

The following  exercisable stock options were not included in the computation of
diluted EPS because the option prices were greater than average quarterly market
prices.
<TABLE>
                                              Dec. 30, 2000                 Jan. 1, 2000
                                             ---------------               -------------
<S>                                          <C>                              <C>
Exercise Price
 $13.64                                               -                       22,688
 $14.09                                          21,450                       22,000
 $16.74                                          11,192                       11,495
 $18.18                                          10,450                       11,000
</TABLE>
                                       5
<PAGE>
Note 3 - Inventories

Inventories  are  valued  at the  lower of FIFO  (first-in,  first-out)  cost or
market. Inventories are summarized as follows:
<TABLE>
                              Dec. 30, 2000             July 1, 2000
                              -------------             ------------
<S>                           <C>                       <C>
Finished products             $  10,533,291             $   8,778,556
Work in process                   2,057,096                 2,339,958
Raw materials                     3,473,017                 3,973,879
                              -------------             -------------
Total                         $  16,063,404             $  15,092,393
                              =============             =============
</TABLE>
Note 4 - Adoption of New Accounting Standard

The  Company  adopted  Statement  of  Financial  Accounting  Standards  No. 133,
"Accounting for Derivative Instruments and Hedging Activities," on July 2, 2000.
The Company uses an interest-rate swap to convert a portion of its variable-rate
revolver to a fixed  rate.  The  resulting  cost of funds is lower than it would
have  been  had  fixed-rate  borrowings  been  issued  directly.  The  level  of
fixed-rate debt, after the effects of interest-rate  swaps have been considered,
is  between  85 and 95  percent  of the  Company's  total  outstanding  debt  of
$24,130,000 at December 30, 2000 and $20,050,000 at July 1, 2000.

In accordance with the transition  provisions of FAS 133, the Company recorded a
net-of-tax  cumulative-effect-type adjustment in accumulated other comprehensive
income to recognize  the fair value of the  interest-rate  swap  designated as a
cash-flow hedging instrument.  The derivative was also recognized as a liability
on the balance sheet at its fair value of $334,592.

The Company has formally  documented the relationship  between the interest-rate
swap and the revolver, as well as its risk-management objective and strategy for
undertaking the hedge transaction.  This process includes linking the derivative
that has been designated as a cash-flow  hedge to the specific  liability on the
balance sheet. The Company also formally assesses, both at the hedge's inception
and on an ongoing basis,  whether the derivative used in the hedging transaction
is highly effective in offsetting  changes in the cash flows of the hedged item.
If it is determined  that the  derivative is not highly  effective as a hedge or
that it has ceased to be a highly  effective hedge, the Company will discontinue
hedge accounting prospectively.


Note 5 - Comprehensive Income

Comprehensive income is comprised of net income and all changes to stockholders'
equity, except those due to investments by owners and distributions to owners.

Comprehensive income and its components consist of the following:
<TABLE>
                                                       For the Six Months Ended                For the Three Months Ended
                                                       ------------------------                --------------------------
                                                   Dec. 30, 2000        Jan. 1, 2000        Dec. 30, 2000        Jan. 1, 2000
                                                  ---------------      --------------      ---------------      -------------
<S>                                                 <C>                <C>                   <C>                <C>
Net income                                         $ 3,796,467         $ 4,175,155           $ 1,615,572         $ 2,130,343
Other comprehensive income:
  Foreign currency translation adjustment              (26,642)             37,336                 6,645              38,352
  Derivative adjustment                               (217,592)                  -              (461,611)                  -
  Minimum SERP liability adjustment                        491                (762)                 (266)               (830)
                                                  ------------        ------------          ------------        ------------
Comprehensive income                               $ 3,552,724         $ 4,211,729           $ 1,160,340         $ 2,167,865
                                                  ============        ============          ============        ============
</TABLE>
                                       6
<PAGE>
Note 6 - Assets Held for Sale

During  fiscal 2000,  the Company  offered its former  powder coat  facility for
sale.  As a result of this  decision,  the  related  assets of  $1,779,405  were
transferred  to the  category  "Net Assets Held for Sale" and a loss of $105,000
was  recorded in the fourth  quarter of fiscal  2000.  In July 2000,  management
entered into a Buy/Sell agreement for the facility,  however,  the purchaser was
unable to close the  transaction  and the  building  remains  listed with a real
estate broker. The loss was determined based upon this Buy/Sell agreement.

Note 7 - Acquisition

On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries,  Inc. (Idea).  Idea designed,  manufactured  and marketed  ergonomic
products, including adjustable keyboard mechanisms,  keyboard and computer mouse
platforms,  wrist rests and CPU holders.  The acquisition was recorded using the
purchase method of accounting.  Accordingly, the purchase price was allocated to
the assets acquired and liabilities assumed,  based on the estimated fair values
at the date of the  acquisition.  The cost of the  acquisition  in excess of net
identifiable  assets  acquired  has  been  recorded  as  goodwill  and is  being
amortized on a straight-line basis over 15 years.

The terms of the Idea acquisition agreement provide for additional consideration
to be paid if Idea's sales exceed certain targeted levels. The maximum amount of
contingent  consideration  was $550,000  payable  through 2001. In calendar year
1999, the additional consideration payment was $44,255 and in calendar year 2000
the remaining contingent  consideration was earned. All additional consideration
paid was recorded as goodwill.

The results of the acquisition  were not material to the Company's  consolidated
operating  results,  therefore  pro  forma  financial  statements  have not been
prepared.

Note 8 - Restricted Stock and Performance-Option Plan

On February 1, 2000, William Dutmers, Chairman of the Board, President and Chief
Executive Officer of Knape & Vogt, was granted 6,600 shares of restricted common
stock and the option to purchase an  additional  27,500  shares of the Company's
common stock at a price of $14.43 per share. The grant and the options will vest
if the  Company  achieves  specific  financial  objectives  within  a  five-year
performance  period.  During the  performance  period,  the grantee may vote and
receive  dividends  on the  restricted  shares,  but the shares  are  subject to
transfer  restrictions and are forfeited if the grantee terminates employment or
the Company does not achieve its financial objectives.

Note 9 - Stock Repurchase

On  September 1, 1998,  the Company  announced  its  intention to purchase up to
1,320,000  shares of the  Company's  common  stock  pursuant to a Dutch  Auction
self-tender  offer at a price  range of  $17.27 to $20 per  share.  The Board of
Directors  also  approved  the  purchase  in the  open  market  or in  privately
negotiated  transactions,  following  the  completion of the Dutch  Auction,  of
shares of common  stock in an amount which when added to the number of shares of
common stock  purchased in the Dutch  Auction would equal  1,485,000.  The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,353,862  shares
at a price of $19.09 per share.

At each of the January 22,  1999,  and the August 20,  1999,  Board of Directors
meetings,  the  Board  approved  an  additional  440,000  shares  for the  stock
repurchase  program.  Utilizing  these  Board  authorizations,  the  Company has
purchased  635,150  shares  through  the  second  quarter  of  fiscal  2001  for
approximately  $9.3 million with the price per share ranging from  approximately
$12 to $17.

                                       7
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Certain  matters  discussed in this section include  forward-looking  statements
involving  risks  and  uncertainties.  When  used in this  document,  the  words
"believes,"  "expects,"  "anticipates,"  "goal," "think," "forecast," "project,"
and similar expressions  identify  forward-looking  statements.  Forward-looking
statements include, but are not limited to, statements concerning future revenue
and net  income  growth.  Such  statements  are  subject  to  certain  risks and
uncertainties,  which would cause actual results to differ materially from those
expressed or implied by such forward-looking  statements.  Readers are cautioned
not to place undue reliance on those forward-looking  statements that speak only
as of the date of this report.


RESULTS OF OPERATIONS

Net Sales

The  following  table  indicates  the  Company's  net  sales (in  millions)  and
percentage of total sales by product  category for the six-month and three-month
periods ended December 30, 2000 and January 1, 2000:
<TABLE>
                                          Six Months Ended                                   Three Months Ended
                                          ----------------                                   ------------------
                           Dec. 30,                    Jan. 1,                     Dec. 30,                  Jan. 1,
                             2000         %             2000          %              2000         %           2000           %
                       ------------------------  -------------------------   ------------------------  -------------------------
<S>                        <C>          <C>            <C>         <C>             <C>        <C>           <C>          <C>
Shelving systems             $20.1       27.6%          $24.6       34.4%            $9.4      26.3%          $12.3       34.3%
Drawer slides                 33.8       46.5%           33.6       47.0%            16.7      46.8%           16.7       46.7%
Hardware/ Other               18.8       25.9%           13.3       18.6%             9.6      26.9%            6.8       19.0%
                       ------------------------  -------------------------   ------------------------  -------------------------
Total                        $72.7      100.0%          $71.5      100.0%           $35.7     100.0%          $35.8      100.0%
                       ========================  =========================   ========================  =========================
</TABLE>

Net sales for the second  quarter  and the first six months of fiscal  2001 were
relatively  flat  compared  to the prior  fiscal  year.  This was in large  part
attributable  to the soft economic  conditions in the market.  During the second
quarter,  many of the Company's  distribution and retail customers reduced their
purchase  levels and lowered the inventory  levels that they were carrying.  The
Company did,  however,  realize growth in the office furniture market with sales
of its precision drawer slides and ergonomic products.

Gross Profit

Gross profit, as a percentage of net sales, was 26.9% for the second quarter and
27.8% for the first six  months of  fiscal  2001  compared  to 27.7% and  27.0%,
respectively,  for the same periods in the prior year.  The lower sales  volumes
during the second  quarter of fiscal 2001 made it  difficult  for the Company to
effectively  leverage its fixed  overhead  costs.  In addition,  the  disruption
associated with the consolidation of operations at the Muncie,  Indiana facility
resulted in lower margins during the quarter.

Operating Expenses

Selling and  administrative  expenses,  as a percentage of net sales, were 18.8%
for the  second  quarter  and  18.5% for the  first  six  months of fiscal  2001
compared  to 17.5% and 17.0%,  respectively,  for the same  periods in the prior
year.  The increase was  primarily  attributable  to the fact that the ergonomic
product line has a higher  level of selling  costs  associated  with it than the
Company's other product lines.  In addition,  the Company has continued to incur
higher selling costs to ready its new products for launch into the market.

                                       8
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)


Other Expenses

Interest  expense was  $407,534  for the quarter and $788,927 for the six months
ended December 30, 2000, compared with $362,513 and $688,861,  respectively, for
the same  periods in the prior  year.  The  increase  in  interest  expense  was
attributable to the higher level of borrowings during fiscal 2001.

Other net  miscellaneous  expense was $11,210 for the second quarter and $66,502
for the first six months of fiscal  2001.  This  compares  to $9,409 and $1,010,
respectively, for fiscal 2000.

Income Taxes

The effective tax rates for the quarter and six months ended  December 30, 2000,
were 34.9% and 35.1%  compared with the rates of 35.1% and 35.4%,  respectively,
for the same periods in the prior year.

Net Income

For the quarter ended  December 30, 2000, net income was $1,615,572 or $0.35 per
diluted  share  compared to $2,130,343 or $0.45 per diluted share for the second
quarter of last year. Net income of  $3,796,467,  or $0.82 per diluted share was
recorded for the first six months of fiscal 2001  compared with  $4,175,155,  or
$0.89 per diluted share for the same period in the prior year.

Liquidity and Capital Resources

Net cash from  operating  activities  for the first  six  months of fiscal  2001
provided $2,116,827 compared with $7,744,765 for the first six months of fi scal
2000.  The decrease was primarily  attributable  to higher  inventory  levels of
imported   product  and  a  decrease  in  accounts  payable  and  other  accrued
liabilities.  Accounts payable  decreased due to lower purchasing levels and the
cutoff of  payments  made at  quarter-end  as a result of the 52/53 week  fiscal
year. The decrease in other accrued liabilities  reflects the payment of certain
wage related accruals, specifically EVA bonuses and profit sharing.

Capital  expenditures  totaled  $4,563,460 for the six months ended December 30,
2000,  compared to  $3,522,911  for the six months  ended  January 1, 2000.  The
increased capital spending  reflected  investments in manufacturing  technology,
the completion of the new facility at the Indiana subsidiary and tooling for new
products.  There were no significant capital expenditure commitments at December
30, 2000.  Quarterly capital  expenditures during the second half of fiscal 2001
are  anticipated  to be lower  than the  levels  incurred  during  the first two
quarters of the fiscal year.

                                       9
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)

On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries,  Inc. (Idea).  Idea designed,  manufactured  and marketed  ergonomic
products, including adjustable keyboard mechanisms,  keyboard and computer mouse
platforms,  wrist rests and CPU holders.  The acquisition was recorded using the
purchase method of accounting.  Accordingly, the purchase price was allocated to
the assets acquired and liabilities assumed,  based on the estimated fair values
at the date of the  acquisition.  The cost of the  acquisition  in excess of net
identifiable  assets  acquired  has  been  recorded  as  goodwill  and is  being
amortized on a straight-line basis over 15 years.

The terms of the Idea acquisition agreement provide for additional consideration
to be paid if Idea's sales exceed certain targeted levels. The maximum amount of
contingent  consideration  was $550,000  payable  through 2001. In calendar year
1999, the additional consideration payment was $44,255 and in calendar year 2000
the remaining contingent  consideration was earned. All additional consideration
paid was recorded as goodwill.

On  September 1, 1998,  the Company  announced  its  intention to purchase up to
1,320,000  shares of the  Company's  common  stock  pursuant to a Dutch  Auction
self-tender  offer at a price  range of  $17.27 to $20 per  share.  The Board of
Directors  also  approved  the  purchase  in the  open  market  or in  privately
negotiated  transactions,  following  the  completion of the Dutch  Auction,  of
shares of common  stock in an amount which when added to the number of shares of
common stock  purchased in the Dutch  Auction would equal  1,485,000.  The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,353,862  shares
at a price of $19.09 per share.

At each of the January 22,  1999,  and the August 20,  1999,  Board of Directors
meetings,  the  Board  approved  an  additional  440,000  shares  for the  stock
repurchase  program.  Utilizing  these  Board  authorizations,  the  Company has
purchased  635,150  shares  through  the  second  quarter  of  fiscal  2001  for
approximately  $9.3 million with the price per share ranging from  approximately
$12 to $17. Since the beginning of the stock repurchase  program in fiscal 1999,
the Company has purchased 1,989,012 shares for approximately $35.7 million.

The  long-term  debt  balance  increased  to  $24,130,000  at December  30, 2000
compared with  $20,050,000 at July 1, 2000, and  $20,770,000 at January 1, 2000.
The increase reflects funds utilized for capital expenditures.

Anticipated  cash flows from operations and available  balances on the revolving
credit  line are  expected  to be  adequate  to fund  working  capital,  capital
expenditures and dividend payments.

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<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                    QUANTITATIVE AND QUALITATIVE DISCLOSURES
                                ABOUT MARKET RISK


The Company is exposed to market  risks,  which  include  changes in the foreign
currency  exchange rate as measured  against the U.S. dollar and changes in U.S.
interest  rates.  The Company  holds a derivative  instrument  in the form of an
interest rate swap,  which is viewed as a risk  management  tool and is not used
for trading or speculative purposes.  The intent of the interest rate swap is to
effectively fix the interest rate on part of the borrowings  under the Company's
variable rate revolving credit agreement.

Quantitative disclosures relating to financial instruments and debt are included
in the tables below.

The  following  table  provides  information  on the  Company's  fixed  maturity
investments  as of December 30, 2000,  that are sensitive to changes in interest
rates.  The table also  presents the  corresponding  interest  rate swap on this
debt.  Since the interest rate swap  effectively  fixes the interest rate on the
notional amount of debt, changes in interest rates have no current effect on the
interest  expense  recorded by the Company on the portion of the debt covered by
the interest rate swap.

<TABLE>
Liability                                            Amount                     Maturity Date
---------                                            ------                     -------------
<S>                                                  <C>                        <C>
Variable rate revolving credit
  agreement                                          $45 million                November 1, 2004
First $20,000,000 at an interest rate
  of 6.715% plus weighted average
  credit spread of .4%
Amounts in excess of $20,000,000 have
  an interest rate of approximately 7.0%

Interest Rate Swap
------------------
Notional amount                                      $20 million                June 1, 2006
  Pay fixed/Receive variable - 6.73625%
  Pay fixed interest rate - 6.25%
</TABLE>

The  Company  has  a  sales  office  located  in  Canada.  Sales  are  typically
denominated  in  Canadian  dollars,  thereby  creating  exposures  to changes in
exchange rates. The changes in the Canadian/U.S. exchange rate may positively or
negatively affect the Company's sales, gross margins and retained earnings.  The
Company  attempts  to  minimize   currency   exposure  through  working  capital
management.  The Company  does not hedge its exposure to  translation  gains and
losses relating to foreign currency net asset exposures.

                                       11
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                           PART II. OTHER INFORMATION


Item 4.   Submission of Matters to a Vote of Security Holders

          (a)  Knape  &  Vogt   Manufacturing   Company's   Annual   Meeting  of
               Shareholders was held on October 13, 2000.

          (b)  Proxies were  distributed by Knape & Vogt  Manufacturing  Company
               pursuant to Regulation 14A under the  Securities  Exchange Act of
               1934. There was no opposition to management's  nominees as listed
               in the proxy statement and all nominees were elected.

                  The vote on the nominees was:
                                                      For             Withheld
                                                      ---             --------
                  John E. Fallon   (1) (2)         20,508,164         168,681
                  Gregory Lambert  (1) (3)          1,931,337         45,939

                  (1)  Term expires in 2003.
                  (2)  Elected by vote of  holders  of Common  stock and Class B
                       Common stock voting as a class.
                  (3)  Elected by vote of holders  of  Common stock  voting as a
                       class.

                  Members of the Board of  Directors  whose terms  have  not yet
                  expired are Thomas A.  Hilborn, Raymond E. Knape and Robert J.
                  Knape, terms expiring in 2001; and William R. Dutmers, Richard
                  S. Knape and Michael J. Kregor, terms expiring in 2002.


Item 6.   Exhibits and Reports on Form 8-K

          (a)     Exhibits
                  There were no exhibits for the three months ended December 30,
                  2000.

          (b)     Reports on Form 8-K
                  There were no reports  on Form 8-K  filed for the three months
                  ended December 30, 2000.



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<PAGE>
                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                              Knape & Vogt Manufacturing Company
                                                          (Registrant)




Date:  February 2, 2001                       /s/ William R. Dutmers
                                              William R. Dutmers
                                              Chairman, President and
                                              Chief Executive Officer

                                              /s/ Leslie J. Cummings
                                              Leslie J. Cummings
                                              Vice President of Finance and
                                              Treasurer



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