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 January 1, 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 ______

     2,065,279 common shares were outstanding as of January 28, 2000.
     2,188,928 Class B common shares were outstanding as of January 28, 2000.

The Exhibit Index appears on page 15.
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                                      INDEX

                                                                        Page No.

PART I.   FINANCIAL INFORMATION

     Item 1.  Financial Statements.

              Condensed Consolidated Balance Sheets
              --January 1, 2000 and June 30, 1999                              2

              Condensed Consolidated Statements of Income
              --Six Months and Three Months Ended January 1, 2000
                and December 31, 1998                                          3

              Condensed Consolidated Statements of Cash Flows
              --Six Months Ended January 1, 2000 and December 31, 1998         4

              Notes to Condensed Consolidated Financial Statements           5-7

     Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations                           8-11

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk      12

PART II.  OTHER INFORMATION

     Item 4.  Submission of Matters to a Vote of Security Holders             13

     Item 6.  Exhibits and Reports on Form 8-K                                13

SIGNATURES                                                                    14

EXHIBIT INDEX                                                                 15


                                        2
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>

                                                             (Unaudited)         (Audited)
                                                            Jan. 1, 2000       June 30, 1999
                                                          ----------------     ---------------
Assets
<S>                                                       <C>                  <C>
Current assets
     Cash and equivalents                                 $      1,610,762     $      1,621,002
     Accounts receivable - net                                  20,006,284           18,930,039
     Inventories                                                13,695,285           13,149,649
     Prepaid expenses and other                                  2,076,447            2,008,809
                                                          ----------------     ----------------
Total current assets                                            37,388,778           35,709,499
                                                          ----------------     ----------------

Property, plant and equipment                                   70,517,887           66,656,411
Less accumulated depreciation                                   33,850,786           31,357,471
                                                          ----------------     ----------------
Net property, plant and equipment                               36,667,101           35,298,940
                                                          ----------------     ----------------

Goodwill                                                         5,100,890              575,433
Other assets                                                     3,058,338            3,476,117
                                                          ----------------     ----------------

                                                          $     82,215,107     $     75,059,989
                                                          ================     ================

Liabilities and Stockholders' Equity

Current liabilities
     Accounts payable                                     $     10,538,585     $      9,129,514
     Other accrued liabilities                                   9,011,376            8,444,285
                                                          ----------------     ----------------
Total current liabilities                                       19,549,961           17,573,799
                                                          ----------------     ----------------

Long-term debt                                                  20,770,000           17,700,000
Deferred income taxes and other long-term liabilities            8,076,426            8,027,405
                                                          ----------------     ----------------
Total liabilities                                               48,396,387           43,301,204
                                                          ----------------     ----------------

Stockholders' Equity
Common stock (Common - 2,074,964 and 2,073,148
             shares issued,  Class B common -
             2,188,928 and 2,238,227 shares issued,
             Preferred - unissued)                               8,527,774            8,622,750
Additional paid-in capital                                       3,696,512            4,409,415
Accumulated other comprehensive income:
       Foreign currency translation adjustment                       7,353              (29,983)
       Minimum supplemental executive retirement plan
          liability adjustment                                    (449,385)            (448,623)
Retained earnings                                               22,036,466           19,205,226
                                                          ----------------     ----------------
Total stockholders' equity                                      33,818,720           31,758,785
                                                          ----------------     ----------------

                                                          $     82,215,107     $     75,059,989
                                                          ================     ================
</TABLE>
See accompanying notes.

                                        3
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
<TABLE>
                                                    For the Six Months Ended              For the Three Months Ended
                                                    ------------------------              --------------------------
                                               Jan. 1, 2000       Dec. 31, 1998       Jan. 1, 2000         Dec. 31, 1998
                                               ------------       -------------       ------------         -------------
<S>                                          <C>                 <C>                 <C>                 <C>
Net sales                                    $   71,486,514      $    80,037,720     $   35,798,890      $    36,359,076

Cost of sales                                    52,169,347           61,490,520         25,875,233           27,705,780
                                             --------------      ---------------     --------------      ---------------
Gross profit                                     19,317,167           18,547,200          9,923,657            8,653,296

Selling and administrative expenses              12,166,141           12,899,773          6,268,392            6,691,504

Impairment loss                                           -              600,000                  -              600,000
                                             --------------      ---------------     --------------      ---------------
Operating income                                  7,151,026            5,047,427          3,655,265            1,361,792

Other expenses (income)                             689,871             (330,727)           371,922              (44,380)
                                             --------------      ---------------     --------------      ---------------
Income before income taxes                        6,461,155            5,378,154          3,283,343            1,406,172

Income taxes                                      2,286,000            1,831,000          1,153,000              381,000
                                             --------------      ---------------     --------------      ---------------
Net income                                   $    4,175,155      $     3,547,154     $    2,130,343      $     1,025,172
                                             ==============      ===============     ==============      ===============
Basic earnings per share:
Net income per share                         $          .98      $          0.66     $          .50      $          0.21
                                             ==============      ===============     ==============      ===============
Weighted average shares outstanding               4,280,508            5,377,363          4,269,500            4,803,596

Diluted earnings per share:
Net income per share                         $          .97      $          0.66     $          .50      $          0.21
                                             ==============      ===============     ==============      ===============
Weighted average shares outstanding               4,284,573            5,395,805          4,272,441            4,814,648

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

Cash dividend - Class B common stock         $          .30      $           .30     $          .15      $           .15
</TABLE>

See accompanying notes.

                                        4
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
                                                                      Six Months Ended
                                                                      ----------------
                                                             Jan. 1, 2000        Dec. 31, 1998
                                                            --------------      ---------------
<S>                                                         <C>                 <C>
Operating Activities:
     Net income                                             $   4,175,155       $    3,547,154
     Non-cash items:
         Depreciation and amortization                          2,909,397            3,138,106
         Deferred income taxes                                   (177,000)            (284,295)
         Other long-term liabilities                              232,024              176,583
         Loss on disposal of fixed assets                           3,947                    -
         Impairment loss                                                -              600,000
         Stock grants earned                                            -              118,125
         Changes in operating assets and liabilities:
            Accounts receivable                                  (385,370)           3,550,016
            Inventories                                          (294,933)            (463,015)
            Other current assets                                  (35,660)           1,150,238
            Accounts payable and accrued expenses               1,317,205           (6,214,089)
                                                            -------------       --------------
     Net cash provided by operating activities                  7,744,765            5,318,823
                                                            -------------       --------------

Investing Activities:
     Additions to property, plant and equipment                (3,522,911)          (1,316,005)
     Sale of Hirsh subsidiary                                           -           18,129,569
     Net cash paid for acquisition                             (5,267,877)                   -
     Changes in other non-current assets                          107,366             (202,825)
                                                            -------------       --------------
     Net cash provided by (used for) investing activities      (8,683,422)          16,610,739
                                                            -------------       --------------

Financing Activities:
     Cash dividends paid                                       (1,343,915)          (1,697,275)
     Proceeds from issuance of common stock                       184,741              569,943
     Repurchase and retirement of common stock                 (1,000,258)         (27,544,264)
     Borrowings on long-term debt                               3,070,000            6,100,000
                                                            -------------       --------------
     Net cash provided by (used for) financing activities         910,568          (22,571,596)
                                                            -------------       --------------

Effect of Exchange Rate Changes on Cash                            17,849              (67,041)
                                                            -------------       --------------

Net Decrease in Cash and Equivalents                              (10,240)            (709,075)

Cash and equivalents, beginning of year                         1,621,002            3,057,158
                                                            -------------       --------------

Cash and equivalents, end of period                         $   1,610,762       $    2,348,083
                                                            ==============      ==============

Cash Paid During the Period  -  interest                    $     664,351       $      295,792
                             -  income taxes                $   2,440,000       $    2,359,000
</TABLE>
See accompanying notes.
                                        5
<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 June 30, 1999, 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  1999
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
                                             ------------------------              --------------------------
                                        Jan. 1, 2000        Dec. 31, 1998       Jan. 1, 2000        Dec. 31, 1998
                                        ------------        -------------       ------------        -------------
<S>                                     <C>                 <C>                 <C>                 <C>
Numerators:
  Numerator for both basic and
  diluted EPS, net income               $4,175,155          $3,547,154          $2,130,343          $1,025,172
                                        ==========          ==========          ==========          ==========
Denominators:
  Denominator for basic EPS,
  weighted-average common shares
  outstanding                            4,280,508           5,377,363           4,269,500           4,803,596
  Potentially dilutive shares
  resulting from stock option plans          4,065              18,442               2,941              11,052
                                        ----------          ----------          ----------          ----------
  Denominator for diluted EPS            4,284,573           5,395,805           4,272,441           4,814,648
                                       ===========          ==========          ==========          ==========
</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>
                                               Jan. 1, 2000               Dec. 31, 1998
                                             -----------------        ------------------
<S>                                          <C>                      <C>
Exercise Price
  $15.00                                               20,625                         -
  $15.50                                               20,000                         -
  $18.41                                               10,450                    14,575
  $20.00                                               10,000                    17,500
</TABLE>

Note 3 - Inventories

Inventories  are  valued  at the  lower of FIFO  (first-in,  first-out)  cost or
market.

                                        6
<PAGE>
Inventories are summarized as follows:
<TABLE>
                                         Jan. 1, 2000             June 30, 1999
                                         ------------             -------------
<S>                                     <C>                      <C>
Finished products                       $    8,429,521           $    8,523,866
Work in process                              1,730,034                1,634,904
Raw materials                                3,535,730                2,990,879
                                        --------------           --------------
Total                                   $   13,695,285           $   13,149,649
                                        ==============           ==============
</TABLE>

Note 4 - New Accounting Standards Not Yet Adopted

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounts Standard No. 133,  Accounting for Derivative  Instruments and
Hedging Activities. The statement requires companies to recognize all derivative
contracts on the balance sheet at fair value and establishes accounting rules or
changes in fair value that result from  hedging  activities.  The  statement  is
effective  for  fiscal  years  beginning  after  June 15,  2000.  Management  is
currently  evaluating  the impact that the  statement  may have on its financial
statements.

Note 5 - Comprehensive Income

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

Comprehensive income and its components consist of the following:
<TABLE>
                                                       For the Six Months Ended                 For the Three Months Ended
                                                       ------------------------                 --------------------------
                                                   Jan. 1, 2000         Dec. 31, 1998       Jan. 1, 2000        Dec. 31, 1998
                                                  --------------      ----------------    ----------------    ---------------
<S>                                               <C>                 <C>                 <C>                 <C>
Net income                                        $   4,175,155       $   3,547,154       $   2,130,343       $   1,025,172
Other comprehensive income:
  Foreign currency translation adjustment                37,336            (157,453)             38,352             (64,817)
  Minimum SERP liability adjustment                        (762)           (447,189)               (830)           (447,189)
                                                  -------------       -------------       -------------       -------------
Comprehensive income                              $   4,211,729       $   2,942,512       $   2,167,865       $     513,166
                                                  =============       =============       =============       =============
</TABLE>
Note 6 - Acquisition

On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries,  Inc.  ("Idea").  Idea designs,  manufactures and markets  ergonomic
office 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  financial  statements
reflect the preliminary  allocation of the purchase price.  Goodwill  associated
with the  acquisition  may be adjusted  pending  subsequent  finalization of the
closing balance sheet.

The terms of the Idea acquisition agreement provide for additional consideration
to be paid if Idea's sales exceed certain targeted levels. The consideration, if
earned,  will be paid in cash and recorded as  additional  purchase  price.  The
maximum amount of contingent consideration is $550,000 payable through 2001.

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

                                        7
<PAGE>
Note 7 - Sale of The Hirsh Company

On September 1, 1998,  the Company sold The Hirsh  Company  ("Hirsh"),  a wholly
owned  subsidiary.  This  resulted in a pre-tax loss of  $11,800,000,  which was
included  in the  June 30,  1998,  financial  results.  The  loss  included  the
write-off of the unamortized balance of goodwill recorded in connection with the
purchase  of Hirsh.  In  connection  with the sale,  the Company  recognized  an
additional tax cost of $1,000,000, resulting in a total loss related to the sale
of Hirsh of $12,800,000.

Note 8 - Stock Repurchase

On  September 1, 1998,  the Company  announced  its  intention to purchase up to
1,200,000  shares of the  Company's  common  stock  pursuant to a Dutch  Auction
self-tender  offer  at a price  range  of $19 to $22 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  1,350,000.  The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,230,784  shares
at a price of $21 per share.

At each of the January 22,  1999,  and the August 20,  1999,  Board of Directors
meetings,  the  Board  approved  an  additional  400,000  shares  for the  stock
repurchase  program.  Utilizing  these  Board  authorizations,  the  Company has
purchased  59,648  shares  during  the  first  six  months  of  fiscal  2000 for
approximately  $1.0 million with the price per share ranging from  approximately
$14.25 to $17.125.

                                        8
<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
growth,  and the expected ability of the Company and its key customers,  dealers
and  suppliers to  successfully  manage Year 2000 issues.  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 January 1, 2000 and December 31, 1998:
<TABLE>
                                         Six Months Ended                                       Three Months Ended
                                         ----------------                                       ------------------
                          Jan. 1,                       Dec. 31,                     Jan. 1,                   Dec. 31,
                           2000           %               1998          %             2000          %           1998          %
                         --------------------          ---------------------       --------------------       --------------------
<S>                      <C>            <C>            <C>          <C>            <C>         <C>             <C>         <C>
Shelving systems          $24.6         34.4%            $31.4        39.2%         $12.3        34.3%          $12.0        32.9%
Drawer slides              33.6         47.0%             36.3        45.3%          16.7        46.7%           18.7        51.3%
Hardware/ Other            13.3         18.6%             12.3        15.5%           6.8        19.0%            5.7        15.8%
                         ---------------------         ---------------------       --------------------      ---------------------
Total                     $71.5        100.0%            $80.0       100.0%         $35.8       100.0%          $36.4       100.0%
                         =====================         =====================       ====================      =====================
</TABLE>

Net sales for the second  quarter and first six months of fiscal 2000  decreased
$.6 million and $8.6 million,  respectively,  from the same periods in the prior
year.  Overall,  sales of precision drawer slides have increased during both the
second  quarter and the  six-month  period,  however,  the increase has not been
sufficient  to  offset  the  decline  in  certain   utility  slides  which  were
discontinued during fiscal 1999, as they were unprofitable. In addition, most of
the sales  decline for the  six-month  period i due to the  contribution  of The
Hirsh Company, which was sold in September 1998. Excluding its contribution, net
sales for the first six months of fiscal 1999 would have been $72.6 million.

Gross Profit

Gross profit, as a percentage of net sales, was 27.7% for the second quarter and
27.0% for the first six  months of  fiscal  2000  compared  to 23.8% and  23.2%,
respectively,  for the same  periods in the prior  year.  The  increase in gross
profit  during  fiscal  2000  reflects  the  Company's   restructuring  efforts,
including  the sale of The Hirsh  Company,  and its  emphasis on cost  reduction
combined with continuous  improvement in the manufacturing  process.  During the
second  quarter of fiscal  1999,  the  Company  recorded  a  $400,000  inventory
write-off for potentially  obsolete  inventory  related to certain product lines
that were discontinued.

Operating Expenses

Selling and  administrative  expenses,  as a  percentage  of net sales,  for the
second  quarter of fiscal 2000  decreased to 17.5% from 18.4% in the same period
in the prior year.  The prior year included  charges for severance  payments and
costs associated with the Company's strategic planning effort. For the six-month
period ended January 1, 2000, selling and general administrative  expenses, as a
percentage  of net sales,  increased to 17.0% from 16.1% in the prior year.  The
prior year included  Michigan Single  Business Tax refunds of $852,460  pre-tax.
Fiscal 2000  expenses  included  higher levels of spending  associated  with the
launch of certain new products and additional  development  costs being incurred
to bring other new products to market.

                                        9
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

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


As a result of the decision to re-deploy certain  production assets, the Company
recorded an  impairment  loss of $600,000 in the second  quarter of fiscal 1999.
This loss  reflected  the  write-down  of the  related  tooling  assets to their
estimated fair value.

Other Expenses/(Income)

Interest  expense was  $362,513  for the quarter and $688,861 for the six months
ended January 1, 2000,  compared with $188,613 and $305,778,  respectively,  for
the same  periods in the prior  year.  The  increase  in  interest  expense  was
attributable to the higher level of borrowings during fiscal 2000.

Other  miscellaneous  expense/(income)  was $9,409 for the  second  quarter  and
$1,010 for the first six months of fiscal 2000.  This compares to $(232,993) and
$(636,505),  respectively, for fiscal 1999. In fiscal 1999, the Company received
interest  income  on  Michigan  Single  Business  Tax  refunds  and  two  patent
infringement settlements.

Income Taxes

The  effective  tax rates for the quarter and six months ended  January 1, 2000,
were 35.1% and 35.4%  compared with the rates of 27.1% and 34.0%,  respectively,
for the same  periods in the prior year.  The  increase  from the prior year was
primarily due to foreign tax credits  recognized in the second quarter of fiscal
1999.

Net Income

For the quarter  ended  January 1, 2000,  net income was  $2,130,343 or $.50 per
diluted  share  compared to  $1,025,172 or $.21 per diluted share for the second
quarter of last year.  Net income of  $4,175,155,  or $.97 per diluted share was
recorded for the first six months of fiscal 2000  compared with  $3,547,154,  or
$.66 per  diluted  share  for the same  period in the prior  year.  Fiscal  1999
results included the impairment loss and related inventory  obsolescence reserve
recorded in the second quarter,  which decreased net income by $650,000 for both
the second  quarter and the fiscal  year.  This charge was  partially  offset by
income  recognized  in the first  quarter of fiscal 1999 on the Michigan  Single
Business Tax refunds and the two patent settlements of approximately $895,000.

Liquidity and Capital Resources

Net cash from  operating  activities  for the first  six  months of fiscal  2000
provided  $7,744,765 compared with $5,318,823 for the first six months of fiscal
1999.  Cash flows were positively  impacted by the increase in accounts  payable
and accrued  expenses.  The  conversion to a 52-week  fiscal year resulted in an
accounts payable increase due to timing of payments at the end of December.  The
increase in accrued  expenses  reflected an increase in certain  benefit-related
accruals such as pension and vacation.

Capital  expenditures  totaled  $3,522,911  for the six months ended  January 1,
2000,  compared to $1,316,005  for the six months ended  December 31, 1998.  The
increased  capital spending  reflects  investments in manufacturing  technology,
manufacturing  support systems and tooling for new products. At January 1, 2000,
the only  significant  capital  expenditure  commitment was for the new facility
being constructed at the Company's Indiana location.  The commitment for the new
building  approximated  $1.3 million.  Commitments for the related machinery and
equipment have not been signed. Capital expenditures during the remainder of the
fiscal year are anticipated to remain at  approximately  the same level as those
in the first six months.

                                       10
<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") for a purchase  price of  $5,267,877.  Idea designs,
manufactures  and  markets  ergonomic  office  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 financial statements reflect the preliminary allocation
of the purchase price.  Goodwill associated with the acquisition may be adjusted
pending subsequent finalization of the closing balance sheet.

The terms of the Idea acquisition agreement provide for additional consideration
to be paid if Idea's sales exceed certain targeted levels. The consideration, if
earned,  will be paid in cash and recorded as  additional  purchase  price.  The
maximum amount of contingent consideration is $550,000 payable through 2001.

In fiscal 1999,  the Company  recorded  $18,129,569 of proceeds from the sale of
the Hirsh subsidiary and the related loss in fiscal 1998.

On  September 1, 1998,  the Company  announced  its  intention to purchase up to
1,200,000  shares of the  Company's  common  stock  pursuant to a Dutch  Auction
self-tender  offer  at a price  range  of $19 to $22 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  1,350,000.  The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,230,784  shares
at a price of $21 per share.

At each of the January 22,  1999,  and the August 20,  1999,  Board of Directors
meetings,  the  Board  approved  an  additional  400,000  shares  for the  stock
repurchase  program.  Utilizing  these  Board  authorizations,  the  Company has
purchased  59,648  shares  during  the  first  six  months  of  fiscal  2000 for
approximately  $1.0 million with the price per share ranging from  approximately
$14.25 to $17.125. Since the beginning of the stock repurchase program in fiscal
1999,  the  Company  has  purchased  1,732,396  shares for  approximately  $34.4
million.

The long-term debt balance  increased to $20,770,000 at January 1, 2000 compared
with  $17,700,000  at June 30, 1999,  and  $15,800,000 at December 31, 1998. The
increase  from June 30,  1999,  reflects  funds  utilized to acquire  Idea.  The
increase from the December 31, 1998,  balance  reflects  funds  utilized for the
stock repurchase program.

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

Year 2000

In 1995,  the  Company  established  a Year  2000  task  force  for  Information
Technology  ("IT") which over the next four years  developed  and  implemented a
Year 2000  Readiness  Plan.  As a part of the plan,  the  Company  completed  an
inventory of the software  applications  used by the Company and  installed  its
corporate  information system software at its subsidiaries to improve efficiency
and facilitate Year 2000 compliance.  The Company's Readiness Plan also included
installing  software  releases to cause  software  utilized by the Company to be
Year 2000  compliant.  By December  1998, the Company had reached its goal to be
substantially  completed  with all Year 2000  compliance and all IT systems were
tested during 1999.

                                       11
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

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

In addition,  in  preparation  for Year 2000,  the Company  evaluated its non-IT
systems such as imbedded  chips in production  equipment  and personal  computer
hardware and software. Remediation of non-IT systems was substantially completed
by mid-1999  and during the  remainder  of the year,  the Company  finished  the
process of testing and  implementing the upgrade of its non-IT systems to become
Year 2000 compliant as new releases were available from software vendors.

In  addition  to  reviewing  its  internal  systems,   the  Company  had  formal
communications  with its significant  customers,  vendors and freight  companies
concerning Year 2000 compliance, including commerce.

The Company  completed its Year 2000  assessment and remediation by December 31,
1999, after spending approximately $885,850 on the Year 2000 issue.

As of February 4, 2000, the Company has not experienced  any materially  adverse
effects  on its  operations  as a result of the Year 2000  issue.  Nevertheless,
there is no assurance that the systems of other companies that interact with the
Company are  sufficiently  Year 2000 compliant so as to avoid any future adverse
impact  on  the  Company's  operations,   financial  condition  and  results  of
operations.  The Company does not believe that its products and services involve
any Year 2000 risks.



                                       12
<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 January 1, 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 6.11% plus weighted average
  credit spread of .625 %
Amounts in excess of $20,000,000 have
  an interest rate of approximately 5.97%

Interest Rate Swap
------------------
Notional amount                                   $20 million              June 1, 2006
  Pay fixed/Receive variable - 6.11%
  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.


                                       13
<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 15, 1999.

     (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
              William R. Dutmers   (1) (4)          18,678,863          587,635
              Thomas A. Hilborn    (2) (5)           1,673,876           30,662
              Richard S. Knape     (1) (4)          18,677,982          588,516
              Robert J. Knape      (2) (4)          18,675,738          590,760
              Michael J. Kregor    (1) (4)          18,635,254          631,244
              Gregory Lambert      (3) (5)           1,673,323           31,215

              (1)  Term expires in 2002.
              (2)  Term expires in 2001.
              (3)  Term expires in 2000.
              (4)  Elected by vote of holders of Common stock and Class B Common
                   stock voting as a class.
              (5)  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 John E. Fallon, term expiring in 2000, and Raymond E.
               Knape, term expiring in 2001.


Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

          See Exhibit Index

     (b)  Reports on Form 8-K
          There were no reports on Form 8-K filed for the three months ended
          January 1, 2000.


                                       14
<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 4, 2000                      /s/ William R. Dutmers
                                             William R. Dutmers
                                             Chairman, President and
                                             Chief Executive Officer,
                                             Principal Financial Officer




                                       15
<PAGE>
                                  EXHIBIT INDEX

1.1      First Amendment dated October 29, 1999, to Loan Agreement with Old Kent
         Bank - filed herewith.

(27)     Financial Data Schedule











                                       16
<PAGE>
                        FIRST AMENDMENT TO LOAN AGREEMENT


     THIS FIRST  AMENDMENT TO LOAN  AGREEMENT (the  "Amendment"),  is made as of
October 29, 1999, by and between KNAPE & VOGT MANUFACTURING  COMPANY, a Michigan
corporation  (the "Company") and OLD KENT BANK, a Michigan  banking  corporation
(the "Bank").

                                R E C I T A L S :

     A.   Company  and Bank have  signed a Loan  Agreement,  dated as of June 1,
          1999 (the "Loan Agreement"), providing for Bank to extend to Company a
          revolving bank credit of up to $45,000,000;

     B.   Company  and Bank  wish to amend the Loan  Agreement  on the terms and
          conditions set forth in this Amendment.

          NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

          1.   Restatement  of Warranties  and  Representations.  Company hereby
               confirms  to Bank that the  warranties  and  representations  set
               forth in the Loan Agreement were true, accurate and complete when
               made and remain  true,  accurate  and  complete as of the date of
               this Amendment.

          2.   No Events of Default;  Compliance with Covenants.  Company hereby
               confirms  and  acknowledges  to Bank that no event of default has
               occurred  under  the  Loan  Agreement  as of  the  date  of  this
               Amendment, and that as of the date of this Amendment, Company has
               complied with all of the affirmative  and negative  covenants set
               forth in the Loan Agreement.

          3.   Covenants.

               (a)  Section 4.9 of the Loan Agreement is amended in its entirety
                    to read as follows:

                    1.9      Maintain consolidated  Stockholders' Equity of  not
                             less  than $29,500,000 on and  after June 30, 1999,
                             increasing on  each  June 30 thereafter  by  50% of
                             Borrower's consolidated  net  income,  computed  in
                             accordance   with  GAAP for  Borrower's fiscal year
                             ending on that June 30.

               (b)  The following Section 5.9 is added to the Loan Agreement:

                    1.9      Permit  goodwill  on  the  Borrower's  consolidated
                             balance sheet to exceed $15,000,000 at any time.

          4.   Other Provisions Not Effected. Except as hereby amended, no other
               provisions  of the  Loan  Agreement  shall  be  amended  and  all
               provisions of the Loan Agreement shall  hereafter  remain in full
               and effect.

               IN WITNESS  WHEREOF,  the parties have signed and delivered  this
               Amendment on the date first written above.

                                KNAPE & VOGT MANUFACTURING COMPANY

                                /s/ Jack D. Poindexter
                                Chief Financial Officer, Treasurer and Secretary

                                OLD KENT BANK

                                /s/ Bryce E. Tallant
                                Vice President

                                       17