It's pretty standard to build cabinetry out of plywood with veneer -- big enough sheets of nice straight flat actual hardwood would be ridiculously expensive if not totally unavailable -- today's trees/lumber do not compare to the trees of years past, which is why antique furniture is built out of solid wood and today's furniture isn't. That said, a good plywood with a nice veneer will be beautiful and pretty much indistuinguishable from solid wood. I am not familiar with Cali Closets, but we have a closet system from closetmaid and while perfectly functional in the closet, it is definitely fake looking and not an aesthetic I'd want to feature in my living area. In my experience, MDF with veneer never looks quite as good as plywood -- I don't know if it's the veneer they use or what, but the MDF I have seen has always had a thermofoil or paper-type veneer which looks bad and doesn't hold up. Maybe Cali closets uses a wood veneer though, in which case it would be about the same as plywood.

A local contractor will also be able to customize the shelves to fit your space, while cali closets may have basic sizes that you would be limited to -- I remember trying to figure out how to best span our closet with the 2 standard sizes of shelving units that closetmaid offered at the time. I also think you will probably end up with better construction from the local guy, as it will probably be custom built on-site and be less of a "modular" type construction.

As far as using the local contractor vs. a national franchise, I would get references from the local guy (with pictures or even an in-person visit if feasible) and don't overpay up front -- the risk of a local one-man-type guy is that he takes your deposit and runs. But that is rare, and getting references/checking licenses/vetting with the BBB should prevent most of that. In the end, I think you'll get a better end result from a good local carpenter than you will from Cali Closets but that's just MO, and like I said, I have never dealt with Cali Closets.

Two concerns. First would be the veneer on the edge of the shelves coming off if you drag a book over the edge. I've got several bookcases and while the shelves are plywood with veneer on the top and bottom, the edge facing the room has a strip of solid hardwood (cherry in my case) about 3/4" thick for durability. You can just make out the seam which goes under my index finger in the picture below. I'd suggest asking your carpenter for a new quote including a hardwood edge on the shelves.

Second, shelf sag. Consider the span of the shelves and how you intend to load them. Solid wood is best, of course, but that would cost a fortune. My plywood/veneer shelves span 24" and some are loaded with large, "coffee-table" type books. None sag, even after 20 years. When I bought these units, the furniture store saleslady verified the loading for me with the manufacturer. Be very careful with any chopped/ground/glued wood products for shelves with heavier loads (like books). They have a tendency to sag.

This post was edited by DreamingoftheUP on Thu, Feb 27, 14 at 9:15

Thank you both for your replies! DH and I met last night and looked over the situation and decided to go with the wood/carpenter.

LK: I think you are right about the thermofoil - I think that's exactly what it is, I just didn't know the word. They can do any size, it's not only modular - my problem though is the look of the thermofoil.
The carpenter was recommended by a friend, and is part of a larger construction firm in town, very well established - so I trust that he is reliable and upstanding.

And yes, Dreaming, I will talk to carpenter about edges. We have already discussed weight bearing, because some of the shelves will hold vinyl records, even heavier than books.

Thank you both again!