ABSTRACT FOR THE CATALINA REPORT ON KITCHEN CABINETS AND COUNTERTOPS
SUMMARY
OF MAJOR FINDINGS
The $15.4 billion U.S. cabinetwork and countertop market remains a growing
and profitable sector of the buildings material industry. Shipment gains
have benefited from a shift to more upscale wood cabinets and stone
countertops as the value of new and existing homes rise. An increasing
number of bathrooms per new housing unit have also given a boost to the
vanities business. Currently, low mortgage interest rates have resulted
in rising demand from builders of new single-family homes and remodeling
contractors. Relatively strong growth has contributed to rising plant profit
margins. Margin gains also reflect the consolidation of stock line cabinet
production into larger and more efficient plants as manufacturers exploit the
needs of the growing home center distribution channel.
CABINETWORK AND COUNTERTOP SHIPMENT TRENDS
Catalina Research has uncovered
these trends in our 206-page in-depth report on the North American cabinetwork and
countertop industry. Report sections cover the U.S. market for kitchen cabinets, bathroom
vanities and other cabinetwork, and countertop materials. Cabinetwork shipments are further
segmented by stock line, semi-custom, and custom cabinets, and by wood and laminate kitchen
cabinets. Countertop material shipments are provided for plastic laminated, solid surface,
and stone countertops. Price trends are provided for all types of cabinetwork and plastic
laminated countertops.
INTERNATIONAL TRADE ACTIVITY
The report also reviews the inroads made by foreign-made kitchen cabinets. Import data
is provided for major country of origin. Similar data is available for export shipments.
END-USE MARKETS AND DISTRIBUTION CHANNELS
Cabinetwork purchases are provided for new residential construction, residential remodeling,
manufactured housing, and nonresidential construction markets. The analysis includes data on
purchases per new single-family home constructed and new multi-family housing unit built.
Leading brand market penetration rates are provided for builders and remodeler contractors.
For the top brands, penetration rates are provided by region, type of house, and size of
builder or remodeler.
FACTORS AFFECTING DEMAND
A separate section analyzes the role of new
and remodeled residential kitchens and bathrooms as a determinant of demand. The number of bathrooms
per new housing unit is calculated by type of housing unit and region. Homeowner spending on kitchen
and bathroom remodeling is investigated as well. Cabinetwork and countertop demand is correlated with
U.S. housing demand, nonresidential construction spending, mortgage interest raters, and other economic
indicators. This provides insights into the direction of domestic demand in 2004 and beyond.
PROFIT MARGINS AND THE COMPETITVE ENVIRONMENT
Catalina Research examined the cost structure and profitability of U.S. cabinetwork and plastic
laminated countertop plants. Data tends are compiled for labor, material, and capital inputs.
As part of this analysis, Catalina Research profiled 29 leading North American manufacturers.
Company profiles cover product lines, manufacturing and distribution, acquisitions, and new products.
Sales data was compiled in order to calculate cabinetmaker market share.
CANADIAN CABINETWORK AND COUNTERTOP INDUSTRY
The Canadian cabinetwork and countertop industry is
analyzes as well. Shipments are provided for upper and lower units, and prefinished and unfinished units.
Exports and imports are provided by countries of destination and origin. Shipments to U.S. customers are
provided by state. Data on Canadian plants and operating ratios are also included. In addition, Canadian
construction activity is analyzed.
| Report Number: CR029 |
Published: March 2004 |
| Pages: 206 |
Price: $2,495 paper, $2,995 e-mail version |
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