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TABLE OF CONTENTS

Section 1	U.S. Cabinetwork And Countertop Industry Trends......	1
	Executive Summary..................................................................... Cabinetwork Market Trends........................................................... Countertop Market Trends............................................................. End-Use Market........................................................................... Distribution Channels.................................................................... Competitive Environment............................................................... Plant Profitability.......................................................................... Outlook........................................................................................	1 1 2 2 3 3 4 4
	Scope And Methodology.........................................................	6
Table 1-1	Value Of U.S. Cabinetwork And Countertop Shipments, 1977-2007 (dollars)........................................................................................	9
Table 1-2	Cabinetwork And Countertop Shipments' Share Of Total U.S. Building Material Shipments, 1977-2007 (dollars and percent)........................	10
Table 1-3	Real U.S. Cabinetwork And Countertop Shipments, 1987-2007 (dollars)........................................................................................	11
Table 1-4	Comparative Growth Analysis Of Real U.S. Cabinetwork And Countertop Shipments, Residential Construction Activity, Real Disposable Personal Income, And Mortgage Interest Rates, 1987-2002 (dollars, units, and percent)...........................................................................................	12
Table 1-5	Value Of U.S. Cabinetwork Shipments By Type Of Order And Countertop Shipments By Material, 1997-2007 (dollars): Stock, Semi-Custom, And Custom Cabinets;And Plastic Laminated, Solid Surface, And Stone Countertops .....................................................................................	13
Figure 1-1	Value Of U.S. Cabinetwork And Countertop Shipments, 1997, 2002, And 2007 (dollars).............................................................................	14
Figure 1-2	Percent Distribution Of U.S. Cabinet Shipments By Type Of Order, 1997, 2002, And 2007 (percent): Stock, Semi-Custom, Custom, And Not Specified....................................................................................	15
Table 1-6	U.S. Quantity Cabinetwork Shipments, 1977-2007 (number) .................	16
Table 1-7	Value Of U.S. Kitchen Cabinet Market Supply, 1989-2007 (dollars): Total Market Supply, Domestic Factory Shipments, And Imports...........	17
Figure 1-3	Domestic And Import Shares Of U.S. Kitchen Cabinet Market Supply, 1992, 1997, 2002, And 2007 (percent).................................................	18
Table 1-8	Comparison Of Gross Profit Margins For U.S. Cabinetwork And Countertop Plants And The U.S. Manufacturing Average, 1977-2002 (percent)...........................................................................................	19

Section 2	U.S. Cabinetwork Shipment Trends ....................................	20
	Summary Of Major Findings............................................................. Stock Line Cabinetwork................................................................... Semi-Custom Cabinetwork................................................................ Custom Cabinetwork......................................................................... Vanities And Other Cabinetwork........................................................ Wood Kitchen Cabinets.................................................................... Laminate And Other Kitchen Cabinets................................................ Frame-Less Cabinets........................................................................ Ready-To-Assemble Cabinets............................................................ Kitchen Cabinet Imports.................................................................... Leading Brands And manufacturers....................................................	20 20 21 22 22 23 24 24 24 25 25
Table 2-1	Value Of U.S. Cabinetwork Shipments By Market Sector, 1977-2007 (dollars):Kitchen Cabinets, And Vanities And Other Cabinetwork...................................................................................	27
Table 2-2	Percent Distribution Of U.S. Cabinetwork Shipments By Major Market Sector, 1977-2007 (percent): Kitchen Cabinets, And Vanities And Other Cabinetwork..........................................................................	28
Table 2-3	Real U.S. Cabinetwork Shipments, 1987-2007 (dollars)......................	29
Table 2-4	Value Of U.S. Stock And Custom Kitchen Cabinet And Other Cabinetwork Shipments, 1977-2007 (dollars).....................................	30
Table 2-5	U.S. Quantity Cabinetwork Shipments By Market Sector, 1982-2007 (number): Total Industry Shipments, Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, And Vanities And Other Cabinetwork....................................................................................	31
Table 2-6	Average Value Per U.S. Factory Shipped Cabinet Unit By Type, 1982-2007 (dollars): Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, And Vanities And Other Cabinetwork..................................	32
Table 2-7	Value Of U.S. Stock Line And Custom Kitchen Cabinet Shipments, 1977-2007 (dollars)..........................................................................	33
Table 2-8	U.S. Quantity Kitchen Cabinet Shipments By Type, 1977-2007 (number): Stock Line And Custom...................................................	34
Table 2-9	Value Of U.S. Vanities And Other Cabinetwork Shipments By Type, 1977-2007 (dollars): Total, Stock Line, And Custom..........................	35
Table 2-10	Value Of U.S. Kitchen Cabinet Shipments By Material, 1977-2007 (dollars):Wood And Plastic Laminated.............................................	36
Table 2-11	Value Of U.S. Shipments Of Stock Line Kitchen Cabinets By Material, 1977-2007 (dollars): Total, Wood, And Plastic Laminated...................	37
Table 2-12	Value Of U.S. Custom-Made Kitchen Cabinet Shipments By Type Of Manufacturer, 1997-2007 (dollars): Wholesale Manufacturers And Retail Manufacturers..................................................................................	38
Table 2-13	Value Of U.S. Custom-Made Kitchen Cabinet Shipments By Wholesale Manufacturers By Material, 1977-2007 (dollars): Total, Wood, And Plastic Laminated ...........................................................................	39
Table 2-14	Value Of U.S. Metal Kitchen Cabinet Shipments, 1977-2002 (dollars)...........................................................................................	40
Table 2-15	Top Fifteen Cabinet Brands Used By New Home Builders And Remodeling Contractors Over The Past Twelve Months, 2001 (percent).........................................................................................	41
Table 2-16	Sales Distribution For Twenty-Two Top U.S. Cabinetmakers By Cabinet Type, 1997 and 2000 (percent): Kitchen, Bath, And Other Cabinetwork....................................................................................	42
Table 2-17	Frame-Less Products' Share Of Total Sales For Twenty-Four Top U.S. Cabinetmakers, 1993-2000 (percent).................................................	43
Table 2-18	Value Of U.S. Wood Kitchen Cabinet Imports And Share Of The Total Domestic Supply, 1989-2007 (dollars)...............................................	44
Table 2-19	Value Of U.S. Wood Kitchen Cabinet Imports For The Top Six Countries Of Origin, 1995-2001 (dollars)............................................	45
Table 2-20	U.S. Producer Price Trends For Cabinetwork, 1987-2002 (index).........	46
Table 2-21	U.S. Producer Price Trends For Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, And Vanities And Other Cabinetwork (index)...........	47

Section 3	U.S. Countertop Shipment Trends......................................	48
	Summary Of Major Findings.............................................................. Countertop Material Shipments......................................................... Plastic Laminated Countertops.......................................................... Solid Surface Materials..................................................................... Stone Products................................................................................ New Products..................................................................................	48 48 48 49 50 51
Table 3-1.	Value Of U.S. Countertop Shipments By Material, 1997-2007 (dollars): Plastic Laminated, Solid Surface Materials, And Stone.....................	52
Table 3-2	Value Of U.S. Plastic Laminated Countertop Shipments, 1977-2007 (dollars).......................................................................................	53
Table 3-3	Real U.S. Plastic Laminated Countertop Shipments, 1987-2007 (dollars)......................................................................................	54
Table 3-4	U.S.Producer Price Trends For Plastic Laminated Countertops, 1987-2002(index)........................................................................	55
Table 3-5	Value Of U.S. Plastic Laminated Kitchen Cabinet And Fixture Top Shipments, 1997-2007 (dollars)....................................................	56
Table 3-6	Value Of U.S. Stock And Custom Plastic Laminated Kitchen Cabinet And Fixture Top Shipments, 1997 And 2002 (dollars).......................	57
Table 3-7	Value Of U.S. Solid Surface Material Shipments For Counters, Walls, And Ceilings, 1987-2002 (dollars)....................................................	58
Table 3-8	Top Laminate And Solid Surface Brands Used By New Home Builders And Remodeling Contractors Over The Past Twelve Months, 2001 (percent)........................................................................................	59

Section 4	U.S. Cabinetwork End-Use Markets And Distribution Channels..................................................................................	60
	Summary Of Major Findings........................................................... New Residential Construction Markets............................................ Residential Remodeling Markets.................................................... Manufactured Housing Markets...................................................... Nonresidential Construction Markets............................................... Distribution Channels.................................................................... Export Shipments.........................................................................	60 60 61 62 62 63 63
Table 4-1	U.S. Purchases Of Kitchen Cabinets, Vanities, And Related Cabinetwork By End-Use Market, 1982-2002 (dollars): New Single-Family Homes, Other New Residential Construction, Residential Remodeling And Repair, New And Remodeling Nonresidential Construction, Manufactured Housing Plants, And Other Markets...................................................	65
Table 4-2	Percent Distribution Of U.S. Kitchen Cabinet, Vanity, And Related Cabinetwork Purchases By End-Use Market, 1982-2002 (percent): New Single-Family Homes, Other New Residential Construction, Residential Remodeling And Repair, New And Remodeling Nonresidential Construction, Manufactured Housing Plants, And Other Markets........................................................................................	66
Table 4-3	Kitchen Cabinet, Vanity, And Related Cabinetwork Purchases Per New Housing Unit By Type Of Structure, 1982-2002 (dollars): Single-Family Homes And Multi-Family Housing....................................................	67
Table 4-4	Sales Distribution For New Construction And Remodeling For Twenty-Three Top U.S. Cabinetmakers, 1993-2000 (percent)..............	68
Table 4-5	Kitchen Cabinet And Countertop Sales By U.S. Lumber And Building Material Retailers,1977-2002 (number and dollars): Number Of Dealers Carrying Line, Kitchen Cabinet Sales, Percent Total Sales, And Sales Per Dealer Carrying Line..................................................................	69
Table 4-6	Percent Distribution Of Cabinetwork Sales By Channel For Twenty-One Top U.S. Cabinetmakers, 1997 And 2000 (percent): Contractors/Home Builders, Kitchen And Bath Stores, Home Centers, And Wholesale/Stock Distributors............................................................	70
Table 4-7	Kitchen Cabinet Purchases By U.S. Mobile Home And Prefabricated Wood Building Plants, 1982-2002 (dollars and percent): Plant Purchases, Percent Total Material Costs, And Purchases Per Plant..............................................................................................	72
Table 4-8	Value Of U.S. Wood Kitchen Cabinet Exports And Percent Of Total Domestic Shipments, 1989-2007 (dollars)..........................................	73
Table 4-9	Value Of U.S. Wood Kitchen Cabinet Exports For The Top Eight Countries Of Destination, 1995-2001 (dollars).....................................	74

Section 5	U.S. New And Remodeled Residential Kitchens And Bathrooms.................................................................................	75
	Summary Of Major Findings............................................................ New And Remodeled Kitchens And Bathrooms................................. Kitchens And Bathrooms In New Housing Units................................ Kitchen And Bathroom Remodeling Spending...................................	75 75 75 76
Table 5-1	U.S. New And Replacement Residential Kitchens And Bathrooms, 1990-2002(number).........................................................................	77
Table 5-2	Number Of Kitchens And Bathrooms In New U.S. Housing Units By Type Of Structure, 1995-2001 (number): Single-Family Home, Multi-Family Buildings, And Mobile Homes........................................	78
Table 5-3	Total Bathrooms In New U.S. Housing Units And By Type Of Unit And Region, 1995-2001 (number): Single-Family Homes And Multi-Family Buildings.........................................................................................	79
Table 5-4	New U.S. Privately Owned Single-Family Homes By Number Of Bathrooms And By Region, 1990-2001 (number and percent): 1 1/2 Bathrooms Or Less, 2 Bathrooms, 2 1/2 Bathrooms, And 3 Bathrooms Or More...........................................................................................	81
Table 5-5	New U.S. Housing Units In Multi-Family Buildings By Number Of Bathrooms And By Region, 1990-2001 (number and percent): 1 Bathroom, 1 1/2 Bathrooms, And 2 Bathrooms Or More.......................	83
Table 5-6	U.S. Residential Spending On Kitchen And Bathroom Remodeling And Percent Of Total Residential Remodeling And Repair, 1977-2002 (dollars and percent).........................................................................	85
Table 5-7	U.S. Kitchen And Bathroom Remodeling Spending By Ownership Of Residential Property, 1993-2002 (dollars): Kitchen Remodeling, Bathroom Remodeling, And Kitchen And Bathroom Remodeling.....................................................................................	86

Section 6	Factors Affecting U.S. Cabinetwork And Countertop Demand.....................................................................................	87
	Summary Of Major Findings............................................................ New Residential Construction Market............................................... Residential Remodeling Market........................................................ Manufactured Housing Market......................................................... Nonresidential Construction Market..................................................	87 87 87 88 88
Table 6-1	Real U.S. Spending On Building Construction And By Market, 1977-2002 (dollars): Total Buildings, Residential Buildings, And Nonresidential Buildings.................................................................	89
Table 6-2	Real U.S. Spending On Construction Put In Place By Market And Building Type, 1998-2002 (dollars): Residential Buildings By Type, Nonresidential Buildings By Type, And Public Buildings By Type.............................................................................................	90
Table 6-3	Total U.S. Housing Demand By Sector By Region, 1996-2001 (number): Northeast, Midwest, South, West, And Total......................................	91
Table 6-4	New U.S. Privately Owned Housing Units Started And By Type Of Structure, 1980-2002 (number): Total Starts, And In Structures With 1 Unit, 2 To 4 Units, And 5 Units Or More ..........................................	93
Table 6-5	Monthly Private U.S. Housing Units Authorized By 19,000 Building Permit Places By Region, 2000 And 2001 (number): Total, Northeast, Midwest, South, And West...............................................................	94
Table 6-6	U.S. Residential Property Owner Expenditures For Improvements, Additions, Alterations, And Repairs And Spending By Single-Family Homeowners, 1985-2002 (dollars).......................................................	95
Table 6-7	Monthly U.S. Building Material Dealers Sales, 1998-2001 (dollars)........	96
Table 6-8	U.S. Average Annual Household Spending On Maintenance And Repair Commodities By Demographic Characteristic, 1997 And 2000 (dollars): Income, Age, Family Size, And Region; Homeowners And Renters.......	97
Table 6-9	Distribution Of U.S. Households By Demographic Characteristic, 1985-2000 (percent): Household Income, Age Of Household Head, Household Size, Region, And Total Households..................................	99
Table 6-10	U.S. Home Mortgage Interest Rates And Personal Income, 1980-2002 (percent and dollars).........................................................................	100
Table 6-11	U.S. Recreation Vehicle And Conversion Vehicle Shipments, 1982-2000 (number)...........................................................................................	101
Table 6-12	Number Of U.S. Original Equipment Manufacturing End-Use Market Plants By State, 1999 (number): Mobile Homes, Prefabricated Wood Buildings, Prefabricated Metal Buildings, Motor Homes, And Travel Trailers And Campers; Total Plants And Those With 20 Or More Employees......................................................................................	102

Section 7	Cost Structure Of U.S. Cabinetwork And Countertop Plants And Regional Shipment Data................................................................	105
	Summary Of Major Findings............................................................ Plant Profit Margins........................................................................ Material Cost Situation.................................................................... Labor Cost Situation........................................................................ Capital Expenditures........................................................................ Regional Shipment And Plant Data...................................................	105 105 106 106 107 107
Table 7-1	U.S. Cabinetwork And Countertop Plant Operating Ratios And Profit Margins, 1977-2002 (percent): Payroll, Material Costs, And Gross Profit Margins Percent Total Facility Revenues............................................	109
Table 7-2	U.S. Cabinetwork And Countertop Plant Material Purchases By Kind, 1997 And 2002 (dollars)....................................................................	110
Table 7-3	Value Of U.S. Cabinet Door Shipments, 1997 And 2002 (dollars).........	111
Table 7-4	U.S. Producer Price Trends For Major Material Inputs, 1987-2002 (index): Lumber, Plywood, Hardwood, Dimension Stock, Particleboard, Laminated Plastic Shapes, And Builders' And Cabinet Hardware...........	112
Table 7-5	U.S. Cabinetwork And Countertop Plant Labor Situation, 1977-2002 (number, dollars, and percent): Total Employees, Shipments Per Employee; And Production Workers Percent Total Employees, Average Hourly Wages, And Average Weekly Hours.......................................	113
Table 7-6	U.S. Cabinetwork And Countertop Plant Capital Expenditures, 1977-2002 (dollars and percent): Total Capital Expenditures, Percent Buildings And Equipment, And Percent Value Added.........................	114
Table 7-7	U.S. Cabinetwork And Countertop Plant Operating Ratios And Profit Margins By Facility Product Specialization, 1977-2002 (percent): Payroll, Material Costs, And Gross Profit Margins Percent Total Facility Revenues; Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, Vanities And Other Cabinetwork, And Plastic Laminated Countertops....................................................................................	115
Table 7-8	U.S. Cabinetwork And Countertop Plant Labor Situation By Facility Product Specialization, 1977-2002 (number, dollars, and percent): Total Employees; Shipments Per Employee; And Production Workers Percent Total Employees, Average Hourly Wages, And Average Weekly Hours; Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, Vanities And Other Cabinetwork, And Plastic Laminated Countertops................	116
Table 7-9	U.S. Cabinetwork And Countertop Plant Capital Expenditures By Facility Product Specialization, 1977-2002 (dollars and percent): Capital Expenditures And Percent Value Added;Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, Vanities And Other Cabinetwork, And Plastic Laminated Countertops.................................................	118
Table 7-10	Number Of U.S. Cabinetwork And Countertop Plants By State, 1997 And 1999 (number): Total Plants And With 20 Or More Employees.....	119
Table 7-11	Shipments Of U.S. Kitchen Cabinet And Countertop Plants, Average Shipments Per Plant, Operating Ratios, Production Worker Average Hourly Wages, And Capital Expenditures By State, 1997 (dollars and percent)........................................................................................	121
Table 7-12	U.S. Cabinetwork And Countertop Shipments By Major Market Sector By State, 1992 And 1997 (dollars): Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, Vanities And Other Cabinetwork, And Countertops....................................................................................	123

Section 8	U.S. Cabinetwork And Countertop Industry Competitive Environment....................................................................................	126
	Summary Of Major Findings.......................................................... Leading Manufacturers.................................................................. Cabinetwork Industry Consolidation................................................ Number Of Industry Plants.............................................................	126 126 127 127
Table 8-1	Number Of U.S. Cabinetwork And Countertop Plants And Facility Revenues, 1977-2002 (number and dollars)...................................	129
Table 8-2	Number And Revenues Of U.S. Cabinetwork And Countertop Plants By Facility Product Specialization, 1977-2002 (number and dollars): Stock Line Kitchen Cabinets, Custom Kitchen Cabinets, Vanities And Other Cabinetwork, And Plastic Laminated Countertops............	130
Table 8-3	Number Of U.S. Cabinetwork And Countertop Manufacturers By Product Type And Average Shipments Per Company, 1987-1997 (number and dollars): Stock Line Wood And Plastic Laminated Kitchen Cabinets, Custom Wood And Plastic Laminated Kitchen Cabinets, Vanities And Other Cabinetwork, And Countertops..........	131
Table 8-4	Distribution Of U.S. Cabinetwork And Countertop Plants, Plant Shipments, And Operating Ratios By Facility Employee Size, 1997 And 1999 (number, dollars, and percent): 1-4, 5-9, 10-19, 20-49, 50-99, And 100 Or More Employees.....................................	132
Table 8-5	Share Of U.S. Cabinetwork Industry Plant Shipments By Company Group Category, 1977-2002 (percent): Share By The 4, 8, 20, And 50 Largest Companies..................................................................	133
Table 8-6	Share Of U.S. Cabinetwork Market Supply For The Top Twenty Manufacturers, 2000 (percent).......................................................	134
Table 8-7	Sales And Profit Trends For Five Worldwide Cabinetwork And Surface Material Manufacturers, 1996-2001 (dollars and percent)......................................................................	135
Table 8-8	Omega Cabinet Sales By Brand And Product Line, 1999-2001 (dollars): Custom Cabinetry, Semi-Custom Cabinetry, Stock Cabinetry, Bath Vanities, And Countertops; Omega/Homecrest And Kitchen Craft...........................................................................	137

Section 9	Canadian Cabinetwork And Countertop Industry Trends........................................................................................	138
	Summary Of Major Findings.......................................................... Kitchen Cabinet Market Trends...................................................... Cabinetwork And Countertop Shipments......................................... Kitchen Cabinet Export Shipments................................................. Canadian Cabinetmaker Plants And Operating Ratios....................... Major Canadian Manufacturers.......................................................