State of the Industry closets study
November 19, 2020 | 8:51 am CST
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Project designed by Trish Underwood, Carefree Design Center.

Photo By Carefree Design Center

Closets & Organized Storage magazine recently released the initial results of its 2020 State of the Industry Study.

Following is a brief summary of the findings: 

Sales and expectations:

Despite the overall economic downturn caused by COVID-19, a majority of companies surveyed anticipate growth in 2020 revenue. Approximately 40.5% said they expect 2020 revenue to be “better” than 2019 and 16.5% said this year’s sales would be “much better”. Approximately 29.1% said revenue would be the same. 

Building on that,  approximately 57% of respondents predicted 2021 revenue to be even “better” than 2020 and 22.8% said “much better”.

Projects:

Respondents reported remodeling as a significant percentage of their projects  - approximately 63.9% versus 38.3% in new construction. 

When asked what projects would have the most growth in 2020 and 2021, as expected single-family residential was at the top of the list at 77.5%  and multi-family residential and office space came in at second and third respectively - 12.4% and 3.4%.

The top three design projects in 2020 as compared to 2019 were master bedroom closets  - 64.8%, home offices - 46.6% and garage organization -  30.7%. Nearly three-fourths of those projects were manufactured with melamine and/or laminates - 71.2% and approximately 21.9% were solid wood/veneer.

White continued to be the most popular finish in 2020 with 70.8% of respondents reporting it as their customer’s number one request.

Pricing:

More than half of participating companies said they raised their prices  this year – 53.95, while 43.4% said prices remained the same. Only 2.6% said prices decreased. 

On average, closet firms reported the cost of a master walk-in closet as $8,909 and the average cost of garage solutions as $6,775.

Challenges:

When asked what the greatest challenge to business this year was, as it relates to COVID, 38.1% of respondents cited supply chain issues. Other factors included limited or no face-to-face sales presentations and state and local restrictions.

Look for a more detailed report in the January/February issue of Closets & Organized Storage.

 

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About the author
Michaelle Bradford | Editor

Michaelle Bradford, CCI Media, is Editor of Closets & Organized Storage magazine and Woodworking Network editor. She has more than 20 years of experience covering the woodworking and design industry, including visits to custom cabinet shops, closet firms and design studios throughout North America. As Editor of Closets & Organized Storage magazine under the Woodworking Network brand, Michaelle’s responsibilities include writing, editing, and coordinating editorial content as well as managing annual design competitions like the Top Shelf Design Awards. She is also a contributor to FDMC and other Woodworking Network online and print media owned by CCI Media.