Most cabinet companies again recorded solid sales gains in 2016, along with many millwork companies, component producers and some of the largest publicly traded firms. Sales of mid-size and large cabinet companies continued to be strong. Among the largest publicly traded manufacturers, some had solid gains in sales while others consolidated or concentrated on improving profitability rather than overall revenue.
Sales for the FDMC 300 group of companies grew 5 percent in 2016 over the previous year to $48.786 billion. That’s the fifth consecutive year of sales growth for this group of companies.
As in the last few years, companies in most market sectors reported higher sales in 2016.
The year 2016 was the fifth straight in which the group of FDMC 300 companies reported sales increases, and this period of growth has come after five consecutive years of declines from 2007 to 2011.
A year ago, we calculated annual sales for this group of 300 companies to be $46.404 billion. That was an increase of 7 percent over $43.325 billion for 2014. That year’s sales increased 9.3 percent over sales reported and estimated for the year 2013.
The FDMC 300 is a group of the 300 largest cabinet, furniture, millwork, store fixture, office/contract and component producers in North America.
We were not able to get updated sales and employee numbers from some privately held companies, but were able to update at least some information on most of these firms.
Additional information can be found at http://www.woodworkingnetwork.com/fdmc-300. The full list of 300 companies is also online.
Meanwhile, Kitchen Cabinet Manufacturers Association's monthly Trend of Business Survey indicated that cabinet sales climbed 4.3 percent in 2016, reaching $6.8 billion. Participating cabinet manufacturers also reported that stock sales increased 4.0 percent; semi-custom sales increased 5.9 percent, and custom sales increased 1.3 percent.
Despite the overall positive news for 2016, the survey saw a decrease in December sales of 1.0 percent compared to monthly figures from 2015. Although stock sales increased 2.5 percent, semi-custom sales decreased 0.2 percent, and custom sales decreased 12.3 percent for the month, compared to 2015.
Survey participants include stock, semi-custom, and custom companies whose combined sales represent approximately 70 percent of the U.S. kitchen cabinet and bath vanity market. All major U.S. cabinet manufacturing companies belong to KCMA, plus 63 percent of KCMA cabinet manufacturer members report sales below $10 million annually.
Here’s a closer look at the largest cabinet manufacturers in the FDMC 300, along with recent news activity:
1. MasterBrand Cabinets. Fortune Brands Home and Security’s kitchen and bath cabinetry segment’s sales figure of $2.395 billion is based on third quarter sales. Sales were up strongly in 2016. In January 2017, MasterBrand announced that it will continue to expand its workforce at its facilities in Jasper, Huntingburg and Ferdinand, Indiana. MasterBrand combined facilities in Dubois County, Indiana currently employ more than 2,200 workers.
2. Masco Corp. Taylor, Michigan-based company makes stock and semi-custom assembled and ready-to-assemble kitchen and bath cabinets, and other room cabinets. Figure of $980 million is based on third quarter sales for the company’s cabinet segment. Kitchen cabinet sales for Masco reportedly fell six percent as the company exited the multi-unit construction business. Overall, Masco businesses including Delta faucets and Milgard windows, as well as cabinetry lines Kraftmaid, Duracraft and Merillat. The company intended to improve profitability by leveraging operations and selectively exiting lower margin business in the cabinetry segment.
3. American Woodmark Corp. Figure is based on fiscal 2016 sales of $947 million, which was up sharply from the previous year. The company’s nine plants make stock and semi-custom kitchen and bath cabinets. American Woodmark markets its cabinetry under the American Woodmark, Shenandoah, Timberlake and Waypoint brands. It currently has nine manufacturing facilities and seven service centers located nationwide. The kitchen cabinets and bathroom vanities are sold on a national basis directly to home centers, major builders and through a network of independent distributors. In December, American Woodmark said it will invest $30 million to build a new headquarters in Winchester, Virginia, consolidating operations currently held in four locations. Completion of the project is expected to be in early 2018 and will add 55 jobs to the area.
4. RSI Home Products. Company divisions include Prestige Cabinets and RSI Professional Cabinet Solutions. Sales figure of $300 million was our own estimate. Company did not provide data. Company makes stock and semi-custom kitchen and bath cabinets, stock and semi-custom bath vanities, and cultured marble countertops. Big box stores are a major customer. In May, RSI, a supplier to Lowe's and Home Depot, announced that will expand its North Carolina operations with a new facility in Richmond County and add 175 new employees to its workforce.
5. Elkay Wood Products Co. Divisions include Mastercraft, Medallion, Yorktowne, Design-Craft, Schuler, InnerMost, Woodbridge, and American Cabinetry Collection. Company also makes plumbing fixtures. Annual sales figure is our estimate of $250 million.
6. ACProducts, Inc. Company manufactures stock and semi-custom kitchen and bath cabinets and operates plants in Thompsontown and Mount Union, Pennsylvania. Mount Union was expanded in 2016. We estimated sales at $180 million. In November, the company announced a business plan for the commercialization of a semi-custom frameless cabinet line and expanded its manufacturing capacity to include a second plant in Mount Union, Pennsylvania, in April. The 200,000 square foot building is situated on 36 acres in a modern industrial park, with paved parking capable of supporting 1,800 employees.
7. Foremost Groups Inc. New Jersey company is primarily an importer, but there are three stateside plants. We have gotten updates here in years past but were not able to get new information this year. Sales figure of $175 million is based on a past estimate.
8. Wellborn Cabinet Inc. Alabama company manufactures stock, semi-custom and custom kitchen and bath cabinets; closet cabinets and storage systems and has a large profile at KBIS and other exhibitions. Annual sales for 2016 were reported to be $150 million. Cabinetry by Karman, Rutt HandCrafted Cabinetry and Heritage Custom Cabinetry are divisions. In April, Wellborn Cabinet introduced a new feature to its Premier Series allowing customers to personalize the collection. Called the You Draw It Program, it offers cabinets and modifications not currently shown in Wellborn Premier Series catalog including the special sizes, modifications, custom options and special cabinets.
9. Wood-Mode Inc. Company manufactures custom and semi-custom kitchen and bath cabinets, custom cabinetry for other rooms in a single large plant in Kreamer, Pennsylvania. We estimated annual sales of $130 million for 2016. In December, Wood-Mode launched an industry-first kitchen cabinet lighting program, featuring Hafele LED lighting matched to custom-fabricated Wood-Mode cabinetry. The program uses 12 volt, third generation Loox LED options from Hafele. LED lighting is specified in 80 percent of kitchen projects overall (according to the NKBA).
10. Leedo Mfg. Company makes stock/custom kitchen cabinets, bath vanities, laminate, granite, and quartz countertops in three plants in East Bernard and El Campo, Texas. Annual sales are estimated at $100 million. Leedo's TruTouch finish contains a resin-impregnated, high definition, decorative overlay that is pressed directly onto Leedo's wood substrate. Using high heat and pressure the overlay is embossed, creating a detailed wood veneer appearance to heighten the realism of the printed grain.
11. Marsh Furniture Co. North Carolina company makes stock kitchen and bath cabinets in High Point, North Carolina, and Pamplico, South Carolina. We estimated annual sales of $100 million.
12. Master WoodCraft Cabinetry LLC. Texas company makes cabinets for multifamily homes, countertops and components in plants in Marshall and Jefferson. Sales of $95 million were reported in 2016.
13. Huntwood Industries. Company makes custom kitchen and bath cabinets, commercial cabinets, desks, bookcases, mouldings, closet and garage cabinets, house doors and millwork in a single large plant near Spokane. We estimated sales to be $75 million.
14. Bertch Cabinet Mfg. Inc. Iowa company makes stock/custom kitchen and bath cabinets in several locations. We did not get any information from the company, and estimated annual sales as $75 million.
15. W W Wood Products Inc. Company is based in Missouri and makes kitchen/bath cabinets, millwork/mouldings, and cabinet doors. Sales figure of $75 million is our estimate and based on past data.