NEW YORK – Despite a sluggish revenue period between 2009 and 2011, upward trends in new and existing home sales have spurred a rebound in the kitchen cabinet and bathroom vanity manufacturing industry, with sales increasing to $14.8 billion as of earlier this year.
A new industry analysis by IBISWorld Industry indicated that revenue grew by 10.7 percent in 2012 after falling 30.2 percent in 2009. But, with a strengthening national economy, industry analysts predict the cabinet and vanity industry to continue to see positive growth through 2019, according IBISWorld Industry.
IBISWorld Industry Analyst Will McKitterick said continued increases in cabinet and vanity sales will “largely depend on improvements in consumer confidence, employment, home prices and access to credit, all of which are expected to achieve modest but consistent growth during the period.” Homeowners will also be more financially able to tackle home maintenance projects, including new kitchen and bath cabinetry, which were put off during the economic downturn of 2009 to 2012, McKitterick noted.
Despite growing sales over the past few years though, employment growth has remained low, due to companies being forced to slash manufacturing jobs when the housing market declined. Although sales are increasing, most cabinet manufacturers remain wary of the recovery and are only slowly beginning to invest in growing their businesses, McKitterick added.
Cabinet and Vanity Manufacturing profit margins are expected to increase by 3.5 percent this year, according to IBISWorld.
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