Cabinet sales for 2012 look to be flat, with projections holding at $7 billion, the same as 2011, said Dick Titus, executive vice president of the Kitchen Cabinet Manufacturers Assn. Titus said the KCMA’s projection is based on an analysis of virtually all current cabinet market studies correlated with the association’s monthly trend of business reports, in which 80-90 companies — accounting for 65 to 70 percent of the cabinet market — regularly participate.
“Cabinet manufacturers are firmly caught in the grip of the current stagnant U.S. economy, lost consumer confidence, overall unemployment and job concerns, borrowing difficulties, falling house values, and the reduced priority in Washington of housing as a policy priority and economic/employment driver for the U.S.,” Titus said.
Prior to November 2006, the cabinet industry recorded 127 consecutive months of growth, Titus said. “Since then, results have been mostly negative with the market falling from a high of $13 billion to its current $7 billion level.”
While he acknowledges that 2012 will not bring about a big turnaround, Titus added that the industry will see some improvement in the second half of the year. “Currently, the industry has posted positive four consecutive months of growth (Aug-Nov) according to the KCMA monthly trend of business.
“This is encouraging, but year-to-date still remains negative at -1.4 percent. Competition is very keen and growth generally is at the expense of someone else’s market share,” Titus said.
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