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USA:Cabinet Sales Up 7.5% In March 2002

¡¾2002.05.04¡¿

Cabinet Sales Up In March
HMR Custom News

Cabinet Sales Up 7.5% In March 2002

According to the Kitchen Cabinet Manufacturers Association Trend of Business Survey, cabinet sales increased by 7.5 percent in March 2002 over the same reporting period for last year. The rate of growth is slower than what occurred during each of the first two months, though is well above results posted by most other U.S. industry sectors. The latest Survey shows sales are up for the month by 7.7 percent for stock cabinets and 6.6 percent for custom cabinets.

Year-to-date figures have cabinet sales in front of last year by just over 11 percent (11.1), with stock cabinets up 12.1 percent, and custom cabinets 5.4 percent higher.

By and large, cabinet sales in 2002 have mirrored the housing market with phenomenal growth recorded during January and February, followed by comparatively moderate, but still strong results in March. However, industry sources acknowledge that the repair and remodeling sector is a tremendous part of the total marketplace for cabinets. In fact, past studies have shown remodeling to be as much as three-fourths of the U.S. cabinet market. Whatever the market breakdown might be, analysts¡¯ projections about remodeling have been less enthusiastic than for new housing construction during 2002. No statistical data on remodeling expenditures are available for the year at this time, though most industry contacts seem to agree that it has been new construction leading the way in cabinet demand so far.

Member firms participating in the KCMA monthly Trend of Business Survey include stock and custom cabinet manufacturing companies that represent more than half of the cabinet market. The Kitchen Cabinet Manufacturers Association is the major trade association for manufacturers of kitchen cabinets and bath vanities, and suppliers of goods and services to the industry. All major U.S. cabinet manufacturing companies belong to KCMA, but 44% of the membership report annual sales of less than $5 million, and 63% are under $10 million in total annual sales.