Abstract
The cabinet industry in the United States is highly fragmented with the presence of a large number of small local and regional producers controlling more than 50% of the market share. The top three companies -- Mesco, Fortune Brands and American Woodmark has a share of the remaining 50% market. For more than a decade, the cabinet industry has given promising returns to the manufacturers as the growth in the market was riding on the back of new housing construction and the need for kitchen remodeling. But the year 2006 turned out to be a bleak year as industry sales fell considerably. But, still, the cabinet manufacturers are highly optimistic about the return of the industry to the growth path with new housing starts likely to escalate from 2008. Other factors that are likely to drive the growth of the industry are increased disposable income of baby boomers and aging housing stock that will require remodeling of kitchens. So, the cabinet industry has not given up on its long track record of investing in manufacturing technologies and production strategies that lower costs, improve quality and its offerings of customized solutions for cabinets. The report is a study of the US cabinet market specifically focusing on the kitchen cabinets. It analyzes the recent fall in the cabinets and the factors that are likely to drive growth in the future. Trends are assessed to give the cabinet manufactures a holistic view of the consumption patterns. The report futher analyzes the business model including strategies of the three largest cabinet manufacturers in the United States -- Mesco, Fortune Brands and American Woodmark.
Table of Contents
- 1. Market Overview
- For the first time in the last 10 years, yearly cabinet sales declined in 2006. Still, stock cabinets are the major driver of growth in the industry.
- 1.1 Market Size and Growth
- 1.2 Market Segments
- 2. Factors that drive demand for Cabinets
- New home construction and Kitchen remodeling are the traditional demand drivers for the US cabinet industry
- 3. Market Trends
- Kitchen cabinets as furniture or built-ins, the maximum usage of wood and health friendly kitchen cabinets are the major trends in the industry
- 4. Challenges
- All the cabinet makers are grappling with two major challenges -- the increasing cost of raw materials and threat from private label brands
- 5. Competitive Landscape
- The cabinet manufacturing industry in the United States and Europe is highly competitive, with several large, and hundreds of smaller, competitors.
- 5.1 Analysis of Major Brands and Market Share
- 5.1.1 Market Share of Leading Cabinet Manufacturers
- 5.1.2 Major Brands -- Masco, Fortune and American Woodmark
- 5.2 Company Analysis
- 5.2.1 Masco
- Company Profile
- Segment Analysis
- Analysis of Masco' s Cabinet Business
- Business Strategies
- Masco' s sales channels
- 5.2.2 Fortune Brands
- Company Profile
- Business Segments
- Business Strategies
- 5.2.3 American Woodmark
- Company Profile
- Sales Channels
- Business Strategies
- 5.2.1 Masco
- 6. Market Forecast
List of Figures and Tables
Figure 1.1 US Cabinet Market: 2002-2006
Figure 1.2 Percentage demand for various types of cabinets
Figure 2.1 New home constructions in the US: 2000 -- 2006
Figure 2.2 US Home repair and improvement spending: 2003-2006
Figure 5.1: Market share of leading cabinet makers: 2006
Figure 5.2: Masco -- Sales by Segments (2006)
Figure 5.3: Masco -- Cabinet Revenue Breakdown (2006)
Figure 5.4: Fortune Brands - Sales by Segment: 2006
Figure 5.5: American Woodmark -- Sales by Distribution Channel (2006)
Figure 6.1: US Cabinet Market Forecast: 2007-2010
Table 5.1: Brand names of leading cabinet makers
Table 5.2: Masco' North American Cabinets Products
