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.