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.
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