Originally posted on 3/10/2014 by Bill Esler
BONITA SPRINGS, FL – The bad weather will make only a short-term dent in home construction, with rising temperatures unleashing 17% to 18% growth in residential construction, according to figures presented at the Kitchen Cabinet Manufacturer’s Association annual convention today.
Analyst Dennis McGill, Director of Research at Zelman & Associates, a leading research firm specializing in the housing industry, told attendees this morning that builders used the downturn to acquire lots for homebuilding- which have been in some areas have been in short supply in desirable locations. They are ready to build to meet demand.
That spells good news for executives at cabinet companies in attendance, such as Bob Gronlund, Wood-Mode; Tony Bour, Showplace Wood Products, Jack Edl, formerly with Elkay cabinets. The three were on a panel that weighed in on appropriate recovery strategies for 2014 and beyond.
KCMA reported that cabinetry sales rose 16.9% in January 2014, with custom cabinets up a whopping 33.3% versus January 2013.
The KCMA monthly Trend of Business Survey found stock cabinet sales increased 13%; semi-custom sales increased 18.2% and custom sales increased 33.3%. Survey participants include stock, semi-custom and custom companies whose combined sales represent approximately 70% of the U.S. kitchen cabinet and bath vanity market. Most (63%) of KCMA cabinet manufacturer members report sales under $10 million annually in the highly fragmented cabientry market.
KCMA also launched an Authorized ESP Dealer recognition program, recognizing dealers and retailers who sell cabinets certified by the KCMA Environmental Stewardship Program (ESP).
A proprietary logo for ESP dealers can be used in advertising and promotional efforts. The logo will help increase awareness of the ESP program and its environmental benefits, as well as facilitate brand recognition among customers, says KCMA.
KCMA launched an Authorized ESP Dealer recognition program, recognizing dealers and retailers who sell cabinets certified by the KCMA Environmental Stewardship Program (ESP).
A new, distinctive and proprietary logo for ESP dealers can be used in advertising and promotional efforts. The new logo will help increase awareness of the ESP program and its environmental benefits, as well as facilitate brand recognition among customers, says KCMA.
KCMA is the major trade association for manufacturers of kitchen cabinets, bath vanities, and key suppliers of goods and services to the industry. All major U.S. cabinet manufacturing companies belong to KCMA. Sixty-three percent of KCMA cabinet manufacturer members report sales under $10 million annually, reflecting the importance of small manufacturers in the industry. KCMA has been compiling and reporting industry sales data for over forty years.