Press Release Summary = US demand for cabinets is forecast to expand three percent per year through 2010 (including price increases) to $16 billion. Building design trends that lead to greater cabinet use per residence will boost new residential cabinet demand and help offset a decline in single-family housing completions.
Press Release Body = Cabinets industry forecasts to 2010 & 2015
US cabinet demand to reach $16 billion in 2010
US demand for cabinets is forecast to expand three percent per year through 2010 (including price increases) to $16 billion. Building design trends that lead to greater cabinet use per residence will boost new residential cabinet demand and help offset a decline in single-family housing completions. Additionally, stronger expenditures for residential improvement and repair projects, which are the single largest end use for cabinets, will bolster demand through 2010. Changing consumer preferences in cabinet design and various demographic factors -- such as an aging US population that has the financial wherewithal to finance renovation projects -- will also aid demand. Despite the additional cost of transporting cabinets over a long distance, cabinet imports are expected to slightly increase their penetration into the US market through 2010. However, imports will account for only seven percent of total cabinet demand in 2010. The influx of imports will be offset by a growing popularity of higher-priced, semicustom and accessory-laden cabinets. Growth in cabinet shipments is expected to be in line with demand over the forecast period, with shipments exceeding $15 billion.
Kitchen cabinets to remain dominant product type
Kitchen cabinets, which represented about 85 percent of the cabinet market in 2005, will benefit from a continuing trend toward using more cabinets to provide increased utility, as well as from an expanding range of kitchen cabinet styles and options. In addition, the rising use of kitchen-type cabinets in other rooms of the home (e.g., laundry rooms and media rooms) will also aid increases. Shipments of bathroom cabinets will benefit from design trends such as larger bathrooms and a greater number of bathrooms per house, as well as by healthy repair and improvement activity. Shipments of other types of cabinets will lead the cabinet industry. A rebound in store fixture cabinets will bolster the segment, driven by strong nonresidential construction activity.
Nonresidential markets to lead gains
Residential construction is the primary market for cabinets and will continue to dominate the industry through 2010, as improvement and repair activity remains healthy. Although the residential market will be restrained by a weak new housing environment, this will be offset somewhat by ongoing changes in home design that encourage the use of cabinets and by the growing popularity of home offices, dedicated media rooms and other specialty function rooms. The nonresidential market is expected to lead gains through 2010. Advances will be driven by a stronger economic outlook that will in turn boost construction of office, commercial and institutional spaces, all of which are key end users of cabinets. Furthermore, improvement and repair activity in the nonresidential segment will also be healthy, aiding cabinet demand as building owners seek to attract or retain tenants in existing spaces.
South, West regions offer best growth prospects
The South and West will be the strongest regional markets for cabinets through 2010. Demand for cabinets in these US regions will be bolstered by favorable economic activity and population growth over the forecast period, as well as solid growth in nonresidential construction spending.
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2025
