Monday, August 23, 2010

US cabinet demand to reach $15.2B in 2014

U.S. demand for cabinets is forecast to expand 7.4 percent per year to $15.2 billion by 2014, according to a recent study from The Freedonia Group Inc.
Gains will be spurred by a rebound in housing completions from the depressed levels of 2009. Although housing completions will remain below the level reached at their cyclical peak in 2006, the expected recovery may fuel gains in the residential cabinet market through 2014.
The residential market is expected to account for more than 90 percent of the approximately $4.5 billion increase in overall total cabinet demand through 2014.
New housing is forecast to boast the most rapid increases in cabinet demand through 2014, and the improvement and repair segment will account for the majority of residential demand.
Kitchen cabinets, which represented 80 percent of cabinet demand in 2009, are expected to lead advances through 2014, rising 7.8 percent per year. Growth is also expected to be supported by design trends calling for homes with more and larger-sized cabinets to store food products and kitchen equipment. Demand for bathroom cabinets is forecast to grow 6.9 percent per year through 2014.
Demand for other cabinets, such as those found in offices, home entertainment centers, laundry and mudrooms, garages and other areas, is expected to rise 3.8 percent annually.
During the same period, demand for cabinets in the nonresidential building market is anticipated to rise 2.8 percent annually.

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