Wood Kitchen Cabinets

SIC 2434
WOOD KITCHEN CABINETS

This industry includes establishments primarily engaged in manufacturing wood kitchen cabinets and wood bathroom vanities, generally for permanent installation. Establishments primarily engaged in manufacturing free-standing cabinets and vanities are classified in various furniture-manufacturing industries. Establishments primarily engaged in building custom cabinets for individuals are classified in SIC 5712: Furniture Stores.

NAICS Code(s)

337110 (Wood Kitchen Cabinet and Counter Top Manufacturing)

Throughout the late 1990s, kitchen and bath cabinet sales increased every month. Total industry shipments reached $11.7 billion in 2000, compared to $9.0 billion in 19997. Industry executives' biggest concern was attracting and retaining highly skilled employees, without which such growth could not be sustained. According to the U.S. Census Bureau, more than 115,000 people were employed in the industry in 2000, compared to roughly 99,000 in 1997. Most of the labor force operates in the states of Texas, Pennsylvania, Ohio, Florida, and Indiana.

According to Kitchen Cabinet Manufacturers Association (KCMA) statistics, more than two-thirds of manufactured cabinets were used in remodeling in the late 1990s, with the remainder going towards new residential construction. Remodeling a kitchen offers the highest return to the owner upon resale, recouping 102 percent of job cost.

Leading establishments in the wood kitchen cabinet manufacturing industry include Masco Corp. Cabinet Group, with sales of more than $1 billion in the late 1990s; MasterBrand Cabinets Inc. and Mill's Pride, both with sales of $400 million; and American Woodmark Corp., with sales of $241 million. Other establishments include Omega Cabinets, Elkat Mfg. Co., and Triangle Pacific Corp. of Dallas, Texas, all posting near or over the $200 million mark.

While the industry has seen few dramatic technological breakthroughs, several changes in the appearance of the industry have taken place in recent years. Raw material shortages are forcing some manufacturers to use more composite and engineered woods. Good wood, or certified wood, is starting to make a name for itself in the industry. Forest owners are certified by an independent source as having sustainably managed their forest, which means no clear-cutting or other practices harmful to the long-term health of the forest have been done. Companies view the use of good wood as good public relations. Frameless cabinetry design, in which shelf space can be utilized right up to the cabinet wall rather than sacrificing one inch around to the frame, is also increasing.

The demand for other room cabinetry has increased. Half of those surveyed by W&WP sell other-room products such as entertainment centers, bookcases, home-office furniture, and utility cabinets. Near the turn of the twenty-first century, this subsection of the industry accounted for only 6 percent of sales, but it was projected to increase.