Wood Kitchen Cabinets

According to the U.S. Census Bureau, 9,683 wood kitchen cabinet and counter top manufacturers operated in the United States in 2007 and employed 138,379 workers, 77 percent of which were production workers. Figures from Dun and Bradstreet's 2009 Industry Reports showed that total annual sales for the wood kitchen cabinet industry were about $16.2 billion in 2008. Michigan (home of industry leader Masco) led the nation in terms of revenues with $9.6 billion. Following at a distance were Minnesota ($877.9 million), California ($640.8 million), Virginia ($634.9 million), and Pennsylvania ($554.3 million). Despite these figures, the industry was experiencing the negative effects of the economic recession as the first decade of the twenty-first century neared a close.

Unlike much of the U.S. wood products industry, kitchen cabinetry experienced continual growth in the late 1990s and early 2000s. According to Wood Digest, the value of shipments of kitchen cabinets grew 111 percent between 1997 and 2005. This industry sector and office furniture were the only two furniture segments to experience significant growth during this period, with most other sectors either remaining stable or experiencing a decline in sales and employment. Because remodeling a kitchen offers the highest return when a home is sold, homeowners consistently invested in cabinet upgrades during the 1990s and 2000s. The housing boom of the early to mid-2000s also benefited the industry. In fact, November 2006 was the first month in over 10 years that sales declined.

Aside from constant demand, a key reason for the success of the kitchen cabinetry market was its ability to stave off global competition. Only 11 percent of kitchen cabinets purchased in the United States consisted of imports in 2005, compared to 28 percent of all furniture (excluding kitchen cabinets). Analysts attributed this partly to the segment's strategy of preemptive outsourcing. Decades before foreign competition, particularly from China, satisfied U.S. demand for wood products, manufacturers of kitchen cabinets began outsourcing components, then assembled the finished product in their own shops. This enabled U.S. manufacturers to offer customized products at a price comparable to stock cabinets.

By 2009, kitchen cabinet and countertop manufacturing in the United States was a $15 billion industry, according to PR Newswire. However, the industry was feeling the effects of the housing slump and a slow U.S. economy. In addition, as stated in the October 2009 article, "Lower [profit] margins have led to industry consolidation. ... The leading producers are cutting capacity and boosting labor productivity to prepare for a recovery in sales that could begin in 2010." The Home Improvement Research Institute predicted 2010 would see only a slight increase (just over 1 percent) in the home improvement products market, of which kitchen cabinets and counter tops were a part, but it forecasted a 5.6 percent annual growth rate in the industry from 2010 to 2014.

Masco Corp. of Taylor, Michigan, remained the largest manufacturer of cabinetry in the United States in the late 2000s. Its cabinet brands, which accounted for about half the firm's sales, included KraftMaid, Merillat, and Mill's Pride. Total revenue surpassed $9.6 billion in 2008 with 39,000 employees. MasterBrand Cabinets Inc. of Jasper, Indiana, was the second largest in the industry. This subsidiary of Fortune Brands Inc. produced such brands as Aristokraft, Decora, Diamond, and Schrock and employed about 6,000 workers in the late 2000s. Another industry leader was American Woodmark Corp., based in Winchester, Virginia. American Woodmark manufactured more than 350 cabinetry lines in a variety of woods. Brands included American Woodmark, Shenandoah Cabinetry, Potomac, and Timberlake. Sales for fiscal 2009 were $545.9 million with 3,701 employees.

While the industry saw few dramatic technological breakthroughs in the 2000s, several changes in its appearance took place. Raw material shortages forced some manufacturers to use more composite and engineered woods. Good, or certified, wood made a name for itself in the industry. Forest owners were certified by an independent source as having sustainably managed their forest, which means they had not engaged in clear-cutting or other practices harmful to the long-term health of the forest. Companies viewed the use of "good wood" as good public relations. In addition, in 2006 the Kitchen Cabinet Manufactures Association (KCMA) developed the Environmental Stewardship Program (ESP) to, according to the organization's web site, "help cabinet manufacturers demonstrate their commitment to environmental sustainability and help consumers easily identify environmentally friendly products." Companies that meet the certification requirements are allowed to display the ESP seal on their products. As of March 2009, 120 cabinet manufacturers had completed the ESP certification, and the ESP had earned the approval of Architectural Testing, Inc., the American National Standards Institute's (ANSI) accredited certification organization. In February 2009 the ESP certification program was called "the benchmark for cabinets under the new National Association of Home Builders' Green Building Standard" by Wood & Wood Products. The National Green Building Standard was the first green building rating system approved by the ANSI.

Other developments in the industry in the late 2000s included the use of 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, and the trend toward furniture-grade cabinets and customization.