RESTON, Va. — Oct. 21, 2011 — The Kitchen Cabinet Manufacturers Association (KCMA) reports a total kitchen and bath cabinet market size of $6.997 billion for the U.S., wood-based, residential cabinet market for the year ending 2010, based on research conducted by the association.
A KCMA Task Force comprised of industry marketing experts reviewed 2009 data from each of several independent sources, the association explained. “This research produced a credible market size estimate for 2009. The 2009 data was selected because it represented a complete data set from each of the sources noted above for that fiscal year. The Task Force then used the KCMA monthly Trend of Business (TOB) report to calculate a market change percentage from 2009 to 2010. The KCMA’s TOB report includes data from 82 reporting companies of varying size and geographic distribution. It serves as a strong proxy for the broader residential wood kitchen and bath market. The TOB measures monthly and year-to-date change of the current year versus prior year. Close to half of the participating companies reported annual sales of $10 million or less with 11% reporting sales exceeding $100 million,” according to the group.
“The TOB segmentation replicates the overall industry according to company size, as well as a representative mix of local, regional and national manufacturers,” says Dick Titus, KCMA executive vice president. “The 82 KCMA member companies reporting in the TOB represent just over 66% of the total cabinet market based on 2010’s final value reported,” Titus adds.
Typically, comprehensive market sizing reports for the cabinet industry are produced every two or three years, the association says in a press release. “The KCMA’s Trend of Business report is issued monthly. By establishing a credible base and then using the KCMA monthly reports to measure change in the broader market, an up-to-date estimate of the status of the overall market is available on a timelier basis to assist management decision-making,” it says.
“While we realize that there is never a definitive or perfect market sizing study, in our estimation, this approach represents a sound and reasonable method for our industry as defined. We chose to narrow the focus to “residential, wood-based” cabinets as a more focused view of the market we represent. At the same time we recognize that there is a non-residential market as well as a cabinet market that is produced via other materials (most notably steel),” according to KCMA President Greg Stoner.