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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.

RESTON, VA . . . As part of its continuing effort to develop accurate information and data to assist member companies manage their operations efficiently, the Kitchen Cabinet Manufacturers Association (KCMA) on October 9, 2011, released the results of a comprehensive market sizing project recently conducted by the association.  The basis of the study was a combination of existing KCMA member companies’ information and incorporation of several third party sources (trade magazine reports, government data, industry association data, and leading research studies).

As a result of the research effort, 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. 

A KCMA Task Force comprised of industry marketing experts reviewed 2009 data from each of several independent sources. 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.   “The TOB segmentation replicates the overall industry according to company size, as well as a representative mix of local, regional and national manufacturers,” according to 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 stated.

The significance of the Task Force research is important.  Typically, comprehensive market sizing reports for the cabinet industry are produced every two or three years.  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.

“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.  

“Lacking a perfect, single source, we believe that this methodology and definition of the market size provides the most timely and best estimate for the U.S., wood-based, residential cabinet market,” according to Mr. Stoner.