It's been anything but a lazy summer for the Kitchen Cabinet Manufacturers Association - check out what's been happening in the cabinet industry the last few weeks:
REMODELING SPENDING EXPECTED TO SLOW
According to the Leading Indicator from the Joint Center for Housing Studies of Harvard University, remodeling activity is declining drastically. Home improvements and repairs are expected to drop from 6.3% this quarter to less than 1% by the second quarter of the next year. The decline may be attributed to the fact that home price appreciation has slowed and isn’t outpacing income growth like it once did in some markets.
“Declining home sales and home building activity coupled with slower gains in permitting for improvement projects will put the brakes on remodeling growth over the coming year,” said Chris Herbert, Managing Director for Housing Studies.
ATTRACTING MILLENNIAL AND GEN Z TALENT
The gap between the skilled trades workforce and today’s labor force is a near universal issue. KCMA member companies express concern, and even bewilderment, about how to attract and retain the next generation of workers. “Preparing for the Next Generation: A Guide to the Modern Manufacturing Employee”, written by talent consultancy PSI Services, provides some suggestions your organization might consider:
- Partner with local community colleges or trade schools to target applicant search more effectively;
- Assess the prospect’s aptitude, not knowledge. His or her ability to learn, interest in manufacturing and the opportunity you are providing are key;
- Consider an automated hiring process that simplifies logistics and provides appropriate testing;
- Update your workplace environment, rules and perspectives to be an employer of choice;
- Gen Z are comfortable with all kinds of technology. Show them (and their parents) what modern manufacturing offers as a career path!
- Give regular real-time feedback;
- Focus on the content of your feedback;
- Be flexible, if possible, with shift offerings;
Create a culture that prioritizes training and development.
PRELIMINARY DETERMINATION ISSUED ON DUTIES FOR CABINETS
Earlier this week the Department of Commerce issued its preliminary determination in the Wooden Cabinets and Vanities countervailing duty investigation. Commerce calculated the following preliminary subsidy margins for the three mandatory respondents and for all other Chinese companies:
- Ancientree – 10.97%
- Meisen – 16.49%
- Foremost – 21.78%
- All other cooperating Chinese companies not selected for individual examination – 16.41%
- Non-cooperating Chinese companies – 229.24%
The kitchen and bath industry continued to expand in the second quarter of 2019, with an index score of 65.7 according to the National Kitchen and Bath Association and John Burns Real Estate Consulting’s latest Kitchen and Bath Market Index.
The ISM Manufacturing Purchasing Managers’ Index® expanded at the slowest pace since August 2016 in July, down from 51.7 in June to 51.2 in July.
After falling in April and May, new orders for manufactured goods rebounded in June.
Manufacturing employment rose by 16,000 workers in July.
KCMA members always get the latest updates from the cabinet industry. To learn more about KCMA and becoming a member today, visit our website.