The cabinet companies in the FDM 300 endured the biggest business decline ever, but are moving cautiously ahead in 2013.
Overall sales of the FDM 300 companies, of a group of 30 selected cabinet manufacturers within the FDM 300, and an important industry survey were all on the positive side in 2012.
After five years of declines in annual sales, the overall FDM 300 recorded a sales gain in 2012. We estimated sales for this group of 300 companies in the United States and Canada to be $37.632 in 2012, an increase of 4 percent over sales for this group in 2011, which was $36.167 billion.
The FDM 300 is a group of the 300 largest cabinet, furniture, millwork, store fixture, office/contract and component producers in North America. Additional information can be found at http://www.cabinetmakerfdm.com by clicking on the FDM 300 tab or searching for a specific company.
According to the Kitchen Cabinet Manufacturers Association’s monthly Trend of Business Survey, participating cabinet manufacturers reported sales of $4.7 billion in 2012, up 7.3 percent compared to 2011. Stock sales increased 11.7 percent; semi-custom sales were up 4.5 percent; and custom sales ended the year slightly (0.1 percent) higher for 2012.
Survey participants include stock, semi-custom and custom companies whose combined sales represent more than two-thirds of the fragmented U.S. cabinet market.
In our own group of 30 selected cabinet companies within the FDM 300, sales reached $12.34 billion, an increase of about 3 percent over 2011 sales of $11.97 billion for this same group.
“Our industry continues to be highly competitive, with significant discounting and sales promotions,” commented Norcraft Companies, L.P. president and CEO, Mark Buller in a statement. “However, we are optimistic about these early signs of recovery in the new home construction and home improvement markets and our ability to leverage the growth into improved profitability. As such, we continue to introduce new products and cost reduction initiatives.”
“We are encouraged by the continued strength in new home construction activity, driven by the stabilization and improvement of home prices in many areas of the U.S., increasing affordability and demographic trends,” said Masco’s CEO, Tim Wadhams, in a statement. “These factors should continue to drive demand for new homes over the next several years.
“We had broad strength in our businesses as expected (after the third quarter), with sales growth in each of our segments,” said Chris Klein, chief executive officer, Fortune Brands Home & Security, Inc. “We achieved this success as the market for our products continued to improve, with double-digit growth in new housing construction and moderate improvement in spending for home repairs and remodeling.”
Cabinet sales in group of 30 selected FDM 300 companies
- 2005 $17.9
- 2006 $20.9
- 2007 $21.7
- 2008 $19.4
- 2009 $13.4
- 2010 $12.8
- 2011 $12.0
- 2012 $12.3
Annual sales in billions. Source: FDM 300 data.
KCMA cabinet manufacturer trends of business survey
- 2006 $8.9
- 2007 $7.9
- 2008 $6.7
- 2009 $4.8
- 2010 $4.5
- 2011 $4.4
- 2012 $4.7
Annual sales in billions. Source: Kitchen Cabinet Manufacturers Assn.