SIC 2434 Wood Kitchen Cabinets

Contenidos

• NAICS CODE(S).
• FURTHER READING.

SIC 2434

This industry includes establishments primarily engaged in manufacturing wood kitchen cabinets and wood bathroom vanities, generally for permanent installation. Establishments primarily engaged in manufacturing free-standing cabinets and vanities are classified in various furniture-manufacturing industries. Establishments primarily engaged in building custom cabinets for individuals are classified in SIC 5712: Furniture Stores.

NAICS CODE(S)

337110

Wood Kitchen Cabinet and Counter Top Manufacturing

In a 2006 survey by the Home Improvement Research Institute, 66 percent of homebuyers completed at least one home improvement project within the first year of buying a home. More than half of homebuyers were planning to start a second home improvement project within the next year, with kitchen and bath remodeling topping the list. According to Kitchen & Bath Design News, kitchen cabinetry sales approached $1.5 billion in 2005. Since remodeling a kitchen offers the highest return upon resale of the home, homeowners consistently invested in cabinet upgrades throughout the 1990s and 2000s. In fact, November 2006 was the first month in over 10 years that sales declined, even slightly.

Unlike much of the U.S. wood products industry, kitchen cabinetry has experienced continual growth. The value of shipments of kitchen cabinets, according to Wood Digest, grew 111 percent between 1997 and 2005. This industry sector, along with 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.

Aside from constant demand, a key reason for the continued 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). Partly attributable was 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.

To ensure continued success, industry experts report that companies in the...