The industry has benefited from a rise in residential construction and private spending on home improvements
New York, NY (PRWEB) June 28, 2014
The Countertop Manufacturing industry makes horizontal work surfaces used in kitchens, food preparation areas, bathrooms and workrooms. Countertops produced by industry operators incorporate a variety of materials, such as marble, granite and other natural stone, as well as wood, laminate, concrete, crafted glass and tile.
In the five years to 2014, the industry benefited from improving employment, rising disposable incomes and historically low interest rates, which spurred a rise in residential construction. According to IBISWorld Industry Analyst David Yang, “residential construction and private spending on home improvements largely drive demand for the Countertop Manufacturing industry, as countertops are commonly installed in new homes and during kitchen renovations.” Additionally, an increase in mortgage refinances and bank lending made more credit available for the remodeling of existing homes, further boosting countertop replacement sales. To a lessor extent, industry revenue is also driven by commercial construction activity, as countertops are installed in buildings that require cafeterias and kitchens. Therefore, a rise in private nonresidential construction aided industry sales as well during the past five years. From 2009 through 2014, these factors helped contribute to an expected annualized industry revenue growth rate of 5.7% to $5.1 billion, which includes a 7.1% increase in 2014 alone.
“Going forward, this upward trend will continue as industry sales are expected to return to prerecessionary levels, driven by a steady rise in residential construction and private spending on home improvements,” says Yang. A shift in consumer preferences to more expensive countertop materials, such as engineered stone and recycled glass, should also enhance industry revenue, which is expected to increase in the five years to 2019.
The Countertop Manufacturing industry exhibits a low market share concentration, as the industry's largest player accounts for barely more than 5.0% of industry revenue. The remainder of the market is captured by small businesses that serve local and regional markets.
For more information, visit IBISWorld’s Countertop Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
The Countertop Manufacturing industry primarily cuts, shapes and finishes countertops for kitchens and food preparation areas. These countertops are made out of wood, laminate, solid surface (e.g. acrylic and polyester blends), tile and stone (e.g. granite, marble, and limestone).
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.