Growth will be constrained by rising levels of imports, especially as consumers continue to favour more affordable imports
New York, NY (PRWEB) March 05, 2015
The Cabinet and Vanity Manufacturing industry has grown moderately in the five years to 2015, despite industry contraction in the immediate wake of the economic downturn. At the beginning of the period, demand for industry products was low as residential housing expenditure and consumer confidence lagged. The subsequent strengthening of economic conditions spurred a recovery in downstream demand from the construction sector in Canada and the United States, leading to demand for industry products such as cabinets and countertops for new homes and renovated properties. According to IBISWorld Industry Analyst Gavan Blau, “residential renovation expenditure increased over the period, and the value of residential construction increased.” However, industry revenue remains below prerecessionary levels, indicating that the industry can not take industry growth for granted. In the five years to 2015, IBISWorld expects industry revenue to increase.
Exports grew strongly over the period, therefore, the relative strength of the US and Canadian dollars has a large impact on this industry. The US dollar is expected to appreciate in 2015 against the Canadian dollar, making domestic products such as cabinets and vanities comparatively cheaper to purchase for downstream US industries. This will ensure that demand for exports stays strong in 2015. “With domestic consumer spending on home-improvement investments forecast to rise in 2015, the industry is expected to grow in the same year,” says Blau.
In the five years to 2020, revenue is projected to grow, due to ongoing growth in residential housing expenditures. In particular, home renovation and home-improvement spending are anticipated to strongly increase during the period. However, industry growth will be constrained by rising levels of imports, especially as consumers continue to favour more affordable imports. Imports are forecast to increase during the period, making up an increasing share of domestic demand. On the other hand, cost-cutting efforts are anticipated to marginally bolster profit margins in the five years to 2020, though this growth will not be enough to prevent long-term downward pressure on the industry.
For more information, visit IBISWorld’s Cabinet and Vanity Manufacturing in Canada 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 Cabinet and Vanity Manufacturing industry manufactures kitchen cabinets, bathroom vanities and countertops that are primarily made of wood or wood coverings. Manufacturers distribute their products to wholesalers, contract outfitters and home improvement stores.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 and Canadian 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.