Kitchen Cabinetry evolutions in innovation

Functional Necessity to Style Statement

Kitchen Cabinetry has been evolving in both functionality and aesthetics, reflecting changing trends, technological advancements and the every changing needs of homeowners for decades. Innovative storage, convenience items, furniture elements, cleaner lines and aging in place continues the linear changes within the space. Changing lifestyles, family dynamics, style preferences, and design trends of homeowners will continue. With advancements in customization, technology, sustainability, and design, kitchen cabinets continue to play a central role in shaping the look and feel of today’s homes offering both functionality and style in equal measure.

The industry remains very fragmented with regional manufacturers leading sales in the remodel space, while importers and specialty manufacturers continue to lead multi-family housing projects. Rapid urbanization and a growing population are further expected to fuel residential construction and drive market expansion. Product demand is predicted to be driven by consumers’ growing need for efficient, space-saving storage that optimizes space.

Challenge

Economic concerns combined with ongoing labor and supply chain issues are leaving cabinet manufacturers with a cautious outlook for next 3 years.

Housing absorption rates, new constructions easing and climbing interest rates will continue to slow residential new construction cabinetry purchases.

Continued consolidation amongst regional manufacturers and increasing off-shore imports will impact the industry end markets slowly limiting some traditional product offerings

Profitable manufacturers can't be all things to all people and leveraging operational synergies will impact product offerings downstream. The ticket to stay is adapt or die which can be difficult for a 2nd or 3rd generation manufacturer to embrace.

Solution

Technology leveraged for greater industry growth and M&A innovations such as AI design technologies pave the way for new growth opportunities.

Reducing costs by eliminating lesser-known product lines or brand extensions where sales don’t justify the continued investment.

Operating performance leveraging technology and simplifying the manufacturing process taking advantage of less experienced labor will continue to increase.

From a revenue synergy POV, relationships at end markets - dealer channel - will prove vital, enhancing share of showroom and transferring discretionary dollars from one supplier to another. The evolution will be about who's easiest to do business with.

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Sector Focus

Kitchen Cabinetry evolutions in innovation

Functional Necessity to Style Statement

Challenge

Solution

Make A Difference With JScott Partners