Substantial downturn in the home improvement and new home construction markets have severely set back the Cabinet and Vanity Manufacturing Industry, PRWeb.com reports.
Lower consumer spending on new home construction projects and remodeling has been the main cause. On top of that, the high number of foreclosures, limited credit availability, declining home values and poor consumer confidence continue to hinder the pace of recovery in the housing market and to hurt demand for industry products.
“Industry revenue began contracting in 2007 as falling home prices started to dampen consumer spending and new-house construction slowed,” said IBISWorld industry analyst Andrea Alegria. “Industry revenue has declined in the four years since then, dropping by as much as 30.3% in 2009 during the trough of the global economic recession.”
But she and other analysts have seen positive revenue growth in 2011, which is expected to grow 8.6 percent in 2012 as the housing markets begin to stabilize and consumer spending increases.
Alegria forecasts huge growth leading up to 2017. A large population is reaching first-time homebuyer status. This can light the match on the industry, as more consumers buy homes and products and rehabilitate old homes and replace existing cabinets.
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