Steve Lawser.
Representatives of key woodworking industry associations shared recent research and offered forecasts for business in 2012 in a free webinar January 5, 2012. The presentation was part of the ongoing series presented by the Center for Innovation in Woodworking, an educational program of CabinetMakerFDM.
Speakers at the event were Steve Lawser, executive director of the Wood Component Manufacturers Association, Dick Titus, executive vice president of the Kitchen Cabinet Manufacturers Association, and Jim Beach, director of the Wood Machinery Manufacturers of America. Karl Forth, online editor of CabinetMakerFDM, moderated the discussion.
Component forecast positive
Lawser explained the component market in North America, and the role that exported logs and imported components are playing. Lawser said that building products and cabinets each accounting for 32 percent of the market, and furniture 21 percent. In 1984, furniture accounted for two-thirds of component use. Interestingly, furniture’s share has actually grown slightly from 2006 to 2011. Components most often outsourced include mouldings and millwork, cabinet doors and parts, cut-to-size blanks, stair parts and treads.
The outlook for 2012 includes total component sales up 10 percent, according to the WCMA market study. For the future, Lawser said that successful producers will have to produce innovative, more customized and differentiated products, and smaller orders for a broader customer mix, while focusing on new production techniques and cost reduction.
Cabinet market: $7 billion in 2012
Titus spoke on the kitchen and bath cabinet market industry size analysis and the KCMA Trend of Business report. KCMA currently has 175 cabinet manufacturer members, with 60 percent of member companies having less than $10 million in sales. The analysis estimated that the 2011 market size was $6.8 billion in 2011, down 2.6 percent from $7 billion in 2010. In 2006, the market was estimated to be in the $12-13 billion range.
Titus said that the monthly Trend of Business report showed that the cabinet Industry had 126 consecutive months of sales growth, which ended in November 2006. There have been positive months since then. Estimates by others that business was off 50 percent were pretty accurate, he said. For 2012 Titus sees a flat year with industry sales holding at about the $7 billion mark.
Partnerships wanted
Beach of WMMA spoke about interviews that he did with cabinet, millwork and furniture producers, and overall business and manufacturing trends. Beach explained that WMMA member company sales were down 40 to 50 percent in recent years.
Beach said the companies he spoke to often talked about the need for improved partnerships, how suppliers need to understand wood products manufacturing businesses, and why more communication in general is needed. Wood product manufacturers wanted to develop partnerships with equipment manufacturers and distributors.
Knowledgeable speakers
Each of the speakers brought special expertise and independent research to the topic. Lawser has served as Executive Director of the WCMA since 1983. The WCMA represents nearly 115 U.S. and Canadian manufacturers of wood component products for the furniture, kitchen cabinet, moulding, millwork, flooring, building products, and related decorative wood product industries. Lawser and the WCMA are actively involved in market development and promotional programs designed to expand the markets for value-added North American wood products. The association regularly conducts market and outsourcing studies to identify market trends and track component buyers interests in purchasing component parts, and Lawser will report on some of that research.
Titus was named executive vice president of the KCMA in 1980. Prior to KCMA, he served as the director of legislative affairs for the American Paper Institute and director of federal legislative affairs for the Society of the Plastics Industry. He is actively involved in the National Association of Manufacturers, U.S. Chamber of Commerce, and several industry related groups and coalitions.
Dick Titus.
Jim Beach has been a long-time advocate for the woodworking industry through his role as director of the WMMA. He will report on recent research the association conducted that helps hint at economic trends for the new year.
More webinars on tap
This webinar is part of an ongoing series covering technology, new developments, and information you can use in your woodworking business. All of the webinars are free and begin at noon CT (1 p.m. ET). Here are next webinars on the schedule:
January 19 – Finishing
Phil Stevenson of the American Wood Finishing Institute will present information on using water based finishes in the small to medium size shop. Moderator: Karl Forth, online editor, CabinetMakerFDM.com.
February 2 – Advancements in Tooling Technology
Jens Schulz from Leuco Tools will present the concept of their revolutionary new “P” System of cutting tool technology. Mark Alster from Leitz Tooling will present the technology behind their new RipTech technology, and Mike Serwa from Vortex Tool Co., will present the latest advancements in standard carbide cutting technology. Moderator: Karl Forth, online editor CabinetMakerFDM.com.
Register now
Presentations last approximately 45 minutes plus an additional 15 minutes for live questions and answers from the audience. All you need to participate is a computer and an internet connection. Learn more or sign up at www.cabinetmakerfdm.com/webinars.aspx. That is also the place to see archived webinars on pricing, marketing, technology, software, and CMA certification.