Leading indicators of kitchen and bathroom remodeling activity, namely sales of everything from surface materials to appliances show that K/B remodeling remains strong, despite a slowdown in the overall growth in the remodeling market this year.

Decorative laminate demand

Sparked by demand from the flooring industry, sales of decorative laminates in the United States are being forecast to rise 3.8 percent a year, to 16.6 billion sq. ft., valued at $8.2 billion, by 2011, according to a study by The Freedonia Group. The Cleveland, Ohio-based market research firm forecast that laminate sales gains will be fueled largely by growth in laminate flooring, which is projected to gain 9.6 percent per year through 2011. Cabinets will use 4.4 billion sq. ft. of laminate in 2004, despite below-average growth, particularly in the new-construction sector, analysts said, noting that demand for laminate cabinets will occur at the expense of other materials, such as softwood plywood. High pressure laminates, such as those used for countertops and other horizontal surfaces, are expected to post above-average growth over the next five years, researchers added. Laminates made from low pressure overlays are being forecast to comprise 81 percent of decorative laminate sales volume by 2011.

Cabinet and vanity sales

Sales of kitchen cabinets and bathroom vanities, hurt by the ongoing housing slump, fell sharply in June compared to the same month in 2006, the Kitchen Cabinet Manufacturers Association said last month. According to the Reston, Va.-based KCMA, manufacturers participating in the association’s monthly “Trend of Business” survey reported that overall cabinet sales declined 15.0 percent in June compared to the same month in 2006. Sales of stock cabinets fell 22.1 percent for the month, while semicustom cabinet sales declined 6.8 percent and custom cabinet sales declined 12.6 percent. Year-to-date sales through the first six months of 2007 were down 13.5 percent from the January-June time period of 2006, the KCMA reported.

Appliance shipments

Slowed by the softness in the nation’s housing market, shipments of major home appliances are likely to remain essentially flat — although at record levels — through the balance of this year, before posting a modest gain in 2008, according to the latest forecast by the Association of Home Appliance Manufacturers. The Washington, D.C.-based AHAM projected that major appliance shipments, on a significant growth curve over the past 10 years, should reach a record 80.23 million units this year, up just marginally from the 79.95 million units shipped in 2006. Projections are for shipments to rise to 81.45 million units in 2008, with most product categories posting slight advances (see graph at right).