WoodDigest.com |

Dick Titus, Executive Vice President, KCMA

The negative economic climate isn’t stopping members of the Kitchen Cabinet Manufacturers Association (KCMA) from taking a positive approach to the long-term business outlook.

“The mood of our members is that it’s part of the business cycle, that serious corrections are being made,” says KCMA executive vice president Dick Titus.

KCMA now has the highest number of members — 433 — in its history. They account for some 70 percent of the cabinets sold in the United States.

The association’s Environmental Stewardship Program (ESP), launched in 2006, has been a strong draw for new members.

Ten straight years of monthly sales increases ended November 2006, and 2007 was in negative territory as the housing crisis deepened. KCMA’s trend of business survey for January 2008 shows the down trend continuing, with sales dropping 11.3 percent compared with January 2007.

Expectations are for a turnaround sometime in early to mid-2009.

“Conditions are soft, and remodeling has slowed along with new home construction. Home values have gone down, and that has people putting remodeling off,” Titus says. However, there are still some cabinet manufacturers having solid years, Titus says.

Bad times provide a breather for overhauling company operations and taking the time to look for new business opportunities. “Most people are preparing for a recovery. Our members are refining their processes, and organizing to be more efficient,” says Titus.

KCMA’s January strategic planning conferences keyed in on ideas for recovery preparations, featuring programs focused on management, company processes and networking opportunities.

Future educational programs will include seminars on the financial outlook, marketing, updates on regulatory issues and technology, covering both equipment and software.

The association is also responding to the need for employee medical insurance. It is looking into developing a health insurance plan for member companies.

KCMA exhibited at the National Association of Home Builders’ (NAHB) International Builders Show (IBS) for the first time this year. NAHB references ESP in its green standards for home builders.

In an announcement leading into IBS, KCMA launched ESP on its own website, www.GreenCabinetSource.com. The site provides in-depth information on sustainability, recycling, lower emissions and conserving energy. The website will showcase the cabinet sector’s role in environment-friendly manufacturing.

Criteria for ESP certification include a requirement that 75 percent of particleboard, plywood and MDF used in cabinets meet the lowest formaldehyde emission standards. The provision keys into California’s recently promulgated standard, which is expected to become a de facto national requirement.

“ESP will be responsive to specifiers, designers, builders and consumers,” Titus says. Capabilities include links to the 93 ESP-certified cabinet lines and companies already in the program. They probably represent over half the market, Titus says.

KCMA is looking into adding third-party certification for both ESP and its ANSI/KCMA cabinet standard programs.

“We’re looking to make standards clearer and less ambiguous as materials and processes change,” Titus says.