Check out what’s been happening in the cabinet industry the last few weeks from the Kitchen Cabinet Manufacturers Association:
Slower Growth Anticipated in Home Remodeling
After several years of solid acceleration, annual growth in national home improvement and repair spending is expected to soften in 2019, according to the latest Leading Indicator of Remodeling Activity; (LIRA) from the Joint Center for Housing Studies of Harvard University.
Rising mortgage interest rates and flat home sales activity around much of the country are expected to impact otherwise strong growth in homeowner remodeling spending moving forward. Low for-sale inventories are presenting a headwind because home sales tend to spur investments in remodeling and repair both before a sale and in the years following.
Overall, annual expenditures for residential improvements and repairs by homeowners is still expected to grow to over $350 billion nationally through the third quarter of 2019.
Click here to read more of the report.
Chinese Manufacturing Slowed in September after Tariffs
A recent report has revealed that Chinese manufacturing output slowed in September as US tariffs decreased the demand for Chinese output. Private manufacturers stopped expanding last month, while state-owned manufacturers continued ongoing declines. Analysts predict this data will lead the Chinese government to stimulate the nation’s economy by easing up on reducing banks’ reserve requirements and boosting spending. Read more of the report from Wall Street Journal here (subscription required).
KCMA Signs Support for Accurate Labels Act
Last month KCMA signed a letter in support of the Accurate Labels Act. The letter will go to Representatives Panetta (D-California), Thompson (D-California) and Garamendi (D-California) urging them to support and co-sponsor the legislation. As you will recall, this bill would establish a risk-based federal standard for labeling and ingredient disclosure requirements that is substantiated by sound science. This bipartisan legislation is necessary to provide consumers with clarity amidst a confusing patchwork of state and local labeling and disclosure laws.
House Passes Bill to Make Tax Cuts Permanent
Last week the US House of Representatives passed a bill to make the recent individual and small-business tax cuts permanent. The vote was 220-191 and is the second tax-cut proposal that Republican leaders have established in less than a year. In the eight months since the tax law took effect, “We’ve seen an economic turnaround with more jobs, bigger paychecks and historic Main Street optimism,” Rep. Kevin Brady (R-Texas), chairman of the tax-writing House Ways and Means Committee.
Click here to read more.
Millennials Use Kitchen for More Than Cooking
For Millennial homeowners, the kitchen is more than just a place to cook. They also use their kitchens more for entertaining, hanging out with friends or family and listening to music. Millennials are more likely to work from home in their kitchens, illustrative of the increased demand for multi-purpose countertop surfaces and additional storage. In fact, millennials are 73% more likely to conduct business or do work in the kitchen than older generations. Click here to read more about the results of this survey from the Research Institute For Cooking and Kitchen Intelligence and Kitchen & Bath Design News.
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