Submitted by mmetz@kcma.org on Mon, 11/08/2021 - 20:14
Industry News Update September 23, 2021

The Kitchen Cabinet Manufacturers Association is committed to bringing you the most up-to-date information in the industry. Here’s a look at what’s happening:

CUSTOMS FINDS CABINET IMPORTERS EVADED CHINESE DUTIES BY TRANSSHIPPING THROUGH MALAYSIA

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U.S. Customs and Border Protection has found that a group of cabinet importers is evading antidumping and countervailing duty orders on Chinese products by transshipping them through Malaysia.

The story begins in April 2020, when the Kitchen Cabinet Manufacturers Association won one of the largest anti-dumping cases ever brought against China. The ITC unanimously found injury to the U.S. cabinet industry, and Commerce imposed duties of 70 percent on Chinese imports of cabinets and vanities.

But it was only a matter of time before importers would find a way to skirt these duties.

After noticing that cabinet imports from countries like Vietnam, Malaysia, and Indonesia were rising 1000 percent or more, MasterBrand Cabinets hired a private investigator. Read more.

 

MEXICAN CRIME GROUPS TURN TO LOGGING AS MARIJUANA BECOMES INCREASINGLY LEGAL IN U.S.

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As more US states move towards legalization, “Mexican marijuana has largely been supplanted by domestic-produced marijuana,” according to the US Drug Enforcement Administration’s (DEA) 2020 National Drug Threat Assessment.

The report shows marijuana seizures along the southwest US-Mexico border declined by more than 81 percent between 2013 and 2020, suggesting Mexican crime groups have significantly scaled down their marijuana trafficking operations. Read more.

 

ENVIRONMENTAL STEWARDSHIP PROGRAM: 

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At first glance, the application process for the KCMA Environmental Stewardship Program can seem very intimidating.  There are a lot of sections with a lot of information that must be provided.  However, if you take the right steps…

  1. Reach out for help
  2. Evaluate the application
  3. Coordinate with the proper departments
  4. Organize your documentation

…you can make both the application and renewal process much smoother. Read more.

 

DEATH TAX HIKE INCLUDED IN HOUSE PLAN

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Ways and Means Democrats released a list of tax payfors to finance their next spending bill which they plan to mark up this week. Fortunately, the heat surrounding the “double death tax” issue dissuaded Ways and Means Dems from including any version of cap gains realization at death in their payfors. They did however choose to include three problematic items relating to the estate tax:

  1.  Accelerating expiration of TCJA estate and gift tax parameters.
  2. Changes to the treatment of grantor trusts
  3. Modifications to estate tax valuation rules 

Read more.

 

RESHORING ON TRACK TO HIT RECORD HIGHS IN 2021

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Ohio, Arizona, and Tennessee have been top beneficiaries of recent reshoring
 

If present trends hold, we may be in for a boom era of U.S. manufacturing reshoring.

The latest report from the Reshoring Initiative projected the U.S. is on track to add a total of 224,213 jobs from abroad in 2021, 38% more than the 161,000 added in 2020 due to reshoring and foreign direct investment (FDI).

The Initiative also predicted that 2021 would see more jobs created due to reshoring than federal direct investment for a second year in a row.

According to the data, reshoring is on track to make up 62% of such jobs this year—a smaller percentage than last year, when 7 out of 10 such jobs were reshored, but a sizeable increase in absolute terms. Read more.

 

SUPPLY CHAIN LEADERS MUST INCORPORATE REGIONAL DESIGNS INTO GLOBAL NETWORKS

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To better deal with growing protectionism and the need for higher agility,  chief supply chain officers (CSCOs) must incorporate regional designs into their global networks without diluting the cost or competitive advantages of existing global networks, according to Gartner, Inc.

“Many industries have become capacity-constrained,” said Kamala Raman, vice president analyst with the Gartner Supply Chain practice. “Some of this is driven by availability of material, some is driven by labor shortages in both manufacturing and transportation, some of it is driven by changing quarantine conditions around the globe, as well as the general inability of countries around the world to operate at a pre-pandemic normal.”

For supply chain leaders, this means that the world is still relying on global trade but has become less globalized compared to a few years ago. A recent Gartner survey showed that 51% of supply chain leaders expect that national interests and pressure to favor domestic operations will increase in influence on future supply chain decisions. A successful supply chain now integrates regional supply chains into global networks. Read more.