At KCMA, we’re committed to bringing you the latest news in the cabinet manufacturing industry. Here’s a look at what’s happening:
PERCEIVED IMPACT OF PANDEMIC IS DOWN FOR WOODWORKING INDUSTRY
According to a recent survey from Woodworking Network, the perceived impact of Covid-19 on the woodworking industry is decreasing. When the survey was first conducted back in March, 36.5% of respondents predicted it would have a major impact on their business. Now, that number has dropped to 21.3%.
COMMENTS ON VIETNAM’S USE OF ILLEGAL TIMBER
The Hardwood Federation has filed comments regarding the Section 301 Investigation related to Vietnam’s acts, policies and practices pertaining to the import and use of illegal timber. Included in the comments are recommendations to focus any action on remedies and agreements that will avoid unnecessary retaliatory measures impacting the export of US goods to Vietnam.
TARIFFS ARE BENEFITING US MANUFACTURING
In 2019, for the first time in six years, the share of US manufacturing demand met by American-made goods increased. This is important because America’s domestic market is crucial for manufacturers. It was worth $7 trillion last year, and recent tariffs are responsible for a large part of this success. Despite a potential change in administration, keeping these tariffs in place will be critical to the government’s strategy to restore important industries.
SEPTEMBER CABINET TRADE DATA
Imports from China continue to decline. In September 2020, Chinese imports totaled only $5.7 million, compared to a peak of $106.9 million in July 2019. Imports from the rest of the world are still generally up, but have flattened in recent months. From August 2020 to September 2020, imports from the rest of the world increased from $150.5 million to $151.4 million. Imports from Vietnam, Malaysia and Indonesia continue to lead the charge as new entrants in the US market since the AD/CVD duties on Chinese cabinets were imposed. For the first time, we are seeing an uptick in imports of cabinets from Mexico, which previously had been fairly steady.
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