Obstacles Linger, Even in Face of Uptick


Supply side challenges continue to hamstring both new housing and the residential-construction trade, even as both market sectors continue to exhibit significant 2021 gains. Among the key statistics and forecasts released in recent weeks by government agencies, research firms and industry-related trade associations were the following:

HOUSING STARTS & NEW-HOME SALES

Despite recent gains in housing production, concerns linger over weakening permit numbers, a slowdown in new-home sales and rising materials costs, the National Association of Home Builders said. Overall housing starts were pegged at a seasonally adjusted annual rate of 1.64 million units, according to the latest available figures, as strong demand helped offset supply-side challenges. Builders continue to contend with rising home prices and materials delays, as well as with shortages of buildable lots, a dearth of skilled labor and a challenging regulatory climate, said Robert Dietz, NAHB chief economist. “The weakening of single-family and multifamily permits is due to higher material costs, which have pushed new home prices higher since the end of last year,” Dietz said. “This is a troubling sign for future housing production (and) a challenge for a housing market that needs additional inventory.”

RESIDENTIAL REMODELING

Residential construction professionals experienced their busiest quarter since at least 2015 in the first three months of 2021, with confidence among remodeling construction and design firms running high, according to Houzz Inc. The online platform for home remodeling and design reported positive results for its “Q3 2021 Houzz Renovation Barometer,” a quarterly gauge of residential renovation market expectations, project backlogs and recent activity among businesses in the construction, architectural and design services sectors. However, the heightened activity is not without challenges, according to Houzz, which reported that supply chain delays, extreme weather patterns, rising product and material costs and labor shortages “continue to create major headwinds for the industry.” In a related development, annual gains in homeowner improvement and maintenance spending are poised to accelerate in the second half of 2021 and remain elevated through mid-year 2022, according to the Leading Indicator of Remodeling Activity (LIRA), released in by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects that annual growth in home renovation and repair expenditures will reach 8.6% by the second quarter of 2022, with annual expenditures expected to exceed $380 billion.

EXISTING-HOME SALES

Existing-home sales, despite several months of declines, were up 22.9% from a year ago, and available supply has improved in recent months due to gains in housing starts and existing homeowners listing their homes, the National Association of Realtors reported. “Home sales continue to run at a pace above the rate seen before the pandemic,” said Lawrence Yun, chief economist for the Washington, DC-based NARI, which pegged the latest seasonally adjusted annual rate for resales at 5.86 million units. Total inventory was down 18.8% from a year ago, while unsold inventory is down year to date, from 3.9-month supply in 2020 to a 2.6-month supply at the same time this year, the NAR added.

APPLIANCE SHIPMENTS

Reflecting gains in new construction and residential remodeling, domestic shipments of major home appliances continued their rebound from the impact of COVID-19 in the first half of 2021, the Association of Home Appliance Manufacturers reported. According to the Washington, DC-based AHAM, an April-to-June spike of 23.7% over the same quarter a year ago was largely responsible for an overall year-to-date gain of 26.6% in major appliance shipments compared to the same six-month period in 2019. First-half gains were posted in all key product categories, including food preservation (+31.6%), home laundry (+27.7%), cooking (+24.1%) and kitchen cleanup (+17.4%), AHAM noted.

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Different Approach Delivers Local Vibes

San Francisco, CA — When you hear that your clients recently moved from Japan after having lived in Tokyo for two decades, it might seem logical to incorporate Asian influences into the renovation of their home to make them feel comfortable. However, Jeni Gamble knew they wanted a different approach.

“There would be no bamboo, no shoji,” says the founder/creative director and LEED AP/NCDIQ at gamble + design in San Francisco, CA, who worked in collaboration with Arrow Builders to remodel this home in the Presidio Heights neighborhood of San Francisco. “That would have felt too contrived. Instead, they were interested in learning more about their new city and creating a home that reflected that area. They also wanted to keep the renovation within the community, so they were also very interested in meeting and working with local artisans who could show them something new.”

Subtle, carefully crafted details

With a sophisticated design eye, Gamble’s clients wanted to transform the previously gaudy and heavily ornamented home into one that showcased a pared-down elegance and serenity imbued with subtle, carefully crafted details and custom pieces from California artisans.

“The home previously had a ton of layered ornamentation,” says the designer. “That may be okay for an old historic home. But for my clients’ home, with its more modern architecture, it just didn’t make sense. So, we stripped away the applied finishes and brought the home back to its original architecture.”

As such, gone was the hodgepodge of random, highly patterned tiles that made up the kitchen’s backsplash. Gone, too, was the painted blue floor – which was stripped and returned to its natural walnut state – as well as the overabundance of matching blue elements that overtook the room.


Jeni Gamble included materials and finishes that provide texture and depth, such as the Jura limestone countertops and custom white oak cabinetry that reinforce the feeling of nature. To highlight local artisans, she accented the cabinetry with custom knobs and pulls crafted by Marin County’s Alice Tacheny.

In their place, Gamble brought in materials and finishes that provide texture and depth, such as the Jura limestone countertops that reinforce the feeling of nature, along with the custom white oak cabinetry from local cabinet maker Bachmann Woodworking.

“We love working with white oak,” says Gamble. “It’s a staple for us because of its density. We also love it because it has a very fine grain pattern, which offers warmth when allowed to show through the stain. Often, we play with stain, but for this kitchen, rather than allowing the wood to take on a yellow cast, we purposefully lightened it to control the color palette. We also carried the oak throughout the rest of the home, using it for the dining room table as well as the staircase.”

The designer accented the lightened cabinetry with end panels and frames for the tall cabinetry, painted with Farrow & Ball’s deeply hued Hague Blue paint.

“Blue was everywhere in the previous kitchen,” she says. “Our clients do like blue; they just didn’t want so much of it, so we toned it down. The blue color also serves as a ‘bookend’ for the cabinetry. I often like to bookend, or sandwich, elements to give them a beginning and an end. Sometimes I use different materials or finishes. In this case,

I used the blue paint.”

Gamble also used the dark shade to draw attention to the custom niche she created within the refrigerator/pantry wall.

“We like to incorporate niches into our designs that can be used as coffee or tea stations,” says the designer. “They have become a signature feature for us. Carving out a space that can be used specifically for this purpose helps keep the counter clear so it doesn’t get cluttered. Often, people’s favorite part of the day is their coffee, so we like to celebrate it!”

To fulfill the desire to highlight local artisans, Gamble accented the cabinetry with custom knobs and pulls, crafted by Marin County’s Alice Tacheny. The blackened metal is on-trend with current kitchen design and matches the MGS Black Steel faucet and trio of peninsula pendants from Michael Anastassiades’ Brass Architectural Collection.

Outdoor Sanctuary

While the living room offers views of Presidio and the Golden Gate Bridge, the kitchen grants glimpses to the homeowners’ outdoor living space. Patio doors provide physical entry to the barbecue/seating area, while their transparent glass offers visual access to a large painted mural of a mountain range. Boasting calming shades of grays and whites, the mural also serves as artwork for the kitchen and gives the homeowners some privacy from their neighbors.

“Having a kitchen adjacent to an outdoor space is always coveted,” indicates Gamble. “For these clients, their outdoor courtyard is sheltered for barbecuing and is quickly accessible from the kitchen prep area.”
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Cabinets Plus Changes Name, Expands Franchise Effort

AUSTIN, TX — Cabinets Plus USA, the kitchen-related franchising operation headquartered in Austin, TX, has changed its corporate name to Cabinet Q as part of a nationwide expansion effort.

The expansion initiative, which launched last month, will enable the newly named Cabinet IQ to rolling out its franchise program, replicating its business model nationwide, the company said.

“The Cabinets Plus USA brand has been a robust and fast-growing fixture in the Austin, TX area (and) has become well known for its step-by-step system to provide quality, service and design in kitchen and bath remodeling,” said company owner Michael Hartel. “Strong demand for services has spurred our growth, and this name change better reflects our position as the most innovative cabinet and kitchen remodeling company, and now franchise opportunity.”

The rebranding does not affect any existing orders or projects, the company said, adding that corporate ownership, billing address, shipping addresses and invoicing information remain the same.

 

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Corsi Group Changes Ownership

INDIANAPOLIS, IN – The Corsi Group announces the transfer of company ownership from Pat Corsi, who founded the company in 1973, to Mark Earl. Corsi will serve as an advisor to The Corsi Group during the transition. The transfer was effective on August 31.

Pat Corsi, founder of The Corsi Group stated, “It has been my great pleasure and an honor to work with some of the finest employees, suppliers, reps, dealers and designers in the cabinet industry for the past 48 years. I know Mark will take the company to new heights, and I have every confidence that the management team will work well with his process-oriented approach.”

Earl, incoming CEO added, “I look forward to working with the Corsi management team, and helping grow this terrific group of premium brands. Pat has built a strong company, and I want to continue to build on his legacy.”

Earl is a strategic leader with deep experience in product development, strategic marketing, finance, sales and marketing, and operations, noted The Corsi Group. He has led companies from $20 million to $150 million in annual revenue. Most recently, he served as senior v.p., Americas for Nokian Tyres, a global tire manufacturer.

Terms of the sale will not be disclosed.

The Corsi Group has been building custom cabinetry for 48 years. The company’s two brands, Greenfield Cabinetry and Siteline Cabinetry, are distributed nationally to about 500 dealer/designers. All cabinets are built in the company’s two plants, located in Indianapolis, IN, and Elkins, WV.

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Sales Gains Projected for Bathroom Organization Products

CLEVELAND, OH — The growing number of bathrooms in U.S. households will continue to bolster opportunities in the $276-million bathroom organization products market, according to a newly released report by the Freedonia Group.

The analysis by the Cleveland, OH-based market research firm forecasted that sales of bathroom organization products will grow 1.5% per year through 2025, to a total market size of $298 million. Market growth will be relatively slow “because bathrooms are already a well-established segment of the home organization market, and growth will be coming off of elevated sales in 2020, when the COVID-19 pandemic heightened consumers’ investment in their homes,” Freedonia said.

Nevertheless, the company said, the market for bathroom organization products will be sustained by macroeconomic factors such as new home construction, renovations and existing-home sales, “all of which can open up new sales opportunities for suppliers of bathroom organization products by increasing the number and/or quality of bathrooms.”

“New homes are increasingly built with more bathrooms than are common in existing homes, expanding the number of available bathrooms in which consumers can install organization products,” Freedonia said. “The number of bathrooms per home continues to tick up, and this growth will be boosted, at least in the short-term, by a rise in the number of households looking for single-family rather than multifamily living situations.”

Design trends favoring large tubs and showers will also encourage consumers to better organize their bathroom storage, the research firm added, pointing to growth for bins, baskets, and totes, as well as shelving, modular units, hanging storage, accessories and hardware.

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Salone Showcases Design

A special, abridged version of Salone del Mobile.Milano took place last week, amid much fanfare at its return and trepidation amid COVID-19 concerns. The safety of visitors was paramount, with all exhibitors and attendees adhering to protocols at all times, and an abbreviated show floor that often resembled an art gallery, with products hung on walls and shown in unique displays to keep visitors moving and at a safe distance.

“supersalone” did not disappoint, with more than 60,000 people attending the six-day show, which opened with an impromptu visit and remarks from Italian President Sergio Mattarella welcoming guests and 425 exhibitors, who showcased everything from opulent tables and chairs to modern cabinetry and lighting.

Up-and-coming trends were seen throughout the space. Kitchen cabinets sheathed in metal and metallic looks and a wide range of wood tones, and included complementary metal and glass shelving units. Disappearing kitchens were also displayed, with sliding countertops that tuck everything neatly away when not in use.

Faucets reflected a range of geometric shapes, and delivered on the desire for customization with changeable handles and a multitude of finishes that went far beyond the metals of the past. And LED lighting is revolutionizing the shape and size of pendants, sconces and chandeliers, delivering intricate shapes and modern vibes. LED lighting are also prominent in kitchen and closet shelving and interiors, and even in faucet spouts and showerheads.

Following are a few of the products that made a statement during the event.

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Builder Confidence Steadies as Material, Labor Woes Persist

WASHINGTON, DC — Builder confidence inched up this month on lower lumber prices and strong housing demand, even as the housing sector continues to grapple with building material supply chain issues and labor challenges, the National Association of Home Builders reported.

According to the latest in a series of monthly NAHB/Wells Fargo Housing Market Indexes, released yesterday, builder sentiment in the market for newly built single-family homes edged up one point, to 76, in September, ending a three-month decline, the NAHB said.

“Builder sentiment has been gradually cooling since the HMI hit an all-time high reading of 90 last November,” said NAHB Chairman Chuck Fowke. “The September data show stability as some building material cost challenges ease, particularly for softwood lumber. “However, delivery times remain extended, and the chronic construction labor shortage is expected to persist as the overall labor market recovers.”

“The single-family building market has moved off the unsustainably hot pace of construction of last fall and has reached a still hot but more stable level of activity,” added Robert Dietz, chief economist for the Washington, DC-based NAHB. “While building material challenges persist, the rate of cost growth has eased for some products, but the job openings rate in construction is trending higher.”

The NAHB said it expects housing affordability will be a key demand-side challenge in the coming quarters, given the rapid rate of growth for home prices and construction costs over the last year.

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Flexible Design in the Kitchen

Today’s kitchens are delivering more multi-tasking than ever, as islands and niches now act as places to do homework, bill-paying and game playing in addition to eating breakfast and entertaining. Function remains vital to the way a kitchen is designed, and as lifestyles change, so do the elements of the overall space.

In addition to multifunctionality, trends impacting kitchen design include advancing technology and wellness. Aesthetically, color is upping its presence in appliances, tile and countertops, so cabinets need to provide the right complement – whether that means a striking, bold selection or calm, neutral backdrop.

Key trends impacting the kitchen cabinet segment include:

–The selection of flexible and specialized storage features continues to expand as homeowners try to make use of every inch of space in the kitchen.

–Wood tones are making a comeback, with finishes ranging from pale, natural wood looks to rich, dark grayed browns.

–Texture continues to trend, with weathered woods and soft-touch options among the most popular.

–The interest in color is skyrocketing, with painted and powder-coated finishes now available in an almost endless selection.

–Among the most popular colors trending for cabinets are blues and greens with a hint of gray, as well as black and, of course, white.

–Creative storage for cabinets includes pullouts, peg systems, pull-downs and blind-corner options, while drawers feature dividers and elegant organization for utensils and other items.

 

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EPA Ruling Caps Production of HFCs in Refrigeration

WASHINGTON, DC — In what officials are calling a major step in combating global climate change, the U.S. Environmental Protection Agency has issued a final rule establishing a program to cap and phase down domestic production and consumption of climate-damaging hydrofluorocarbons (HFCs), highly potent greenhouse gases commonly used in refrigerators and air conditioners.

The landmark program, announced today, will phase down the U.S. production and consumption of HFCs by 85% over the next 15 years, as mandated by the American Innovation and Manufacturing (AIM) Act, enacted in December 2020 as part of an effort designed to slow global warming, EPA officials said. HFCs are potent greenhouse gases commonly used in refrigeration and air conditioning equipment, as well as foams and other applications.

The bipartisan AIM Act, backed by a coalition of industry and environmental groups, not only phases down HFCs, but also ushers in the use of more climate friendly and energy-efficient alternatives aimed at saving consumers money while protecting the environment, according to the EPA.

“Today, EPA is taking a significant step forward to tackle the climate crisis,” said EPA Administrator Michael Regan. “Cutting these climate ‘super pollutants’ protects our environment, strengthens our economy, and demonstrates that America is back when it comes to leading the world in addressing climate change and curbing global warming in the years ahead.”

“American companies are at the forefront of developing HFC alternatives and the technologies that use them, and the AIM Act provides these companies additional opportunities to continue to innovate,” Regan added.

EPA estimates that the cumulative net benefit of its action will amount to more than $272 billion from 2022 through 2050, and that the rule will yield cumulative compliance savings for industry. In 2036 alone, the year the final reduction step is made, the rule is expected to prevent emissions of the equivalent of 171 million metric tons of carbon dioxide (CO2) – roughly equal to the annual greenhouse gas emissions from one out of every seven passenger vehicles registered in the U.S., the EPA said. The total emission reductions of the rule from 2022 to 2050 are projected to amount to the equivalent of 4.6 billion metric tons of CO2 – nearly equal to three years of U.S. power sector emissions at 2019 levels.

EPA officials said the agency will work with the U.S. Dept. of Homeland Security to prevent the illegal import and trade of HFCs through an interagency task force led by personnel from U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, Homeland Security Investigations and EPA.

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Cabinet Sales Post Gains Through August, KCMA Reports

RESTON, VA — Major domestic kitchen cabinet and vanity manufacturers continued to post sales gains through the first eight months of 2021, according to the latest in a series of monthly surveys by the Kitchen Cabinet Manufacturers Association.

The KCMA’s latest “Trend of Business Survey” reflected a year-to-date sales increase of 16.9% through August, compared to the same eight-month period in 2020. Custom cabinet sales through the first eight months were reported up 20.4% over the same period last year, while semi-custom sales rose 14.9% and sales of stock cabinets gained 17.6%, the Reston, VA-based KCMA said. August sales were up 8.0% compared to the same month the prior year, the association added.

Survey participants include stock, semi-custom and custom companies whose combined sales represent approximately 75% of the U.S. kitchen cabinet and bath vanity market, according to the KCMA.

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