May 26, 2022

DHA eNews - Kitchen Cabinet Sales Continue To Surge

This Week's Insights

Last week Decorative Hardwoods Association was in Nashville for our 101st Annual Meeting where, among other things, we introduced our new AIA-approved continuing education program for architects and designers. I loved seeing our members and discussing the exciting developments and challenges in our industry. Please save the week of May 22, 2023, for our next annual meeting.

One of the exciting developments is the strong continued growth in kitchen cabinet sales, which are up 11.3% per a recent report from Kitchen Cabinet Manufacturers Association. Antidumping duties on Chinese cabinets are likely responsible for part of the improvement in the market health of U.S. cabinet producers.

Another part of ensuring the health of our industry is getting government regulations and definitions right. Thus, DHA filed comments on May 23 arguing that unfinished hardwood plywood and hardwood veneer should be considered a "construction material" under the Build America, Buy America Act, which means that the U.S. government would be required, in many instances, to buy 100% U.S.-made hardwood plywood and veneer. 

If you have questions or comments, contact me. I look forward to hearing from you.

Keith A. Christman, President
Decorative Hardwoods Association


Photo © Roseburg

Kitchen Cabinet Sales Continue To Surge

According to the Kitchen Cabinet Manufacturers Association, kitchen cabinet sales increased 11.3% in March vs. last year. Custom sales are up 17.4%, semi-custom sales are up 3.3%, and stock sales are up 15.7%. Cabinets are one of the largest markets for hardwood plywood.

DHA Fights To Include Hardwood Plywood, Veneer In Build America Act

Responding to an Office of Management and Budget request for information, DHA argued that unfinished hardwood plywood and veneer should be considered "construction materials" under the Build America, Buy America Act. To qualify for purchases by the U.S. government, all manufacturing processes of construction materials must be conducted in the U.S. per the 2021 Infrastructure Investment and Jobs Act.

DHA Launches New, Free Continuing Education Program

Last week, Decorative Hardwoods Association unveiled our new AIA-approved continuing education program for architects and designers, an on-demand, web-based series. The first course in the series is an introduction to decorative hardwood products, including harvesting, sustainability, and greenhouse gas storage. Participants will earn AIA health, safety, and welfare credits for each course.

DHA will host web-based training on the course in the coming weeks. Please share this information with the architects and designers in your network.

White House May Cut China's Section 301 Tariffs

The Executive Office of the President notified DHA that Section 301 tariffs will be terminated "unless the U.S. Trade Representative receives a written request to continue" the tariffs. Section 301 tariffs, imposed under President Trump, added 25% to hardwood plywood, engineered wood floors, and kitchen cabinets from China.

Source: Executive Office of the President

U.S. Investigates Wood Cabinets From Vietnam

Vietnam's Ministry of Industry and Trade announced that the U.S. will begin a circumvention investigation on wooden cabinets that were allegedly transshipped from China through Vietnam. The American Kitchen Cabinet Alliance is the plaintiff in the case where the U.S. Department of Commerce will investigate suspicions of trade remedy tax evasion on cabinets imported from both Vietnam and Malaysia.

Expect Tighter Lumber Markets In Europe, China, & U.S.

In 2021, softwood lumber brought in nearly half of all revenue from exports for Belarus, Russia, and Ukraine. The disruption in trade and the resulting dramatic reduction in exports of forest products has significantly impacted global markets—as the three countries accounted for nearly 25% of the global lumber trade last year.

Logging In Russia Falls Due To Export Restrictions

In Q1, logging in Russia dropped by 2.4% due to the country's ban on exports that began in early 2022 and lower demand for logs for producing plywood.

Russian Timber Ban Hurts Japan

In March, Russia halted exports of wood chips, logs, and veneer to Japan after the country was categorized as "unfriendly" by the Russian government. As a result, lumber prices in Japan are soaring.

Danzer Revenue Increases By 25%

DHA member Danzer recorded revenue of EUR 170 million in 2021. Adjusted for the divestiture of its sawmill in Bradford, PA, this represents an increase of 25% vs. the prior year. Danzer leadership said the company benefited considerably from the skyrocketing demand for hardwood.

Armstrong Flooring Approved For Additional Financing

After filing for bankruptcy protection, Armstrong Flooring Inc. received approval on May 17 from the U.S. Bankruptcy Court to access incremental financing of $24 million. The funds will enable the company to continue operating as it searches for a buyer.

States Industries Automates Hardwood Plywood Panel Line

DHA member States Industries has installed a new automatic press line from Biele that can handle hardwood plywood panels up to 10 feet in length. Ted Downs, States Industries' vice president of manufacturing, said "the deployment of capital toward manufacturing higher value hardwood plywood has been well-timed for the demand we've been experiencing."

Pandemic Drives Up Wood Products Costs

In the first year of the pandemic, prices of processed wood products—including softwood lumber and plywood—nearly quadrupled, according to USDA research, which found that wholesale prices for plywood increased from $400 to $1,500 per thousand square feet.

DHA 101st Annual Meeting News & Recap

Last week, Decorative Hardwoods Association met in Nashville for our 101st Annual Meeting. Industry experts spoke about trends in trade, the economy, and legislation, the Real American Hardwood™ marketing campaign, and DHA introduced our new—free—AIA-approved continuing education program for architects and designers.

Save the week of May 22, 2023, for our next annual meeting.

UN Report Reinforces Sustainable Forestry

The UN Food and Agriculture Organization has released its 2022 report: The State of the World's Forests. The report reinforces that sustainable forestry, using timber for construction, replanting after harvest, and halting deforestation are essential to containing the global climate crisis.

Dutch Elm Disease Spreads In Saskatchewan

In Saskatchewan, 570 elm trees were removed in October and November of 2021, a 25% increase from a total of 457 trees removed in 2020. Dutch elm disease continues to spread west.

U.S. Builds Homes At Fastest Rate Since 2006
U.S. Housing Starts & Building Permits Slow
NAHB/Wells Fargo Housing Market Index Drops 8 Points
Canadian Housing Starts Trend Higher
Housing Starts In Canada's Large Cities Lag Behind Population Growth
70% Of U.S. Metro Areas See Double-Digit Home Price Increases
Outlook Is Negative For The Forest Products Industry In The Next 12 Months
Natural Resources Canada Releases The State Of Canada's Forests
Construction Spending Increases 11.7%
Exports Rebound: Up 15% In 2021
Labor Market Healthy, Adds 428,000 Jobs
Consumer Sentiment Toward Housing Sinks To Two-Year Low
Residential Furniture Orders Down—But That's Not All Bad
U.S. Hardwood Flooring Imports See Strongest Month Since 2018
Tree Quiz: Test Your Knowledge

How old is General Sherman, a giant sequoia in Sequoia National Park?

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