The COVID-19 pandemic has led to a surge in home remodeling projects, as people look to create their own perfect retreats. Cabinet material was out of stock, contractors were booked months in advance, and project leads for home professionals rose up by a 58% annual increase. While some people took on small projects like painting or decluttering, others went all out, gutting their kitchens or adding new rooms. For many, the home became not just a place to shelter from the pandemic but also a sanctuary to be enjoyed.
According to a recent report, the trend of home remodeling is on the decline. After years of steady growth, remodeling activity has begun to slow down, and many homeowners are opting to not spend money on upgrading their homes. This has resulted in the current remodel downtrend we are seeing in the current market. There are a number of reasons for this change. First, the cost of labor and materials has gone up in recent years, making it more expensive to remodel. Second, the current economic climate is uncertain, and many people are hesitant to make large financial investments. Third, there are a growing number of options for people who want to buy pre-owned or newly built homes, meaning that there is less need to remodel. Whatever the reasons, it seems clear that the days of rampant home remodeling are over.
At the peak of the quarantine, many people stayed indoors to keep themselves safe. This increased the usage of kitchens, bathrooms in the house, and even outdoor patios. While some people may have found this to be a stressful time, others used it as an opportunity to focus on home projects they had been putting off. For example, many people took on the challenge of cooking more meals from scratch, or they might have organized their pantry or installed new shelves. Some people also used this time to tackle home improvement projects, such as painting the walls, installing new flooring, or even renovating an entire room. Others took advantage of the extra time at home to finally start that garden they had always wanted. Whatever the project may have been, it is clear that the quarantine gave many people the chance to focus on their homes in a way they hadn’t before.
The pandemic has had a significant impact on the global supply of raw materials. With factories shutting down and people working from home, there has been a sharp drop in demand, leading to a shortage of many key materials. This has been particularly evident in the metals and mining sector, where the fall in demand has led to widespread layoffs and a major reduction in production. The situation is also having a knock-on effect on other industries that rely on raw materials, such as construction and manufacturing. The shortage of raw materials is likely to continue for some time, as the world slowly recovers from the pandemic.
The pandemic has sent a shockwave through the global economy, causing widespread supply shortages and price increases. One of the most affected industries is the Cabinet Making industry. With a sudden increase in demand for home renovations, the cost of raw materials such as wood and metal have skyrocketed. This has caused a domino effect, with the cost of cabinets rising sharply for end users. In some cases, the price of cabinets has doubled or even tripled. As a result, many homeowners are having to put their renovation plans on hold.
Economists have also urged people to start saving money, resulting in less purchases on large spending and the declining remodel downtrend. When consumers cut back on spending, it has a ripple effect throughout the economy. For example, fewer people buying new kitchen cabinets results in lower sales for cabinet manufacturers. This, in turn, leads to layoffs and reduced spending by those workers. The reduced spending then leads to even lower sales for other businesses, and the cycle continues.
When the pandemic first hit, many people saw it as an opportunity to finally get around to those home improvement projects they had been putting off for years. As a result, there was a surge in demand for remodeling services. However, as the pandemic has dragged on, that initial burst of activity has slowed down. With so much uncertainty in the world, many people are no longer interested in making major changes to their homes. They are instead focusing on more practical matters, such as ensuring that their homes are clean and safe. As a result, the current demand for remodeling services has declined.
What goes into the cost of a cabinet?
Raw material – the wood material of the cabinet exterior, shelves, and cabinet box. Depending on the wood, this cost usually changes. Lower quality wood like plywood will typically be more on the cheaper end compared to solid wood like walnut.
Hardware – hardware typically refers to the handles, but can include the screws, cam locks, door hinges, and drawer slides. Most RTA cabinets will come with hardware for easier assembly, defaulting with cam locks and wooden dowels.
Labor/craftsmanship – painting, cutting, refinishing, and even the assembly of the cabinet. It requires an art and technique to turn regular lumber of wood into the recognizable kitchen cabinets we see in everyone’s homes.
There’s still interest in home remodeling
Even though the remodel downtrend is at a low, this does not mean there are no homeowners still interested in having a remodel done. During the pandemic, there was a spike of demand. However, not everyone had managed to complete or even schedule a contractor in time. The current economic market has also made it difficult to find qualified contractors as many have left the field or joined the ranks of the unemployed. Despite all of these challenges, there are still plenty of homeowners who are interested in kitchen remodeling and are willing to invest in their homes.
As the population of the San Gabriel Valley continues to grow, so does the demand for housing. However, with limited space available, many new condominium and apartment complexes are being built to accommodate this need. Each unit in these complexes needs a kitchen and bathroom, which means that there is a constant demand for cabinets. Although the remodeling industry has seen a slight downturn in recent years, this has not had a significant impact on the demand for cabinets.
Is it too late to start? Of course not. Many stores like Target and Walmart have actually overstock on inventory. As many countries return from the lockdown of Covid, the demand for luxury goods and unnecessary purchases have declined. This has caused many items to sit on store shelves. Cabinet companies are not an exception either. Despite price increases to products, more companies are offering sales and discounts to move and sell products off warehouse shelves.