Cabinet and Vanity Manufacturing Private Company Multiples and Valuation
Cabinet and Vanity Manufacturing: Navigating Market Trends, Private Company Multiples and Valuation.
Cabinet and Vanity Manufacturing
Industry: Cabinet and Vanity Manufacturing
Naics: 337110
Private Company Multiples
Industry Overview
The Cabinet and Vanity Manufacturing industry has faced significant challenges in recent years, influenced by fluctuations in residential construction and consumer spending on home improvements. Recent economic headwinds have led to a decline in revenue. The industry continues to grapple with increased competition from foreign imports, particularly from Vietnam, as well as rising input costs and labor shortages.
Market Size
The industry's revenue has been declining at an estimated CAGR of 0.5% to reach $137.54 billion in 2025. However, the market is projected to grow at a CAGR of 4.76% to reach $173.54 billion by 2030. This growth is expected to be driven by an upswing in housing starts and increased private spending on home improvements.
Key Players and Market Concentration
The industry has low market concentration, with nearly three-quarters of manufacturers employing fewer than 10 employees. Key players include Fortune Brands Home & Security, Inc., Masco Corporation, and American Woodmark Corporation. These larger companies have supply contracts with major retailers like Home Depot and Lowe's. Other significant players include Kohler Co., DuPont, MasterBrand Cabinets Inc., and JSG OCEANA.
Workforce
The number of Cabinet & Vanity Manufacturing businesses in the US has declined at a CAGR of 0.5% between 2020 and 2025, reaching 5,785 businesses in 2025. The industry continues to face labor shortages, with manufacturers having to increase wages to attract workers.
Future Outlook
The future of the Cabinet and Vanity Manufacturing industry looks cautiously optimistic, with several key trends emerging:
- Growing demand for custom cabinetry and smart technologies
- Increasing focus on eco-friendly materials and sustainable manufacturing practices
- Rising popularity of frameless cabinets and streamlined aesthetics
- Expansion of the bathroom cabinet market, expected to grow at an annual rate of 10.7% from 2025 to 2032
- Continued pressure from low-cost imports, particularly from Vietnam
Factors Influencing Higher Valuation
Factors that can lead to higher valuations in this industry include:
- Strong custom design capabilities and technological integration
- Efficient supply chain management and production processes
- Established relationships with major retailers or construction firms
- Innovative product offerings incorporating smart technologies or sustainable materials
- Diversified product portfolio across residential and commercial segments
How to Grow Your Cabinet and Vanity Manufacturing Business
To thrive in this competitive industry:
- Invest in technology and automation to improve efficiency and reduce labor costs
- Focus on developing custom, high-end products to differentiate from low-cost imports
- Explore eco-friendly materials and sustainable manufacturing processes
- Develop smart cabinet solutions to meet growing consumer demand for connected homes
- Expand into commercial markets to diversify revenue streams
- Build strong relationships with designers, contractors, and retailers
- Invest in online presence and e-commerce capabilities to reach a broader customer base
Key Financial Metrics
Income Statement Benchmark
