2020 What's Happening with cabinet prices

1/15/2020


     Why Kitchen Cabinets Cost 40% More Now......

I'm going to keep this real simple so you can easily grasp all of the changes in cabinetry.

First, you may have noticed the price of stock cabinets has gone up quite a bit throughout 2019. Well, there is a reason. 95% of stock cabinets in the US are imported the other 5% are made here but are typically very basic(particle board construction, non soft closing drawer guides, standard hinges), with the majority of cabinets coming from China. In 2019 a trade war started with China and cabinetry(mainly plywood) was involved in this war. The US hit imports with a 10% tariff and then another 15% tariff totaling 25%. Since a trade agreement hasn't been made these tariffs are still in force.
Now, some importers only import parts(cabinet carcasses, raw sheet goods, entire cabinets...etc), so the tariff can vary from supplier to supplier.
Currently there is also an anti-dumping tax imposed on plywood. This means China has been subsidizing plywood which allows the US to buy plywood, parts, cabinets at a cost lower than even Chinese consumers can buy them. This tax is charged to importers and ultimately passed onto the consumer.

What has this done?
In 2018 import cabinets would cost about 30-50% less than a semi-custom US made cabinet. Local manufacturers had a hard time competing with many closing their doors. These cabinets have been very popular due to the amazing quality, quick delivery, and fantastic price point.
Over the next 4-6 months with the new tariffs and taxes, import cabinets will become 20-30% higher than semi-custom cabinets. You are actually seeing a majority of this increase already. Import cabinets will still be around but now if you want cabinets fast(7-10 days) you will have to pay extra for them. Now, if you want cabinets with different stain and paint colors as well as different doors styles, you can, but you have to wait(about 15-25 days).
Now there are a few smart importers who were ordering stock cabinets in large quantities and that would give them a supply of about 6 months before these taxes hit. This is why the next 4-6 months will still see an increase of cabinet prices until that stock on hand runs out.
What does the future hold? It's uncertain if consumers will pay 30-40% more in order to get cabinets 2-3 weeks sooner than stock options. We can only tell after this all passes over.
For now Dutch Design has access to stock cabinets that DO NOT have the anti-dumping taxes attached to them. The only downside, since these cabinets are so in demand, is that the lead time for this last remaining stock is 35 days. Don't wait any longer because once the inventory is gone, it's gone and the new 20% higher price point will be the new norm. This also means a kitchen remodel will now cost 20-30% more than it does now. This isn't just in Arizona, it's nationwide. 

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