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Crown Point

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Submitted By jmie
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Crown Point no. 2-0010 Crown Point Cabinetry Introduction It was 2002 and Brian Stowell, CEO of Crown Point Cabinetry, was reflecting on the incredible change he had seen in his nine years of leadership at the small manufacturing company. Located in rural Claremont, New Hampshire, Crown Point supplied high-end custom kitchen cabinets to customers throughout the United States. The company was a respected and desirable employer in its small community, boasting an inspired and motivated workforce. It had earned the trust of thousands of customers nationwide. But it wasn’t always that way. Industry The U.S. cabinet industry was highly fragmented, with more than 5,000 manufacturers supplying stock, semi-custom, and custom cabinets1 through multiple distribution channels. In 1998 the largest manufacturer held 15 percent of the market, while the second largest held just 7 percent. Over half the manufacturers employed fewer than 10 people. Demand for cabinets followed residential construction industry trends. Distributors and dealers each represented about 30 percent of manufacturers’ cabinet purchases, while home centers and builders shared the remainder evenly. Less than 1 percent of cabinets were purchased direct from manufacturers. As big-box home improvement retailers emerged in the ’90s, the trend toward stock cabinets strengthened while the custom share of the market weakened, from 26 percent in 1989 to less than 15 percent by 1999.2 1 Stock cabinets, typically sold by large home-center retailers, are pre-designed, often unassembled cabinets that come in specific widths and heights, with minimal optional features. Custom cabinets are “one off,” designed specifically for a particular customer, with no restrictions on features or sizes. Semicustom are a hybrid of the two, with standard widths and heights and variable features and design options. Figures are quoted for unit sales. Dollar market share for custom cabinets has declined from 31 percent in 1990 to 26...

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