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Garage and storage shed trends in the u.s., 3rd edition

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  • 1. Get more info on this report!Garage and Storage Shed Trends in the U.S., 3rd EditionApril 1, 2009The third edition of Garage and Storage Shed Trends in the U.S. examines how themarket for garage organization products and storage sheds in the United States hadbeen growing at a rapid pace until the housing crisis and recession impacted sales. Italso analyzes consumers’ continued desire and need to organize their homes, andexamines reasons why this need will drive demand as the economy recovers.The report contains updated data on the U.S. market for garage organization productsand storage sheds, including historical (2004-2008) and forecast (2008-2013) retailsales data. In addition to sales updates, the report updates factors and trends impactinggrowth, the impact of dynamic raw material prices, market and products trends,distribution and retail trends, and consumer usage information. The report also updatesprofiles of key marketers including Whirlpool, Stack On, Rubbermaid, Elfa International,Sauder Woodworking, Schulte, Slide-Lok, Premier Garage, GarageTek, Arrow GroupIndustries, and Tuff Shed.New in the report are new product trends, key products launched in 2007 and 2008,new marketing initiatives and trends, eco-friendly initiatives, and consumer lifestyletrends. Also included are profiles of new marketers and ones not covered in theprevious report, such as GarageMaid, FoldAway Storage Systems, Windquest, StorageSquared, Hercke International, RedLine Garage Gear, Tote Trac Corporation, Barrette,Reynolds Building Systems, and Little Cottage Co.Report MethodologyThe information contained in this report was obtained from both primary and secondaryresearch. Primary research included consultation with executives from a variety ofindustry players such as Whirlpool, Slide-Lok, Hyloft, HandiSolutions, Hafele, BH NorthAmerica, and Triton Garage. Primary research also included on-site examination ofretailers. Secondary research entailed data-gathering from myriad business sources,including trade publications and newsletters; articles in consumer business newspapersand magazines; government data; information from industry and non-governmentalassociations, annual reports, 10Ks, and other financial releases from public companies;and other reports by SBI. Information on new product introductions was derivedprimarily from reports in the trade press and online. Analysis of consumer attitudes and
  • 2. demographics primarily derives from secondary research and the Simmons MarketResearch Bureau.How You Will Benefit from this ReportIf you are in the garage organization products or storage sheds markets or looking toenter, or if you’re a supplier, retailer, or analyst this report is invaluable as it provides acomprehensive package of information and insight about market, product, consumer,and retail trends. You will gain a thorough understanding of the current market, as wellas projected markets and trends through 2013.This report will help: Marketing Managers identify market opportunities and develop targeted promotion plans. Research and development professionals stay on top of competitor initiatives and explore demand for garage organization products and storage sheds. Advertising agencies to develop messages and images that compel consumers to purchase garage organization products and storage sheds Business development executives understand the dynamics of the market and identify possible partnerships. Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.TABLE OF CONTENTSChapter 1: Executive Summary Scope of the Report MethodologyProduct Definitions The Market A Robust Market Slows Down Figure 1-1: U.S. Sales of Garage and Shed Storage, 2004-2008 (in millions of dollars) Figure 1-2: Sales by Product Category, 2008 (percent) Garage Organization Products and Sheds About 2% of Housewares Table 1-1: U.S. Retail Sales of Housewares 2007 (in billions of dollars) U.S. is Global Garage Organization and Shed LeaderFactors Affecting Growth Increasing number of households Figure 1-3: Number of U.S. Households, 2000-2008 (in millions of households) Housing Boom Creates Demand for Organization Easy Credit Drives Consumption
  • 3. Larger U.S. homes but trending smaller Americans Love Big Garages Table 1-2: Type of Parking Facility of New One-Family Houses Completed (percent) Big Spenders, Non-Savers Lower Prices Drive Spending Bulk Buying Takes Up Space Investing in the Home Gardening Boosts Shed Sales Demographics Continue To Boost Storage Need Raw Material Prices Impact ManufacturersMarket Projections Slower Growth in Future Figure 1-4: Projected U.S. sales of garage and shed storage, 2008-2013 (in billions of dollars)The Marketers Mergers, Acquisitions, DivestituresMarket and Product Trends Easy Assembly Still Drives DIY Market Specialty items continue to grow Creating Space Bigger is Better Selling Value Toughness to Appeal to Men Aesthetics to Appeal to Women Eco-friendly Initiatives Begin to Emerge The Emotion of Organization A Storage Crisis Organization Reduces Stress Peace of Mind Outdoor Sheds Not Just for Garden ToolsMarket Dynamics Distribution Channels Installed Versus DIY Trends Installed Segment Local, Regional, Struggling DIY Segment Stressing Price, Convenience Retail outlets Exclusivity Lowe’s, Home Depot Target Women Internet Sells, Promotes and Educates Marketing and Promotion Trends Contests And Sweepstakes Still Popular Product Placement Provides Exposure Sponsorships Generate Publicity Spokesperson Connects with Consumers Price Promotions Stress Value
  • 4. Dealer Incentives Encourage Sales Leveraging Partnerships Extends Reach Selling Homebuilders and Home Sellers Branding Continues to Be Important Licensing Popular Brands Some Store Brand Activity Branding Commodities Shed Brands Communicate FunctionalityThe Consumer Same Percentage of Households Spend More and Less Than $1,000 Annually on Home Improvements Sixty Percent of Households Do It Themselves with Home Improvements Other Spaces Higher Priorities Than Garage Younger Families With Higher Incomes, Advanced Educations Tend to Remodel Basements, Attics and Garages Purchase of Storage Sheds Remains Steady Majority of Households Spend More Than $500 on Sheds 75% of Households Assemble and Install Sheds Themselves Older Boomers With Larger Families, Young Children More Likely to Have Bought Sheds Southeast is Strongest Region for Sheds Boomers and College Graduates More Likely to Have Bought Garage Doors Central Region Strongest for Garage Doors Psychographic Traits of Remodelers and Shed Buyers Consumers Want Quality, Performance and Closet Storage Consumers Value Quality and Performance Most Closet Storage Most in Demand Consumers Do Want Large, Organized Garages Listening to Women Enormous Purchasing Power She Wants to Eliminate Clutter Builders Take “Women-Centric” Approach Do-It-Herself Consumers Say They Want Green Products Consumers Want But Don’t Often Buy Green Organization Calms Consumers Empty Nest Not So Empty Empty Nesters Downsizing Boomerangers Come Home A Fuller House for the Sandwich GenerationChapter 2: The Market Scope of the Report MethodologyProduct DefinitionsThe Market A Robust Market Slows Down
  • 5. Figure 2-1: U.S. Sales of Garage and Shed Storage, 2004-2008 (in millions of dollars)… Figure 2-2: Sales by Product Category, 2008 (percent) Garage Organization Products and Sheds About 2% of Housewares Table 2-1: U.S. Retail Sales of Housewares 2007 (in billions of dollars) Regional Differences Figure 2-3: New One Family Houses Sold, Percent with Basements, 2007 U.S. is Global Garage Organization and Shed LeaderFactors Affecting Growth Increasing number of households Figure 2-4: Number of U.S. Households, 2000-2008 (households in millions) Housing Boom Creates Demand for Organization Table 2-2: Percent of Home Ownership, 1990-2008 Figure 2-5: U.S. Quarterly Homeownership Rates, 2004-2008 (percent) Table 2-3: Annual Existing Home Sales, 2002-2008 Table 2-4: Annual New Home Sales/Median Annual Sales Price, 1995-2008 Table 2-5: Quarterly House Price Appreciation, 2005-2008 (percent) Table 2-6: Annual Housing Starts 2000-2008, Single Family Homes Easy Credit Drives Consumption Figure 2-6: Average Mortgage Rates, 2005-2008 (percent) Figure 2-7: First-Time Home Buyer Index in U.S., 2005-2008 (index) Figure 2-8: Consumer Credit in U.S., 2003-2008 (in billions of dollars) Figure 2-9: Home Mortgage Borrowing in U.S., 2003-2008 (in billions of dollars) Larger U.S. homes but trending smaller Table 2-7: Median Square Feet of Floor Area, New One Family Houses, 1985- 2007 Americans Love Big Garages Table 2-8: Type of Parking Facility of New One-Family Houses Completed (percent) Big Spenders, Non-Savers Table 2-9: Personal Income and Its Disposition, 2001-2008 (in billions of dollars) Figure 2-10: U.S. Quarterly Personal Consumption Expenditures and Gross Domestic Product, 2005-2008 (in billions of dollars) Lower Prices Drive Spending Figure 2-11: Consumer Price Index (CPI) Department Store Durable Goods, Dec. 1998-Jan. 2009 Bulk Buying Takes Up Space Table 2-10: Club Store Sales and Membership, 2002-2008 (in billions of dollars and millions of members) Investing in the Home Table 2-11: U.S. Average Annual Consumer Expenditures, 2006 (percent) Table 2-12: Annual Home Remodeling Expenditures, 1995-2008 (in billions of dollars) Table 2-13: Home Improvement Products Sales (in billions of dollars) Self Storage Decline Could Boost Home Storage Gardening Boosts Shed Sales
  • 6. Demographics Continue To Boost Storage Need Raw Material Prices Impact Manufacturers Figure 2-12: Producer Price Index (PPI) of Crude Petroleum, 2005-Jan. 2009 Figure 2-13: Producer Price Index (PPI) of Plastics Material & Resins Manufacturing, 2004-Jan. 2009 Figure 2-14: Producer Price Index (PPI) of Metals and Metal Products, 2005-Jan. 2009 Figure 2-15: Producer Price Index (PPI) of Lumber and Wood Products, 2005- Jan 2009Market Projections Slower Growth in Future Figure 2-16: Projected U.S. Sales of Garage and Shed Storage, 2008-2013 (in billions of dollars) Figure 2-17: Number of U.S. Households, 2007-2010 (in millions of households)Chapter 3: The Marketers Mergers, Acquisitions, DivestituresWhirlpool Corporation Overview Products Table 3-1: Gladiator GarageWorks Products PromotionStack-On Products Company Overview Products Table 3-2: Stack-On ProductsSauder Woodworking Overview Products Table 3-3: Sauder Woodworking Garage Organization ProductsNewell Rubbermaid Inc. Overview Performance Table 3-4: Newell Rubbermaid’s Sales 2004-2008 (in millions of dollars) Table 3-5: Newell Rubbermaid Sales Composition, 2008 (in millions of dollars and percent of total) Product portfolio Table 3-6: Rubbermaid Garage and Shed Storage Products Distribution Advertising and PromotionStanley ZAG Overview Products Table 3-7: Stanley ZAG Garage Organization ProductsStorage Squared Overview Table 3-8: Storage Squared Products
  • 7. GarageMaid Overview Table 3-9: GarageMaid ProductsFoldAWay Storage Systems Overview Table 3-10: FoldAWay Storage Systems ProductsEmerson Electric Co Company Profile Performance Product portfolio Table 3-11: Emerson Electric Garage Organization Products DistributionCalifornia Closets Overview Performance Product portfolio Table 3-12: California Closets Garage Organization Products Advertising and PromotionElfa Overview Performance Product portfolio Table 3-13: Elfa Garage Organization Products Strategy and Positioning DistributionSchulte Corporation Overview Products Table 3-14: Schulte Garage Organization Products Distribution PromotionWindquest Companies Overview Products Table 3-15: Windquest Garage Organization ProductsRacor Kevin Shaha, president of Racor Overview Product portfolio Table 3-16: Racor Garage Organization ProductsSlide-Lok Overview Products Table 3-17: Slide-Lok Garage Organization Products PromotionSterilite
  • 8. Overview Product portfolio Table 3-18: Sterilite ProductsHome Products International Overview Product portfolio Table 3-19: Home Products International Organization ProductsMyers Industries, Inc Overview Products Table 3-20: Myers Industries ProductsIris USA Overview Product portfolio Table 3-21: Iris USA ProductsHyLoft Inc Overview Products Table 3-22: Hyloft ProductsBH North America Overview Table 3-23: BH North America ProductsStorewall LLC Overview Promotion Products Table 3-24: Storewall ProductsHandiSolutions Overview Table 3-25: HandiSolutions Organization ProductsSpacewall International Overview Products Table 3-26: Spacewall International ProductsRedline Garage Gear Overview Products Table 3-27: Redline Garage Gear ProductsGracious Living Industries Overview Products Table 3-28: Gracious Living Home Organization ProductsBald Head Cabinets Overview Products Table 3-29: Bald Head Products
  • 9. Diamond Life Overview Products Table 3-30: Diamond Life ProductsRSI Home Products Overview Products Table 3-31: RSI Garage Organization ProductsModuLine Overview Products Table 3-32: ModuLine ProductsHercke International, LLC. Overview Products Table 3-33: Hercke International ProductsGarageTek Inc Overview Products Table 3-34: GarageTek ProductsHouse Wall Garage System Overview Products Table 3-35: House Wall Garage System ProductsPremier Garage Overview Promotion Products Table 3-36: Premier Garage ProductsVault Overview Products Table 3-37: Vault ProductsArrow Group Industries Overview Products Table 3-38: Arrow Group ProductsDuramax Building Products Overview Products Table 3-39: Duramax ProductsSuncast Corporation Overview Products Table 3-40: Suncast ProductsTuff Shed Inc
  • 10. Overview Promotion Products Table 3-41: Tuff Shed ProductsBackyard Products, LLC Overview Products Table 3-42: Backyard Products LLC ProductsReynolds Building Systems Overview Table 3-43: Reynolds Building Systems ProductsBarrette Overview Products Table 3-44: Barrette ProductsLifetime Products Overview Products Table 3-45: Lifetime ProductsOutstanding Solutions Ltd Overview Products Table 3-46: Outstanding Solutions ProductsStep 2 Company Overview Products Table 3-47: Step 2 Storage ProductsFinley Products Overview Table 3-48: Finley ProductsLittle Cottage Company Overview Table 3-49: Little Cottage Company ProductsChapter 4: Market and Product Trends Easy Assembly Still Drives DIY Market Hercke Cabinets Assembled In Seconds GarageMaid’s Interlocking Connections EZup Easy to Assemble Sheds Specialty items continue to grow Gladiator Claw Organizing Totes Creating Space Off The Wall New Way to Store on Walls Easier Access Cabinetry Storage
  • 11. Loft-It In The Air Bigger is Better Selling Value Toughness to Appeal to Men Truck-bed toughness comes to storage cabinetry Steel signals strength Heavy duty Powder Coating Aesthetics to Appeal to Women Design and Style Color Eco-friendly initiatives begin to emerge Garage Envy Green Garage Premier Garage PG Green Windquest EcoElements Slide-Lok’s Eco-Friendly Plywood Eco-Nize is Eco-Friendly Homz Hybrid Collection The Emotion of Organization A Storage Crisis Organization Reduces Stress Peace Of Mind Outdoor sheds not just for garden tools New Product Introductions Table 4-1: Select Garage Organization Products and Shed IntroductionsChapter 5: Market Dynamics Distribution Channels Installed Versus DIY Trends Installed Segment Local, Regional, Struggling DIY Segment Stressing Price, Convenience Retail Outlets Exclusivity Lowe’s, Home Depot Target Women Internet Sells, Promotes and Educates Marketing and Promotion Trends Contests and Sweepstakes Still Popular Product Placement Provides Exposure Sponsorships Generate Publicity Spokesperson Connects with Consumers Price Promotions Stress Value Dealer Incentives Encourage Sales Leveraging Partnerships Extends Reach Selling Homebuilders and Home Sellers Branding Continues to Be Important Licensing Popular Brands Some Store Brand Activity
  • 12. Branding Commodities Shed Brands Communicate FunctionalityChapter 6: The Consumer Same Percentage of Households Spend More and Less Than $1,000 Annually on Home Improvements Figure 6-1: Total Home Improvement Spending (percent of households) Sixty Percent of Households Do It Themselves with Home Improvements Figure 6-2: Who Does Home Improvement (percent of households) Other Spaces Higher Priorities than Garage Table 6-1: Households Added or Remodeled Garage, 2006 and 2008 (percent of households) Younger Families with Higher Incomes, Advanced Educations Tend to Remodel Basements, Attics and Garages Table 6-2: Demographic Profile of People who Remodeled Basement/Attic/Garage, 2008 (index) Purchase of Storage Sheds Remains Steady Table 6-3: Home Improvement Purchases, 2006 and 2008 (percent of households) Majority of Households Spend More Than $500 on Sheds Figure 6-3: Amount Spent on Storage Sheds (percent of households) Figure 6-4: Storage Shed Spending Compared to Garage Products, 2008 (percent of households) 75% of Households Assemble and Install Sheds Themselves Figure 6-5: Installation of Sheds and Garage Products (percent of households) Older Boomers with Larger Families, Young Children More Likely to Have Bought Sheds Table 6-4: Demographic Profile of People Buying Storage Sheds, 2008 (index) Southeast is Strongest Region for Sheds Figure 6-6: Storage Shed Purchases by Region, 2006 and 2008 Boomers and College Graduates More Likely to Have Bought Garage Doors Table 6-5: Demographic Profile of People Buying Garage Doors, 2008 (index) Central Region Strongest for Garage Doors Figure 6-7: Garage Door Purchase by Region, 2006 and 2008 Psychographic Traits of Remodelers and Shed Buyers Table 6-6: Psychographic Traits of Remodelers and Shed Buyers (index) Consumers Want Quality, Performance and Closet Storage Consumers Value Quality and Performance Most Table 6-7: Most Important Factor When Purchasing Storage Products, 2008 (percent) Closet Storage Most In Demand Table 6-8: Home Area Where Consumers Will Most Likely Use New Storage Container, 2008 (percent) Consumers Do Want Large, Organized Garages Listening to Women Enormous Purchasing Power She Wants to Eliminate Clutter
  • 13. Builders Take “Women-Centric” Approach Do-It-Herself Consumers Say They Want Green Products Consumers Want But Don’t Often Buy Green Organization Calms Consumers Empty Nest Not So Empty Empty Nesters Downsizing Boomerangers Come Home A Fuller House for the Sandwich GenerationAvailable immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1924903US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004

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