Disappearing Cabinet Shops and the Future of Tools

[Dennis McDonaugh]

I look at the classifieds every day looking for woodworking bargains. I haven't bought anything lately, but I noticed that there have been four complete cabinet shops up for sale just since Christmas. They've all been small operations--two or three man shops and I wonder if they are an endangered species. That also makes me wonder about the future of "professional" grade woodworking tools. You know, those tools that are better built than consumer grade woodworking tools, but are not industrial machines. Think unisaw instead of contractor saw or 15hp 12" table saw. I'd think the small professional wood shops would be the major target market for these machines. If they go away, will the high end amateur provide a large enough market for the manufacturers.

[Steve Clardy]

but My thoughts on the small cabinet shops are that when small, some of them try to compete with the big boxes. They find themselves adding help, more machines, bigger debt loads. When that happens, they cut their quaility, both in work and materials. Then they find themselves with slim profit margins, and when work slows, they can't survive it.
I am a 1 man cabinet shop and staircase builder. I ocasionally hire parttime help for some stuff. I specialize, meaning I do not do the ordinary stuff. I have yet to build what they call a standard size cabinet box. I build to fit and what the customer wants. I do things the manufactors cannot do or won't do. That is what keeps me in business, and by using quality materials. I do not and will not use particle board, Mdf board, melemine? board. I strickly use all hardwoods and plywood. I even use plywood for counter tops. I use high end drawer slides and hinges that will last, not the cheap stuff. I find my workload overwheming sometimes, 3-4 months back load. I have to shift work around, turn some down.
When I started this business, I told myself that if I ever had to use cheap materials and lower my prices to compete, that would be the day I close my business.
My 2 cents, Steve

[Jim Becker]

My cabinetmaker neighbor found he had to team up with another fellow this past year to make the income he needs with the economy being in the dumps. He does awesome work, but it was becoming tough to maintain cash flow between referals and commissions. The two shops are also getting larger jobs in some of the estate houses that grace our general area...something that would have been very hard to deal with as a sole worker, even with occasional part-time help.

Small businesses are all having a hard time and cabinetmakers are not exempt. People are buying cars and houses, but not necessarily spending money on other projects that feed these folks.

[jack duren]

most likely there are just too many shops for the area. like steve i only do medium to high end sets. there are 7 cabinet shops in a 10 mile radius of my house. all neighbors competing for the low to medium work. they have all been in business for atleast 10 years and i doubt any will sell out. weve had a change in ownership of our shop here in just the last 6 months. sellling his portion out to the other for $300,000 free and clear.

i only do the higher end stuff as there are a lot of customers out there that need that "special" attention the bigger shops dont have time for as they are more concerned about the "production" based builders.

my guess is there just struggling a bit and figure they should get out while the gettin is good. when you purchase a cabinet shop. you really arent buying just the tools/building. your mainly really buying there contracts and customers.....jack