With more than 1,500 countertop manufacturers in the U.S., the fragmented nature of the market leaves manufacturers without significant resources or leverage when it comes to shipping. Also, the nature of the product, especially the long size, makes shipping unattractive for many carriers, resulting in surcharges and penalty rates.
Countertop Manufacturer Industry Definition
Countertop manufacturing primarily cuts, shapes and finishes kitchen and bathroom countertops. Countertops are made from a variety of materials including: wood, plastic laminate, stone, faux marble, ceramic and concrete. The industry does not include countertops constructed on site by building contractors.
Key Industry Insights:
- The market size was over $89 billion in 2019 and is expected to grow at an annual rate of approximately 2.8% to over $111 billion by 2027.
- Material innovations, namely various artificial stone and artificial marble products, and the use of recycled materials such as glass are exploding. Unique, architecturally significant countertops are driving higher prices and profits for manufacturers.
- Innovations in manufacturing technology, especially 3D printing, have simultaneously produced unique one-off products, reducing manufacturing labor, shortening manufacturing time and increasing profits.
- Growing interest and investment in refurbishment and remodeling is driving the industry's growth above new construction. New construction is expected to remain strong due to the imbalance between U.S. housing starts and households over the past five years.
- Durable laminate countertops make up the largest portion of installed countertops in the U.S., and demand will be strong even as engineered and natural stone grow in popularity.
- Concerns about natural radiation (i.e. radon) from natural granite and its high purchase price will hinder the growth of engineered and farmed products.
- Residential demand will continue to be the primary use market.
Logistics considerations for countertop manufacturing
Shipping costs are serious business for many countertop manufacturers. Smart, growing countertop manufacturers are using experts to help them gain a competitive advantage in shipping.
Shipping countertops presents some unique challenges:
- Size - Most countertops are long and narrow. Small package shippers such as UPS and Fedex limit the total size of packages they will handle and charge exorbitant surcharges before rejecting package sizes. For the past few years, less-than-truckload (less-than-truckload) carriers have been using surcharges to block shipments over 8 feet.
- Packaging - Packaging countertops to withstand shipping environments require proper design and judicious use of packaging materials
- Weight/Density - Depending on the material, the countertop may or may not be heavy. But because of their size, countertops rarely fit in the cargo configuration most carriers need.
- The destination-home delivery trend is driving the need for more and more countertop deliveries directly to the installation site. For trucking companies, these mostly "one-off" residential deliveries are less efficient than comprehensive deliveries to stores or warehouses.
- Damaged - Countertops, especially when packaged improperly, are prone to damage, resulting in unhappy customers, delays and additional costs.
