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Garage and Storage Shed Trends in the U.S., 3rd Edition

April 1, 2009


The third edition of Garage and Storage Shed Trends in the U.S. examines how the
market for garage organization products and storage sheds in the United States had
been growing at a rapid pace until the housing crisis and recession impacted sales. It
also analyzes consumers’ continued desire and need to organize their homes, and
examines reasons why this need will drive demand as the economy recovers.

The report contains updated data on the U.S. market for garage organization products
and storage sheds, including historical (2004-2008) and forecast (2008-2013) retail
sales data. In addition to sales updates, the report updates factors and trends impacting
growth, the impact of dynamic raw material prices, market and products trends,
distribution and retail trends, and consumer usage information. The report also updates
profiles of key marketers including Whirlpool, Stack On, Rubbermaid, Elfa International,
Sauder Woodworking, Schulte, Slide-Lok, Premier Garage, GarageTek, Arrow Group
Industries, 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 lifestyle
trends. Also included are profiles of new marketers and ones not covered in the
previous report, such as GarageMaid, FoldAway Storage Systems, Windquest, Storage
Squared, Hercke International, RedLine Garage Gear, Tote Trac Corporation, Barrette,
Reynolds Building Systems, and Little Cottage Co.

Report Methodology

The information contained in this report was obtained from both primary and secondary
research. Primary research included consultation with executives from a variety of
industry players such as Whirlpool, Slide-Lok, Hyloft, HandiSolutions, Hafele, BH North
America, and Triton Garage. Primary research also included on-site examination of
retailers. Secondary research entailed data-gathering from myriad business sources,
including trade publications and newsletters; articles in consumer business newspapers
and magazines; government data; information from industry and non-governmental
associations, annual reports, 10Ks, and other financial releases from public companies;
and other reports by SBI. Information on new product introductions was derived
primarily from reports in the trade press and online. Analysis of consumer attitudes and
demographics primarily derives from secondary research and the Simmons Market
Research Bureau.

How You Will Benefit from this Report

If you are in the garage organization products or storage sheds markets or looking to
enter, or if you’re a supplier, retailer, or analyst this report is invaluable as it provides a
comprehensive package of information and insight about market, product, consumer,
and retail trends. You will gain a thorough understanding of the current market, as well
as 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 CONTENTS

Chapter 1: Executive Summary
      Scope of the Report
      Methodology
Product 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 Leader
Factors 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
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 Manufacturers
Market 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, Divestitures
Market 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 Tools
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
     Branding Commodities
     Shed Brands Communicate Functionality
The 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 Generation

Chapter 2: The Market
     Scope of the Report
     Methodology
Product Definitions
The Market
     A Robust Market Slows Down
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 Leader
Factors 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
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 2009
Market 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, Divestitures
Whirlpool Corporation
      Overview
      Products
      Table 3-1: Gladiator GarageWorks Products
      Promotion
Stack-On Products Company
      Overview
      Products
      Table 3-2: Stack-On Products
Sauder Woodworking
      Overview
      Products
      Table 3-3: Sauder Woodworking Garage Organization Products
Newell 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 Promotion
Stanley ZAG
      Overview
      Products
      Table 3-7: Stanley ZAG Garage Organization Products
Storage Squared
      Overview
      Table 3-8: Storage Squared Products
GarageMaid
        Overview
        Table 3-9: GarageMaid Products
FoldAWay Storage Systems
        Overview
        Table 3-10: FoldAWay Storage Systems Products
Emerson Electric Co
        Company Profile
        Performance
        Product portfolio
        Table 3-11: Emerson Electric Garage Organization Products
        Distribution
California Closets
        Overview
        Performance
        Product portfolio
        Table 3-12: California Closets Garage Organization Products
        Advertising and Promotion
Elfa
        Overview
        Performance
        Product portfolio
        Table 3-13: Elfa Garage Organization Products
        Strategy and Positioning
        Distribution
Schulte Corporation
        Overview
        Products
        Table 3-14: Schulte Garage Organization Products
        Distribution
        Promotion
Windquest Companies
        Overview
        Products
        Table 3-15: Windquest Garage Organization Products
Racor
        Kevin Shaha, president of Racor
        Overview
        Product portfolio
        Table 3-16: Racor Garage Organization Products
Slide-Lok
        Overview
        Products
        Table 3-17: Slide-Lok Garage Organization Products
        Promotion
Sterilite
Overview
       Product portfolio
       Table 3-18: Sterilite Products
Home Products International
       Overview
       Product portfolio
       Table 3-19: Home Products International Organization Products
Myers Industries, Inc
       Overview
       Products
       Table 3-20: Myers Industries Products
Iris USA
       Overview
       Product portfolio
       Table 3-21: Iris USA Products
HyLoft Inc
       Overview
       Products
       Table 3-22: Hyloft Products
BH North America
       Overview
       Table 3-23: BH North America Products
Storewall LLC
       Overview
       Promotion
       Products
       Table 3-24: Storewall Products
HandiSolutions
       Overview
       Table 3-25: HandiSolutions Organization Products
Spacewall International
       Overview
       Products
       Table 3-26: Spacewall International Products
Redline Garage Gear
       Overview
       Products
       Table 3-27: Redline Garage Gear Products
Gracious Living Industries
       Overview
       Products
       Table 3-28: Gracious Living Home Organization Products
Bald Head Cabinets
       Overview
       Products
       Table 3-29: Bald Head Products
Diamond Life
      Overview
      Products
      Table 3-30: Diamond Life Products
RSI Home Products
      Overview
      Products
      Table 3-31: RSI Garage Organization Products
ModuLine
      Overview
      Products
      Table 3-32: ModuLine Products
Hercke International, LLC.
      Overview
      Products
      Table 3-33: Hercke International Products
GarageTek Inc
      Overview
      Products
      Table 3-34: GarageTek Products
House Wall Garage System
      Overview
      Products
      Table 3-35: House Wall Garage System Products
Premier Garage
      Overview
      Promotion
      Products
      Table 3-36: Premier Garage Products
Vault
      Overview
      Products
      Table 3-37: Vault Products
Arrow Group Industries
      Overview
      Products
      Table 3-38: Arrow Group Products
Duramax Building Products
      Overview
      Products
      Table 3-39: Duramax Products
Suncast Corporation
      Overview
      Products
      Table 3-40: Suncast Products
Tuff Shed Inc
Overview
       Promotion
       Products
       Table 3-41: Tuff Shed Products
Backyard Products, LLC
       Overview
       Products
       Table 3-42: Backyard Products LLC Products
Reynolds Building Systems
       Overview
       Table 3-43: Reynolds Building Systems Products
Barrette
       Overview
       Products
       Table 3-44: Barrette Products
Lifetime Products
       Overview
       Products
       Table 3-45: Lifetime Products
Outstanding Solutions Ltd
       Overview
       Products
       Table 3-46: Outstanding Solutions Products
Step 2 Company
       Overview
       Products
       Table 3-47: Step 2 Storage Products
Finley Products
       Overview
       Table 3-48: Finley Products
Little Cottage Company
       Overview
       Table 3-49: Little Cottage Company Products

Chapter 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
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 Introductions

Chapter 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
Branding Commodities
      Shed Brands Communicate Functionality

Chapter 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
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 Generation



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

  • 1. Get more info on this report! Garage and Storage Shed Trends in the U.S., 3rd Edition April 1, 2009 The third edition of Garage and Storage Shed Trends in the U.S. examines how the market for garage organization products and storage sheds in the United States had been growing at a rapid pace until the housing crisis and recession impacted sales. It also analyzes consumers’ continued desire and need to organize their homes, and examines reasons why this need will drive demand as the economy recovers. The report contains updated data on the U.S. market for garage organization products and storage sheds, including historical (2004-2008) and forecast (2008-2013) retail sales data. In addition to sales updates, the report updates factors and trends impacting growth, the impact of dynamic raw material prices, market and products trends, distribution and retail trends, and consumer usage information. The report also updates profiles of key marketers including Whirlpool, Stack On, Rubbermaid, Elfa International, Sauder Woodworking, Schulte, Slide-Lok, Premier Garage, GarageTek, Arrow Group Industries, 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 lifestyle trends. Also included are profiles of new marketers and ones not covered in the previous report, such as GarageMaid, FoldAway Storage Systems, Windquest, Storage Squared, Hercke International, RedLine Garage Gear, Tote Trac Corporation, Barrette, Reynolds Building Systems, and Little Cottage Co. Report Methodology The information contained in this report was obtained from both primary and secondary research. Primary research included consultation with executives from a variety of industry players such as Whirlpool, Slide-Lok, Hyloft, HandiSolutions, Hafele, BH North America, and Triton Garage. Primary research also included on-site examination of retailers. Secondary research entailed data-gathering from myriad business sources, including trade publications and newsletters; articles in consumer business newspapers and magazines; government data; information from industry and non-governmental associations, annual reports, 10Ks, and other financial releases from public companies; and other reports by SBI. Information on new product introductions was derived primarily from reports in the trade press and online. Analysis of consumer attitudes and
  • 2. demographics primarily derives from secondary research and the Simmons Market Research Bureau. How You Will Benefit from this Report If you are in the garage organization products or storage sheds markets or looking to enter, or if you’re a supplier, retailer, or analyst this report is invaluable as it provides a comprehensive package of information and insight about market, product, consumer, and retail trends. You will gain a thorough understanding of the current market, as well as 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 CONTENTS Chapter 1: Executive Summary Scope of the Report Methodology Product 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 Leader Factors 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 Manufacturers Market 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, Divestitures Market 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 Tools 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
  • 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 Functionality The 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 Generation Chapter 2: The Market Scope of the Report Methodology Product Definitions The 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 Leader Factors 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 2009 Market 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, Divestitures Whirlpool Corporation Overview Products Table 3-1: Gladiator GarageWorks Products Promotion Stack-On Products Company Overview Products Table 3-2: Stack-On Products Sauder Woodworking Overview Products Table 3-3: Sauder Woodworking Garage Organization Products Newell 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 Promotion Stanley ZAG Overview Products Table 3-7: Stanley ZAG Garage Organization Products Storage Squared Overview Table 3-8: Storage Squared Products
  • 7. GarageMaid Overview Table 3-9: GarageMaid Products FoldAWay Storage Systems Overview Table 3-10: FoldAWay Storage Systems Products Emerson Electric Co Company Profile Performance Product portfolio Table 3-11: Emerson Electric Garage Organization Products Distribution California Closets Overview Performance Product portfolio Table 3-12: California Closets Garage Organization Products Advertising and Promotion Elfa Overview Performance Product portfolio Table 3-13: Elfa Garage Organization Products Strategy and Positioning Distribution Schulte Corporation Overview Products Table 3-14: Schulte Garage Organization Products Distribution Promotion Windquest Companies Overview Products Table 3-15: Windquest Garage Organization Products Racor Kevin Shaha, president of Racor Overview Product portfolio Table 3-16: Racor Garage Organization Products Slide-Lok Overview Products Table 3-17: Slide-Lok Garage Organization Products Promotion Sterilite
  • 8. Overview Product portfolio Table 3-18: Sterilite Products Home Products International Overview Product portfolio Table 3-19: Home Products International Organization Products Myers Industries, Inc Overview Products Table 3-20: Myers Industries Products Iris USA Overview Product portfolio Table 3-21: Iris USA Products HyLoft Inc Overview Products Table 3-22: Hyloft Products BH North America Overview Table 3-23: BH North America Products Storewall LLC Overview Promotion Products Table 3-24: Storewall Products HandiSolutions Overview Table 3-25: HandiSolutions Organization Products Spacewall International Overview Products Table 3-26: Spacewall International Products Redline Garage Gear Overview Products Table 3-27: Redline Garage Gear Products Gracious Living Industries Overview Products Table 3-28: Gracious Living Home Organization Products Bald Head Cabinets Overview Products Table 3-29: Bald Head Products
  • 9. Diamond Life Overview Products Table 3-30: Diamond Life Products RSI Home Products Overview Products Table 3-31: RSI Garage Organization Products ModuLine Overview Products Table 3-32: ModuLine Products Hercke International, LLC. Overview Products Table 3-33: Hercke International Products GarageTek Inc Overview Products Table 3-34: GarageTek Products House Wall Garage System Overview Products Table 3-35: House Wall Garage System Products Premier Garage Overview Promotion Products Table 3-36: Premier Garage Products Vault Overview Products Table 3-37: Vault Products Arrow Group Industries Overview Products Table 3-38: Arrow Group Products Duramax Building Products Overview Products Table 3-39: Duramax Products Suncast Corporation Overview Products Table 3-40: Suncast Products Tuff Shed Inc
  • 10. Overview Promotion Products Table 3-41: Tuff Shed Products Backyard Products, LLC Overview Products Table 3-42: Backyard Products LLC Products Reynolds Building Systems Overview Table 3-43: Reynolds Building Systems Products Barrette Overview Products Table 3-44: Barrette Products Lifetime Products Overview Products Table 3-45: Lifetime Products Outstanding Solutions Ltd Overview Products Table 3-46: Outstanding Solutions Products Step 2 Company Overview Products Table 3-47: Step 2 Storage Products Finley Products Overview Table 3-48: Finley Products Little Cottage Company Overview Table 3-49: Little Cottage Company Products Chapter 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 Introductions Chapter 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 Functionality Chapter 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 Generation Available immediately for Online Download at http://www.marketresearch.com/product/display.asp?productid=1924903 US: 800.298.5699 UK +44.207.256.3920 Int'l: +1.240.747.3093 Fax: 240.747.3004