Flat-Pack Joinery Imports Market Study REPORT
Transcript of Flat-Pack Joinery Imports Market Study REPORT
Residential Flat-‐Pack Joinery Import Market Study
Developed by IndustryEdge Pty Ltd
for
Forest & Wood Products Australia Ltd
October, 2017
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Executive Summary Anecdotally, imports to Australia of (mainly) flat-‐packed joinery items has been
growing rapidly in recent years, including for installation into Australia’s residential
dwellings. Despite the persistence and strength of the narrative, there has been no
means of measuring the volume of these imports, their growth or other features of
them.
Import data does not provide sufficient information to specifically determine what is
joinery, what the imported items are made from or what size the items are.
Unfortunately, there is no single, obvious and clear means of assessing the volume of
joinery imported into Australia.
This analysis was commissioned by Forest & Wood Products Australia (FWPA) as
part of its endeavours to improve industry intelligence, provide tools for business
decision making and support market transparency. It deploys a series of inter-‐related
elements all focused on answering the question – ‘How much flat-‐packed joinery is
imported to Australia for installation in residential dwellings?’
The key findings of this analysis are that for calendar year 2016:
• The average or Standard House in Australia has 2.362 m3 of Particleboard
and MDF installed as joinery. It is less for other, generally smaller, housing
types such as townhouses, flats and apartments. (Element One)
• A total of 605,466 m3 of joinery was installed into Australian residential
dwellings. Of this, 462,661 m3 of Particleboard and MDF was installed into
Australian dwellings as joinery and a further minimum 142,806 m3 was
installed as part of renovations in the same year. (Element One)
• Locally made joinery accounted for 85.3% of the total, or 516,194 m3.
(Element Two)
• Therefore, on a residual basis, imported joinery accounted for at least
14.7% of total joinery items installed into Australian residential dwellings.
This was calculated as:
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o Total Market of 605,466m3 (Element One)
less
o Local Joinery substrate of 516,194 m3 (Element Two)
equals
o Imported Joinery of 89,272 m3 (14.7%)
This is the equivalent of the joinery installed into 37,789 average or standard
homes (Element Two).
Import data is inadequate for identifying more than a small proportion (less
than 25% or 17,977m3) of the known imports.
All of the confirmed data relates to Wooden Kitchen Furniture, with many other items
simply unidentifiable (Element Three).
A series of industry consultations and other data analysis was undertaken to confirm
the analysis, wherever information was available. (Element Four)
This analysis has utility for Australian industry because it:
a. Assesses the total amount of joinery installed to Australian residential dwellings,
and apportions market share between domestic and imported product;
b. Can be used in conjunction with housing forecasts to estimate the volume of
Particleboard and MDF that will be used in Australian residential dwellings in
subsequent years;
c. Operates transparently and can be revised and repeated to create a time series
and track trends over time. To that end, repeating this analysis in two years time,
to establish a three year (2016 to 2018) data series would be useful;
d. Establishes a methodological approach that can adequately bridge information
gaps, especially where related to sometimes inadequate trade data.
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Contents 1. Executive Summary
2. Contents
3. Background & Context to this Analysis
4. Methods, Constraints & Assumptions
5. Joinery in Australian dwellings – a 2016 SNAPSHOT
6. Element 1 – Volume of Joinery in Australian Dwellings
7. Element 2 – Consumption of joinery substrates in Australia
8. Element 3 -‐ Imports of joinery
9. Element Four – Cross-‐checking data
Appendix One – Glossary of Names, Terms and Definitions
Appendix Two -‐ Methodology
Appendix Three -‐ Assumptions
Appendix Four -‐ Joinery Substrate Calculations
Appendix Five -‐ List of Tables
Appendix Six – List of Figures
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Background & context to this analysis
How much imported flat-‐pack joinery is used in Australian dwellings? Australian industry has long been interested to know how much imported joinery is
used in Australia’s dwellings. In the absence of any formal assessment, speculation
has been continuous, albeit not always informed by data.
Whether an industry participant is a producer of the substrates from which joinery
is made (Particleboard and Medium Density Fibreboard [MDF]), a kitchen
manufacturer, cabinetmaker, joiner, installer or builder, there is inevitable
commercial and market interest in how much joinery is used in Australia’s dwellings
each year. That flows through to interest in how much joinery is imported, an area
in which the data is inadequate for traditional estimation methodologies.
Joinery, as distinct from furniture, is built-‐into a house and would thus rarely be
free-‐standing. Joinery, in this context, refers in particular to kitchen cabinetry,
bathroom and laundry cupboards, wardrobes, linen presses and the like. The vast
majority of joinery is imported in flat-‐pack formats, either ready to assemble or
partly assembled.
There is, of course, the same level of interest in imports of other flat-‐packed items
made from the same substrates – especially furniture items such as office furniture
and wall units like shelving, that are also largely imported in a flat-‐pack form. This
analysis does not address imports of those items, however, the same methodology
can be used to estimate the volume of imported flat-‐pack furniture among other
products.
Concerned by the lack of transparency and clarity about the proportion of imports of
flat-‐pack joinery manufactured from Particleboard and Medium Density Fibreboard
(MDF), Forest & Wood Products Australia (FWPA) resolved to develop a transparent
and reliable assessment of imports.
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As FWPA set out to do that, it became clear that the import data is a major constraint
to trade and market transparency, to an extent that business and sector level
decision-‐making capacity has been impaired for some years.
Anecdotally, imports of joinery products have grown from negligible to relevant.
There is however, no reliable estimation, or methodology for assessing how much
they have grown, or what proportion of the market imports hold.
This analysis was commissioned against that backdrop, to establish a ‘best available’
assessment of imports of flat-‐pack joinery used in Australian dwellings. The
assessment was to be conducted against a clearly described methodology, coming at
‘the question’ from multiple directions in the absence of a clear, single line of reliable
information.
The aim of the analysis is therefore to provide both an initial ‘answer’ as to how
much flat-‐pack joinery is imported to Australia each year for residential applications
– or at least, what proportion of the market imports are estimated to supply – and to
supply a robust, defensible and replicable methodology to allow the process to be
completed again, for comparative purposes.
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Methods, constraints & assumptions There is no easy or simple pathway to determine the amount of flat-‐pack joinery
imported into Australia each year, for residential dwellings. The import data is either
incomplete or non-‐existent.
In large part, this methodology seeks to address that situation by focusing on data
from a range of sources, all of which address the same question. This is a form of
data triangulation, supported by industry validation.
Methodology Because of the difficulties with respect to reliability, applicability and granularity of
import data, this analysis has used three separate but inter-‐related approaches,
supplemented by feedback and cross-‐checking with related data.
Within some limits, the approach taken has been to assess the ‘mass balance’ – the
volume of joinery substrate – that is likely to be used in Australia, in residential
dwellings (Element 1), compared with assessments of the volume of joinery
produced locally from locally manufactured and imported particleboard and MDF
(Element 2). Comparing the outputs of Element 1, with Element 2 provides the
implied volume of joinery that has been imported. Import data is then analysed to
attempt to identify flat-‐pack joinery imports, (Element 3) before outputs are cross-‐
checked by a range of industry guidance and feedback, and other publicly available
data.
See Appendix Two for a detailed description of the methodologies for each element
of this analysis.
Inevitably, informed assumptions are important in calculating the estimates
required for this assessment. Each of Elements 1 to 3 uses assumptions.
Constraints It is important to note the significant data constraints that impact each stage or key
point in this analysis. In the main, these can be described as ‘the absence of data’.
Wherever they occur and assumptions are used, the constraint and the assumption
used as a proxy for detailed data are indicated in this report.
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At a headline level, the data constraints are:
• Imported joinery is not clearly identified in trade data
• Imported particleboard (and MDF, but to less relevance) is not clearly identified
as to its ‘type’ or ‘end-‐use’ in trade data
• Commercial and industrial building work is not measured by number of
buildings or floor space
• Industry feedback by manufacturers, importers and stakeholders has been
averaged, and diverging views have been ‘weighted’ by IndustryEdge, particularly
in calculating end-‐use proportions for particleboard and MDF.
Assumptions As described above, this analysis uses assumptions to bridge data gaps. A full table of
assumptions is included at Appendix 3. Assumptions are, in summary, centred on:
Element 1
• Joinery in the HIA Standard House
• Volume of joinery substrate in the average Australian dwelling, by type
• Number of kitchen, bathroom and laundry renovations undertaken each year
Element 2
• Proportional use of particleboard and MDF in Australia, by end-‐use application
Element 3
• Limitation of relevant import codes
• Minimum and maximum import prices (AUDFob/unit), and other criteria, of flat-‐
pack joinery imports
Wherever possible, assumptions have been constructed with direct industry
involvement.
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Joinery in Australian Dwellings – 2016 Snapshot
Household Joinery 2016
[e. 605,466 m3 of PB and MDF]
226,741 dwelling
commencements [51.2% free-‐standing
houses]
2.362 m3 PB & MDF per
house [less for other dwelling types]
min.
142,806 m3 PB & MDF in renovations
>/= 89,272 m3
imported [min. 14.7%
462,661 m3 PB & MDF in new
dwellings
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Element 1: Volume of joinery in Australian dwellings Key Points for 2016
605,466 m3 of particleboard and MDF (joinery substrate) was used in joinery in
new dwellings (462,661 m3 or 76%) and renovations of dwellings (142,806 m3 or
24%) in the 2016 calendar year.
This is based on the following:
New Dwellings
• In 2016, Australia recorded 226,741 dwelling commencements, as follows:
Fig. 1: Australian Dwelling Commencements By Type: 2016 (Number)
Source: ABS
• Based on analysis that shows the volume of joinery substrate in the ‘Australian
Standard House’, inclusive of joinery doors, is 2.362 m3, new Australian dwellings
are calculated to use, on average, between 1.536 m3 (4+ Storey Flats) and 2.362
m3 of joinery substrate.
Free-Standing House
(116,074)
Flats - 4+ Storey
75,900
Townhouses - 1 Storey (7,200)
Townhouses - 2+ Storey (20,965)
Townhouses - 3 Storey (3,905)
Townhouses - 1 & 2 Storey (2,697)
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Table 1: Average Joinery Substrate in Australian Dwellings by Type: 2016
Dwelling type Joinery Substrate per Dwelling (m3)
Free-‐Standing House 2.362
Townhouses -‐ 1 Storey 2.126
Townhouses -‐ 2+ Storey 2.126
Flats -‐ 1 & 2 Storey 1.890
Flats -‐ 3 Storey 1.772
Flats -‐ 4+ Storey 1.536
Source: IndustryEdge research, based on industry feedback
• Multiplying the number of dwelling commencements, of each type, by the
calculated average volume of joinery substrate used in each dwelling type,
provides the total volume of joinery substrate used in new Australian dwellings
in 2016, as follows:
Fig. 2: Joinery Substrate Used in New Australian Dwellings By Type: 2016 (m3)
Source: ABS
The total volume of joinery used in new Australian dwellings in 2016 is the sum of
the above – 462,661 m3.
Flats - 4+ Storey
(116,549)
Free-Standing House
(274,213)
Townhouses - 2+ Storey (44,575)
Townhouses - 2+ Storey (15,308)
Townhouses - 1 & 2 Storey (5,097)
Townhouses - 3 Storey (6,919)
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Renovations of Dwellings
In 2016, the Housing Industry Association (HIA) reported the following renovations
were undertaken in Australia:
Table 2: Renovations in Australia: 2016 (Number)
Renovation Type/Room Number
Kitchen 145,401
Bathroom 218,311
Laundry 43,662
Source: HIA
• Based on the detailed analysis of the ‘Standard Australian House’, the average
volume of joinery used in each renovation is calculated as follows:
Table 3: Joinery Used per Renovation (m3)
Renovation Type/Room Ave. Volume of Joinery Substrate per Renovation (m3)
Kitchen 0.723
Bathroom 0.126
Laundry 0.234
Source: Davis Langdon Architects & IndustrEdge
• The total volume of joinery used in Australian renovations in 2016, is the sum of
the number of renovations undertaken, multiplied by the volume of joinery
calculated to be used in each renovation, as follows:
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Fig. 3: Joinery Used in Australian Residential Renovations by Type: 2016 (m3)
Source: HIA & IndustryEdge
The total volume of joinery used in renovations in Australian dwellings in 2016 is
the sum of the above – 142,806 m3.
The details of this analysis are provided below.
Defining a standard Australian dwelling Over time, a reliable method for calculating the amount of joinery – and arising from
that, the amount of particleboard and MDF in particular – used in Australian
dwellings, may commence with a well-‐defined and statistically accurate ‘average’
dwelling, based on its size and features.
Unfortunately, at this time, such a dwelling has not been adequately defined to be
both reliable for immediate analysis and replicable for future analysis. However, the
HIA has defined, by surveys of its members, a ‘Standard House’. Its use in this
analysis is a proxy for a future, more accurate analysis.
Leaving aside limitations, the use of the HIA’s Standard House as a basis for the
calculation of particleboard and MDF used in domestic joinery is adequate, though
not ideal. 1 The HIA Standard House is set out below.
1 The ideal data set from which the average would be derived is a representative and randomly selected sample
Renovated Bathroom
(27,451)
Renovated Laundry (10,201)
Renovated Kitchen (105,145)
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Fig. 4: HIA Standard House: 2010
Source: Davis Langdon Australia
The principal characteristics of the Standard House, as can be observed, are that it
consists of:
• 3 bedrooms, one with ensuite and walk in robe
• two bathrooms, including the ensuite
• separate laundry
• two living areas, one open-‐plan connected to the dining room and kitchen
• substantial outdoor decking.
Calculating joinery substrate used in the Standard House In its analysis of the Standard House for Forest & Wood Products Australia (FWPA)
the assessment of the cost of building that dwelling, architects Davis Langdon
Australia specified the amount of joinery that would be included in it. This is set out
in the table below, along with the calculated volume of joinery substrate used in
manufacturing the joinery. This is considered by cabinetmakers, joiners and others
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providing feedback on this analysis,to be a conservative estimate, with the volume of
joinery in the Standard House likely to be higher.
Table 4: Joinery Substrate (other than doors) Used in Standard Australian
House (m3)
Item No.
Description No. Units
No. Shelves*
Implied m3 of Substrate#
1 Bath Vanity, inc. cupboard under 1100 x 400 x 900
1 1 0.057
2 Ensuite Vanity, inc. cupboard under 850 x 350 x 900
1 1 0.047
3 Kitchen Bench, inc. cupboard under 4400 x 600 x 900
1 1 0.252
4 Kitchen Bench 2, inc. cupboard under 2750 x 800 x 900
1 1 0.206
5 Pantry Unit, inc, shelves 900 x 650 x 2100
1 4 0.132
6 Laundry Bench, inc. cupboard under 1200 x 600 x 900
1 1 0.083
7 Laundry Cupboard, inc, shelves 680 x 650 x 2100
1 4 0.111
8 Robe (Beds 2 & 3), inc. shelf 5000 x 600 x 16
2 1 0.232
9 Robe (Master) inc. shelf 4600 x 600 x 16
1 1 0.044
10 Storage Cupboard, inc. shelves 6000 x 600 x 16
1 6 0.501
Total 1.665 m3
Source: Davis Langdon Australia & IndustryEdge research
* The number of shelves has been adjusted for item 10. Storage Cupboard, based on feedback and advice provided to IndustryEdge
# Based on assessment set out at Appendix 4
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Table 5: Joinery Substrate Used for Joinery Doors in Standard Australian
House (m3)
Item No.^ Door Description Implied m3 of Substrate#
3 Kitchen Bench, inc. cupboard under 4400 x 900 0.063
4 Kitchen Bench 2, inc. cupboard under 2750 x 900 0.040
5 Pantry Unit, 900 x 2100 0.030
6 Laundry Bench, inc. cupboard under, 1200 x 900 0.017
7 Laundry Cupboard, 680 x 2100 0.023
8 Robe (Beds 2 & 3), 5000 x 2100 0.168
9 Robe (Master), 4600 x 2100 0.155
10 Storage Cupboard, 6000 x 2100 0.202
Total 0.697 m3
Source: Davis Langdon Australia & IndustryEdge research
^ Doors for vanities and bathroom joinery excluded due to potential variation in material use, including glass,
mirrors and open joinery etc # Based on assessment set out at Appendix 4
Based on the calculations, the average volume of joinery substrate used in joinery in
the Standard House is estimated to be 2.362m3.
Assumptions – substrate used in joinery
Importantly, the calculation relies upon the following assumptions:
a. HIA Standard House is satisfactory for this analysis, as set out by Davis Langdon Australia
b. All joinery substrate is 16mm thickness (implying it is melamine backed) c. Number of shelves has been estimated for each joinery type and adjusted by
IndustryEdge based on industry feedback d. An average of nine (9) cabinets is included in kitchens e. Plinths are estimated 100mm height f. No additional material has been estimated for bracing of joinery g. Other dwelling types have, on average, less joinery than the standard house h. Some joinery items are particleboard (shelves in particular) and are unlikely to
be imported as finished products, but may be imported as particleboard i. Doors for vanities and bathroom joinery excluded due to potential variation in
material use, including glass, mirrors and open joinery
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Calculating joinery substrate used in other dwelling types Taking the calculations for joinery in the Standard House, and applying industry
guidance on the average size and use of joinery products in the other major dwelling
formats provides a calculated estimate of the volume of joinery substrate used in the
average Australian dwelling, by type.
Table 6: Calculation of volume of joinery installed by dwelling type
Dwelling type
% of Joinery in HIA Standard House
Joinery Substrate per Dwelling (m3)
Free-‐Standing House 100% 2.362
Townhouses -‐ 1 Storey 90% 2.126
Townhouses -‐ 2+ Storey 90% 2.126
Flats -‐ 1 & 2 Storey 77% 1.890
Flats -‐ 3 Storey 75% 1.772
Flats -‐ 4+ Storey 65% 1.536
Source: IndustryEdge research, based on industry feedback
Calculating joinery substrate used in new Australian dwellings In 2016, based on the above, new Australian dwellings, of all types, used an
estimated 462,661 m3 of joinery substrates.
This estimate was devised from the above data, multiplied by the residential
dwelling commencements (by type) reported by the Australian Bureau of Statistics
(ABS). The data is displayed in the table below.
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Table 7: Joinery substrate used in new Australian dwellings, by type: 2016
Dwelling Type
2016 Commencements2
Joinery Substrate (m3)
Free-‐Standing House 116,074 274,213
Townhouses -‐ 1 Storey 7,200 15,308
Townhouses -‐ 2+ Storey 20,965 44,575
Flats -‐ 1 & 2 Storey 2,697 5,097
Flats -‐ 3 Storey 3,905 6,919
Flats -‐ 4+ Storey 75,900 116,549
Totals 226,741 462,661
Source: ABS & IndustryEdge research
Calculating joinery substrate used in the average Australian kitchen, bathroom and laundry renovation Australians are great renovators and remodelers. Despite this, there is only limited
formal data available to inform assessments of materials use in the main renovation
activities – updating kitchens and bathrooms.
Fortunately, an HIA data series, the HIA-‐GWA Kitchens & Bathrooms report for
2015-‐16, provides useful data and insights. It reports the estimated number of
kitchen and bathroom renovations for the year and forecasts those for the 2016-‐17
year, as set out in the following table. These two financial years have been averaged
to provide 2016 calendar year estimate.
The estimate of laundry renovations, based on industry input, is 20% of the number
of kitchen renovations for the year and for new dwellings, the assumption is that one
laundry is installed per dwelling.
2 ABS Catalogue 8752.0033 Table 3
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Table 8: New & Renovated Kitchens, Bathrooms & Laundries in Australian Dwellings: 2015 to 2017 & Average (Number)
Kitchens Bathrooms Laundries
New Renovation New Renovation New Renovation*
2015-‐16 231,800 144,670 441,200 217,000 231,800 28,934
2016-‐17 215,800 146,132 421,000 219,621 215,800 29,226
Average # 226,741 145,401 431,100 218,311 226,741 43,662
Total 372,142 649,411 255,821
Source: HIA & IndustryEdge estimates * Calculated based on 20% of the number of kitchen renovations each year # Average of the two financial years
The HIA reports the following useful insights in the annual report:
1. 1.0 kitchens are installed in each new dwelling
2. 1.9 bathrooms are installed in each new dwelling
3. In 93% of cases, all kitchen joinery is replaced during renovation
4. In 85% of renovations, all relevant joinery is replaced
5. Between 89% and 93% of kitchen cabinetry is locally produced
6. Between 70% and 80% of bathroom vanities are locally produced
In 2016, based on the above, the renovation of existing Australian dwellings, of all
types, used an estimated 142,806 m3 of joinery substrate.
The following data adopts the above averages of the number of renovations and the
earlier data on the volume of joinery substrate used in kitchens, bathrooms and
laundries, to provide an estimate of the amount of joinery substrate used in
renovations each year.
Table 9: Joinery substrate used in renovating Australian dwellings in 2016
Renovation Number
(Est. by HIA) Joinery Substrate/ Renovation (m3)
Implied Joinery Substrate (m3)
Renovated Kitchen* 145,401 0.723 105,145
Renovated Bathroom# 218,311 0.126 27,451
Renovated Laundry ^ 43,662 0.194 10,210
Total 142,806
Source: HIA & IndustryEdge
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It will be noted that the volume of joinery substrate used for each renovation type is
based on the Australian Standard House – a free-‐standing dwelling. While it is true
that the amount of joinery substrate used in other housing formats is less than in
free-‐standing dwellings, we have elected to retain the higher volume associated with
free-‐standing dwellings to take into account the volume of joinery substrate that
might be used in renovating other rooms in houses (eg. Wardrobes in bedrooms),
that is not otherwise captured here.
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Element 2: Consumption of joinery substrates in Australia
(Particleboard and MDF used in Australia)
Key Points for 2016 516,194 m3 of the Particleboard and Medium Density Fibreboard (MDF) consumed
in Australia in 2016 was used in household joinery, accounting for 85.3% of the
joinery substrate used in Australian dwellings. This was made up of:
• 364,529 m3 of particleboard (34% of total particleboard consumption of
1,069,690 m3)
• 151,665 m3 of MDF (23% of total MDF consumption of 653,730 m3)
This analysis is based on the following:
• Australia’s apparent consumption of particleboard and MDF in 2016 was
1,723,420 m3, (of which domestic production of particleboard and MDF
accounted for 88% of the total or 1,524,431 m3)
• Analysis demonstrating that 516,194 m3 (exactly 30.0%) of particleboard and
MDF consumed in Australia in 2016 was used as joinery substrate in Australian
dwellings. This is summarized below:
Fig. 5: Australian Particleboard and MDF Consumption by End-‐Use: 2016 (m3)
Source: ABS, EWPAA & IndustryEdge
Particleboard Flooring - Residential (249,351)
Particleboard Flooring - C&I (49,504)
Furniture (240,746)
Industrial (barriers, inc. sound) (252,052)
Merchants eg. Shelving (120,761)C&I Joinery (50,000)
Mouldings (117,671)
Doorskins (44,454)
Cabinet & Joinery Doors (86,292)
Other/Unknown (82,687)
Consumption to Household Joinery (429,902)
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The outputs of this analysis imply that 85.3% (516,194 m3) of the 605,466 m3 of
joinery substrate used in joinery in Australian dwellings, as demonstrated in
Element 1 of this analysis, was manufactured by cabinetmakers, joiners, builders
and others in Australia, in 2016. It therefore follows that the remaining 14.7% of
Australia’s household joinery is imported, ready to install. This amounts to
89,272 m3 of joinery substrate. This is equivalent to the joinery required for 37,789
free-‐standing houses.
The details of this analysis are provided below.
Apparent Consumption of Particleboard and MDF Panel products are those flat, wood material substrates used in panel form for a
wide range of applications, including in Australian housing. The main (not the only)
products are particleboard, medium density fibreboard (MDF) and to a much lesser
extent, plywood. In 2016, in total, Australia’s consumption of particleboard and MDF
was 1,723,420 m3.
In this context, panel products are the raw material from which secondary and
tertiary processors manufacture a wide variety of domestic and industrial products.
The most significant of these secondary processors are cabinetmakers, joiners,
furniture makers and home builders, the emphasis of all of whom is generally on
new dwelling construction and home renovation.
Although MDF and plywood (to a lesser extent) can be and are used in joinery
products in Australian dwellings, they are far less prevalent than particleboard.
In 2016, Australia consumed a total of 1,069,690 m3 of particleboard. Domestic
production dominated, as the table below shows, accounting for 89.1% of total
consumption, with imports accounting for 10.9%. Exports were, as ever, negligible.
In the same year, MDF consumption in Australia totaled 653,730 m3. Domestic
production dominated, accounting for 87.4% of total consumption. Imports
accounted for 12.9% and exports were again negligible.
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Table 10: Apparent consumption of Particleboard and MDF: 2016 (m3)
Source Particleboard (m3) MDF (m3) Total (m3)
Production 952,809 571,622 1,524,431
Less Exports 2,046 1,936 3,982
Plus Imports 118,927 84,044 202,971
Total 1,069,690 653,730 1,723,420
Source: ABS, EWPAA and IndustryEdge
Where Australia’s particleboard and MDF is used Australia’s total supplies of particleboard and MDF are deployed primarily (53.8%)
in housing applications. The analysis is provided below, followed by some more
detailed analysis of particleboard and MDF import data, showing how the analysis
was conducted.
57.4% of particleboard is used in households of which 34.1% is used in joinery The significant majority of particleboard, (57.4%), regardless of its provenance, is
used in Australian dwellings, both newly built and existing, for joinery and other
applications. Additionally, 10.3% of particleboard is estimated by industry to be
used in the manufacture of free-‐standing furniture each year.
Based on analysis of imports and production data, supported by industry feedback,
the estimated end-‐uses of Australia’s particleboard are set out in the table and chart
below. It shows that the residential use of particleboard, is dominated by joinery
products, as established in Element 1, supplemented by the large volume of
particleboard flooring deployed into Australian housing.
It is notable that Australian producers of particleboard reported widely different
proportions of their total particleboard production destined to joinery applications.
This was based primarily on production of melamine-‐skinned particleboard. The
range was a low of 17% through to a high of 55%.
It should also be noted that the table and chart below represent estimates, calculated
by IndustryEdge and informed from a range of inputs.
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Table 11: Particleboard by end-‐use: 2016 (m3)
m3 % Total Apparent Consumption 1,069,690
Detailed End-‐Uses Particleboard Flooring – Residential # 249,531 23.3 Particleboard Flooring -‐ C&I # 49,504 4.6 Furniture * 110,000 10.3 Industrial (barriers, inc. sound) 121,306 11.3 Merchants, Shelving etc 75,000 7.0 Joinery – C&I ^ 50,000 4.7 Other/Unknown 50,000 4.7 Joinery – Residential 364,529 34.1
Broad End-‐Use Categories Household/Residential 613,880 57.4 Commercial & Industrial 220,810 20.6 Furniture 110,000 10.3 Other/Unknown 125,000 11.7
Source: ABS, EWPAA & IndustryEdge
# Analysis of production and import data, with separation to Residential v Commercial & Industrial based on industry input
* Estimated by Australian free-‐standing furniture manufacturers
^ Estimated by commercial joinery/cabinetmaker firms
Particleboard Flooring - Residential (23.3%)
Particleboard Flooring - C&I (4.6%)
Furniture (10.3%)
Industrial (barriers, inc. sound) (11.3%)Merchants/ Shelving (7.0%)
C&I Joinery (4.7%)
Other/Unknown (4.7%)
Consumption to Household Joinery (34.1%)
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23.2% of MDF is used in household joinery applications Based on industry advice, an estimated 50% of Australia’s total supplies of MDF are
used in household applications, with a further 20% estimated to be used in the
manufacture of furniture. While the former number may seem high at first glance,
more detailed analysis shows that the major applications of MDF are in mouldings,
doors for joinery applications and doorskins.
It will be noted that while 130,746 m3 of MDF was used in the manufacture of
Doorskins, Cabinet Doors and Draw Fronts, industry considers that only two-‐thirds
of this is relevant to joinery, with the remaining third being used in the manufacture
of general doors.
Just 10% or 65,373 m3 of MDF was used in the manufacture of joinery in 2016,
however, that figure rises to 23.2% or 151,665 m3 when the 86,292 m3 of MDF used
in Cabinet & Joinery Doors is included.
The table below sets out the estimated end-‐uses of MDF in Australia. It should be
noted that, as with the particleboard calculations, the table and chart below
represent estimates, calculated by IndustryEdge and informed from a range of
inputs.
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Table 12: MDF by end-‐use: 2016 (m3)
m3 %
Total Apparent Consumption 653,730
Detailed End-‐Uses
Furniture* 130,746 20.0
Industrial (barriers, inc. sound) 130,746 20.0
Merchants, Shelving etc 45,761 7.0
Mouldings 117,671 18.0
Doorskins 44,454 6.3
Cabinet & Joinery Doors 86,292 13.2
Other/Unknown 32,687 5.0
Joinery – Residential^ 65,373 10.0
Joinery (Total, Including Doors)
Joinery – Residential + Cabinet & Joinery Doors 151,665 23.2
Broad End-‐Use Categories
Household/Residential 392,238 60.0
Commercial & Industrial 98,060 15.0
Furniture 98,060 15.0
Other/Unknown 65,373 10.0
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Fig. 7: MDF by end-‐use: 2016 (m3)
Source: ABS, EWPAA & IndustryEdge
# Analysis of production and import data, with separation to Residential v Commercial & Industrial based on
industry input
* Estimated by Australian free-‐standing furniture manufacturers
30% of total substrate was used to manufacture joinery in 2016 In total, of the 1,723,420 m3 of substrate consumed in Australia in 2016, an
estimated 30.0% or 516,194 m3 was used to manufacture Joinery for dwellings,
including Cabinet & Joinery Doors, accounting for 85.7% of the estimated 603,714
m3 of substrates used in residential joinery in 2016, as set out in Element 1 of this
analysis.
Of the total substrate consumption, an estimated 53.8% or 927,670 m3 was used in
household applications, with a further 14.0% or 240,746 m3 estimated to have been
used in the manufacture of furniture.
Furniture (130,746)
Industrial (130,746)
Merchants, shelving etc (45,761)Mouldings (117,671)
Doorskins (44,454)
Cabinet & Joinery Doors (86,292)
Other (32,687)
Consumption to Household Joinery (65,373)
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These aggregates are set out in the table below.
Table 13: Aggregate substrate by end-‐use: 2016 (m3 & %)
Particleboard MDF Total %
Apparent Consumption 1,069,690 653,730 1,723,420 -‐
Detailed End-‐Uses
Particleboard Flooring – Residential #
249,531 -‐ 249,531 14.5
Particleboard Flooring -‐ C&I # 49,504 -‐ 49,504 2.9
Furniture * 110,000 130,746 240,746 14.0
Industrial (barriers, inc. sound) 121,306 130,746 252,052 14.6
Merchants, Shelving etc 75,000 45,761 120,761 7.0
Joinery – C&I ^ 50,000 50,000 2.9
Mouldings -‐ 117,671 117,671 6.8
Doorskins -‐ 44,454 44,454 2.6
Cabinet & Joinery Doors 86,292 86,292 5.0
Other/Unknown 50,000 32,687 82,687 4.8
Joinery – Residential 364,529 65,373 429,902 24.9
Residential Joinery Summary
Joinery – Residential + Cabinet & Joinery Doors
364,529 151,665 516,194 30.0
Broad End-‐Use Categories
Household/Residential 613,880 313,790 927,670 53.8
Commercial & Industrial 220,810 130,746 351,556 20.4
Furniture 110,000 130,746 240,746 14.0
Other/Unknown 125,000 78,448 203,448 11.8
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Fig. 8: Aggregate substrate by end-‐use: 2016 (m3 & %)
Source: ABS, EWPAA & IndustryEdge
# Analysis of production and import data, with separation to Residential v Commercial & Industrial based on industry input * Estimated by Australian free-‐standing furniture manufacturers ^ Estimated by commercial joinery/cabinetmaker firms
Exactly 30.0% or 516,194 m3 of the particleboard and MDF consumed in Australia
in 2016 is calculated to have been used in the manufacture of household joinery.
This equates to 85.3% of the 605,466 m3 of joinery calculated in Element 1 of this
analysis, to have been used in Australian dwellings in 2016, implying that 14.7% of
joinery used in Australian dwellings is imported, ready for installation.
In volume terms, this 14.7% amounts to imports of 89,272 m3 of substrate material,
equivalent to the joinery required for 37,789 free-‐standing dwellings.
The chart below shows total Australian joinery consumption, in 2016, by its
calculated broad end-‐use or destination.
Particleboard Flooring - Residential (249,351)
Particleboard Flooring - C&I (49,504)
Furniture (240,746)
Industrial (barriers, inc. sound) (252,052)
Merchants eg. Shelving (120,761)C&I Joinery (50,000)
Mouldings (117,671)
Doorskins (44,454)
Cabinet & Joinery Doors (86,292)
Other/Unknown (82,687)
Consumption to Household Joinery (429,902)
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Fig. 9: Australian Joinery by Broad End-‐Use: 2016 (%)
Source: IndustryEdge
Net Trade – the Other Element of Apparent Consumption In addition to the dominant local production, there are small imports of both
Particleboard and MDF and even smaller exports of both that contribute to
Australia’s total consumption of joinery substrates.
Particleboard and MDF import data provides some guidance on end-‐uses Australian import data provides some guidance on the end-‐use applications of both
particleboard and MDF. This data was collated and preliminary analysis was checked
with import agents and major wholesalers (engaged in importing, as well as
distribution of domestically produced substrate).
Particleboard imports are 11% of total consumption In 2016, total imports of particleboard amounted to 118,927 m3 or 10.9% of
apparent consumption. Particleboard import data is broken down to indicate end-‐
use applications, at least broadly.
Of the total volume of imported particleboard, 15,533 m3 (13.1%) was melamine or
similarly surfaced. Further, the same data reported that 51,344 m3 (43.2%) was
particleboard in the form of Oriented Strand Board (OSB), Waferboard and non-‐
wood products.3 The largest volume, 52,050 m3 (43.8%) is other particleboard,
3 Typically the non-‐wood products particleboard are acoustic and similar end-‐use products manufactured from alternative fibres such as bamboo and sugar cane.
Household/Residential (53.8%)
Commercial & Industrial (20.4%)
Furniture (14.0%)
Other/Unknown (11.8%)
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including raw and industrial product and a small quantity of flooring, according to
importers.
The relevant import codes and definitions are set out in the table below.
Table 14: Particleboard Import Codes by Type
Import Code Definition (abbreviated) 2016 Vol. (m3)
4410.11.00.02 Particleboard: Melamine surfaced 15,533
4410.11.00.05 Particleboard: Other 52,050
4410.12.00.06 OSB 29,446
4410.19.00.09 Other (of wood) eg. Waferboard 3,152
4410.90.00.25 Other (of other) 18,746
Source: ABS
For the purposes of this analysis, it has been assumed that all of the imports of
melamine or similar surfaced particleboard (4410.11.00.02) and 50% of the ‘Other’
particleboard (4410.11.00.05) are used in joinery applications. This data was joined
with the Australian industry’s confidential advice on the proportions of their
production that is, either Raw, Flooring or Melamine surfaced to build the calculated
estimates described earlier.
Particleboard imports, by country, are set out in the chart below, noting this includes
imports of both grades.
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Fig. 10: Particleboard Imports by Country: 2016 (%)
Source: ABS
* NCD = no country details (all of which is raw board)
It can be observed that Asian countries are not significant suppliers of particleboard
to Australia.
MDF imports are 13% of total consumption In 2016, total imports of particleboard amounted to 84,044 m3 or 12.9% of
apparent consumption. MDF import data is also broken down to indicate end-‐use
applications, at least broadly.
For MDF, this data is focused on both the thickness of the material and also its
density, with both providing some indication as to end-‐uses.
The relevant import codes and definitions are set out in the table below, including
the general end-‐use.
Austria (9.8%)
China (2.3%)
Germany (1.8%)
Italy (6.6%)
New Zealand (27.1%)
NCD (17.0%)
Romania (3.0%)
South Africa (20.3%)
Thailand (4.1%)
Other (7.9%)
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Table 15: MDF Import Codes by Type
Import Code Definition (abbreviated) & End-‐Use 2016 Vol. (m3)
4411.12.10.33 MDF of a thickness < 5 mm & density >0.8 grams per cubic centimetre ~ FURNITURE 1,192
4411.12.90.34 MDF of a thickness < 5 mm & density </= 0.8 grams per cubic centimetre ~ FURNITURE 3,690
4411.13.10.35 MDF of a thickness > 5mm but < 9mm & density > 0.8 grams per cubic centimetre ~ FURNITURE, JOINERY & OTHER
3,504
4411.13.90.37 MDF of a thickness > 5mm but < 9mm & density </= 0.8 grams per cubic centimetre ~ FURNITURE, JOINERY & OTHER
4,867
4411.14.10.38 MDF of a thickness > 9 mm & density > 0.8 grams per cubic centimetre ~ OTHER 19,691
4411.14.90.43 MDF > 9 mm thick & density </= 0.8 grams per cubic centimetre, not mechanically worked or surface covered ~ OTHER
6,149
4411.14.90.44 MDF > 9 mm thick & density </= 0.8 grams per cubic centimetre, mechanically worked or surface covered ~ JOINERY
44,951
Source: ABS
The import data was assembled and coupled with the confidentially supplied
domestic production data to build the calculated estimates described earlier.
MDF imports, by country, are set out in the chart below.
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Fig. 11: MDF Imports by Country: 2016 (%)
Source: ABS
MDF imports by main grade are set out in the chart below.
Fig. 12: MDF Imports by Grade: 2016 (%)
Source: ABS
Belgium (2.0%)
China (45.2%)
Germany (4.7%)Italy (2.6%)
Malaysia (29.7%)
New Zealand (3.1%)
Switzerland (1.3%)Thailand (1.3%)
USA (2.0%)
Other (7.9%)
MDF >9mm >0.8 )
MDF >9mm <0.8
MDF >9mm >0.8
MDF >5mm, but <9mm
grams/cm (53.5%)
grams/cm (7.3%)
grams/cm (23.4%)
>0.8 grams/cm (5.8%)
MDF >5mm >0.8 grams/cm (4.2%)
MDF <5mm <0.8 grams/cm (4.4%)MDF <5mm >0.8
grams/cm (1.4%)
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Exports of Particleboard and MDF are negligible Although relevant to assessing total Australian consumption of both Particleboard
and MDF, exports from Australia are negligible. In 2016, exports of Particleboard
totaled just 2,046 m3 (0.2% of total production) and exports of MDF totaled just
1,936 m3 (0.3% of total production).
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Element 3: Imports of joinery The third element in the analysis of joinery products imported into Australia is the
examination of the import data itself.
Ideally, import data would specify exactly what the product is, what it is used for and
the volume or number of items, as well as the price per unit. In practice however, as
with most countries, Australia’s import data, reflected in the Harmonised Tariff Item
Statistical Code (HTISC)4 is often of limited utility, for certain products at least. This
is particularly the case for more elaborately transformed goods, such as joinery and
related furniture products.
There are two primary constraints with the relevant import data. The first is that the
data does not specify end-‐uses and accordingly, the products included under certain
import codes could be any of a wide range of items. The second constraint is that in
general, the relevant products are reported by number of items (as opposed to by
volume of material) or only by value, meaning volume often cannot be calculated.
The result is that it is very difficult to accurately identify details related specifically
to imports of joinery products. There is no code which records specifically, for
example, ‘Flat packed kitchen cabinetry’.
In consequence, to develop a consistent estimate of the volume, number and price of
joinery product imports, a forensic and systematic approach is required.
The approach used in this case involves:
a. Identifying the relevant import codes
b. Devising a set of ‘rules’ or ‘assumptions’ for analyzing the data
c. Analyzing the import data
d. Calculating the total volume and/or value of imports.
4 For further details on the HTISC, go to http://www.abs.gov.au/ausstats/[email protected]/0/8DF2F05EE6BCF565CA256A5B001BD78A
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Determining relevant import codes There are only a relatively small number of import codes under which ‘joinery’ in
any form can be imported. Unfortunately, these codes do not distinguish the precise
nature of the product being imported, its end-‐use or the form (assembled or flat
pack) in which it is imported.
Based on input from industry and professional knowledge, the following import
codes have been examined to determine the extent to which they may contain
records of imported joinery and relevant products. Those marked in bold have been
assessed to be of particular relevance.
It is notable that joinery items could be imported under several codes, included
within Chapter 94 – Furniture (and other) of the HTISC. Ultimately, only a small
number of codes were determined as directly relevant to imports of joinery.
However, useful additional information was gleaned about the amount of furniture
(and therefore of materials including Particleboard and MDF) that is imported into
Australia.
A small number of codes under Chapter 44 – Wood and articles of wood were also
examined to determine if they were relevant. Within Chapter 44, joinery items are, if
at all, most likely to be imported as Builders’ Joinery (4418), which includes a
number of sub-‐codes that are not relevant, with respect to joinery.5
Those import codes that were examined because they may be relevant, are detailed
below. It will be noted that the only code for which there is a high degree of certainty
is that for Wooden Kitchen Furniture (9403.40.00.24).
5 Sub-‐codes under 4418 deemed not to be relevant included: 4418.10 -‐ Windows, 4418.20 -‐ Doors (exterior and interior), 4418.60 – Posts & Beams.
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Table 16: Import Codes Examined in Detail
Import Code Descriptor Assessment
4418.90.00.376
Builders joinery and carpentry of wood (incl. cellular panels) (excl. windows and their frames; doors, their frames and thresholds; shuttering for concrete constructional work; shingles and shakes; etc)
May include some joinery, but industry feedback is this is LIKELY TO BE LIMITED
4421.90.00.307
Articles of wood, nes (excl. wooden articles previously separately identified in this chapter and wooden articles of furniture falling in HS Chapter 94)
Any other wood products. This is a ‘catch-‐all’ grade and can include any product not elsewhere specified, including joinery products ~ LIKELY TO BE LIMITED
9403.30.00.418 Wooden furniture of a kind used in offices Unlikely to be relevant to residential joinery
9403.40.00.24 Wooden furniture, of a kind used in the kitchen
Includes cabinetry carcasses, including flat packed, as well as kitchen furniture for caravans and vans
9403.50.00.23 Wooden bedroom furniture
Unlikely to be relevant as Customs Agents advise built-‐in wardrobe furniture is a builder’s joinery product
9403.60.00.25 Wooden outdoor furniture Unlikely to be relevant to joinery
9403.60.00.26 Wooden coffee tables, nests of tables and similar wooden furniture
Unlikely to be relevant to joinery
9403.60.00.279 Wooden buffets, sideboards, wall units and similar wooden furniture
Unlikely to be relevant to joinery
9403.60.00.28 Wooden dining tables (excl. kitchen tables) Unlikely to be relevant to joinery
9403.60.00.29 Wooden tables (excl. kitchen, dining and coffee tables or nests of tables and similar wooden furniture)
Unlikely to be relevant to joinery
9403.60.00.42
Wooden furniture (excl of a kind used in offices, kitchens, bedrooms & outdoor furniture, coffee/dining/nests of tables, buffets, sideboards, wall units)
Relevant because may include some bathroom vanities
9406.00.00.24 Prefabricated buildings Unlikely to be relevant
Source: ABS, Australian Customs & Border Protection Service & IndustryEdge
6 Code was amended with effect from 1st January 2017. Two new codes were created – 4418.91.00.42 and 4418.99.00.43 7 Code was amended with effect from 1st January 2017. Two new codes were created – 4421.91.00.20 and 4421.99.00.21 8 Customs agents and importers report that almost all imports under 9403.30.00.41 are imported as flat packs. Although not pertinent to joinery imports, this is useful additional information. 9 Furniture manufacturers report they experience an estimated 90% of imports under 9403.60.00.27 are imported as flat-‐pack and that 80% of the material used is Particleboard, 15% is MDF and 15% is solid wood. Although not pertinent to joinery imports, this is useful additional information.
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While the four import codes indicated in bold are likely to be those reporting the
largest volume of imported joinery products, it is important to note that it is likely
imports have been recorded against at least some of the other codes.
Misclassifications are less likely for specific codes designated by type of room (eg.
9403.50.00.23 – Wooden Bedroom Furniture) and more likely to be those that that
are generic and associated with the substrate. That is, for instance, it is more likely
that particleboard laundry cupboards would be misclassified by volume as
Particleboard, than as Wooden Bedroom Furniture.
As the analysis in Element 1 indicates, the significant majority of joinery used in
residential dwellings is contained in kitchens, wardrobes and other cupboards,
followed by bathrooms and laundries.
Assumptions to drive import data analysis Because of the data constraints, it is necessary to refine the import data by applying
some widely understood principles or rules that can be used as assumptions.
Based on publicly available data (described below), the following assumptions have
been applied as rules to refine the import data. It should be noted that these
assumptions have greater utility and application where the number of units is
identified in the import data.
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Table 17: Operating Assumptions for Import Analysis
No. Assumption Source Implication for Data Analysis
1 Min. import price of kitchen joinery is AUDFob55/unit*, based on estimated minimum retail price of AUD65/unit
Online10 Remove imports <AUDFob55/unit
2 Max. wholesale price of joinery is AUDFob750/unit*, based on estimated maximum retail price of AUDFob936/unit
Online11 Remove imports >AUDFob750/unit
3 Min. number of units is 10 per shipment IndustryEdge Remove imports where <10 items
4 Flat pack joinery will be imported by SEA Industry Remove imports by ‘AIR’ or ‘POST’
5 Reported average AUDFob/unit prices are 50% of the retail price
IndustryEdge Allows cross-‐check with retail pricing
Source: IndustryEdge
* Unit is considered to represent a single ‘carcass’, where a kitchen (in particular) or other joinery item may be made up of multiple joinery items
The result of applying these assumptions is inevitably that the volume (and total
value) of imports is reduced, by removing the ‘outliers’ in the data.
Originally, IndustryEdge proposed to remove imports from a range of advanced
economies, including but not limited to Japan, Germany and the USA. However,
industry advice was that these should be retained, but be identifiable for further
analysis, should that be required.
Analysis of relevant imports The following sets out the analysis of each of the four identified import codes that
are likely to include joinery products. Although none is so complete and precise as to
point to an exact volume of joinery imports for the reasons set out earlier, combined,
they represent a reasonable and consistent estimate for further consideration.
10 Ikea, 2017 IKEA Catalogue, sourced, April 2017 11 Kaboodle, http://www.kaboodle.com.au, sourced, April 2017
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Imports of ‘Wooden Kitchen Furniture’ (9403.40.00.24) In 2016, there were wooden kitchen furniture imports delivered into all states and
territories, other than the ACT. Industry and import agent advice is that this code is
used for imports of kitchen cabinets, and almost nothing else, with the exception of
some benchtops. It includes both large and small cabinets that are flat pack and any
(a small number) that may be pre-‐assembled. It also includes imports that come
with and without doors.
As the following graphic shows, just as kitchens come in many shapes and sizes, so
too do the cabinets that are used to manufacture a kitchen.
Fig. 13: Examples of Variations in Kitchen Cabinets
Source: Tradepax
The implication of this evident variation in the size of kitchen cabinets is that
average import data requires some further refinement to be more precise as a
measure of volume (and value) of joinery imports. The assumptions set out earlier
remove items that are likely to be lower-‐priced components associated with
kitchens as well as very small volumes and very high-‐priced items that are likely to
be bespoke and may have been imported for a single dwelling.
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Based on the import data and an internet search, in addition to items priced above
AUDFob750/unit, kitchen furniture items priced below AUDFob55/unit have also
been excluded. Although there is a small quantity of standard kitchen furniture
carcasses available below this price, many other items are also available at this price.
This includes componentry, and special items such as bench inserts, timber fascias
and so on.
After the application of the assumptions, the calculations show that there were
268,390 items imported in 2016, at an average price of AUDFob142.29. The median
of these prices, after the application of the assumptions, was a marginally higher
AUDFob157.92/unit, meaning half the imports are priced below and above this
point.
Importantly, industry advised that this import code also includes kitchen joinery
imported for the caravan and van industry. An analysis of this market is included in
Element 4.
The role of major retailers in the importation of kitchen joinery cannot be
overlooked. An analysis of this sector, based on limited data, is included later in this
section.
The table below shows the key data for this code, both prior to and after the
application of the assumptions.
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Table 18: Wooden Kitchen Furniture Imports – Key Data: 2016
Original After Application of Assumptions
Items (No.) 477,923 268,390
% by Sea 100% 100%
Value (AUDFob) $73,631,497 $38,188,602
Highest price (AUDFob/Unit) $999.72 $740.41
Average price -‐ Mean (AUDFob/Unit) $239.29 $142.29
Average price – Median (AUDFob/Unit) $174.19 $157.92
Lowest price (AUDFob/Unit) $24.41 $50.41
Source: ABS & IndustryEdge
Taking the adjusted 268,390 units and dividing that by the nine (9) cabinets
included in kitchens in the HIA’s Standard House (see Element 1), implies that
29,821 kitchens (assuming all are free-‐standing dwellings) were supplied by imports
in 2016. This is equivalent to a minimum 8.0% of all kitchen cabinets being supplied
by imports.
It is important to note that this is a conservative methodology and calculation, and
the number of dwellings supplied with kitchens by imported joinery will be higher.
This is because it is estimated that the 48.8% of dwelling commencements in 2016
that were not free-‐standing houses contain smaller kitchens, on average, than free-‐
standing houses. This is further supported by kitchen cabinetmakers who report
that a significant volume of imported kitchens are imported in large numbers, for
multi-‐storey apartment buildings.
The table below sets out the method used to calculate the proportion of total kitchen
cabinets that was imported in 2016.
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Table 19: Calculating import proportion of total kitchen cabinets: 2016
Measure (2016) Number / %
Kitchens installed (number) * 372,142
Estimated cabinets per kitchen (number) 9
Total kitchen cabinets installed (number) 3,349,278
Wooden kitchen furniture imports (units) 268,390
Proportion of imports (%) 8.0%
Source: IndustryEdge
* As set out in Table 8 and including new and renovated kitchens
Multiplying the weighted average volume of substrate demonstrated in Element 112,
to be used in Australian kitchens (0.0670 m3 in total, made up of 0.0503 m3 of
carcass material [Particleboard] and 0.0166 m3 of door material [MDF]) by the
number of kitchen joinery units contained in that Standard Kitchen indicates that the
268,390 imported wooden kitchen furniture items used an estimated 13,509 m3 of
particleboard and 4,469 m3 of MDF. This sums to a minimum 17,977 m3 of joinery
substrate imported as wooden kitchen furniture in 2016.
This is a complex derived calculation, which is therefore set out below.
Table 20: Derived Substrate Used in Imported Wooden Kitchen Furniture
Units: 2016 (Number & m3)
Carcass
(Particleboard) m3
Doors (MDF) m3
Total m3
Weighted Average Substrate Use per Unit* 0.0503 0.0166 .0.0670
Number of imported wooden kitchen furniture units 268,390
Total (m3) 13,509 4,469 17,977
Source: IndustryEdge
* Derived from Table 4 and detailed in full in Appendix Four
12 Analysis conducted for FWPA, by Davis Langdon & Associates, based on the HIA’s Standard House
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Further support for this analysis, and its outcomes, is derived by calculating the total
nominal cost of a kitchen for a Standard House, using the following methodology.
Multiplying the average price – after the application of the assumptions – by the
number of units installed in the Standard House (nine), the average price of an
imported kitchen would therefore be AUDFob1,280.61. Applying the consistent
doubling of the import price to the consumer purchase price suggests the average
price per unit would be AUD284.58, and for a full kitchen, AUD2,561.22 (plus GST
where applicable). Feedback from a kitchen installer, and analysis of websites,
including for Bunnings Warehouse indicate this price is within expectations. For
example, the lowest priced Bunnings kitchen package was AUD798 (inc. GST).
Wooden Kitchen Furniture Import Details The following charts display the adjusted imports of wooden kitchen furniture in
2016, by State of Delivery and by Country of Origin.
The first chart shows that imports of kitchen furniture were dominated by supplies
to Victoria and New South Wales, but with a particular bias to Victoria in 2016,
where apartment building activity was at its strongest. Also notable is that
shipments to Western Australia – which is closer to Asia – were third highest, edging
the third most populous state, Queensland from that position.
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Fig. 14: Wooden Kitchen Furniture Imports by State: 2016 (Units & AUDFob/unit)
Source: IndustryEdge, based on ABS data
Note: Data amended as per assumptions
The chart below shows that regardless of the destination within Australia, the
monthly average price of kitchen furniture imports is relatively stable, while
occasional price movements in some jurisdictions have a noticeably larger effect
than other jurisdictions.
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
9
Dec
-201
6
0
5,000
10,000
15,000
20,000
25,000
30,000
0
50
100
150
200
250
300
Units
AU
DFob
/unit
Month
NSW
Vic
Qld
SA
WA
Tas
NT
TWA
Residential Flat-‐Pack Joinery Import Market Study
47
Fig. 15: Wooden Kitchen Furniture Imports by State: 2016 (AUDFob/unit)
Source: IndustryEdge, based on ABS data
Note: Data amended as per assumptions
Although it almost needs no mention, the chart below confirms that China is by far
the major source of Australia’s imported kitchen furniture items. Of interest is that
the only other positions of note are held by European nations.
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
0
50
100
150
200
250
300
350
400
450
500
Month
NSW
Vic
Qld
SA
WA
TWA
Residential Flat-‐Pack Joinery Import Market Study
48
Fig. 16: Wooden Kitchen Furniture Imports by Country: 2016
(Units & AUDFob/unit)
Source: IndustryEdge, based on ABS data
Note: Data amended as per assumptions
Import data often presents challenges to perceptions. The chart below shows that
despite the dominance of China’s supplier position, supplies of kitchen furniture
from Italy are regularly, and even Germany in one instance, are lower priced than
the Chinese and average prices for the month. This points to the products being
largely uniform in price, and likely, being largely uniform in type, as one would
expect of different sized kitchen carcasses.
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
0
5,000
10,000
15,000
20,000
25,000
30,000
0
50
100
150
200
250
300
Unit
AU
DFob
/unit
Month
China
Germany
Italy
Vietnam
Other
TWA
Residential Flat-‐Pack Joinery Import Market Study
49
Fig. 17: Wooden Kitchen Furniture Imports by Country: 2016 (AUDFob/unit)
Source: IndustryEdge, based on ABS data
Note: Data amended as per assumptions
Imports of ‘Other Wooden Furniture’ (9403.60.00.42) Unlike the relatively tightly defined ‘Wooden kitchen furniture’ and most of the
other furniture classifications, which are discrete (eg. Wooden dining tables -‐
9403.60.00.28), the ‘Other’ import code necessarily includes a wider range of items.
It is therefore far more difficult to analyse.
The descriptor for the code, shown below, indicates it is used to record imports that
exclude everything else in the other codes detailing wooden furniture imports.
B BB
B
B
B
B
B
B
BB
B
J
J
J
J
J
J
J
J
J
J
H
H H
H
H
H
H H H
H
HH
F
F
FF
FF
FF
F
FF
F
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
0
100
200
300
400
500
600
AU
DFo
b/u
nit
Month
B China
J Germany
H Italy
F Vietnam
TWA
Residential Flat-‐Pack Joinery Import Market Study
50
9403.60.00.42
Other Wooden Furniture, Other
Wooden furniture (excluding of a kind used in offices, kitchens, bedrooms &
outdoor furniture, coffee/dining/nests of tables, buffets, sideboards, wall
units)
Source: ABS
The exclusions in the descriptor are important, and provide considerable guidance
about what is not included in this code.
Interviews with Customs Agents advise that this code (9403.60.00.42) would be
expected to include items including (but not limited to):
• wardrobe and built-‐in shelving componentry
• bathroom and laundry vanities
• wooden furniture fixtures (eg. Cupboard door handles)
• wooden furniture components
• free-‐standing furniture items, including mixed use items such as
television/media centres
• shelving units
• semi-‐decorative items such as coat stands
Customs Agents also advised that a small number of these items could be recorded
as ‘Other articles of wood’ under the sub-‐code 4421.90.00.30.
Unlike the Wooden kitchen furniture items, it was determined there was no utility in
adjusting the data for a series of industry assumptions. Analysis has been conducted
on the entirety of imports.
As the data below shows, of the 5,280,605 items imported in 2016, almost 97% were
valued at or below AUDFob150.00/item, and three-‐quarters were valued less than
AUDFob65/item.
We consider that the import data demonstrates the accuracy of the industry advice
and that the vast bulk of imports under this code are small components, small
Residential Flat-‐Pack Joinery Import Market Study
51
wooden fixtures and potentially decorative items capable of being classified as
furniture. However, it is also expected to include, among the higher value items, a
relatively small quantity of bathroom vanities, laundry cupboards and other
cupboards and wardrobes.
Table 21: Other Wooden Furniture Imports – Key Data: 2016
Items (No.) 5,280,605
% by Sea 100%
Value & Price
Value (AUDFob) $285,261,314
Highest price (AUDFob/Unit) $497.70
Average price -‐ Mean (AUDFob/Unit) $127.29
Average price – Median (AUDFob/Unit) $103.59
Lowest price (AUDFob/Unit) $3.29
Number
Largest recorded units 60,162
Average recorded -‐ Mean (Units) 1,846
Average recorded – Median (Units) 148
Smallest recorded units 10
Analysis
Number of units priced >AUDFob127.29 269,365
Proportion of total imports 5.1%
50% assumed to be joinery 135,000
Average joinery dimensions 1100 x 400 x 900
Implied joinery substrate 7,673 m3
Source: ABS & IndustryEdge
Residential Flat-‐Pack Joinery Import Market Study
52
The chart below places the data into stark relief, demonstrating that in 2016, three-‐
quarters of Other Wooden Furniture imports cost less than AUDFob65/unit,
indicating that few, if any of those items are joinery products.
Fig. 18: Imports of Other Wooden Furniture by Price: 2016 (AUDFob/item)
Source: ABS & IndustryEdge
Note: Data cleansed to remove outliers as described in Assumptions
To add further to this analysis, import volumes and prices have been calculated on
both a mean and a median basis. The mean and median data demonstrate that
although there are a small number of very large shipments that increase the average
number of units shipped, the majority of shipments are less than one tenth the size
of the average shipment. The average price is more uniform, with the median price
being just 18.6% lower than the average price.
100<150(8.0%)
Fob 0<150(7.9%)
150<200 (1.5%)
200<250 (1.1%)
>250 (0.5%)
15<65 (66.6%)
100<150 (14.4%)
Residential Flat-‐Pack Joinery Import Market Study
53
Table 22: Analysis of Other Wooden Furniture Imports
Volume (No. of items) Price (AUDFob/item)
Mean Average 1,846 127.29
Median* 148 103.59
Source: ABS
Although not conclusive, this analysis points to the items imported as Other Wooden
Furniture being more similar than dissimilar, at least with respect to price.
The number of imported units above the average price of AUDFob127.29 accounted
for just 5.1% of total imports or 269,365 items.
Applying the standing assumption that the Free on Board price is on average 50% of
the retail price, implies that the average retail price of Other Wooden Furniture
imports is approximately AUD250/unit.
A search of import, wholesale and retail prices was undertaken, to determine what, if
any, joinery products (or products manufactured from joinery substrates) might be
included under this import code, at above the mean price of AUDFob127.29/unit
(import) or above the nominal mean retail price of AUD250/unit.
It was observed that wooden bathroom vanities can be purchased for as little as
AUD179/unit13 and laundry vanities from as little as AUD115/unit, but are generally
priced closer to AUD300/unit14.
On the basis set out above, it has been assumed that approximately half of the
269,365 imported items priced above AUDFob127.29 are joinery items, including
bathroom and laundry vanities. That amounts to approximately 135,000 imported
units in 2016, of a size and material composition unlikely to be greater than that of a
standard bathroom vanity (1100 x 400 x 900), or a standard laundry cupboard
(1200 x 600 x 900), and only marginally larger than the standard ensuite vanity (850
x 350 x 900).
13 House of Home ~ https://www.houseofhome.com.au/s/bathroom-‐vanities 14 Bunnings Warehouse ~ https://www.bunnings.com.au/our-‐range/storage-‐cleaning/laundry/modular/cabinets
Residential Flat-‐Pack Joinery Import Market Study
54
In 2016, if approximately 135,000 units were imported under this classification, at
an average dimension of 1100 x 400 x 900 and each requires 0.057 m3 of joinery
substrate (primarily particleboard), the total volume of imported joinery substrate is
7,673 m3.
Throughout the processes of this research, under questioning, importers, customs
agents and industry participants advised that the cheaper products in this category
could be components of wooden furniture, especially joinery, and especially
drawers. If that is the case, the volume of joinery and of particleboard and MDF
imported under this code would be significantly higher than set out above.
The following charts show imports of other wooden furniture by state, indicating
that both volumes and prices are relatively stable, and that imports are strongest
into New South Wales.
Fig. 19: Other Wooden Furniture Imports by State: 2016
(Units & AUDFob/unit)
Source: IndustryEdge, based on ABS data
Note: Data amended as per assumptions
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
0
100,000
200,000
300,000
400,000
500,000
600,000
0
10
20
30
40
50
60
70
Units
AU
DFob
/unit
Monyh
NSW
Vic
Qld
SA
WA
Tas
NT
TWA
Residential Flat-‐Pack Joinery Import Market Study
55
Fig. 20: Other Wooden Furniture Imports by State: 2016 (AUDFob/unit)
Source: IndustryEdge, based on ABS data Note: Data amended as per assumptions
Fig. 21: Other Wooden Furniture Imports by Country: 2016 (Units & AUDFob/unit)
Source: IndustryEdge, based on ABS data Note: Data amended as per assumptions
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
20
30
40
50
60
70
80
90
100
110
120A
UD
Fo
b/u
nit
Month
NSW
Vic
Qld
SA
WA
Tas
TWA
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
0
100,000
200,000
300,000
400,000
500,000
600,000
0
10
20
30
40
50
60
70
Units
AU
DFo
b/u
nit
Month
China/HK
Indonesia
Italy
Malaysia
Vietnam
Other
TWA
Residential Flat-‐Pack Joinery Import Market Study
56
Fig. 22: Other Wooden Furniture Imports by Country: 2016 (AUDFob/unit)
Source: IndustryEdge, based on ABS data Note: Data amended as per assumptions
Imports of ‘Builders’ Joinery’ (4418.90.00.37) This particular sub-‐code is the ‘catch-‐all’ for the broader classification grouping
defined as follows:
4418 Builders’ Joinery and Carpentry of Wood, Including Cellular Wood
Panels, Assembled Flooring Panels, Shingles and Shakes
The products specified under this broad import code heading are windows, doors,
shutters (include pre-‐assembled concrete formwork), posts and beams and flooring
panels.
Customs Agents confirm that it is, as described above, feasible to include products
such as pre-‐drilled wardrobe inserts under this sub-‐code, but properly, only if
assembled.
Because this import code records only the value of imports (it does not record the
number of items imported), further analysis is not possible. However, it is also
important to note that this volume is highly unlikely to include flat-‐pack furniture
for residential dwellings.
B
B
B BB
BB
BB
B
BB
J
J
J
J
J
J
J
J
J
J
J J
H
H
H
H
HH H
H
H
HH
H
F F F FF F
FF F F F
F
Ñ Ñ
Ñ
ÑÑ Ñ
Ñ
Ñ
Ñ
ÑÑ
Jan-
2016
Feb-
2016
Mar
-201
6
Apr-2
016
May
-201
6
Jun-
2016
Jul-2
019
Aug-2
016
Sep-2
016
Oct
-201
6
Nov
-201
6
Dec
-201
6
0
20
40
60
80
100
120
140
160
180
AU
DFob
/unit
B China/HK
J Indonesia
H Italy
F Malaysia
Ñ Vietnam
TWA
Residential Flat-‐Pack Joinery Import Market Study
57
The aggregate details provided below are supplied for comparative purposes.
Table 23: Analysis of Selected Builders’ Joinery Imports
4418.90.00.37 2016
Number of Items Not recorded
Value of Imports AUD308,796,184
Source: ABS
Imports of ‘Other Wood Products’ (4421.90.00.30) This particular sub-‐code is the ‘catch-‐all’ for the broader grouping defined as
follows:
4421 Other Articles of Wood
There are no specific products specified under this broad import code heading,
which aims to capture other items of wood.
Customs Agents confirmed that there were no household joinery or furniture items
they would expect to see recorded under this code. However, an importer advised
that some joinery product componentry could be recorded under this code.
Because this import sub-‐code records only the value of imports (it does not record
the number of items imported), further analysis is not possible. However, it is also
important to note that this volume is highly unlikely to include flat-‐pack furniture
for residential dwellings.
The aggregate details provided below are supplied for comparative purposes.
Table 24: Analysis of Other Articles of Wood Imports
4421.90.00.30 2016
Number of Items Not recorded
Value of Imports AUD359,613,117
Source: ABS
Residential Flat-‐Pack Joinery Import Market Study
58
Minimum volume of imported joinery Because of the import data limitations, it is not possible to determine the actual
volume of imported flat-‐pack residential joinery. It is possible to discern a minimum
volume of imports of flat-‐pack joinery, by applying the assumptions set out in this
analysis.
The minimum identifiable volume of imports, based on the analysis described above,
is 25,650 m3, made up of a minimum 17,977 m3 of kitchen joinery and a minimum
7,673 m3 of joinery related to bathrooms, laundries, other wardrobes and
cupboards.
This is the minimum volume of joinery being imported because the assumptions
used are conservative and limited to imports under just two import sub-‐codes.
It must be noted that this model of estimating the minimum volume of joinery
imports is based on a series of assumptions. Future refinements will provide a basis
to make more reliable estimates, however, this assessment model can be repeated
by following the detailed methodology set out in Appendix 2.
Cost, parallel imports and commodification Throughout the research for this analysis, it was stated that the primary driver for
imports is that imports are cheaper to procure than domestically produced
equivalents.
One kitchen cabinetmaker advised that they manufacture kitchens in Australia for
free-‐standing houses and better townhouses and import kitchens for developers and
commercial and industrial buildings because the developers and project managers
are focused solely on price and not on quality.15 There is no conclusive evidence, but
it appears that this auto-‐cannibalising form of parallel importation is a significant
feature in the industry.
Albeit that the imports have been adjusted to remove ‘outliers’, the price data is
surprisingly uniform and largely moves consistently. The implication of this is that
wooden joinery imports – particularly for kitchen furniture – are approaching
commodity status. They are certainly freely traded.
15 Confidential interview – March 2017
Residential Flat-‐Pack Joinery Import Market Study
59
This suggests that driven by price considerations, imports of particleboard and MDF
joinery, especially for kitchens, will continue to grow in coming years.
Residential Flat-‐Pack Joinery Import Market Study
60
Element 4 – Cross Checking Data Because this analysis seeks to assess the amount of joinery that is being imported by
using a group of measures, rather than a single measure, it is very useful, necessary
even, to consider other and related data that is either consistent with, or contradicts
the findings of the research.
7% of HIA members report their kitchen cabinetry is imported – Consistent with
analysis
Consistent with the majority of HIA members (72% of respondents) engaged in the
kitchen and bathroom sectors preferring to use domestically produced goods, they
also reported that 89% of their kitchen cabinetry is domestically produced.16
It should be noted the same cohort reported 67% of their bench tops are
domestically produced, but no specification was requested as to what those bench
tops were made from.
Kitchen cabinetmakers estimate up to 10% of kitchen cabinetry is imported –
Consistent with analysis
Although their estimates varied, kitchen cabinetmakers interviewed for this analysis
(not the same cohort surveyed by the HIA) advised that up to 10% of kitchen
cabinetry is imported. Without exception they considered the imports were focused
on ‘projects’ or ‘apartments’, rather than free-‐standing houses.
If that holds true -‐ there is a logic to it -‐ the volume of imported joinery will be less
than the 10% estimate, because other housing formats include less joinery than free-‐
standing dwellings.
23% of HIA members report their bathroom vanity units are imported –
Inconsistent with analysis
Different to their reports with respect to kitchens, 23% of HIA members report that
the bathroom vanities they install in bathrooms (including ensuites) are imported.17
16 HIA-‐GWA Kitchens and Bathrooms Report, 2016-‐17, page 34 17 HIA-‐GWA Kitchens and Bathrooms Report, 2016-‐17, page 47
Residential Flat-‐Pack Joinery Import Market Study
61
As set out in Element 3, it is difficult to identify these items of wooden furniture in
the trade data.
Kitchen cabinetmakers report 14.5% higher volume of joinery substrate used in
kitchens – Consistent with, but higher than analysis
According to kitchen cabinetmakers interviewed for this analysis, the average
consumption of joinery substrates in kitchens manufactured in 2016 was 0.8460
m3. This estimate is an acceptable 14.5% higher than the 0.7231 m3 estimated by
analysis of the Standard House, set out above.
Multiplied by the 372,142 new and renovated kitchens estimated to have been
manufactured in Australia in 2016, the estimated consumption of joinery substrate
in 2016 was 314,828 m3, just 14.5% higher than that calculated by analysis of the
standard house.
This assessment was undertaken as a further check on joinery substrate
consumption assessments undertaken using the Standard House and described
earlier. The survey sample is indicative rather than statistically reliable and could
include upwards bias.
Kitchen cabinetmakers responsible for an estimated 2.0% of all kitchens
manufactured in 2016 were surveyed – primarily by phone – on recommendation
from industry associations18 and IndustryEdge’s direct contacts.
The survey respondents did not include companies whose sole business lines are
importation of joinery, where it is anticipated the average size of kitchens and the
amount of particleboard and MDF in them is less than in a domestically
manufactured kitchen.
Recreational vehicles used 15,791 m3 of joinery in 2016 – Implies consumption
and imports may be higher than the minimum volume identified in the analysis
suggests
18 Furnishing Industry Association of Australia (FIAA) and Engineered Wood Products Association of Australasia (EWPAA)
Residential Flat-‐Pack Joinery Import Market Study
62
In 2016, there were 21,841 recreational vehicles manufactured in Australia, the
second largest manufacturing year since 197919. At the suggestion of a senior and
experienced import and wood products market participant, this information was
further interrogated, because of the extent to which joinery is used to ensure space
utilization is maximized.
Cabinetmakers considered that on average, caravans, vans and recreational vehicles
utilized approximately one-‐third the average amount of joinery found in the kitchen
of the Standard Australian House.
That is equivalent to 0.723 m3 of joinery substrate (particleboard and MDF),
inclusive of doors. In total, for the 21,841 recreational vehicles manufactured in
2016, this amounts to 15,791 m3 of joinery substrates.
Industry experts advised that at least one significant manufacturer of recreational
vehicles imports their joinery from Germany, supplies from which are observable in
the wooden kitchen furniture import data, set out in Element 3.
19 Caravan Industry Association of Australia, 2016, http://www.caravanindustry.com.au/caravan-‐and-‐camping-‐state-‐of-‐industry-‐2017
Residential Flat-‐Pack Joinery Import Market Study
63
Retailers are large importers of kitchen joinery – but how much remains unclear
It is widely reported, and easily observed in store, in catalogues and online, that
major retail chains, including Bunnings and IKEA, are engaged in the importation of
joinery, especially for kitchens and particularly for renovations.
It is noted that there is no clearly available data on the quantity or value of kitchen
imports or sales by major retailers.
However, large cabinetmaking and joinery businesses estimate major retailers sell
cabinets accounting for as much as 15% of the total renovation market. This
estimate is based on the number of stores of the major retailers engaged in kitchen
sales and an informed estimate of their annual sales. This is set out in the table
below.
Table 25: Selected Retailer Kitchen Sales Analysis
Bunnings IKEA
Number of stores 248* 10
Estimated kitchen ‘sales’ per store (annual) 150 250
Estimated total kitchen ‘sales’ per annum 37,200 2,500
Implied number of joinery ‘items’ if ‘full kitchen’ of 9 units of joinery sold (Element 1) 334,800 22,500
Total kitchen cabinets installed in renovations in 2016) (Element 1) 1,308,609
Major retailer implied market share 25.6% 1.8%
Source: IndustryEdge * Warehouses – not other sites20
The HIA’s assessment is that there were 145,401 kitchen renovations in 2016 and
that 93% of these involved full kitchen replacements. If that is the case and the
average nine kitchen cabinets was replaced in each instance, the 15% for which
major retailers reportedly account would total 21,810 kitchens or 196,219 items of
kitchen cabinetry.
In turn, this amounts to an unlikely 73.1% of all imported kitchen joinery items
(after adjustment for assumptions) for 2016. This is unlikely and expected to be
20 Bunnings, 2017, https://www.bunnings.com.au/about-‐us
Residential Flat-‐Pack Joinery Import Market Study
64
lower because it is understood that imports have played a substantial role in
supplying multi-‐storey apartments and other developer building projects, as well as
the joinery for caravans and vans (among other items). Additionally, imported flat-‐
pack kitchens are readily available from a wide range of other sources.
What the data suggests is that major retailers may be supplying more than 15% of
total units of cabinetry, including joinery, and including some complete kitchens, in
addition to individual units of joinery.
This includes the expectation that retailers are more likely to have strong positions
in partial renovations (where less cabinetry units are installed), particularly where
building permits and plumbing or electrical work are less likely to be required.
Residential Flat-‐Pack Joinery Import Market Study
65
Appendix One -‐ Glossary of names, terms and definitions • ABS -‐ Australian Bureau of Statistics
• Cabinetmaker –joiner manufacturing furniture and appearance woodwork,
including household cabinetry and joinery items
• EWPAA – Engineered Wood Products Association of Australasia
• FIAA – Furniture Industry Association of Australia
• FWPA – Forest & Wood Products Australia
• HIA – Housing Industry Association
• Joiner – manufacturer of wooden building components, including cabinetry and
joinery items
• Joinery substrate – Particleboard and Medium Density Fibreboard
• Mean – average of a series of numbers
• Median – middle number in a series of numbers
• MDF -‐ Medium Density Fibreboard
• PB – Particleboard
• Standard House – the average or standard house reported by HIA members, to
the HIA
Residential Flat-‐Pack Joinery Import Market Study
66
Appendix Two – Methodology Because of the difficulties with respect to reliability, applicability and granularity of
import data, this analysis has used three separate but inter-‐related approaches,
supplemented by feedback and cross-‐checking with related data. These are
described as elements, and set out on that basis, below.
Element 1 – Volume of joinery in Australian dwellings
Step Method Source
1 Define standard Australian dwelling HIA Standard House21
2 Calculate volume of joinery substrate used in standard Australian dwelling
[see table at Appendix Four]
HIA Standard House
3 Calculate volume of joinery substrate used in Australian dwellings, by main type, by estimating joinery as a proportion of the HIA Standard House
Industry feedback
4 Calculate 2016 joinery substrate volumes for new dwellings by multiplying the output from 3. above, by the number of commencements by main type
ABS Catalogue 8752.0033 Table 3
5 Define number of kitchen, bathroom and laundry renovations in 2016
HIA-‐GWA Kitchens & Bathrooms
6 Calculate 2016 joinery substrate volumes for renovations by multiplying the output from 5. Above, with 3. above
Calculation
7 Collate outputs from 4. and 6. above to establish volume of particleboard and MDF used in Australian dwellings in 2016
Calculation
21 defined by Davis Langdon Australia
Residential Flat-‐Pack Joinery Import Market Study
67
Element 2 – Consumption of joinery substrates in Australia
Step Method Source
1 Calculate Australian particleboard and MDF production, imports and exports
Industry feedback and ABS trade statistics
2 Define end-‐uses of particleboard and MDF in Australia Industry feedback
3 Calculate and estimate volume of particleboard and MDF utilized in each of the defined end-‐uses for 2016
Industry feedback
4 Compare output from Element 1-‐7, with output at 3. above to establish maximum implied import proportion
[CONSUMPTION – LOCAL JOINERY PRODUCTION = IMPLIED IMPORTS]
Calculation
Element 3 – Imports of joinery
Step Method Source
1 Identify relevant import codes HTISC Descriptors
2 Collate import data for relevant import codes ABS Merchandise Trade Databases
3 Define a set of ‘rules’ or assumptions for cleansing the data
[see Appendix Three]
Industry feedback
4 Apply rules to all relevant data series
5 Undertake data analysis to calculate import volumes, values, prices, source countries and appropriate averages
Calculation
6 Calculate volume of particleboard and MDF in imported joinery by multiplying the output from 5. above with the output from Element 1-‐7 to establish minimum implied import volumes
Calculation
Residential Flat-‐Pack Joinery Import Market Study
68
Appendix Three – Assumptions This analysis includes, as discussed, some significant data gaps that need to be
bridged in order for the analysis to be completed. This is the role of informed
estimates and assumptions. The assumptions used for this analysis are set out
below.
Element 1 – Volume of joinery in Australian dwellings
Joinery in the HIA Standard House – industry feedback and calculations
a. HIA Standard House is satisfactory for this analysis, as set out by Davis Langdon Australia
b. All joinery substrate is 16mm thickness (implying it is melamine backed) c. Number of shelves has been estimated for each joinery type d. An average of nine (9) cabinets is included in kitchens e. Plinths are estimated 100mm height f. No additional material has been estimated for bracing of joinery g. Other dwelling types have, on average, less joinery than the standard house h. Some joinery items are particleboard (shelves in particular) and are unlikely
to be imported as finished products, but may be imported as particleboard i. Doors for vanities and bathroom joinery excluded due to potential variation
in material use, including glass, mirrors and open joinery
Volume of joinery substrate in the average Australian dwelling, by type – industry
feedback
Dwelling type % of Joinery in HIA Standard House
Free-‐Standing House 100% Townhouses -‐ 1 Storey 90%
Townhouses -‐ 2+ Storey 90%
Flats -‐ 1 & 2 Storey 77% Flats -‐ 3 Storey 75%
Flats -‐ 4+ Storey 65%
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Number of kitchen, bathroom and laundry renovations undertaken each year – HIA
and calculation for laundries
Kitchens Bathrooms Laundries New Renovation New Renovation New Renovation
2015-‐16 231,800 144,670 441,200 217,000 231,800 28,934 2016-‐17 215,800 146,132 421,000 219,621 215,800 29,226 Average 226,741 145,401 431,100 218,311 226,741 29,080 Total 372,142 649,411 255,821
Element 2 – Consumption of joinery substrates in Australia
Proportional use of particleboard and MDF in Australia, by end-‐use application –
industry feedback and data analysis
Total % Apparent Consumption 1,723,420 -‐
Detailed End-‐Uses Particleboard Flooring – Residential 249,531 14.5 Particleboard Flooring -‐ C&I 49,504 2.9 Furniture 240,746 14.0 Industrial (barriers, inc. sound) 252,052 14.6 Merchants, Shelving etc 120,761 7.0 Joinery – C&I 50,000 2.9 Mouldings 117,671 6.8 Doorskins 130,746 7.6 Other/Unknown 82,687 4.8 Joinery – Residential 516,194 30.0
Broad End-‐Use Categories Household/Residential 927,670 53.8 Commercial & Industrial 351,556 20.4 Furniture 240,746 14.0 Other/Unknown 203,448 11.8
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Element 3 – Imports of joinery
Limitation of relevant import codes – data analysis, expert advice
Import Code Descriptor Assessment
4418.90.00.3722
Builders joinery and carpentry of wood (incl. cellular panels) (excl. windows and their frames; doors, their frames and thresholds; shuttering for concrete constructional work; shingles and shakes; etc)
May include some joinery, but industry feedback is this is LIKELY TO BE LIMITED
4421.90.00.3023
Articles of wood, nes (excl. wooden articles previously separately identified in this chapter and wooden articles of furniture falling in HS Chapter 94)
Any other wood products. This is a ‘catch-‐all’ grade and can include any product not elsewhere specified, including joinery products ~ LIKELY TO BE LIMITED
9403.30.00.4124 Wooden furniture of a kind used in offices Unlikely to be relevant to joinery
9403.40.00.24 Wooden furniture, of a kind used in the kitchen
Includes cabinetry carcasses, including flat packed, as well as kitchen furniture for caravans and vans
9403.50.00.23 Wooden bedroom furniture
Unlikely to be relevant as Customs Agents advise built-‐in wardrobe furniture is a builder’s joinery product
9403.60.00.25 Wooden outdoor furniture Unlikely to be relevant to joinery
9403.60.00.26 Wooden coffee tables, nests of tables and similar wooden furniture
Unlikely to be relevant to joinery
9403.60.00.2725 Wooden buffets, sideboards, wall units and similar wooden furniture
Unlikely to be relevant to joinery
22 Code was amended with effect from 1st January 2017. Two new codes were created – 4418.91.00.42 and 4418.99.00.43
23 Code was amended with effect from 1st January 2017. Two new codes were created – 4421.91.00.20 and 4421.99.00.21
24 Customs agents and importers report that almost all imports under 9403.30.00.41 are imported as flat packs. Although not pertinent to joinery imports, this is useful additional information. 25 Furniture manufacturers report they experience an estimated 90% of imports under 9403.60.00.27 are imported as flat-‐pack and that 80% of the material used is Particleboard, 15% is MDF and 15% is solid wood. Although not pertinent to joinery imports, this is useful additional information.
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Minimum and maximum import prices (AUDFob/unit), and other criteria, of joinery
imports – data analysis and industry feedback
No. Assumption Source Implication for Data Analysis
1 Min. import price of kitchen joinery is AUDFob55/unit*, based on estimated minimum retail price of AUD65/unit
Online26 Remove imports <AUDFob55/unit
2 Max. wholesale price of joinery is AUDFob750/unit*, based on estimated maximum retail price of AUDFob936/unit
Online27 Remove imports >AUDFob750/unit
3 Min. number of units is 10 per shipment
IndustryEdge Remove imports where <10 items
4 Flat pack joinery will be imported by SEA
Industry Remove imports by ‘AIR’ or ‘POST’
5 Reported average AUDFob/unit prices are 50% of the retail price
IndustryEdge Allows cross-‐check with retail pricing
26 Ikea, 2017 IKEA Catalogue, sourced, April 2017 27 Kaboodle, http://www.kaboodle.com.au, sourced, April 2017