Kitchen Counters business

The change from a high margin low volume to a low margin high volume kitchen counters business

Technological advances and market competition has changed a basic feature of the kitchen industry- the margins it works with. While granite has an image of a luxury product, in the production side, the processing industry has changed from being a low volume high margin one to a low margin high volume business. In the beginning of the nineties a big factory was usually considered to be one, which produced 10000 square metres per month, and there were few such kitchen counters factories. Today a big factory is considered to be one which produces 50.000 square metres per month and there are several in the world. This change has often meant that in some countries where companies did not reinvest in becoming bigger, these companies slowly found themselves to be in a situation of low margin-low volume, thus eroding competitiveness and threatening survival.

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