We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.

logo
  • Engineers & Specifiers
  • Contractors & Installers
  • Wholesalers & Distributors
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Free Subscription
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • PRODUCTS
    • Bath & Kitchen
    • Fire Protection
    • HVAC
    • Hydronics/Radiant
    • Plumbing
    • PVF
    • Tools
  • PROJECTS
    • Commercial
    • Green Building
    • MRO/Retrofit
    • Remodeling
    • Residential
  • HOW TO
    • Design
    • Fire Protection
    • Legal Matters
    • Management
  • BUSINESS
    • Buying Groups
    • Technology
    • Associations
  • CODES & STANDARDS
    • ANSI
    • ASHRAE
    • ASSE
    • Regulations
    • Green Building
    • IAPMO
    • ICC
    • NFPA
  • RESOURCES
    • Media Kit
    • Advertise
    • Contact Us
    • Classifieds
    • Digital Editions
    • Behind the Wall
    • Webcasts
  • BUYER'S GUIDE
  • COVID-19
    • Events & Webinars
    • Business Resources
    • Industry Announcements
    • Health & Safety
    • Op-Ed
Home » Kitchen & Bath Market Index Report Signals a Robust 2020

Kitchen & Bath Market Index Report Signals a Robust 2020

February 18, 2020
No Comments
Kitchen & Bath Market Index Report Signals a Robust 2020

The National Kitchen & Bath Association (NKBA) and John Burns Real Estate Consulting have released their Q4 2019 Kitchen & Bath Market Index (KBMI), which reveals an energetic expansion despite showing signs of a slower pace of growth throughout the year. With KBMI scores above 50 indicating growth, this quarter's KBMI of 69.8 is well above that of previous quarters (Q3: 64.3, Q2: 65.4).

The KBMI is the definitive gauge of kitchen and bath industry conditions based on findings across four primary industry segments: Design, Building & Construction, Retail Sales and Manufacturing. The index also serves as a valuable lens into several critical economic indicators, including consumer confidence, discretionary spending and the strength of the housing market.

"A strong Q4 is great news for industry professionals and consumers going into 2020," said Bill Darcy, NKBA CEO. "As we move into the new year, we're encouraged that this dynamic industry continues to grow and business outlooks are positive."

"The health of the kitchen and bath industry is an invaluable proof point for clients looking toward the strength of the housing market," said Todd Tomalak, senior vice president of research for John Burns Real Estate Consulting. "We're pleased to continue this quarterly report with NKBA to provide real-time insights as home-buying and building trends shift so rapidly."

Key takeaways from the KBMI fourth-quarter report include the following:

  • Future outlook is exceedingly optimistic: Members feel more positively about future conditions (77 index reading) than current ones (67 index reading). This can be partially attributed to an increase in home builds and sales, which open up additional construction and remodeling opportunities.
  • Economic confidence is solid: Despite economic uncertainty throughout 2019, NKBA members rate the current state of the economy at a 7, on a scale of 1 to 10 (with 1 being extremely weak and 10 being extremely strong).
  • Industry is at its healthiest: Members rated industry health at a 7.2 out of 10 in the last quarter of 2019, up from 6.7 in Q3, Q2 and Q1.
  • Skilled labor shortage tops industry challenges: With 750,000 jobs expected to open in the design and construction industry through 2026, NKBA's membership base — comprising nearly 50,000 professionals across the kitchen and bath industry — continues to list skilled worker availability as a primary concern, followed by cost of materials and labor. One way NKBA is addressing these challenges is through its NextUp program, which aims to recruit and empower the next generation of skilled workers. Darcy noted that the industry's momentum and future potential make the NKBA's efforts to help alleviate the skilled labor scarcity more important than ever. "This is why we're encouraging our members to get involved every step of the way through our multi-pronged NextUp program to expose young people to the many different career paths in our very own industry," he said.
  • Countertops are the craze: Countertops are consumers' primary splurge for both kitchen and bathroom jobs. They're also trading up on stoves/ranges and cabinets in the kitchen, and vanities, medicine cabinets and tiled showers in the bathroom. While awareness and interest in "smart" lighting and plumbing is increasing, fewer consumers are spending on newer devices in these categories.

Methodology note: Historical revisions to the KBMI have been incorporated in this release due to changes in the weighting methodology that occurred in Q4-2019. The revised index weights three inputs: 55 percent for current sales conditions, 15 percent for next quarter sales conditions, and 30 percent for current state conditions.

Associations Bath & Kitchen Business Industry Community News Plumbing Remodeling Residential Trends Wholesalers & Distributors
  • Related Articles

    Q1 2020 Kitchen & Bath Market Index: COVID-19 Has Significant Impact on Industry

    Kitchen and Bath Market Index Shows Sustained Industry Expansion in Second Quarter

    Kitchen & Bath Market Index at Highest Point This Year

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular

  • Oatey Fix-it Repair Ring

  • Texas Pipe Family of Companies Opens Stocking Location in Odessa, Texas

  • James “Lukey” LaPorte Passes Away at His Home in Elmwood Park

  • Texas Pipe Family of Companies Joins AD

Featured Video

Sureseal video

SureSeal Floor Drain Trap Seal

Industry Events

  • 28Apr

    2021 BLUE HAWK Annual Conference

    Austin, TX
  • 12Oct

    BOILER 2021 – ABMA Boiler Technology Conference & Expo

    Dallas, TX
More Events

Subscribe to our newsletters & stay updated

Subscribe & Learn More

  • Tw01 2021
    Learn More
  • Pe01 2021
    Learn More
  • Phc01 2021
    Learn More
  • Es07 2020
    Learn More
Subscribe

More from PHCP Pros

  • Editorial Team
  • Home
  • Contact Us
  • About
  • Advertise

Follow Us

© 2021 All Rights Reserved

Design, CMS, Hosting & Web Development | ePublishing