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The National Kitchen & Bath Association (NKBA) – one of the world's leading non-profit trade association for the kitchen and bath industry providing tools, research, certification, and events to thousands of professionals – has released its Kitchen & Bath Market Index (KBMI) for Q1 of 2022. The quarterly report, which is aimed at measuring the health of the kitchen and bath industry, found that the industry enjoyed a successful opening quarter of the year, growing 12.6% in Q1, with industry professionals expecting further growth as the year continues.
"Despite a number of ongoing economic hardships, from material shortages to higher labor costs, we're excited to see our industry continue to grow and be optimistic about the future," said Bill Darcy, CEO, NKBA. "As the world shifts toward a new normal, we've seen the kitchen and bath industry continue to adapt to the times by evolving e-commerce practices, stocking up on available products, and turning toward historically underutilized brands to fulfill customer needs."
While price points have continued to rise, demand for remodeling projects has stayed strong, enabling the industry to continue to grow in the new year. In the KBMI Q1 report, all kitchen and bath industry segments reported high single-digit sales growth year-over-year (YOY) except for manufacturers, who reported double-digit sales growth of 10.3%. Not only were sales numbers up compared to 2021, but quarter-over-quarter (QOQ) sales accelerated for all segments of the industry.
2022 full-year sales growth expectations have also increased after a successful first quarter, with professionals anticipating +15.1% growth for the year, up from the 9.4% reported just three months ago. In the latest KBMI report, the kitchen and bath industry rated future business conditions a 78.6 on a 100-point scale, displaying cautious optimism about the future of the industry. Rising interest rates and low resale inventory have been tailwinds for big remodeling projects as consumers leverage home equity and other discretionary income to 'trade up in place.' Despite additional inflationary pressures potentially pricing out some homeowners, the industry reported a healthy number of backlogged projects, allowing the sector to feel confident about the road ahead.
"From manufacturers and designers to contractors and retailers, the entire kitchen and bath industry has had to adjust to the ever-evolving times that we live in. Despite the ongoing headwinds and potential unknown challenges ahead, all signs currently suggest that 2022 will be another strong year for the industry," Darcy continued.
Among the report's key findings include the following:
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