COVID-19 continues to impact the kitchen and bath industry, but most indices show improvements over Q1. By Robert Isler
The second quarterly release of the NKBA Kitchen & Bath Market Index (KBMI) since the onset of COVID-19 reveals positive trends for sectors of the design and remodeling industry — but business is hardly back to pre-pandemic levels.
As with the Q1 report, the economic shutdown resulting from COVID-19 played an outsized role in virtually every aspect of kitchen and bath, and the report explored this in great detail.
A total of 624 NKBA members in design, manufacturing, building/construction and retail took the survey, which measures four key industry metrics along with providing color into various challenges and the state of the industry by segment. The overall Kitchen & Bath Market Index rating was 44.2 (on a scale of 0 to 100), a small rise from the first quarter’s rating of 41, but an improvement, nonetheless.
The current health of the industry earned a rating of 5.9, up considerably from Q1’s 4.1. For perspective on this 0-10 scale (10 = very strong), the 5.9 restores the business to a normal range. This is quite a feat, considering the widespread challenges and disruptions across the national and global economies and supply chains. While still below the pre-pandemic 7.2 rating from Q4 of 2019, it’s headed in the right direction.
While current conditions took a hit, registering a 31.3 vs. 46.4 in the Q1 survey, the future metric painted a much brighter picture. Coming off a dismal 19.8 in Q1, the outlook for business going forward was 61.9 in the latest survey. Not only is that a very significant bounce, but it isn’t far below the 76.6 from Q4 2019, when the industry was firing on all cylinders.
Perhaps as telling as any other Q1 comparison is the full-year industry outlook for sales vs. 2019. As a result of pent-up demand, the expected full-year decline is 4.4% — a vast improvement over the 13.7% shortfall projected during the previous survey.
The KBMI is a joint effort between NKBA and John Burns Real Estate Consulting, and is published quarterly as the definitive gauge of economic conditions within the industry. It examines current demand and future expectations in the industry, and monitors issues and challenges industry professionals are facing in their business.
Look for more detailed info on COVID-19 impact by segment, as well as additional findings from this study in the coming weeks. To access the full KBMI 2Q report, click here, and to read more from NKBA’s exclusive research, visit the NKBA Insights page.
