Index records highest scores since inception in both current activity and future outlook.
By Robert Isler
The first quarterly 2021 release of the NKBA/John Burns Kitchen & Bath Market Index (KBMI) shattered records by healthy margins, pointing to an industry on fire.
The overall K&B score came in at 79.8, deep within growth territory since anything above 50 on the 100-point scale indicates expansion. In comparison, the fourth quarter 2020 score was 65, which was considered quite good at the time. Additionally, the latest number is a full 10 points ahead of the 69.8 registered in the fourth quarter of 2019, when momentum was considered very strong. Other indicators were equally encouraging. Health of the industry was an 8.2 out of 10 vs. the previous 7.1 reading. And, the score for current conditions was 78.0, an astounding 18 points higher than the 59.8 just one quarter earlier. Future outlook rounded out the four indicators, with the 82.4 reading well above the 72.7 from Q4 2020, when members were last asked to quantify where they believed their businesses were headed.
A total of 524 members across four key industry segments — design, building & construction, manufacturing and retail sales — responded to the survey. In addition to key benchmark indicators contained in the release, which were shown in aggregate and by segment, the report shared sales projections, latest industry shifts and feedback regarding significant challenges that continue to plague the industry despite the positive news.
The score for current conditions was 78.0, an astounding 18 points higher than the 59.8 just one quarter earlier.
Broken out by segment, a clear pattern emerged. Manufacturing scored highest for three of the four variables, while design was last among all four. However, each was well above its scores for Q4 2020, with manufacturing absolutely blowing away its previous levels.
There are a number of key factors that continue to add to this positive momentum. With the worst of COVID-19 likely behind us, people are again opening their homes to designers and workers, ready to move forward with projects that were kept on hold far too long. Additionally, quick-fix DIY jobs, which were on the rise during the worst of the pandemic, are now giving way to full-scale remodels. This is evidenced by reported pipeline extensions and a renewed desire by homeowners for professional involvement. One in three designers also noted that clients are requesting higher-quality, higher-priced products and finishes, with those in retail sales reporting a similar pattern. Feedback suggests this is due in large part to changing lifestyles brought on by the pandemic becoming more permanent, with increased time spent at home. Homeowner needs have changed and many are willing to pay more for their comfort, since they are in it for the long haul.
Look for a detailed treatment of the sales picture, a deep dive into the challenges the industry is facing and specific segment updates over the next few weeks, all based on findings and insights from this comprehensive study.
To download the Q4 KBMI report, please click the link below. The report is included with NKBA membership and may be downloaded by members at no additional cost. Non-members may purchase the report for $1,995.