Postponements/cancellations are falling and the trend is toward larger, higher-end projects.
By Robert Isler
It’s a good problem — but still a problem, nevertheless.
In the recently released NKBA/John Burns Kitchen & Bath Market Index (KBMI), a growing number of designers — 45% — noted that material shortages and ever-rising product prices are affecting project timelines. More homeowners are opting to remodel, but product sourcing issues are keeping them in the channel far too long. Specifically, designers in that group report that less than half their jobs are running according to schedule. Sourcing products are the main culprit: you can’t install something that’s nowhere to be found. More than 80% of designers have been dealing with this issue, with appliances — refrigerators, ranges/stoves or dishwashers — cited by more than half. Cabinets also rank high on that list.
On the other hand, these issues have not had a material effect on maintaining project work, at least not yet. More than half (55%) reported that they did not have a single postponement or cancellation in the first quarter. This is significantly higher than the 35% who could make that claim in Q4 2020. However, as backlogs continue to grow, so does frustration from designers as well as their clients. Close to half the survey’s designers are experiencing backlogs of three months or more.
About 34% of design firms say clients are requesting higher-end, higher-priced materials and finishes for their K&B projects.
Moving forward, either supply-chain issues will begin to right themselves, or more homeowners will choose to put projects on hold rather than face long, drawn-out processes.
Despite the challenges, the homeowners’ desire to remodel remains quite strong, based on a confluence of factors. Changing lifestyles, more time spent at home and a significant increase in savings over the past year due to travel, dining and entertainment restrictions, are also leading to robust interest in higher-quality, higher-priced projects. In fact, 61% of design firms report an increase in the average scope of their projects, while 34% say their clients are requesting high-end, higher-priced materials and finishes for their K&B remodels.
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These conclusions are supported by observations contained in the report.
“Clients are looking to make their kitchens multi-functional, since they are primarily working from home,” said one.
“We’ve noticed more interest in high-end appliances and better-quality finishes,” said another. “People are spending a lot more time in their kitchens, so they’re willing to invest more.”
Others spoke of specific design options that are gaining in popularity.
“I’m seeing a trend in mixing natural woods with painted finishes,” noted one designer.
“Most of my clients are opting for high-end quartz countertops and bright accent walls,” said another.
Still a third offered, “I’ve noticed more attention to detail in cabinetry and the desire for solid-state materials on shower walls.”