Sales are up by 10% compared to the previous quarter, with expectations for full-year 2021 to exceed 2020 by more than 13%.
By Robert Isler
In the mood for some good news? Members surveyed for the Q1 2021 NKBA/John Burns Kitchen & Bath Market Index (KBMI) reported that first-quarter sales were up by double-digits over the prior quarter.
Even better news is that looking ahead full year, the expectation is for that growth rate to accelerate, with the rosy outlook first shared in the fourth quarter revised upward. Specifically, when asked last quarter, members said 2021 should exceed 2020 by 10.7%. In this latest survey, they’ve upped that figure by nearly three percentage points to 13.4%.
Although the recent and projected sales growth is uniformly strong across four NKBA member segments, some stand out more than others. For instance, compared with last quarter, both design and building & construction have tracked at the overall 10% increase. Manufacturing was a bit lower but still quite strong, at 9.4%. The star was retail sales, which was up by 11.3%, quarter-over-quarter.
Looking forward, the spread is consistently strong across all segments. Those in building & construction expect 2021 to exceed last year by 13.7%, with design predicting a gain of 13.5%, manufacturing, 13%, and retailers, 12.8%.
Full-year sales are expected to beat 2020 by 13.4%, with not only the pace of remodels accelerating, but the pricing and scope as well.
As for key contributing factors that have led to such a promising industry outlook, it’s not something that hasn’t been discussed before. Pent-up demand from those who chose to put remodels on hold during COVID-19, a fresh need for redesign caused by altered lifestyles or by additional time spent at home critiquing indoor spaces, the outflow of many from crowded metros to new construction or even second homes, and the desire to use savings that have accumulated due to extended travel and entertainment restrictions, have all helped propel kitchen and bath forward. The icing on the cake is that not only is the pace of remodels picking up, but the scope as well, as many homeowners are opting for higher-priced projects.
Of course, not all is rosy. Supply-chain disruptions and heavy price inflation, both of which will be discussed in greater detail in next week’s story, are wreaking havoc for those within the industry as well as for homeowners. In fact, due to sticker shock, some homeowners are opting to pause their projects until they save more money to do it right, rather than settling for lower-grade materials, finishes and/or appliances. Others are simply waiting for prices to come down before moving forward.