K&B Snags: Supply, Prices, Labor
The same three thorns continue to top the list of most vexing challenges.
By Robert Isler
While industry health continues to improve with each passing quarter, challenges that have been around for the better part of the past 12 months are showing few signs of abating. According to the fourth-quarter release of the 2020 NKBA /John Burns Kitchen & Bath Market Index (KBMI), supply-chain disruptions, which first appeared as a significant issue in the Q2 report, don’t appear to be going away any time soon. In fact, on a scale of 1-10, with 10 representing the highest level of concern, issues related to supply again top all others with a rating of 7.6. This is followed by cost of materials, at 7.2, and shortages of skilled labor as well as lingering concerns about keeping COVID under control tied for third at 7.1.
In open-ended responses from members, products that were most significantly impacted by supply disruptions were cabinetry and appliances. As one member stated, “Appliances and cabinetry used to take a few weeks, but are now taking months to come in.” Among the 11 comments related to these delays, eight made specific mentions of cabinets, and seven to appliances.
“Appliances and cabinetry used to take a few weeks, but are now taking months to come in.”
Another challenge given detailed treatment in the report was the continuing shortage of skilled labor for the industry. More than 50% of respondents attributed the worsening labor conditions to COVID-19. There were wide variances by sector, with 66% of those in Manufacturing agreeing that COVID was the culprit for labor shortages, while only 49% of those in Building & Construction believed that to be the case.
Comments from those facing this challenge included one from a designer who said, “We are taking on less experienced people to try to fulfill the surge in demand.” Another, in Building & Construction, also expressed concern: “Finding skilled labor was always a challenge, but with COVID, it’s compounded.” Finally, someone from the Retail sector noted, “We seem to be recruiting prospective employees who used to own their own businesses. Some of these people are former designers.”