Top Takeaways:
- Nearly 6 in 10 designers are experiencing significant backlogs, mainly due to sourcing challenges;
- Almost half are sourcing new brands, most based on their own research or on supplier recommendations;
- Sixty percent of designers say project sizes have increased since pre-COVID, with most expecting an increase in the number of projects requests during the first half of 2022;
- Clients are requesting higher-quality materials for their remodels as rising prices have narrowed the gap between high and low tier.
By Robert Isler
An overwhelming 86 percent of designers responding to the new NKBA/John Burns Kitchen & Bath Market Index (KBMI) survey which closed out 2021 indicated they have product sourcing difficulties, with cabinets and refrigerators leading the way. While this isn’t anything new, it’s causing designers to become more creative or risk project postponements or even cancellations by frustrated clients. In fact, over half the designers surveyed in Q4 reported project disruptions.The good news is that those numbers aren’t any worse than they were in the previous two quarters. The bad news is that the problem isn’t likely to disappear anytime soon. It’s wreaking havoc on project timelines, with 58 percent saying they have backlogs of three or more months, a slight uptick compared with Q3.
The vast majority of those using new brands, 64 percent, are doing so because of better lead times and availability, while only 15 percent are switching for more favorable pricing and 13 percent because it was requested by clients. A third of respondents discovered new brands on their own, while another third moved forward based on supplier recommendations. The remainder are following the lead of other industry professionals, or, in some cases, following client suggestions. In all, 46 percent of designers are now sourcing brands that they hadn’t used pre-COVID. Going forward, 51 percent plan to return to their historical brands while 45 percent aren’t sure.
While 51 percent of design firms expect to return to their traditional brands, 45 percent aren’t sure.
A number of respondents shared how they are attempting to minimize sourcing issues. One stated “We are trying to substitute materials ahead of scheduled projects. My whole team is constantly sourcing products/materials.” Others are banding together with industry professionals outside their firms. For instance, one explained “A lot of designers have rallied together and are sharing recommendations.” Another said “My vendors are starting to notify me of product availability”, adding “They want to make a sale as much as I do.” The issue is not just one of sourcing delays but runaway costs. As one respondent shared “Costs and timelines for project completions are way beyond what any of the professionals on the project estimated. Clients aren’t prepared for this.” Still another stated that demand had been steady, but wondered how much longer that will last as prices continue to rise.
Despite these challenges, the fact remains that business is solid. Sixty percent of designers said the average project size and scope has increased since pre-COVID, with half noticing a shift towards higher-priced/higher quality products and materials as the gap between higher-tier and lower-tier offerings narrow due to price hikes. What’s telling is that, when asked during Q4, 56 percent of designers said they expect an increase in project requests in the first half of 2022, while only 7 percent believe there will be a decrease, numbers that are very comforting for the near-term state of the industry.