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We are pleased to release the Q1 2019 NKBA / John Burns Kitchen & Bath Market Index (KBMI), the industry’s definitive gauge of kitchen and bath industry conditions. This quarterly index is the result of a partnership between the National Kitchen & Bath Association and John Burns Real Estate Consulting. Based on responses from designers, manufacturers, retailers and building/construction firms who are members of the National Kitchen & Bath Association, this quarterly market research survey examines current demand and future expectations in the industry, and monitors issues and challenges industry professionals are facing in their business. The Q1 2019 survey results include 322 responses from manufacturers, retailers, building/construction companies and design firms that are members of the NKBA. The Q1 2019 report reveals that the kitchen and bath industry is firing on all cylinders. A KBMI of 71 indicates an optimistic view of current and future kitchen and bath sales and profits. Sales are currently growing year-over-year for most players across manufacturing, design, retail sales and building/construction.
Kitchen and bath professionals expect slightly lower online sales growth in 2019 than 2018. Total weighted
average online sales growth expectations in 2019 are 3.5% compared to 3.9% actual growth in 2018.
Key Takeaways
- The kitchen and bath industry expanded in Q1 2019, and the KBMI hit 71, up from 69.2 in Q4 2018 on a scale of 0–100, with 50 being flat.
- The industry is more positive on future conditions (76.1 index reading) than on current conditions (67.5 index reading).
- 56% of the industry expects sales will grow in Q2 2019, while 38% think sales will be flat YOY. Among the industry, manufacturers and building/construction companies are the most optimistic, with nearly 60% of players in these segments expecting growth and about 3% expecting lower sales in Q2.
- Online sales growth outlook cools slightly in 2019. By segment, manufacturers and retailers had the highest online sales growth rates in 2018 at 4.6% and 5.6%, respectively.
- Lack of skilled labor, higher operating costs, trade/tariff concerns and economic uncertainty remain the top challenges and concerns facing the overall industry.
Topics Covered
- E-commerce sales growth expectations
- Residential business challenges
- Current design trends and product shifts
- Emerging design trends