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We are pleased to release the Q1 2020 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. This update includes extensive feedback regarding initial and anticipated impact of COVID-19.
Many industry members report supply chain disruptions, particularly for cabinetry sourced from manufacturers that closed due to COVID-related shutdowns, but also for appliance parts, vanities and light fixtures.
Key Takeaways
- The kitchen and bath industry contracted in Q1 2020, as the KBMI rated a 41.0 on a scale of 0–100, with 50 being flat sales growth. Q1’s KBMI is more than 40% lower than last quarter’s rating of 69.8.
- The industry is now considerably less positive on future conditions (19.8 index reading) than on current conditions (46.9 index reading), and 2020 sales growth expectations have weakened as a result of the COVID-19 pandemic and its related economic impacts.
- The two biggest challenges and concerns of the industry are economic uncertainty and fear of recession. NKBA members now cite consumer confidence and stock market volatility as tied for the third biggest challenge.
- COVID-19 related shutdowns and social distancing measures are expected to reduce Q2 2020 sales by more than 50% among builders, dealers and consumer-facing segments of the market, while manufacturing firms expect a still sizable 40% drop relative to pre-COVID sales expectations.
Additional Topics Covered
- Current KBMI
- Current Business Conditions
- Future Business Conditions
- Health of the Kitchen and Bath Industry
- Comparison of all key indicators for Q1 2019, Q2 2019, Q3 2019, Q4 2019 and Q1 2020
- Q1 2020 Sales Change
- 2020 Full-Year Revenue Expectations
- COVID-19 Impact on the Industry
- Top Overall K&B Industry Challenges and Concerns
- Top K&B Industry Challenges and Concerns by Segment