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We are pleased to release the Q2 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 Q2 2019 report reveals that the industry continues to grow, but our survey shows a clear shift in expectations for 2019.
The availability of skilled labor, cost of materials, and trade issues top the list of industry
challenges and concerns. Labor costs, economic uncertainty and consumer confidence are also still
major concerns of kitchen & bath industry professionals in Q2 2019.
Key Takeaways
- The kitchen and bath industry expanded in Q2 2019, as the KBMI remained above 50 at 65.7 on a scale of 0–100, with 50 being flat.
- The industry is still more positive on future conditions (69 index reading) than on current conditions (63 index reading), but 2019 sales growth expectations moderate downward due to declining per sale revenue and rising material and labor costs.
- Rising costs are driving shift to smaller projects, more affordable finishes. Increases in average customer spending are being driven by material and labor cost inflation, while decreases in budget sizes are being driven by shift to more affordable, lower-priced options.
- The big three challenges and concerns of the industry remain the availability of skilled labor, cost of materials, and trade issues.
Additional Topics Covered
- Comparison of all key indicators for Q4 2018, Q1 2019 and Q2 2019
- Q3 2019 sales growth expectations
- 2019 full year sales growth expectations
- Customer spending levels (2019 vs. 2018)
- Biggest barriers currently impacting growth in residential kitchen and bath market