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We are pleased to release the Q2 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. A total of 624 NKBA members in design, building/construction, manufacturing and retail were surveyed. Results are compared with each of the previous four quarters. Along with various economic gauges, industry challenges and concerns are ranked and reviewed. As in the previous report, the impact of COVID-19 is analyzed by segment, as are shifts in demand and supply chain disruptions.
K&B Sales Expected to Decline 4.4% in 2020 vs. a 13.7% FY Drop predicted in Q1.
Key Takeaways
- Overall industry sales index is at 44.2, better than the 41.0 for Q1, but still in the contracting range (50.0 = flat).
- Current conditions dropped to 31.1, vs 46.9 in Q1.
- Future expectations rebounded sharply, from 19.8 to 61.9.
- Members project full year sales decline of 4.4% vs 2019, a significant improvement over the 13.7% shortfall expected in the Q1 survey.
- Top industry challenges include economic uncertainty/recession and fear of a second wave of COVID-19.
- 61% of manufacturers continue to put capital expenditures on hold, vs. 86% in Q1.
- 93% of retailers say their showrooms/storefronts are currently open for business.
Additional Topics Covered
- Business impact by segment.
- Shifts in project size.
- Respondent comments regarding business challenges.
- Supply chain disruptions and barriers to growth by segment.
- Future bid volume for design firms.
- Prevalence of E-design.