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We are pleased to release the Q3 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. Our Q3 2019 report reveals that the industry continues to expand, but our survey shows clear signs of slowing demand and decreasing optimism as current and future business conditions both rate below the prior three quarters.
NKBA members now cite the size of customer’s budgets as the third biggest challenge. Budget concerns are increasingly reported across segments as trade policy drives up the cost of products and materials.
Key Takeaways
- The kitchen and bath industry expanded again in Q3 2019, as the KBMI rated a 65.4 on a scale of 0–100, with 50 being flat sales growth.
- The industry is still more positive on future conditions (68 index reading) than on current conditions (62 index reading), but 2019 sales growth expectations continue to weaken on rising material and labor costs and project delays.
- The two biggest challenges and concerns of the industry continue to be the availability of skilled labor and cost of materials.
- The industry says trade policy has had varying degrees of influence on the market — domestic manufacturers largely benefit while distributors and construction companies with more exposure to import products struggle to maintain supply chains, meet customer demands, and compete in the short-term.
- Many industry members report some of their suppliers have begun moving their supply chains to countries not directly impacted by tariffs, which should ease supply constraints in the near term.
Topics Covered
- Current KBMI
- Current Business Conditions
- Future Business Conditions
- Health of the Kitchen and Bath Industry
- Comparison of All Key Indicators for Q4 2018, Q1 2019, Q2 2019 and Q3 2019
- Q3 2019 Sales Growth Optimism
- 2019 Full-Year Sales Growth Expectations
- Financial Impact of Tariffs
- Industry Response to Tariffs
- Top K&B Industry Challenges and Concerns