NKBA/John Burns Kitchen & Bath Market Index (KBMI) – Q4 2019

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We are pleased to release the Q4 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 final quarterly KBMI of 2019 revealed a surprising reversal of industry health and sales conditions, after showing signs of slowing throughout 2019. Current business conditions rate higher than the first three quarters of 2019, while industry health and optimism about future business conditions are both at the highest levels since we launched this index in 2018.

NKBA members report that consumers are most frequently opting for higher-end countertops,
stoves/ranges or cabinets, with 16% of the industry saying countertops are the number one product consumers
most commonly “splurge” on in the kitchen.

Key Takeaways

  • The kitchen and bath industry expanded again in Q4 2019, as the KBMI rated a 69.8 on a scale of 0–100 (with 50 being flat sales growth).
  • Despite a strong Q4, weaker business performance in Q1, Q2 and Q3 dragged total 2019 year-end revenues down slightly compared to 2018.
  • The industry is now much more positive on future conditions (77 index reading) than on current conditions (67 index reading), on the back of strong new home sales and rising home prices that are driving an uptick in new construction activity and larger-scale kitchen and bathroom remodels.
  • NKBA members rate the current state of the U.S. economy as a 7, on a scale of 1–10, with 1 being extremely weak and 10 being extremely strong.

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, Q3 2019, and Q4 2019
  • 2019 Full-Year Revenue Growth
  • 2020 Full-Year Sales Growth Expectations
  • 2020 Manufacturer Capital Expenditure Plans
  • K&B Consumer Insights
  • Top K&B Industry Challenges and Concerns
  • Things the industry and individual businesses are most excited about for 2020

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