Strong Growth Forecast in “Kitchen and Bath Market Index”
HACKETTSTOWN, NJ — The National Kitchen and Bath Association (NKBA) and John Burns Real Estate Consulting released the 2019 first-quarter Kitchen and Bath Market Index (KBMI) on May 7, 2019. This quarterly industry index looks at current conditions and future expectations in the kitchen and bath market in order to measure the industry’s economic pulse, as well as examining challenges industry professionals are facing in their businesses. The KBMI surveys and analyzes the responses of NKBA-member designers, manufacturers, retailers and building/construction firms.
The report shows strong growth in the kitchen and bath sectors and forecasts a positive outlook for the second quarter and the year as a whole.
“As the leading trade association and advocate for the kitchen and bath industry, we continuously invest in research to provide guidance on performance, projections and challenges in the sector for our members and the market. We’re pleased to see that despite a softening in housing, the KBMI indicates positive growth and an optimistic sales outlook in the kitchen and bath sectors,” said Bill Darcy, NKBA CEO. “John Burns Real Estate Consulting is the preeminent research analysis partner in the housing space and we embarked on this joint venture to provide a reliable and frequent metric of industry performance and business health to our members and the market.”
“We are thrilled to partner with NKBA to monitor this important segment of the economy,” said Todd Tomalak, Senior Vice President of Research for John Burns Real Estate Consulting. “We view Kitchen & Bath as a critical gauge of discretionary consumer spending, and this new index will allow analysts to monitor the segment with more confidence than ever before.”
The KBMI’s first-quarter report found:
- Strong Q1 Growth: The kitchen and bath industry composite index currently rates 71 out of 100. This reflects growth and optimism in three main components of the index: the current quarter, future market sales and overall health.
- Positive 2019 Outlook: The industry is more positive on future business conditions (76 out of 100) than on current conditions (68 out of 100).
- 56% of Industry Expects Growth in Q2 2019: The industry expects second-quarter business conditions to improve. Manufacturers and building/construction companies are the most optimistic about quarterly sales.
- Labor Challenges Remain a Top Concern: The availability of skilled labor tops the list of industry challenges and concerns. The cost of materials, trade issues, economic uncertainly and consumer confidence are also significant first-quarter concerns.