Kitchen & Bath Market Index (KBMI)
National Kitchen & Bath Association (NKBA) and John Burns Real Estate Consulting have partnered on the Kitchen and Bath Market Index (KBMI), a barometer of the business health of the industry
This quarterly industry index gauges the economic pulse of the kitchen and bath market, examining current conditions and future expectations in the industry. It also monitors issues and challenges industry professionals are facing in their businesses. The KBMI surveys and analyzes the sentiments of designers, manufacturers, retailers and building/construction firms who are members of the NKBA.
“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.”
Quarterly Distribution (Q3 2019 Report Available for Download)
Fill out the form below to download the full Q3 2019 Kitchen and Bath Market Index (KBMI).
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. Our Q3 2019 survey shows:
- Continued sales growth. 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. Q3’s KBMI is in line with last quarter, but well below Q1’s rating of 71.0. The industry points to rising labor and material costs, unfavorable lead times, and a shift in demand to lower-priced products as the underlying challenges.
- Future industry outlook remains positive. 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 industry now expects +3.5% full-year sales growth in 2019, down notably from +5.4% expected growth reported by NKBA members in Q1 2019.
- The two biggest challenges and concerns of the industry continue to be the availability of skilled labor and cost of materials. 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.
- 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.
- Across industry segments, NKBA members describe how tariffs on various kitchen and bath products, components, and materials have impacted their businesses.
- Manufacturers broadly cite price inflation across various product categories, notably ready-to-assemble cabinetry, vanities, and low-price point engineered stone slabs. Domestic producers, however, highlight stronger growth across many of their product lines and say the price gap between imported goods and domestic offerings is now much easier to bridge with consumers.
- Building and construction companies say limited availability has caused some consumers to cancel project plans and others to experience severe delays driven by the need to re-specify or re-bid, as many products are impacted by longer lead times or significantly higher standard costs.
- Retailers and dealers say tariffs have increased consumers’ hesitancy to invest in large, high-cost kitchen and bath projects as concerns about the health of the economy steadily rise. Others say they are curbing growth plans in categories significantly impacted by tariffs.
- Designers express frustration with tariffs and say increased administrative work in product procurement is limiting their ability to grow and negatively impacting their credibility with clients.
- 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.
The Q3 2019 survey results include 507 responses from manufacturers, retailers, building and construction companies, and design firms who are members of the National Kitchen and Bath Association.
About NKBA and John Burns Real Estate Consulting
About the National Kitchen & Bath Association and the Kitchen & Bath Industry Show
The National Kitchen & Bath Association (NKBA) is the not-for-profit trade association that owns the Kitchen & Bath Industry Show® (KBIS), as part of Design & Construction Week® (DCW). With more than 10,000 member companies representing tens of thousands of members in all segments of the kitchen and bath industry, the NKBA has educated and led the industry since the association’s founding in 1963. The NKBA envisions a world where everyone enjoys safe, beautiful and functional kitchen and bath spaces. The mission of the NKBA is to inspire, lead and empower the kitchen and bath industry through the creations of certifications, marketplaces and networks. For more information, visit NKBA.org or call 1-800-THE-NKBA (843-6522).
KBIS® and NKBA® are registered trademarks of the National Kitchen & Bath Association.
About John Burns Real Estate Consulting
John Burns Real Estate Consulting is an independent research provider and consulting firm focused on the housing industry. John Burns founded the company in 2001 because he saw a need for better analysis on the housing market. The company has grown to a highly passionate team of research analysts and consultants in offices across the country, who work together to provide the most trusted source of US housing analysis. John Burns Real Estate Consulting’s research subscribers receive the most accurate analysis possible to inform their macro investment decisions, and the company’s consulting clients receive specific property and portfolio investment advice designed to maximize profits.
If you have any questions about the KBMI or if you would like find out how John Burns Real Estate Consulting can help your business, please contact Sara Newton-Mahony, Director of Client Relations at (949) 870-1252 or at firstname.lastname@example.org.