July Kitchen and Bath Renovation Outlook Shows Growth Amid Supply Shortages – RISMedia |

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The National Kitchen and Bathroom Association—A non-profit trade association for the kitchen and bathroom industry — and John Burns Real Estate Consulting (JBREC) released its Quarterly Kitchen and Bathroom Market Index (KBMI) for the second quarter of 2021. With estimates showing sales growth of 11% for the second quarter compared to the first quarter, the report suggests continued growth in the kitchen and bathroom market, despite ongoing material shortages and rising labor costs.

“We are encouraged by the findings of our kitchen and bathroom industry report, which reaffirms the longer-term outlook for the field as strong growth and earnings,” said Bill Darcy, CEO of NKBA. “While we see that the continued backlog of materials and rising labor costs are causing problems and concerns within the industry, it also shows that the skyrocketing demand for home improvement projects has grown. continued. In fact, the industry is seeing increased interest in high-end products as consumers are spending more time in their homes than ever before due to the ongoing pandemic and prioritizing comfort and luxury, especially when s’ is to improve the kitchen and the bathroom. “

The COVID-19 pandemic continued to have a significant impact on the supply chain and materials development industries, causing widespread challenges across all sectors of the economy. The kitchen and bathroom industry is no different as the field has seen ‘double-digit’ price increases for common kitchen and bathroom products, while labor rates workforce increased by an additional 10 to 19% in an effort to retain talent within the industry. All of these factors have put a strain on the consumer’s budget.

Despite these hurdles, there is a clear demand for remodeling services as 60% of designers reported a delay of at least three months. In addition, in the second quarter of 2021, 55% of the building and construction industry reported no canceled projects, a stark contrast to the previous quarter. Additionally, despite an increase in material costs, nearly half of retailers (46%) have started to see a change in typical customer asking prices, with 89% saying their customers are turning to high-end finishes. , more expensive.

Among the main conclusions of the report:

The challenges of work persist
: While the pool of skilled labor continues to shrink with early retirement and career changes, building and construction companies are scrambling to attract their current workforce. Eighty percent of companies report an increase in labor rates to retain employees, and nearly two-thirds report rates of increase of up to 19%. This continues to increase the overall price of the project and delay the timelines for planned renovations. However, customers continue to move forward with projects and are willing to pay for in-demand products and finishes.

The impact of COVID-19 is decreasing:
As experts and industry professionals closely monitor the progress of the Delta variant of the coronavirus, members have reported a significant drop in the impact of the pandemic on businesses, giving it a rating of 4.9 on 10, where 0 is no impact and 10 is a significant impact, down significantly from about six in the previous three quarters.

More registration hints
: An overall KBMI score of 82.3 surpassed the previous all-time high of 79.8 in the first quarter. Current conditions of 85.7 broke last quarter’s record of 78 and are miles from the 59.8 in Q4 2020. Future conditions are warning signs however, as price hikes and delays are starting to wreak havoc. Many members get creative and order months in advance to avoid delays and reduce the spur of price hikes.

While there is optimism about the future of the industry, there are still a few challenges that the industry continues to face, including the potential threat from the Delta variant of the coronavirus. However, the outlook for the future of the industry is positive as consumers are content to wait and postpone projects rather than canceling all together, signaling continued growth for the industry as the industry continues to grow. year is progressing.

Source: National Kitchen and Bathroom Association

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