The National Kitchen & Bath Association, in cooperation with John Burns Real Estate Consulting, released their 2019 first-quarter Kitchen and Bath Market Index. The most recent quarterly report showed strong growth in the sector, and the outlook for Q2 and the remainder of 2019 was found to be strong as well, according to the association.
The report highlighted several key findings including:
- Strong Q1 Growth: The industry showed a composite index that currently rates 71 out of 100, which NKBA said reflects the growth and optimism in three main components of the index: the current quarter, future market sales, and overall health.
- Positive 2019 Outlook: The industry was even more positive on the future outlook for business (76 out of 100) than it was on current conditions (68 out of 100).
- Growth Expected in Q2: More than half (56 percent) of industry professionals said they expect second-quarter business conditions to improve. In particular, manufacturers and building/construction companies were most optimistic about their future quarterly sales.
- Labor Challenges Remain a Top Concern: The availability of skilled labor was the top concern among industry professionals across the board. That was followed by cost of materials, trade issues, economic uncertainty, and consumer confidence.
NKBA explained that the KBMI acts as a gauge for the economic health and outlook for the kitchen and bath market. The report examines current conditions and future expectations, while monitoring issues and challenges professionals in the industry and their businesses face. To gather that information, the KBMI surveys designers, manufacturers, retailers, and building/construction firms who are members of 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,” Bill Darcy, NKBA CEO, said in a statement. “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. 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.”
For more info on the report, check out the NKBA website.