NKBA “Kitchen and Bath Market Index” shows sustained industry expansion in second quarter
The National Kitchen & Bath Association and John Burns Real Estate Consulting released the 2019 second-quarter Kitchen and Bath Market Index (KBMI) report. With a KBMI of 65.7 and scores above 50 indicating growth, the industry remains strong, demonstrating an optimistic view of sales, which are expected to grow by 4.7% in 2019. The report reveals that increases in consumer spending are being driven primarily by rising material and labor costs, as opposed to customer discretion.
Conducted quarterly, the index gauges the economic pulse of the industry by examining current demand and future expectations in addition to monitoring sentiment among designers, manufacturers, retailers and building/construction firms. The availability of skilled professionals, cost of materials and trade issues top the list of overall challenges for the second consecutive quarter. Lack of skilled workers is the chief concern among building and construction firms, while designers point to a slowing luxury market and shift to lower price points as the biggest barriers to growth. Still, the report shows 57% of customers have increased total spending since 2018.