KITCHEN & BATH
NKBA reports backlogs and challenges, but also growth The kitchen and bath market continues to deliver growth, according to the quarterly National Kitchen & Bath Association/John Burns Kitchen & Bath Market Index report. The research and estimates from the NKBA and John Burns Real Estate Consulting show an 11% increase in sales for the second quarter of 2021 compared to the first quarter of the year. And despite ongoing material shortages and rising labor costs, full-year sales are now expected to
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exceed 2020 by 14.5%, an upward revision from the 13.4% consensus forecast last quarter. “We’re encouraged by the findings from our report on the Kitchen & Bath industry, which reaffirms the longer outlook of the field as one of growth and strong earnings,” said Bill Darcy, NKBA CEO. “While we are seeing the continued delay of materials and increase in labor costs causing problems and concerns within the sector, it also shows that the sky-rocketing demand for remodeling projects has continued.”
SEPTEMBER 2021 HARDWARE + BUILDING SUPPLY DEALER
According to Darcy, the industry is also experiencing an increased interest in higher-end products as consumers are spending more time than ever in their homes due to the ongoing pandemic and are prioritizing comfort and luxury, particularly when it comes to kitchen and bath improvements. But the COVID-19 pandemic has continued to have a significant impact on the supply chain and material development industries, causing widespread challenges to all sectors of the economy, the NKBA said. The NKBA said that the industry has seen “double-digit” price increases across common kitchen & bath products, while labor rates have increased an additional 10-19% in an effort to retain talent within the industry. All of these factors have put a strain on the consumer budget.
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