National Kitchen-Bath Association Releases Q2 2020 Market Index
Washington, DC, August 19, 2020-The National Kitchen-Bath Association has released its Q2 2020 Kitchen & Bath Market Index (KBMI), the industry’s definitive gauge of kitchen and bath industry conditions.
This quarterly index is the result of a partnership between the National Kitchen & Bath Association and John Burns Real Estate Consulting.
Amid a global pandemic the kitchen and bath industry contracted again in Q2. The survey shows declining demand and industry revenues, but significantly improving optimism regarding future business conditions and an overall improving view of industry health.
The Q2 2020 survey shows:
• Q2 sales declined. The kitchen and bath industry contracted in Q2 2020, as the KBMI rated a 44.2 on a scale of 0–100, with 50 being flat sales growth. Q2’s KBMI is more than 30% lower than last year’s rating of 65.4 but nearly 10% higher than last quarter’s rating of 41.0 as companies adjust to the new normal. The industry continues to view economic uncertainty, US economic recession, fear of a second wave of COVID, lack of consumer confidence and stock market volatility as major underlying challenges.
• Future industry outlook has turned optimistic. The industry is now considerably more positive on future conditions (61.9 index reading) than on current conditions (31.3 index reading), and 2020 sales growth expectations have strengthened as businesses have adapted to changes and challenges in the marketplace.
o The industry now expects 4.4% full-year sales decline in 2020, a significant improvement from the 13.7% full- year sales decline expectation reported by NKBA members last quarter.
• The industry says the COVID-19 pandemic is still having a significant impact on the business environment, but signs of optimism exist across the industry. Companies in all industry segments report strengthening demand-side fundamentals, especially among younger consumers and in markets where construction remains an essential industry. Supply-side issues continue to negatively impact the industry’s ability to consistently operate and grow, but most companies are adapting to these challenges by shifting sourcing strategies and fulfilling demand in both the new construction and remodeling segments.
For the full survey, click here.