August 20, 2020
The National Kitchen and Bath Association (NKBA), in concert with John Burns Real Estate Consulting, tracks the health of the kitchen and bath market on a quarterly basis. Their joint Kitchen & Bath Market Index (KBMI) is a barometer of industry vitality based on input from 624 NKBA members across four industry segments: design, building and construction, retail sales, and manufacturing.
The second-quarter 2020 KBMI rating was 44.2 on a scale up to 100, where 50 signals the expectation of no change in industry sales – neither growth or contraction. That Q2 score was one third lower than the year-ago Q2 reading of 65.4 – reflecting the profound impact of the novel coronavirus pandemic on commercial activity. While such a low rating is disconcerting news, the second quarter measure does mark an 8 percent improvement over the first-quarter reading of 41.0.
On a separate measure, current market conditions were rated a dismal 31.3 during Q2 2020, compared to 46.9 during the first quarter, when the pandemic was just taking hold. On the bright side, the outlook for future market conditions improved dramatically, from 19.8 in the first quarter when pessimism ruled, to 61.9 in Q2.
Surveyed during the first quarter of the year, association members reported they expected full-year sales would drop by 13.7 percent. Their second-quarter estimate still projected a decline in 2020 total sales, but the magnitude of the anticipated decline narrowed to only 4.4 percent.
Not surprisingly, most survey respondents expressed the sentiment that the pandemic is significantly impacting their businesses. However, most see signs of strengthening consumer demand. Continuing supply-side challenges present headwinds that companies large and small are striving to overcome.
One industry participant already experiencing heightened demand for some of the kitchen equipment, furniture, and accessories they make in Illinois is John Boos & Co. According to Steve Pless, the company’s National Sales Manager, “Since families across the country are now preparing and consuming far more meals at home than ever before, demand for John Boos butcher blocks, countertops, cutting boards, kitchen carts, and tables has never been higher. In order to satisfy unprecedented consumer demand and at the same time protect the health and wellbeing of fellow workers, every single Boos & Co. employee is working harder and smarter than ever while following protocols implemented to ensure worker safety.”
This kitchen and bath industry news update is presented by the Butcher Block Co., the leading dealer of John Boos products online.
For more information, please visit Butcher Block Co.
Name: Kathleen Grodsky
Organization: Butcher Block Co.
Address: 10448 N 21st Pl Phoenix, Arizona 85028
Phone: (877) 845-5597