Kitchen & Bath Business April 2021 - 28

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KBIS 2021

State of the Industry: Coming Through the Crisis

Kohler Co. CEO David Kohler offered a hopeful outlook at KBIS Virtual
KOHLER CO. PRESIDENT AND CEO David Kohler delivered a message of
forward growth for the overall housing and remodeling sectors, while acknowledging the challenges of the previous year and those the industry faces
in the year ahead.
In his State of the Industry address, sponsored by Signature Kitchen
Suite at KBIS Virtual, he focused on key points, including the impact of
COVID-19 and social unrest, economics, adapting to challenges, product
innovations and the resilience of the industry. His prognostications for 2021
and beyond were hopeful, but he affirmed that there's plenty of work ahead.
Despite the many hardships and challenges of 2020, there have been many
inspiring moments of strength, compassion and resilience that have led to
new discoveries and opportunities, Kohler began.
" We're emerging from a year that will have profound and lasting impact
on our lives, businesses and culture, " he said. " Technology has opened up new
ways of working, and we'll likely see more of a hybrid approach to interacting
with customers and bringing brand experiences to life going forward. Digital
experiences are great examples of how we've all adapted and expanded our
reach as an industry. "
Kohler said the company has persevered through numerous challenges
in its 147-year history, including 19 recessions, two depressions, the Great
Recession, wars and pandemics.
" We've survived with the support of our customers, our passionate associates, a strong work ethic, entrepreneurial spirit, tenacity and perseverance.
Like the cast iron we mold, it's forged us into the company we are today and
it drives us into the future. "
When the pandemic hit, Kohler saw it as an opportunity to come out
stronger, smarter and faster - deepen relationships with customers and associates, be more daring and innovative and drive a higher level of growth.
Among other things, Kohler associates assembled face shields in the U.S. and
China, and its facilities in the U.K. produced ventilator parts. The company
also established a virtual showroom and digital tools for its associates to connect with local customers.

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2020 IN THE REARVIEW MIRROR

The market was in a precarious state in April 2020,
but by summer began to rebound, he said - more
quickly than anyone had anticipated.
" Overall, our industry has been blessed relative to other sectors, " he said. " We have a slew of
positive trends that position our industry well for
the future. "
Sharing some data points affecting the economy, he noted the unemployment rate in January
was 6.7%, while the labor force participation rate
had declined to its lowest point since 1977, with
six million people dropping out of the workforce since February 2020. The bulk of those
lost jobs - especially retail brick-and-mortar
- might not return soon or be permanently lost
to e-commerce.
But, he said the current employment recovery
trajectory appears to be better than the period after
the Great Recession, with full employment - to
pre-pandemic levels - possible in 2023.
While near-term COVID risks are trending
downward, unprecedented fiscal stimulus and
a prolonged expansionary monetary policy will
fuel-inject this economic recovery in the months
ahead, he said. " The new administration's commitment to boost the economy further should
have a positive impact on the general economy as
well as housing. "
HOUSING WILL LEAD

By DIANNE M. POGODA

Housing and home improvement will continue
to outperform and lead the economy out of recession.The estimated GDP will expand this year by
4.2%, according to Blue Chip consensus forecasts
released in January.

/ APRIL 2021 / KBBONLINE.COM / The official publication of NKBA (NKBA.org) and KBIS (KBIS.com)

3/22/21 5:25 PM

http://www.KBBONLINE.COM http://www.NKBA.org http://www.KBIS.com

Kitchen & Bath Business April 2021

Table of Contents for the Digital Edition of Kitchen & Bath Business April 2021