Kitchen & Bath Business January/February 2022 - 10

nkba note
January/February 2022
" Homeowner project
deferrals are creating
backlogs likely to
be fi lled in 2022,
positioning the industry
for a strong year. "
ADAPT AND THRIVE
T
10
HE NEW YEAR HAS DAWNED with promise and optimism, as the
kitchen and bath industry continues to ride the wave of strong demand
that has propelled business for a year or more. Th e NKBA's
exclusive " Kitchen & Bath Market Index " (KBMI) came in at 78.7
out of 100 in Q3 2021, showing an industry that continues to expand
while notching year-over-year sales growth of 11.7%. Full-year sales
for 2021 are expected to be 12.6% ahead of 2020.
By any standards, these are remarkable numbers. In a pandemic, they are
phenomenal. Th e overall KBMI is still hovering at its third-highest rating
since the survey's inception in 2018, just 3.6 points off its all-time high.
Th ese numbers have moderated slightly from the index's Q2 2021
ratings and projections - full-year sales estimates were revised downward
from 14.5% - but that's not a bad thing. And early indications for 2022
show robust annual sales growth of 19%. Homeowner project deferrals are
creating backlogs likely to be fi lled in 2022, positioning the industry for a
strong year. Th e pandemic, as we know, wreaked havoc on the supply chain
and exacerbated the labor shortage.
Over the past 22 months, the crisis also solidifi ed the reality that many
people are not going back to full-time in-person work situations - and
their environments are evolving as their lifestyles change. Th e avalanche of
demand placed a strain on all facets of the industry, and the prolonged pace
is not sustainable. Th e goal is healthy growth that can be reliably maintained
over the long term.
K&B pros have risen to these challenges with creative solutions and a
willingness to try new options, experiment with previously untried vendors
and local artisans and think of new uses for unconventional materials and
products. Signifi cantly, the disruption has also been the impetus for many
in our industry to adapt to a new timeframe for ordering and scheduling
/ JAN.-FEB. 2022
 Photo by Getty Images
and for managing client expectations. Doing
things " the same old way " doesn't get the job
done anymore. Th is has often resulted in clients
upgrading to more expensive products, as NKBA
members note availability takes precedence over
brand or product type.
Th is is just another reason why it is imperative
to attend KBIS and explore the vast array of
options available in the marketplace and learn
new ways of doing business. Discovering and
sourcing from new vendors is healthy for all parts
of the business. Spreading the wealth helps alleviate
the stress of the top few manufacturers
while they catch up with demand, and using
lesser-known brands and materials can often
give clients a more unique design - especially
important to the luxury customer and millennial
homeowners.
Industry fundamentals are strong, and we
don't see demand slumping any time soon. We
predict that the kitchen and bath industry will
thrive despite the challenges. Yes, supply-chain
issues will be with us through 2022, perhaps
longer but not forever. Th e journey of discovery
at KBIS and the quest for creative solutions
will help all of us continue to overcome these
formidable challenges and keep us on the path
of opportunity.

BILL DARCY
CEO
National Kitchen + Bath
Association
Twitter: @NKBA_CEO
http://www.twitter.com/NKBA_CEO
Kitchen & Bath Business January/February 2022

Table of Contents for the Digital Edition of Kitchen & Bath Business January/February 2022
