NKBA Market Index Dips, Still Positive

According to the Hackettstown, N.J.-based National Kitchen & Bath Association’s Kitchen & Bath Market Index, which forecasts the confidence of kitchen and bath dealers on a scale of -60 to +60, the KMBI is +21 for the third quarter of 2011. Although still positive, this number is down from +33 in the second quarter of 2011 and +37 in the first quarter. “Despite relatively flat market conditions during the second quarter, the kitchen and bath dealers did not report positive increases in revenue quarter-over-quarter and year-over-year, which certainly helps encourage cautious optimism,” says Bill Darcy, executive vice president of the NKBA. “However, the reality of high unemployment and low consumer spending suggest the kitchen and bath industry along with many others will continue to face a tough road in the near future.”

The KBMI is determined by averaging expectations of NKBA member kitchen and bath dealers during the next quarter based on expected increases, no change or expected decreases in each market condition. That total is divided by the number of dealers surveyed and multiplied by 10, which gives the KBMI the -60 to +60 range. The surveys include about 150 kitchen and bath dealers across North America each quarter.

Showroom visits are down 18 percent from the previous quarter yet up 15 percent from the previous year; the majority expect an increase in the next quarter. Kitchen remodels sales are up from the previous quarter and previous year. Kitchen remodeling prices are up from the previous quarter but down from the previous year. Bathroom remodel sales volume are up from the previous quarter and year while remodeling prices are down from the previous quarter and year. Kitchen and bath revenue are up from the previous quarter and previous year. About 49 percent anticipate an increase in the third quarter. For more information, visit www.nkba.org.