The Global President and CEO of NKBA | KBIS shared insights about 2025 accomplishments and plans for the year ahead.
By NKBA Staff
Despite challenges in the economy overall and the kitchen, bath and remodeling industries specifically, the sector is resilient and flexible — and the NKBA remains a strong and positive voice for advocacy and member support.
That was the overarching message from Bill Darcy, Global President and CEO of NKBA | KBIS, as he delivered the State of the Association address at the annual meeting of the membership at KBIS. He also recapped NKBA’s accomplishments in 2025 and offered observations for the year ahead.
Among the biggest challenges the industry faced in 2025 were tariffs — particularly changing tariff policies — the rising costs of building materials, the persistent labor crisis and the housing shortage, all of which contribute to consumer caution.
“There’s no way to sugarcoat it,” Darcy said. “Last year was challenging for our industry. It was a period of less-than-optimal growth. That’s better than decline, for sure, but it’s not the success we know is possible. We’ve recently been navigating a period that has lacked clarity and consistency. That poses challenges for almost everybody in our industry — including our primary consumer, the homeowner.”
Pointing to the complex tariff situation as having “upended global economic dynamics,” he said, “We’ve heard from our members that tariffs, along with continued consumer uncertainty, have generally slowed business growth and restricted opportunities. The effects are being felt across the board, with overall increases in costs, higher prices, and decreases in margins and consumer confidence.”
But he noted that “as we confront these challenges, it’s more important than ever for our industry to have a strong, public voice — and the NKBA is proud to be that voice.”
Darcy recapped the association’s 2025 highlights:
- Strong Financials: Since 2012, annual revenue has grown nearly 150 percent to over $20 million in 2025. KBIS revenue growth was 11 percent in 2025 alone. Member retention is nearly 90 percent, dues revenue is up 73 percent from 2012 to 2025, and last year, membership grew 3 percent. Sponsorships have grown by nearly 425 percent over the past 13 years, reaching $1.5 million last year.
- High Point Alliance: In May, NKBA and the High Point Market Authority formed a strategic alliance partnership, uniting K&B with the home-furnishings sector. As part of this alliance, NKBA introduced a large, dedicated presence at historic Broad Hall at High Point Fall Market, demonstrating an increased focus on connecting kitchen and bath to whole-home design.
- Global Connect: NKBA’s international business membership program continues to grow, adding 25 members last year. The program now represents 18 countries. The NKBA team participated at several major design fairs in the last year, in Germany, the UK, France and Brazil. The program forges strong international ties with global companies coming to the U.S. and international journalists bringing news of the North American industry to their overseas markets.
- Addressing Skilled Labor: The skilled labor crisis remains a priority for NKBA and is indeed an existential problem for the entire industry. NKBA Chapters and members are engaging people interested in exploring careers in K&B and the skilled trades through scholarships, grants, career-focused events and working with the Skilled Labor Fund.
- Research: A major pillar of NKBA’s work and a significant member benefit is its exclusive, proprietary research. The annual Kitchen & Bath Market Outlook and mid-year update, kitchen and bath design trends reports, quarterly Kitchen & Bath Market Index reports, and specialty studies like the Luxury Report are essential sources of insight that inform strategic business decisions in all sectors of K&B.
Looking toward the future, Darcy shared a positive outlook, noting that “things are clearly moving in the right direction. Even amid unpredictable macroeconomic forces, the growth conditions for the residential design industry remain solid.”
He cited several reasons for optimism.
“First and foremost, consumer interest is still incredibly strong. Consumers covet beautiful and functional design. They want to enjoy their homes and enhance their most important investment,” he stated. “A very high number of those homes are in or entering their prime remodeling years. Additionally, millions of homeowners remain locked into mortgages with historically low rates, which means they are still inclined to stay put and improve their existing spaces. Older homeowners, especially, are staying put and investing in their homes rather than looking to move or downsize.”
The 2026 K&B Market Outlook projects that the U.S. residential kitchen and bath industry will begin to recover in the second half of the year, returning to growth gradually after three years of contraction. U.S. K&B revenue, including materials and labor, will grow slightly to $228 billion in 2026. This growth is primarily in repair/remodeling, which is forecast to increase by +2.9 percent. In contrast, spending on new construction is expected to decline by 3 percent in 2026. Professional-led K&B spending will rise by 4.4 percent and continue to outpace DIY renovations, which will remain flat.
“We’re also tracking the effects of AI and other emerging technologies,” Darcy said. “At NKBA, we’re making significant investments in AI to streamline operations, and many of our members — designers, in particular — are increasingly using it as a tool to better meet customers’ needs. AI, along with sustainable design, are two trends defining the future of our industry.”
This sector is a bellwether for the overall economy, especially consumer sentiment, Darcy added. “The NKBA is focused on keeping our industry competitive, relevant, and thriving. That means staying front-footed with our advocacy colleagues in Washington, coordinating closely with our international partners, and leveraging our research and relationships to keep you ready for whatever comes next.”
Darcy concluded by urging members to participate in NKBA research and to take surveys through the NKBA Kitchen & Bath Pro Hub. He called on the membership to join efforts to mitigate the skilled labor shortage, and finally, he encouraged everyone to believe in the strength and resilience of the industry.
“Consumers continue to want what we can deliver: beautiful spaces and products that make their lives better,” he said. “We’re smart, and we’re prepared. We know how to stay ready to seize opportunity when the time is right. There’s incredible power in this collective. We do better when we work together. I’m very confident in our shared future, and you should be, too.”
