Source:
Builder Online, VINCENT SALANDRO
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The association’s Kitchen & Bath Market Outlook for 2022 forecasts spending in the sector will increase 21% for new construction homes.

The kitchen and bath industry is projected to experience a 19% year-over-year (YOY) increase in spending to $199 billion from $167 billion in 2021, according to the National Kitchen & Bath Association’s (NKBA) Kitchen & Bath Market Outlook for 2022 report. The report also forecasts spending on new construction will see a 21% spending increase, although new housing starts are only predicted to increase by 6% in 2022.

“As we begin 2022, the industry as a whole continues to be optimistic and is forecasting continued rapid growth in both new construction and remodeling,” says Bill Darcy, NKBA CEO. “Even with this increasing demand, however, we cannot dismiss the current risks we are facing.”

The market outlook forecasts the impact of labor availability will remain a major obstacle in 2022. Between 2022 and 2025, research indicates unfavorable demographics will cause near-zero growth in the 20-65 age bracket, which will make recruiting more difficult in “a rising demand environment,” according to the report. The labor crunch in the industry is not new, but with the increase in the number of projects since the beginning of the pandemic, the labor shortage has caused the completion of projects to become delayed and contributed to long backlogs.

The report also predicts growing demand will continue to exacerbate ongoing supply chain challenges. According to the data, prices account for 6% of the projected growth, driven by inflation, product shortages, and rising labor costs.

“The challenges faced by the kitchen and bath industry are not new but are compounding. For example, the results from our Q3 Kitchen and Bath Market Index show that lead times for domestic and foreign raw materials are well over six weeks,” says Darcy. However, the kitchen and bath industry is resilient. In fact, we are seeing the industry evolve before our very eyes as across the board stakeholders are proactively taking new and creative steps to address these obstacles—and the fruits of their labor are visible as new opportunities arise.”

Click here for more information on the full report.