NKBA/John Burns Kitchen & Bath Market Index (KBMI) – Q3 2020

The NKBA/John Burns Kitchen & Bath Market Index (KBMI) is a quarterly gauge of current and future economic conditions within the kitchen and bath industry. A total of 515 NKBA members in design, building/construction, manufacturing and retail were surveyed. Results are compared with each of the previous four quarters. Along with various economic gauges, the report ranks industry challenges and concerns. Additionally, this is the third quarterly report that delves into the impact of COVID-19 and the various shifts and changes it has caused for each of our industry segments.

Key Takeaways

• The overall quarterly index, with a rating of 61.9 out of 100, is expanding after two consecutive quarters of contraction. It far exceeds the 44.2 rating from Q2.
• Full-year 2020 sales are now projected to be 1% higher than in 2019. This is a vast improvement over the -13.7% and -4.4% expected shortfalls for the year from the Q1 and Q2 reports.
• The latest “health of the industry” rating is 6.9 on a scale of 1-10, indicating clear strength.
• Current business conditions received a rating of 56.5, a sharp increase from the 31.3 of Q2.
• Supply chain disruptions are now the #1 industry challenge, with members citing delays of 60-120 days for various goods.

Additional Topics Covered

• Sales outlook by segment.
• Deep dive into pandemic’s impact on each of our four segments.
• Shifts in demand by variable, such as price, project size and DIY.
• Member feedback on lead time challenges, shutdown contingencies, and other timely topics.
• Trending data across Q1-Q3 KBMI releases on the effects of COVID-19.