NKBA/ John Burns Kitchen & Bath Market Index (KBMI) – Q3 2023

NKBA/John Burns Kitchen & Bath Market Index (KBMI) – Q3 2023

The NKBA/John Burns Kitchen & Bath Market Index (KBMI) serves as a quarterly assessment of current and anticipated market conditions in the kitchen and bath sector. This quarter’s findings reflect insights from 761 professionals representing the industry’s four primary segments: Design, Building & Construction, Retail Sales, and Manufacturing. The report examines recent market shifts and provides valuable perspective on the evolving challenges and opportunities facing each segment.

Key Takeaways

• The Q3 2023 KBMI declined by 2 points to 53, marking nearly two years of continued market deceleration.
• All four industry segments reported KBMI declines, though to varying degrees. Designers were the least impacted by softening consumer demand (55), while retailers experienced the greatest challenges (47).
• Q3 K&B industry sales varied significantly by region, with declines in the West and Northeast and gains in the Southeast, particularly Florida.
• Price increases are slowing, and supply chain challenges have nearly disappeared.
• Labor cost and availability remain the industry’s biggest challenges.
• The outlook for 2024 remains positive, with 44% of all K&B firms and 49% of manufacturers expecting sales revenue growth next year. Most anticipate that any significant acceleration will occur in the second half of 2024.

Additional Topics Covered

• Top challenges currently facing each segment and how they are addressing them
• Status of backlogs and new leads for designers and remodelers
• Share of Q3 K&B projects that were canceled versus postponed
• How industry professionals are managing narrowing gross margins
• Outlook for 2024 by industry segment