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Construction Spending Slips in December

By Manuel Gutierrez, Consulting Economist to NKBA

Total spending for private construction projects fell 0.4 percent in December, to an annualized $1.43 trillion, which is down from its all-time peak of $1.45 trillion reached last July.

  • Residential and non-residential both fell marginally for the month. Residential projects edged down 0.3 percent to an annualized $857 billion, while non-residential was off 0.5 percent to $570 billion.
  • Two of the three residential components — multifamily and homeowner remodeling — rose. Construction of new multifamily units was up 3.2 percent in December, reaching an annualized $120 billion. Answering the need for more housing, multifamily construction has been the bright spot in the residential market; spending has increased for five straight months and is currently up 21 percent YOY.
  • Homeowner remodeling rose by a more modest 0.7 percent in December to $352 billion, but is also up 20 percent YOY. Remodeling spending slowed in August through October, but rebounded in November and December. The declines in mortgage rates since the end of the year, despite the Fed’s tightening, are likely to boost remodeling data through the first quarter of 2023.
  • Single-family construction spending, however, declined 2.3 percent in December from November, to $384 billion, but more significantly, was down a much larger 15 percent YOY. After a pandemic-induced frenzy, the single-family market has been contracting for the last eight months.
  • Overall non-residential construction slipped 0.5 percent in the month, but commercial buildings, including retail, restaurants, service stations, etc., ticked up 0.4 percent to $122.4 billion. Lodging and offices, two categories of particular interest to NKBA members, were virtually unchanged for the month, although hotel/motel construction is running at an annual pace of $21 billion, up 37 percent over 2021. At a rate of $79.5 billion in December, office buildings are up 10 percent YOY.
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Member News: New Deals, Hot Colors, Chapter News and More

By Dianne M. Pogoda

COMPANY NEWS

CEDIA, KOHLER IN PARTNERSHIP: CEDIA, the association for the home tech industry, has partnered with plumbing giant Kohler Co. to give CEDIA members access to exclusive discounts, dedicated virtual training, and Kohler’s Authorized Service Rep program to help them to establish new leads. In turn, Kohler can drive its customers to CEDIA integrators, who can install Kohler’s plumbing products. The program was introduced last year and is now rolling out to markets across the country. For more info, go here.

BEKO, MARCONE ENTER PARTS VENTURE: Beko Home Appliances, one of the world’s largest appliance makers, and Marcone Supply, a leading parts distributor, have entered a far-reaching agreement that will put Beko-certified parts within one-day delivery of 93 percent the brand’s dealers, designers, and contractors in the U.S. The American subsidiary of Turkish-based Arcelik, Beko USA, has been expanding in the U.S. since its 2016 introduction. Marcone has 100 locations and 14 distribution centers throughout North America. KBB has the details here.

INDUSTRY NEWS

COLOR MY WORLD: Pantone touts a vivid magenta, Krylon names a mossy green, while Sherwin Williams walks a fine line between a beige and a blush. The 2023 “colors of the year” from major paint and color companies cover a wide spectrum — a message that anything your client likes is fair game. Martha Stewart has compiled the top shades here.

NEW SURFACES: Some unusual counter surfaces are making their way into the mainstream. From recycled plastic to reclaimed wood, zinc to pigmented concrete, Living Etc. offers 10 offbeat materials to keep in mind. Discover them here.

GO BIG AND GO BOLD: Expect to see bold patterns and daring colors in tile choices for 2023, from sleek wainscoting to vibrant mosaics. House Beautiful predicts that geometrics, black-and-white schemes, and earth tones will also play big for the year ahead. See more here.

MATERIAL MAKEOVERS: Significant advances in technology are hitting the construction industry, including renewable energy, sustainability, robotics, Artificial IntelligenceI, biobased materials and more. Architect magazine details five trends likely to have a major impact on building and remodeling in the next few years here.

TRADE EVENTS

LONDON DESIGN WEEK SET: London Design Week 2023 will take place at Design Centre, Chelsea Harbour, March 13 to 17, with over 600 international brands and more than 100 events. Additionally, 30 pop-up “House Guest” brands will be in The Design Avenue, a special zone featuring learning sessions that include the Conversations in design talk series. Specially commissioned installations and dining experiences are available to all visitors. Entry is free and to register, go here.

HIGH POINT REGISTRATION OPENS: Registration is open for the 2023 High Point Market, which takes place April 22-26 in High Point, NC. Registration is open to home furnishings retailers, designers, remodelers, students, and other trade pros. Register here.

CHAPTER NEWS

KBIS REVIEW — PALOUSE: The Palouse Chapter hosts “The Buzz” on Feb. 23 to discuss the latest finds at last week’s KBIS. Chapter officers will report on new products, trends, and technologies during the 5 to 7 pm event, held at Cosentino Center, 3808 N. Sullivan Rd., Bldg. 27C,  Spokane Valley in Washington State. Registration is free for members and students; $30 for non-members. Info and registration here.

KBIS REVIEW — WEST MICHIGAN: Join the West Michigan Chapter on March 1, 5:30 to 9 p.m., for a KBIS review at Standale Home Studio, 4046 Lake Michigan Drive NW in Grand Rapids. Over 15 local reps from national companies will be on hand to demonstrate new products introduced at KBIS. Vendors include Wellborn, Cambria, Ferguson, Bekins Appliances, Belwith Keeler, Wilsonart, Richelieu, Hardware Resources, and more. Food, beverages, and giveaways are included in your $20 registration, and earn 0.1 CEU. Register here.

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Member News: Launches from LG and Kohler, KCMA’s Sustainable Push, Chapter News, and More

By Dianne M. Pogoda

COMPANY NEWS

LG INTRODUCES THINQ UPGRADE: LG Electronics has launched its LG ThinQ Up upgradeable home appliances, including refrigerators, washers, dryers, oven ranges, and dishwashers. These appliances enable users to upload software and add hardware to enjoy new features and functions. Launched in South Korea last year, LG ThinQ Up will roll out in the U.S. and internationally starting in March. LG will showcase its latest innovations, including the new ThinQ UP appliances, at KBIS with its sister brand, Signature Kitchen Suite, in Booth #W3045-W3445 at the Las Vegas Convention Center. For more details, see KBB.

HAIER EARNS TOP EUROMONITOR RANKING: Market research firm Euromonitor International has ranked Haier Smart Home the world’s leading appliance brand by sales, with annual revenue exceeding $32 billion (U.S.) This is the 14th consecutive year that the Qingdao, China-based brand has earned this designation. GE Appliances are part of the Haier family. For more info, go here.

KOHLER LAUNCHES SPRIG: Kohler Co.’s new brand of wellness products, Sprig, is designed to create at-home spa experiences, elevating daily routines into premium self-care rituals. Sprig includes innovative shower infusion systems and pods with skincare ingredients like hyaluronic acid, premium bath bombs with shea butter and coconut oil, and versatile body and linen mists. Kohler will be at KBIS in Booth #N2205 at the LVCC. KBB has more detail.

INDUSTRY NEWS

KCMA’S SUSTAINABILITY EFFORT: The Kitchen Cabinet Manufacturers Association (KCMA) has partnered with Climate Positive NOW™ in an initiative to help kitchen and bath showrooms and dealers educate their customers about the sustainability advantages of using wood-based materials in kitchens and cabinets. “Many companies and industries say they are planning to be ‘climate positive’ by 2030 or 2040 — but our members are there now,” said Betsy Natz, CEO of KCMA. “Research shows 23 percent of consumers will switch to buy products from companies that share their values on environmental issues, while another 42 percent have changed their consumption habits based on their environmental beliefs.” Check out the new KCMA website content for ways to help create awareness of the environmental impact of using sustainable building materials and advancing a lower-carbon future.

AIA SURVEY CITES SUSTAINABILITY, RESILIENCE: The latest Home Design Trends Survey from the American Institute of Architects lists resilient communities and sustainable building practices as top priorities. Resilience is especially important in areas prone to wildfires and other natural disasters; sustainability enhances energy efficiency as well as the health of individuals and the planet. NKBA member Jamie Gold, CKD, reports in Forbes.

BUILDER SENTIMENT SOFTENS: Rising mortgage rates and inflated construction costs are dragging builders’ sentiment down, according to the National Association of Home Builders. Confidence in the market for new homes fell every month in 2022, and is at its lowest level since 2012 – except for a brief stretch in 2020 at the start of the COVID-19 pandemic, when housing demand surged. NAHB expects weaker conditions throughout 2023, with recovery in 2024. KBDN has more.

CHAPTER NEWS

MANHATTAN’S VEGAS ADVENTURE: The Manhattan Chapter is holding its January meeting during KBIS in Las Vegas. The meeting will be in person for members who can attend and simulcast for those unable to join onsite. On Jan. 31, the chapter has arranged a tour of the Savant Smart Home, with a bus leaving from the Las Vegas Convention Center at 3:15 p.m. PST. The tour qualifies for 0.1 CEU and will also be simulcast. After exploring the 15,000-square-foot smart home showcasing Savant’s newest lighting, entertainment, energy production and management systems, the chapter meeting will take place at 5 p.m. (Pacific Time), 8 p.m. (Eastern Time). For more info, go here.

PHOTO CLASS WITH PUGET SOUND: Learn how to elevate the quality of your project photos and videos for marketing, to pitch publications and media, and stand out in design competitions at the Puget Sound Chapter’s presentation, “Capturing the Essence of Design With Your Photographer.” Anton Benedikt of AB Photo & Video will offer a blueprint for achieving next-level photography and videography. The event takes place Jan. 19, 5:30 to 8 p.m., at the Cosentino Showroom, 19024 62nd Avenue South in Kent, Washington. Registration is $25 for members, $30 for non-members, and $15 for students. More info here.

Register for KBIS 2026 in Orlando!

Experience the future of design at North America’s Premier Kitchen & Bath Industry Show, Feb. 17 – 19, 2026.

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The NKBA recognizes providers of quality continuing education through our CEU Provider Program. Current options include the Single CEU Provider and the Multiple CEU Provider.

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If you have any questions about this program or application please reach out to ceu@nkba.org

The NKBA CEU Program

One CEU is defined as 10 contact hours. A contact hour is defined as 60 minutes of interaction between a learner and facilitator or between a learner and materials that have been prepared to facilitate learning, such as an online, on-demand course. An activity where the certified member is on the receiving end of formal training is applicable for CEU credit, provided it pertains to the kitchen and bath industry.

The NKBA requires that all certified members earn 2.0 CEUs (or 20 hours of education) every two years. Each two year cycle runs from July 1 to June 30. Certified members who do not meet the CEU requirements at the end of the cycle, will lose their NKBA Certification. Industry professionals and consumers are better protected in a more educated marketplace. By ensuring that all certified members maintain an adequate level of knowledge, the NKBA will assist in building consumer confidence and trust in the industry.

CEUs are awarded for participation in formal educational activities with professional associations, business and industry, occupational groups and academic education. Workshops, seminars, training programs, conferences, institutes and short courses relating to the kitchen & bath industry may qualify. Members can submit courses from any organization for CEUs. Each submission must then be approved by the Certification Department. The NKBA recognizes providers of quality continuing education coursework through our CEU Provider Program.

To view a list of CEU programs, click here.

To submit your CEU, complete an online CEU Reporting Form. Once completed, click to send the information directly to the NKBA Certification Department for processing. Faxed or mailed CEU reporting forms will not be accepted. You are not required to submit an online CEU Reporting Form for NKBA online courses; however, all courses, with the exception of NKBA online courses, must be submitted. Certified members’ NKBA CEU records will be updated when the class is closed by the NKBA. You are responsible for submitting your own CEUs for attending chapter meetings. We recommend that you maintain your own attendance records, in the event of a discrepancy.

Any NKBA member pursuing certification must earn NKBA education hours to meet the education requirement for certification. NKBA professional development courses, formal college education and NKBA-approved chapter courses are the only forms of education that are accepted toward certification.

Chapters may invite speakers from any organization to present at chapter meetings. In order to qualify for CEUs, the presentation must pertain to the kitchen and bath industry and be at least one hour in length. The presenter does not need to be an approved CEU Provider for the course to qualify for CEUs. Members are responsible for submitting their own CEUs via an online form. Courses presented at a chapter meeting will not be approved for more than 0.1 CEU (one hour), without the prior approval of NKBA Certification & Design.

Chapters requesting more than 0.1 CEU are required to submit the following documentation to the certification department four weeks prior to the event date for review. Chapters can view a sample timed agenda here.

  • Program topic
  • Learning objectives
  • Presenter’s bio
  • Length of program
  • Timed Agenda

Chapters can submit their own courses to NKBA Certification & Design to have them qualify for NKBA education hours and CEUs. The presenter must be an NKBA member and not a sponsor or other corporate member. Courses must be submitted by a chapter officer. Please use this form. Depending upon the course length, these may be approved for more than one educational hour (0.1 CEU). Once notified of approval, the course may run. At the end of the course, participants will be surveyed. Using a standard evaluation target rate, the course must receive a minimum score of 4.0 out of 5.0 points in order to continue providing education credits.

Note: The purpose of this program is to encourage NKBA chapters to develop their own courses that will count for CEUs and education hours. The courses will belong to the chapters. This program is intended for NKBA chapter use, not for corporate sponsors or professional speakers.

To submit your CEU, login to NKBA.org using your NKBA member ID (not your company’s ID). Complete an online CEU Reporting Form using your individual member ID (not your company’s ID). Once completed, click to send the information directly to the NKBA Certification Department for processing. Faxed or mailed CEU reporting forms will not be accepted.

You may access and monitor your account by logging into our website as a member. Your account displays your approved CEUs for the current cycle. If CEU credit is not posted to your record within four weeks of the submission date, or there is a discrepancy, please contact the NKBA Member Engagement at 800-THE-NKBA (843-6522). The NKBA no longer provides individual statements.

Activities & Events that earn CEUs: NKBA education courses, NKBA chapter meetings, KBIS conference seminars, ASID education programs, AIA education programs, Redvector.com courses, AECdaily.com courses, NARI educational programs, college courses, home center “how-to” seminars, vendor training and submitting written essays.

Topics that qualify for CEUs: Kitchen/bath design, interior design, construction, sales, architecture, color, art, health/safety/welfare, universal design, insurance/liability, perspective drawing, surfaces, leadership, ergonomics, countertop design, lighting/illumination, codes & standards, fabrics & furnishings, appliances, ADA, building technology, history of architecture, showroom design, business management, aging in place, CAD, green design, and marketing.

Activities & Events that do not earn CEUs: Teaching, lecturing, writing articles for publication, interviewing, holiday parties, awards presentations, self-guided tours, trade shows, or entering or judging design contests.

Topics that do not qualify for CEUs: Commercial roofing, techniques in teaching, trends in the rental housing market and pest control.

Individuals whose certification has been revoked due to non-compliance with the CEU program will be required to reapply and retake the certification exam, unless they can document proof of having earned the required CEU credit.

No extensions are allowed. All 20 hours must be earned and submitted by the end of the cycle.

Certified members, who have officially registered their member status with the NKBA as retired, must earn ten hours (1.0 CEU).

Certified members who have been approved for a certification leave of absence with the NKBA will have their CEU requirements prorated.

No. CEUs do not carry over to the next two-year cycle.

There are numerous options for earning CEU credit without having to travel a long distance:
• Attend a FREE NKBA webinar.
• Attend an NKBA online course.
• Attend a “how-to” seminar at a local home improvement center.
• Attend a seminar at a local builder’s show, appliance show, etc.
• Attend a seminar from an allied organization (ASID, NAHB, AIA, NARI, etc.).
• Take a course at a local community college university or technical school (credit and non-credit).
• Write correspondence essays based on any NKBA publication or on our website.

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NKBA Releases Its 2023 Design Trends Report 

Key Takeaways

  • Kitchen + Bath projects are growing bigger, more involved;
  • Bold use of color, materials and accents gain in popularity; 
  • Sustainability is often factor when recommending vendors/products; 
  • Baths take on spa-like attributes to heighten wellness experience;
  • Technology increasingly important, but rarely integrated by an expert.

By Robert Isler

NKBA’s newly released 2023 Design Trends report revealed several new and upcoming trends as well as highlighted a number of others that continue to gain traction. The annual report, which surveyed over 600 members of the kitchen and bath industry, identifies the space, color, materials, products and technology trends that will dominate the kitchen and bath industry during the next two to three years. 

The trend that only continues to gain ground is the expansion of both kitchen and bath spaces. Nearly 40 percent of designers said their kitchen projects are larger, more involved this year compared with 2021, while about one-third said the same for their bath projects.  

Expanded Space for Storage/Functionality

The majority of designers noted that to add additional storage and functionality, they are knocking down walls or taking over adjoining rooms to add more square footage.  The increased space for kitchens enables designers to add walk-in or built-in pantries for expanded storage, larger (or two) islands and more appliances like a second dishwasher or column refrigerator and freezer.  

Meanwhile, for baths the extended space allows larger showers for two or more people (at the expense of the tub), the addition of a closet, dressing room or sitting area. In addition, the expanded space is also giving rise to more aging in place features such as shower seats (79 percent), zero clearance (66 percent) and grab bars (65 percent).

The majority of designers for both kitchen and bath said they consider a manufacturer’s sustainability practices “at times” when making a product recommendation.

Sustainability/Environment Matters 

For both kitchen and baths, the trend towards sustainability and the environment will only grow stronger. The majority of designers for both kitchen and bath said they consider a manufacturer’s sustainability practices “at times” when making a product recommendation. The move toward embracing the environment also is seen by the continued movement toward opening up to the outdoors for both kitchens and baths. This means larger windows with fewer panes and glass doors that open to an outside patio, deck or garden. 

Color Ways   

Color and bold accents are gaining ground in both the kitchen and bath continues. Specific to kitchens is the rise of darker, richer colors with green(45 percent)  and blue (37 percent) topping the list. White/off-white remain the most popular neutral color. Meanwhile, brushed and matte finishes eclipse polished for fixtures and . “Warmer, natural colors, less gray and white,” said one designer in the survey. “Or [we’ll see] strong, dramatic colors mixed with light natural woods to warm it up.” 

For baths, the spa-like design trend can be seen in the rise of using blues (42 percent) and greens (37 percent) to give a sense of calmness, serenity. To add drama and a hint of glamor, there’s also the addition of metallics with little to no shine, as matte or brushed finishes dominate. 

Technology as a Functional Benefit 

When it comes to technology, clients increasingly want it make their life easier, more efficient. In the kitchen, this translates to steam cooking/air frying features integrated into ovens and a mobile app to control appliances. In addition, designers said their clients are also excited about touchless faucets and voice- or motion-controlled lighting. 

In the primary bath, respondents said their clients are looking for smart controls for heated floors, showers and lighting. They also want technology to help them conserve water and alert them to leaks/issues. 

Even though technology is part of everyday life, the survey showed that only 31 percent of kitchen and 23 percent of bathroom projects include integrated technology. In addition, only 28 percent of designers said they work with a technology expert on their kitchen projects.  For baths, only 23 percent said they frequently or sometimes use a technology expert. 

Millennials on the Rise. 

The survey showed that designers’ client pool continues to be mostly older, mainly Gen X  and Boomers. However, there is a growing Millennial  client base that is gaining momentum. In fact, 17 percent of respondents said they are designing more for this group than any other, nearly double what it was in 2020. 

Click here to download the full report.

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Increasing Kitchen & Bath Spaces Offer Design Opportunities

Key Takeaways

  • Warmer kitchen colors, wood tones begin to replace white/off-white looks
  • Both kitchens and bathrooms are continuing to increase in size
  • Bathroom design to undergo significant change as homeowners take cues from hotel/travel experiences

By Robert Isler

The top kitchen and bath trends emerging from the recent NKBA 2022 Design Trends study can be narrowed down to a few key words: simple, natural, functional and bold colors. The study, which resulted from a survey of association members, showed that technology solutions, nature and, to a lesser degree, trends from Europe, are also strong influence.

Getting down to specifics, warmer colors and more wood tones easily top the list for likely styles. As for color, the trend is toward replacing all-white with lighter-stained woods and incorporating bold shades in backsplashes, wallcoverings, paint and artwork. Styles are shifting toward “simple, clean, minimalistic and modern”, featuring touchless technology and fewer accessories.  Cabinets were next likely to be discussed for near-term change, with deeper base cabinets for more storage space, fewer uppers, contemporary and flat-front all in play.

Top Kitchen Trends

The most prominent kitchen features during the next three years, according to those surveyed, will be easy-to-clean flooring (67 percent); large islands that can also function as dining tables (63 percent); and the removal of walls to enlarge the kitchen (62 percent). Interestingly, when the same set of choices were offered to millennials, they chose flex space for home office activities as their number one priority, followed by easy-to-clean flooring and touchless faucets.

Regarding sustainability, the majority singled out 100 percent LED lighting, followed by separate recycling storage and the increased use of natural light through larger, high-performance windows and doors. Millennials agreed with the first two, but for the third sustainability factor they chose alternate energy-efficient water heaters.

Nearly three-in-four respondents said they mostly designed mid-sized kitchens, measuring 150-350-square feet. And more than 40 percent of all respondents said they expect the scope of their projects to become more involved, while a whopping 84 percent expect the size of the kitchen to increase.

Top Bathroom Trends

In bathrooms, the top three projected styles are influenced by hotel and travel, technology solutions and nature. While technology and nature mirror what’s happening in kitchens, homeowners are looking to replicate the spa-like feel and smart features found in high-end hotels in their own bathrooms. They are increasingly seeking the better hotel experience at home, leading to a shift in the future of bath design.

Another top design change involves replacing the traditional shower and tub with  larger, curbless showers. Meanwhile living-in-place and functional designs are going to continue to gain momentum.

A popular trend going forward will be the expansion of the primary bath to provide space for a connected closet or dressing area.

Other prominent trends across all consumer lifestages involve the removal of walls or the redistribution of space within the primary bathroom. The most popular? Removing standard tubs to make room for larger showers and/or freestanding tubs, followed by increasing the bathroom’s footprint to provide space for a connected closet/dressing area. And as with kitchens, the top sustainability feature is 100% LED lighting.

Perhaps the most dramatic change forecasted that 76 percent of survey respondents expect the size of the primary bathroom will grow. Last year, 67 percent of respondents forecasted a space increase and three years ago only 42% predicted growth. The decision to remove walls adjacent to the bathroom and extend the space is leading to an evolution in the very definition of the bathroom from a functional room to one that doubles as an escape from life’s stresses.

Click here to download the full report.