NKBA Member Spotlight:
NKBA Member Companies Honored at K+BB Product Innovator Awards;
Several NKBA member companies were recently recognized as part of Kitchen and Bath Business (K+BB) 2015 Product Innovators Awards competition. Sixteen products were selected out of 130+ innovative kitchen and bathroom submissions. Awards were given to both the Kitchen Product of the Year and the Bathroom Product of the Year, and two products were given an Honorable Mention. Still popular in its third year is a “Judges’ Picks” category, where the esteemed judges are able to make personal choices of products they felt were also worthy of recognition.
Kitchen Product of the Year
Wood Grain Powder Coat Finishes
Danver Stainless Outdoor Kitchens
Bathroom Product of the Year
Electronica Vision Wheel
Galley Ideal Workstation
Michael Berman Graceline Faucet
Poggenpohl & Porsche Design Studio
Spice Rack Storage System
Dropout Cabinet Fixtures
Signature Series Sottile Wine Reserve
DTV+Digital Showering System
Lincoln Top Plate
Victoria + Albert
Sensonice Speaker Fan
INOX Stainless Steel Shower System
Veil Intelligent Toilet
To view the full list of winners, please click here.
NKBA's Economic Indicators Dashboard
The NKBA Economic Indicators Dashboard provides weekly insights on the economic status of the kitchen and bath industry. The year begins with relatively good news: the release of revised consumer expenditures for remodeling rose by 0.1% in November. The increase, albeit modest, reverses the decline seen in the preceding four months while the quality of data renews our confidence in it.
(The NKBA Economic Indicators Dashboard provides weekly insights on the economic status of the kitchen and bath industry, below you can read an explanation of each of the Dashboard’s variables.)
Modestly Good News
According to the revised data, homeowner remodeling peaked in June of last year when it reached nearly $150 billion (actually $149.2 billion), only to fall in the following four months. Thus, home improvement expenditures had declined 3.4% between June and October, but increased a minimal 0.1% in November to settle at $144.3 billion.
Still, our dashboard gives a mixed picture of the economy, with four indicators in strong green, the remodeling one in caution yellow, with the remaining three in red.
Remodeling Data Revised... Finally
We had mentioned in previous updates that there was something definitely wrong with the remodeling expenditures data. Inexplicably, the data suggested that remodeling activity fell dramatically in 2014 by more than 20%. This drop was hard to understand since most economic and construction-related variables pointed towards continued improvement. But the Department of Commerce has recognized that the data were inaccurate, and has corrected the error.
The chart below displays the data, both before and after the revisions. The Dept. of Commerce revised the data back to 2005, attributing the mistake to a “processing error” since, one must assume, no human being could be blamed for such a mistake. The revisions are substantial, we can appreciate their magnitude by a visual inspection of the chart. For instance, the revision adds $29.6 billion to the October 2015 estimate (the data are at annual rates); the average monthly revision for last year was over $37 billion. Curiously, according to the new data the market was much weaker throughout 2012 and 2013, and rebounded strongly in the second half of 2013.
For your reference, you can find all the previous and revised data by clicking here.
-Manuel Gutierrez, Consulting Economist
More Information About NKBA's Economic Indicators Dashboard
The dashboard displays the latest value of each economic indicator with a colored triangle that highlights visually the recent trend for each of the drivers. “Green” is a positive signal indicating that the latest value is improving; “Yellow,” as its common understood denotes caution because the variable maybe changing direction; and “Red” indicates that the variable in question is declining, both in its current value and in relation to the recent past.
Note that all the data, except for “mortgage rate” and “appliance store sales” are seasonally adjusted and are represented at annual rates.
Remodeling Expenditures. This is the amount of money spent on home improvement projects during the month in question. It covers all work done for privately-owned homes (excludes rentals, etc.). The data are in billions of and are issued by the U.S. Department of Commerce, which compiles and releases the data on a monthly basis.
Single Family Starts. It’s the number of single family houses for which construction was started in the given month. The U.S. Department of Commerce compiles and releases the data on a monthly basis.
Existing Home Sales. These data are issued monthly by the National Association of Realtors, and capture the number of existing homes that were sold in the previous month.
Mortgage Rate. We have chosen the rate on 30-year conventional loans that is issued by the Federal Home Loan Mortgage Corporation (known popularly as Freddie Mac.) Although there are a large number of mortgage instruments available to consumers, this one is still the most commonly used.
Employees in Residential Remodeling. This indicator denotes the number of individuals employed in construction firms that do mostly residential remodeling work.
Building Materials Sales. These data, released monthly by the Department of Commerce, capture the total sales of building materials, regardless of whether consumers or contractors purchased them. However, we should caution that the data naturally includes sales to projects other than residential houses.
Appliance Store Sales. This driver captures the monthly sales of stores that sell mostly household appliances; the data are stated at an annual rate. We should not confuse this driver with total appliance sales, since they are sold by other types of stores such as Home Centers, for instance.
We hope that you find this dashboard useful as a general guide to the state of our industry. Please contact us if you would like to see further detail.