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National Kitchen & Bath Association Predicts Slight Q4 Improvements
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Keri Tomsic
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Erin Collins
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Kitchen & Bath Market Index Finds Optimistic Dealers in Face of Tough Economy
HACKETTSTOWN, N.J. (November 29, 2010) – According to the National Kitchen & Bath Association (NKBA), kitchen and bath dealers expect marginal improvement in market conditions this quarter despite a decline in showroom visits, sales volumes, remodeling budgets and revenue last quarter. The NKBA Kitchen & Bath Market Index (KBMI), which forecast the confidence of kitchen and bath dealers on a scale of -60 to +60, is +14 for Q4 2010. This KBMI is based on general optimism among dealers across all indicators including 44 percent that anticipate an increase in kitchen and bath revenue this quarter.
“Rather than buy a new home, the economy is encouraging many homeowners to find ways to enhance the quality and value of their homes through kitchen and bath remodels,” stated Don Sciolaro, chief executive officer of the NKBA. “Unfortunately, financing upgrades to a home remains a challenge for many people and that is clearly reflected in recent showroom visits, sales and revenue figures. However, it’s certainly a positive sign that leading kitchen and bath dealers are optimistic heading into the final quarter of the year.”
NKBA KBMI Methodology
The NKBA KBMI is determined by averaging expectations of NKBA member kitchen and bath dealers during the next quarter based on expected increases (+1), decreases (-1) or no change (0) in each market condition. That total is divided by the number of dealers surveyed and multiplied by 10, which gives the KBMI a range of -60 (pessimistic) to +60 (optimistic). The NKBA KBMI surveys approximately 150 kitchen and bath dealers across North America each quarter.
NKBA KBMI Highlights
- Showroom visits
- Down 13 percent from previous quarter; down 14 percent from previous year
- 39 percent anticipate an increase in Q4; 15 percent anticipate a decline
- Kitchen remodels sales volume
- Down 16 percent from previous quarter; down 11 percent from previous year
- 50 percent anticipate an increase in Q4; 12 percent anticipate a decline
- Kitchen remodeling prices
- Down 13 percent from previous quarter; down 16 percent from previous year
- 13 percent anticipate an increase in Q4; 9 percent anticipate a decline
- Bathroom remodel sales volume
- Down 47 percent from previous quarter; down 25 percent from previous year
- 47 percent anticipate an increase in Q4; 8 percent anticipate a decline
- Bathroom remodeling prices
- Down 6 percent from previous quarter; down 22 percent from previous year
- 21 percent anticipate an increase in Q4; 5 percent anticipate a decline
- Kitchen and bath revenue
- Down 33 percent from previous quarter; down 29 percent from previous year
- 43 percent anticipate an increase in Q4; 14 percent anticipate a decline
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About the National Kitchen & Bath Association
The National Kitchen & Bath Association (NKBA) is a non-profit trade association with nearly 40,000 members that has educated and led the kitchen and bath industry for more than 45 years. NKBA.org provides consumers with an inspiration gallery of award-winning kitchen and bath designs, as well as articles, tips, and an extensive glossary of remodeling terms. At NKBA.org, consumers can also find certified kitchen and bath professionals in their areas, submit questions to NKBA experts, and order the free NKBA Kitchen Planner and NKBA Bath Planner. To learn more, visit the NKBA Press Room at NKBA.org/Press or call 1-800-THE-NKBA (843-6522).