Retail Observer

RETAILOBSERVER.COM APRIL 2020 18 "The health of the kitchen and bath industry is an invaluable proof point for clients looking toward the strength of the housing market," said Todd Tomalak, Senior vice president of Research for John Burns Real Estate Consulting. "We're pleased to continue this quarterly report with NKBA to provide real-time insights as home-buying and building trends shift so rapidly." Key takeaways from KBMI's fourth-quarter report include: Future outlook is exceedingly optimistic: Members feel more positive about future conditions (77 index reading) than current conditions (67 index reading). This can be partially attributed to an increase in home builds and sales, which open up additional construction and remodeling opportunities. Economic confidence is solid: Despite economic uncertainty throughout 2019, NKBA members rate the current state of the economy at a seven on a scale of one to ten (with one being extremely weak and ten being extremely strong). Industry is at its healthiest: Members rated industry health at a 7.2 out of 10 in the last quarter of 2019, up from 6.7 in Q3, Q2 and Q1. Skilled labor shortage tops industry challenges: With 750,000 jobs expected to open in the design and construction industry through 2026, NKBA's membership base – comprising nearly 50,000 professionals across the kitchen and bath industry – continues to list skilled worker availability as a primary concern, followed by cost of materials and labor. One way NKBA is addressing these challenges is through its NextUp program, which aims to recruit and empower the next generation of skilled workers. Darcy noted that the industry's momentum and future potential make the NKBA's efforts to alleviate the skilled labor scarcity more important than ever. "This is why we're encouraging our members to get involved every step of the way through our multi-pronged NextUp program to expose young people to the many different career paths in our industry," he said. Countertops are the craze: Countertops are consumers' primary splurge for both kitchen and bathroom jobs. They're also trading up on stoves/ranges and cabinets in the kitchen and vanities, medicine cabinets and tiled showers in the bathroom. While awareness and interest in "smart" lighting and plumbing is increasing, fewer consumers are spending on newer devices in these categories. Methodology note: We have incorporated historical revisions to the KBMI in this release due to changes in the weighting methodology that occurred in Q4-2019. The revised index weights three inputs: 55% for current sales conditions, 15% for next quarter sales conditions and 30% for current state conditions. For more information, visit NKBA.org or call 1-800-THE-NKBA (843-6522). Please visit www.realestateconsulting.com for more information on John Burns Real Estate Consulting. BERTAZZONI LAUNCHES HERITAGE SERIES DÉCOR SETS AS PART OF ITS COLLEZIONE METALLI Italian manufacturer creates a new paradigm of personalization with stylish knobs and finials for the Heritage Series range in real gold, copper and black nickel I N D U S T R Y [ N E W S ]

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