Kitchen & Bath Design News

MAY 2015

Kitchen & Bath Design News is the industry's leading business, design and product resource for the kitchen and bath trade.

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Page 38 of 77

F or years, "the economy" had been something of a dirty word. But ask kitchen and bath deal- ers and designers today, and the word is largely positive, with 60% saying revenue has increased over the past 12 months and 69% projecting increases in the coming year. Storage/organiza- tional features and lighting products, in particular, are booming, while coun- tertops are also seeing strong growth. That's according to the National Kitchen & Bath Association's State of the Industry Report for 2015, which based its fndings on research culled from interviews with 640 kitchen and bath professionals. Conducted by the Research Insti- tute for Kitchen & Cooking Intelligence (RICKI) in conjunction with Kitchen & Bath Design News, the research looked at the economic landscape for kitchen and bath dealers and designers, key growth areas in terms of products and market segments, how showrooms are evolving, critical issues facing today's kitchen and bath professionals, impor- tant marketing tools and more. A BRIGHTER PICTURE One of the key findings of the research showed a brightening eco- nomic picture, with 84% of those polled reporting that revenue had either increased (60%) or stayed the same (24%) last year compared to the previous one (see Graph 1) . And, an even greater number (69%) expect business to be even better this year, compared to 27% who expect it to be about the same and only 4% who expect business to decrease this year over last (see Graph 2) . When survey respondents were asked to submit a one-word description that they believe describes the kitchen and bath industry today versus a year ago, the words were overwhelmingly positive ones, with the most common choices including: Better, Improved, Improving, Competitive, Optimistic, Hopeful, Busy, Progressing, Stable, Stabilizing, Evolving and Strong. TRENDING PRODUCTS When it comes to what's hot right now, storage/organizational products con- tinue to be all the rage in both the kitchen and bath; in the kitchen, 58% of those polled are seeing increases in this category (see Graph 3) while 51% are reporting increases in this category for the bath (see Graph 4) . Lighting is also trending, with 53% of survey respondents reporting in- creased demand for kitchen lighting products and 44% citing increased demand for bath lighting products. Countertops are third on the list of kitchen products showing a spike in sales, with 43% of those polled seeing increases in this category. Also seeing increased sales in the kitchen products arena were in- duction cooking appliances (43%), cabinets (40%), decorative hardware (33%) and sinks and faucets (30%). In the bathroom, survey respon- dents saw increased demand for freestanding tubs (45%), vanities (38%), shower systems/tub enclo- sures (34%), bath heating/ventilation (33%), bath accessories (31%) and sinks/faucets (30%). SHOWROOM SNAP SHOT The survey also looked at what's going on in showrooms today, giving a better picture of what's trending in kitchen and bath showrooms. Of those polled, 68 percent currently have a showroom, with another 3% planning to have a showroom in the next 12 months. The median showroom size among those polled was 2,300 square feet. The majority of showrooms carry a wide range of product categories, according to those polled, with almost all of the respondents saying they car- ry cabinets (97%), countertops (95%) May 2015 | | 37 By Janice Costa Survey Positive Signs The NKBA's State of the Industry Report suggests a brightening economic picture for kitchen and bath dealers, with new research from RICKI seeing dealers and designers reporting increased revenue and stronger demand for key kitchen and bath products. 1. DEALERS/DESIGNERS REVENUE CHANGE IN THE PAST YEAR 2. DEALERS' & DESIGNERS' EXPECTATIONS FOR BUSINESS IN THE COMING YEAR 60% Increased 69% Better 24% Stayed the same 27% About the same 16% Decreased 4% Worse Source: RICKI Source: RICKI Source: RICKI 3. KITCHEN GROWTH AREAS % WHO SAW INCREASE % WHO SAW DECREASE Storage/Organizational Features 58% 5% Lighting 53% 3% Countertops 43% 2% Flooring 37% 3% Cabinets 40% 7% Induction Cooking Appliances 43% 13% Decorative Hardware 33% 4% Sinks & Faucets 30% 2% Ventilation 30% 4% Wine Refrigerators 38% 17% Refrigerators 22% 2% Stoves or Ranges 21% 4% Dishwashers 15% 1% Steam Ovens 31% 19% Cooktops 22% 13% Wall Ovens 21% 20% Source: RICKI 4. BATH GROWTH AREAS % WHO SAW INCREASE % WHO SAW DECREASE Storage/Organizational Features 51% 3% Lighting 44% 2% Vanities 38% 2% Bath Heating/Ventilation 33% 4% Sinks & Faucets 30% 1% Freestanding Tubs 45% 19% Bath Accessories 31% 5% Shower Systems & Tub Enclosures 34% 11% Decorative Hardware 27% 4% Soaking or Jetted Tubs 18% 40% Saunas & Steam Baths 16% 38%

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