Retail Observer

APRIL 2022 RETAILOBSERVER.COM 39 inflation as their top concerns. An overwhelming 96% of businesses in the kitchen and bath industry have reported supply chain issues affecting their bottom line, while 28% have given material shortages a maximum rating of 10. These ratings indicate a severe impact on their day-to-day business. "Virtually every sector of the economy has been affected by the ongoing supply chain, material and labor issues, with the kitchen and bath industry being no exception. The report showed that the price of industry products has increased across the board by double digits, underscoring the cost pressure our sector is under. However, the kitchen and bath industry continues to be resilient in the face of this adversity, setting themselves up for another year of growth," continued Darcy. AMONG THE REPORT'S KEY FINDINGS: • Year Ends on a High Note: 2021 saw the industry continue to weather a series of challenges and capitalize on high consumer demand and home equity. In the Q4 KBMI, professionals rated the industry an 82.1 out of 100. This is the second-highest recorded score since the report's inception, reflecting the industry's positive sentiment due in part to the healthy growth it experienced throughout the quarter. The kitchen and bath industry also finished 2021 with a solid health rating of 7.9 out of 10, based in part on the continued high consumer demand for remodeling projects. • Unrelenting Supply Chain and Material Shortages: As the global supply chain remains slow, consumers and businesses throughout the kitchen and bath industry continue to feel the effects. With industry members not expecting an easing of the challenges anytime soon, businesses and consumers alike are becoming brand agnostic, turning to second or third-choice brands in order to find product for their projects. As the crisis lingers, more are feeling the effects on their business, with 45% of respondents stating that the supply chain was having a significant or very significant negative impact on their sales. Supply chain issues have been compounded by material shortages, leaving 98% of retailers saying their price points have been raised by vendors. This creates an increase in expense for consumers and can potentially lead to a dampening of their appetite for renovations. • Forecasted 2022 Growth: The Q4 KBMI found that industry professionals feel more confident about the new year compared to previous quarters, revising the 2022 projected growth to 9.4%, up .3%. While the survey found that kitchen and bath industry professionals are cautious about the future, giving the overall sector a 76.6 on a 100-point scale, members remain confident in Q1 2022 sales expectations. They project increased sales growth in the new year, with the main contributor being consumer flexibility with project materials and timelines remaining steady. For more information, visit NKBA.org or call 1-800-THE-NKBA (843-6522). KBIS ® and NKBA ® are registered trademarks of the National Kitchen & Bath Association. RO

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