Kitchen, Bath Sales To Slow

Manufacturers are receiving inventory and products faster than in previous years, but sales are expected to slow, says the National Kitchen & Bath Association (NKBA) ‘Kitchen & Bath Market Index’ (KBMI) for the second quarter of 2022. The index shows kitchen and bath designers are value engineering projects for customers, choosing what is available now at affordable margins and price points. They are also reporting smaller backlogs in the second quarter compared to the first quarter. However, current guidance from the industry suggests flat or declining revenue growth in 2023, particularly in consumer-facing segments such as retail sales. Kitchen and bath sales grew 6.9 per cent year-over-year, marking the second consecutive quarterly deceleration in year-over-year sales growth. Fifty-nine per cent of design firms and 82 per cent of building and construction firms report either cancellations or postponements of projects. Additionally, full year 2022 kitchen and bath sales are expected to increase by 9.4 per cent, down from the 15.1 per cent reported three months ago. The index says supply chain issues and inflation will remain a challenge for the rest of 2022.