Market to Post Gains in 2021, But Pace of Growth Seen Cooling
HACKETTSTOWN, NJ — The kitchen and bath industry is expected to post strong growth in 2021, although the pace of that growth is apparently cooling, according to the latest Market Forecast Report issued by the National Kitchen & Bath Association.
According to the second, and final, update to the NKBA’s 2021 Market Forecast Report, the industry is expected to register “healthy, double-digit gains over 2020,” although the latest forecast has been “pared back a bit” compared to the previous (July) forecast – due largely to ongoing supply-chain disruptions, labor shortages and higher material costs, the NKBA reported.
The NKBA’s final 2021 Market Outlook, released early this month, projects full-year revenues of $167 billion, a 19% increase over the $141 billion posted in 2020. The new forecast, however, represents a modest downtown from the July Market Outlook, which pegged year-end 2021 revenue totals at $171 billion.
“This year has been like none other for our industry, as strong growth across virtually every sector has led to record revenues,” said Bill Darcy, CEO of the Hackettstown, NJ-based NKBA.
However, “some homeowners, faced with price increases related to supply chain shortages, are deferring projects until they have enough saved to get exactly what they want, or in the hope that costs will come down,” Darcy added.
The NKBA’s latest forecast projects a nearly 10% year-over-year growth in the kitchen and bath remodeling sector, and a 26% growth in new construction. Premium projects are expected to be up by more than 22% – although down from the 28+% forecast in July – while low-end projects will grow under 11%, “suggesting a cooling of the DIY trend,” the NKBA said.
“These findings are very encouraging and indicate that not only will we close out this year on a solid note, but the growth should be sustained into 2022,” Darcy observed.
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