According to the National Kitchen & Bath Association (NKBA), kitchen and bath dealers are entering 2011 with increased showroom visits, sales volumes, remodeling budgets and revenue in the final quarter of 2010.
The NKBA Kitchen & Bath Market Index (KBMI), which forecasts the confidence of kitchen and bath dealers on a scale of -60 to +60, is +37 for the first quarter of 2011 or up 23 points from last quarter. KBMI is based on dealer optimism across various indicators highlighted this quarter by 78 percent who anticipate an increase in kitchen and bath revenue.
“The NKBA Kitchen & Bath Market Index really mirrors a number of other industries that saw improved fourth quarters following several very difficult years,” said Don Sciolaro, chief executive officer, NKBA. “Consumer spending this holiday season was significantly up from the previous three years, yet still well short of levels enjoyed the first part of the decade. Hopefully, this KBMI is a sign that the kitchen and bath industry is also on the right path and that the economy is slowly moving towards recovery.”
The NKBA KBMI is determined by averaging expectations of NKBA member kitchen and bath dealers during the next quarter based on expected increases, decreases or no change in each market condition. That total is divided by the number of dealers surveyed and multiplied by 10, which gives the KBMI a range of -60 (pessimistic) to +60 (optimistic). The NKBA KBMI surveys approximately 150 kitchen and bath dealers across North America each quarter.
