Sales Growth Surged for Designers In 2022 According to NKBA

The Q4 2022 NKBA / John Burns Kitchen & Bath Market Index (KBMI) indicated exciting growth for designers in the industry at the end of 2022. The KBMI is comprised of four segments and is released every quarter gauging the current and future of the kitchen and bath industry. The end of last year reported a significant jump in YOY sales growth in Q4 to an impressive 6.2% compared to 2.3% in Q3.

Designers amassed more growth compared to the other segments in the KBMI including the retail and construction markets, which actually reported a decrease in growth. Manufacturers, however, did experience a slight increase in the Q3 segment to 5.3% sales growth compared to 4.2% in the previous quarter. The solid sales surge for designers is expected to continue into the first quarter of 2023. In fact, 41% of K&B design firms anticipate an increase in new leads up from 23% in the Q3 quarter. Part of the sales increase is owed to the post-December holiday surge that several designers expected as many consumers prefer to delay renovations until after the holiday period.

Cabinets Most Substituted Product

In an effort to remain adjustable, 41% of the reported designers are using different brands and materials as a one-stop solution to budget or work within project timelines. Yet, 51% of designers said they chose to stay with the brands they usually use and rely on for projects. Cabinets were the most substituted product according to about 24% of designers. Cabinetry often takes up the majority of the remodeling expenses and allows designers endless opportunities to diversify. By substituting the cabinet brand, designers were able to reduce costs and significantly save money for their clients by incorporating semi-custom and custom cabinet brand labels.

Leveraging new brands has proven to allow for better lead times and increased availability of stock, according to 44% of designers. While 13% cited more affordable pricing as their motivation for transitioning to another label. Half of the designers said they will likely alternate back to their original brand of choice in the following six months, which NKBA indicates that most supply chain issues will be resolved before then.

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