BETHLEHAM, Pa. – The Kitchen & Bath Market Index (KBMI), a quarterly study conducted by the National Kitchen & Bath Association (NKBA) and John Burns Research & Consulting, rose during the first quarter of 2024 – a positive indication that the industry has held steady and is entering a period of growth.

According to the Q1 2024 KBMI report, the manufacturing sector reported the strongest optimism of any of the four industry segments surveyed about potential revenue growth this year. Other segments covered by the KBMI include design, retail sales, and building and construction.

Highlights of the latest KBMI include:
 

• The manufacturing sector’s index of 58 outpaced the overall 56.4 Index rating, which measures current sales growth, industry health, and near-term growth expectations among U.S. kitchen and bath industry pros.
• Surveyed manufacturers expect 6.8% revenue growth for 2024 vs. the 5.7% average for all four segments. This includes solid projections of short-term growth.
• Despite a slight dip in the current Q1 K&B Activity Index, manufacturing still had the highest Activity and Health Index numbers of any sector.
• Manufacturing and distribution firms began the year positively, with orders rising by 4.2% year-over-year in Q1 2024; they report solid near-term sales expectations.
• Inventories remain relatively balanced, and most manufacturers reported having balanced/normal capacity. Only 18% reported having significant excess capacity.
• Manufacturers are prioritizing investment in research and development in new products (49%), as well as training/upskilling (46%) and supply chain management improvements (42%).  
• The cabinet shop sub-segment of the K&B manufacturing sector experienced year-over-year order growth of 10 percent in Q1 2024. Shop owners expressed optimism that demand would continue to be strong over the next six months.

“The manufacturing segment remains a critical bellwether of the health of the K&B industry,” said Bill Darcy, global president and CEO of NKBA | KBIS. “Despite the dampening effect of persistently high borrowing rates, manufacturers are telling us that they are optimistic about the year ahead, an encouraging sign for the entire industry.”

The Q1 2024 KBMI report is included as a benefit of NKBA membership. The full report is available to non-members for $1,995.