Navigating the Unsettled Kitchen and Bath Supply Chain

As the kitchen and bath industry continues to evolve, supply chain disruptions remain a critical concern for professionals in the field. While the situation has improved since the height of the pandemic, kitchen and bath renovations continue to face unique hurdles that require innovative solutions and strategic planning.

Current Industry Landscape

Recent data from the National Kitchen and Bath Association (NKBA) provides a mixed but generally optimistic outlook for the industry:

• The kitchen and bath industry's market size stood at $179 billion at the close of 2023, higher than pre-pandemic levels.
• For 2024, NKBA forecasts a 3% drop in residential kitchen and bath spending, with market size falling to about $172.9 billion.
• Despite challenges, most professionals reported a 6.5% increase in year-over-year project completions and expect revenues to increase by 7% in 2024.

Supply Chain Disruptions

The industry continues to grapple with supply chain issues, though the situation is improving. Products that once had lead times of 1-2 weeks now often take 6-8 weeks or more to arrive.

Appliances: Lead times have skyrocketed, with some products requiring 6 to 12 months for delivery. Cold storage items and dishwashers are particularly affected

Cabinetry: Previously available in 6-8 weeks for semi-custom and 10-14 weeks for custom options, cabinet lead times now range from 14 to 28 weeks

These delays are attributed to various factors, including shortages of raw materials like lumber, copper, paint pigments, electronic chips, and even foam for refrigerators. In 2021, the supply shortage of bathroom accessories reached 75%, causing more than 90% of home builders to experience supply shortages.

Strategies for Success

To thrive in this challenging environment, industry professionals should consider the following approaches:

• Start the planning process much earlier than usual to account for extended lead times. This may mean beginning the design phase months before the intended start of construction.
• Set realistic expectations with clients about potential delays and cost fluctuations. Transparent communication can help manage client expectations and reduce frustration.
• Work with multiple suppliers to increase the chances of obtaining needed materials. This can help mitigate the risk of a single supplier causing project delays.
• Place orders for materials and fixtures as early as possible in the project timeline. This is especially crucial for items with known long lead times, such as custom cabinetry or specialty appliances.

Growth Opportunities Abound

While challenges persist, there are signs of improvement and opportunities for growth:

• Design firms expect an average 5.9% increase in sales in 2024, while building and construction firms anticipate 8.2% growth.
• Retail sales are projected to grow by more than 5%, and manufacturers expect an increase of more than 7%.
• By 2027, 24 million homes will be entering their prime ages for remodeling, presenting significant opportunities for the industry.

Seize the Moment at the Kitchen + Bath Canada Expo!

As we come together at the Expo, let's use this opportunity to share experiences, strategies, and innovations that will help our industry thrive in the face of ongoing supply chain complexities. By staying informed, planning ahead, and remaining adaptable, kitchen and bath professionals can successfully navigate these challenges and continue delivering exceptional results for their clients. To learn more about our expo, visit us at kbcexpo.com