National Kitchen & Bath Association Market Index Points to Better 2011

LOOKING UP IN 2011

According to the National Kitchen & Bath Association (NKBA), kitchen and bath dealers are entering 2011 optimistically with increased showroom visits, sales volumes, remodeling budgets and revenue 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 Q1 2011 or up 23 points from last quarter. This 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," stated Don Sciolaro, chief executive officer of the 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."

NKBA KBMI Methodology
The NKBA KBMI is determined by averaging expectations of NKBA member kitchen and bath dealers during the next quarter based on expected increases (+1), decreases (-1) or no change (0) 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.
NKBA KBMI Highlights

• Showroom visits
  • Up 38 percent from previous quarter; up 21 percent from previous year
  • 79 percent anticipate an increase in Q1; 1 percent anticipate a decline
• Kitchen remodels sales volume
  • Up 113 percent from previous quarter; up 110 percent from previous year
  • 82 percent anticipate an increase in Q1; 2 percent anticipate a decline
• Kitchen remodeling prices
  • Up 20 percent from previous quarter; up 9 percent from previous year
  • 34 percent anticipate an increase in Q1; 2 percent anticipate a decline
• Bathroom remodel sales volume
  • Up 105 percent from previous quarter; up 50 percent from previous year
  • 72 percent anticipate an increase in Q1; 2 percent anticipate a decline
• Bathroom remodeling prices
  • Up 22 percent from previous quarter; up 18 percent from previous year
  • 39 percent anticipate an increase in Q1; 4 percent anticipate a decline
• Kitchen and bath revenue
  • Up 155 percent from previous quarter; up 117 percent from previous year
  • 78 percent anticipate an increase in Q1; 3 percent anticipate a decline

About the National Kitchen & Bath Association

The National Kitchen & Bath Association (NKBA) is a non-profit trade association with nearly 40,000 members that has educated and led the kitchen and bath industry for more than 45 years. NKBA.org provides consumers with an inspiration gallery of award-winning kitchen and bath designs, as well as articles, tips, an extensive glossary of remodeling terms, and illustrations and explanations of planning guidelines. At NKBA.org, consumers can also find certified kitchen and bath professionals in their areas, submit questions to NKBA experts, and order the free NKBA Kitchen Planner and NKBA Bath Planner. To learn more, visit the NKBA Press Room at NKBA.org/Press or call 1-800-THE-NKBA (843-6522).