2021 is fast approaching, and the outlook is looking good for the cabinet manufacturing industry! 2020 was an unprecedented year, with many uncertainties. But, as we close out the year we are seeing a rise in the industry economy that is predicted to continue in 2021.
A Positive Outlook for 2021
On November 10, Alan Beaulieu, the president of ITR economics, held a webinar and discussed market insights on the impact of the election, the course of the COVID-19 pandemic and a recent economic trend that all show a positive impact on the cabinet and remodeling industry.
He reported that home sales are on the rise. And, with the widespread work from home and homeschooling arrangements, he predicted a continued increase in demand for remodeling and renovating. This will make up for the slower months in early 2020, when the pandemic first hit.
The Numbers Are Rising
The NKBA recently released their Q3 2020 Kitchen & Bath Market Index (KBMI) which reported at 61.9, an all-time KBMI high for 2020. This is also an increase from 41 in Q1 and 44.2 in Q2.
Manufacturers are optimistic
More than half of all companies surveyed in the 2020 KBMI report COVID drove higher demand to their business in the third quarter. While the pandemic continues to have some unfavorable effect on the industry, its negative impact has lessened with each quarter.
Among those professionals in the industry who haven’t seen demand return to normal levels, 29% expect it to do so in 2021. While the whole world was adjusting to COVID, shipping and manufacturing had to make large scale changes which led to some roadblocks in early 2020, but those challenges have since flattened out and manufacturers now hint at an optimistic outlook for 2021 as they ramp up production in response to demand. Manufacturers also reported an increase in third quarter sales of 2.1% from 2019. Sales grew 5.9% since the last quarter overall, ranging from designers, who saw a 3.2% increase, to manufacturers, who experienced a 9.6% rise.
Overall, things are starting to look great for the upcoming year!
More DIY Projects on the Horizon
The NKBA also predicts that consumers will be more price-conscious than they were pre-COVID. Designers are reporting an increase in remodeling interest, but note smaller budgets are prevalent. Customers are leaning toward smaller-scale remodels and temporary solutions that are low-cost and largely DIY projects.
For further information on the KBMI reports, be sure to visit the Kitchen Bath Business website here
What do you think of these predictions? Will we continue to see better economic outcomes in the future?