Kitchen & Bath Business - January 2016 - 18

Industry Outlook

What's Ahead for
the K&B Sector
The experts are calling for

sustained growth, design for well-being
and a few surprises along the way

rity and being able to repay their loans. Mortgage
rates may be higher than they are now, but they
will still be affordable.The remodeling market will
also pick up. Continued appreciation of existing
homes allows current owners to reinvest in theirs
and expect to see a return.
Manuel Gutierrez: There was a little improvement

in 2015 that will continue into this year. If the Federal Reserve decides to increase interest rates, this
will have a negative impact on mortgage rates and
perhaps put a damper on further improvement in
remodeling this year.

HINGS ARE STILL plug-

ging right along for
the kitchen and bath
remodeling industry,
as people are finally
becoming financially
sound enough to reinvest in their own living
spaces - and new construction is right on its heels.
Homeowners choose to renovate these two rooms
more than anything else because they get the most
use, add value to a home and offer the biggest
return on investment when it comes time to sell.
Transitional, white kitchens are still all the
rage, but modern elements are also taking a seat
at the table. Clean, fresh and simple are adjectives describing what homeowners want out of
their kitchens and baths - with less emphasis on
stronger details, such as ornate moldings. Designing smart spaces that focus on the well-being of
the clients is the wave of the very near future, as
people are more concerned than ever about good
health upkeep.
KBB spoke with several industry leaders to get
more awareness of the kitchen and bath industry
in terms of growth and trends, as seen in the following educational and insightful Q&A.
What's the outlook for remodeling and new construction this year?
David Crowe: There has not been much activity
lately from first-time homebuyers, and I think that
will change this year.They are tired of paying rent
prices than can often times cover an entire mortgage, and more of them will be able to qualify for
a mortgage. As the economy continues to expand,
people will feel more comfortable about job secu-

Maria Stapperfenne: The remodeling market will

only continue to grow; there are lots of good
things on the horizon. There are all sorts of indicators that contractors are busier and are even
booking jobs into next year. People are no longer
looking for the lowest price but what is best in
terms of overall value. Consumers are still shopping for a good deal, but they are doing it a little
smarter than they were before.

MANUEL GUTIERREZ

Consulting Economist for
the National Kitchen & Bath
Association (NKBA)

Randy Fiser: We are looking at a great time for optimistic growth this year.The number of designers
and firms is ahead of numbers in 2007 - prior to
the recession.The job market is hot for firms of all
sizes, and it's a good time to hire people.
Judy Mozen: Remodeling jobs are getting

larger because people are willing to spend

"Consumers are still shopping for a good deal,
but they are doing it a little smarter
than they were before."
Maria Stapperfenne

BY CHELSIE BUTLER

Kitchen & Bath Business / JAN. 2016 / KBBONLINE.COM / The official sponsor of KBIS (KBIS.com)

MARIA STAPPERFENNE,
CMKBD

Member of the NKBA Board
of Directors and NKBA
Immediate Past President

RANDY FISER

Executive V.P./CEO of the
American Society of Interior
Designers (ASID)

http://www.KBBONLINE.COM http://www.KBIS.com

Kitchen & Bath Business - January 2016

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