Kitchen & Bath Business - January 2018 - 24

work through trade groups and trade schools to
recruit the next generation of skilled labor. To fill
jobs, employers will have to increase wages, which
could cause a slowdown. Remodelers will also have
to pay more for building materials over the next
few years because of recent natural disasters and
the rising tariffs on Canadian lumber.
Fiser: A key influence on our industry going forward is the economy and its positive movement.
A lot of the growth comes from baby boomers
who are investing in remodeling efforts and the
increased buying power of millennials. People
ages 55 and over represent a seven-trillion-dollar
economy - it is the largest population we have
ever seen at that age and the third-largest in
the world.
There are some threats, such as what will happen
with the tax legislation, which will dictate how
interior designers are taxed on their businesses and
how homeowners address mortgage deductions.

Industry Outlook

Fiser: The good news is that there has been

growth across the country. Recently, growth in
the Western U.S. has slowed slightly, but that is
after months of strong performance. The economy in multiple regions was
impacted by disasters, including hurricanes in Texas and Florida and wildfires
in California. We'll continue to monitor the recovery efforts, the rebound of
the local economies and the impact on national outlook. Also, design has
and will continue to play a significant role in adapting buildings and the
infrastructure in areas that are prone to disasters.

Miller: Pent-up demand is a big factor. People who
made it through the recession - those who didn't
dive right in when it was over - are finally in a
position to remodel. When buying a home, they
want to do some remodeling to suit their own lifestyles. More baby boomers are retiring and staying
in their homes, and older couples are remodeling
for the next phase of their lives.
What regions in the U.S. are flourishing?
Miller: The Eastern Seaboard and the West Coast

are strong markets. The Pacific Northwest has
seen a lot of young professionals move there, and
Denver is a strong market that draws young people with a taste for the outdoor lifestyle. Atlanta,
Charlotte and Nashville are growing markets, and
growth is projected in the Midwest from Minneapolis and Milwaukee to San Antonio. Let's
not forget Phoenix - a huge market projected to
continue growing.

Dietz: There has been a lot of growth in home

building in the Carolinas, Florida and Texas.There
has been a lot of improvement-related spending
because of the hurricanes in 2017. The growth
rates in mountain states like Utah, Idaho and
Montana are strong and are driven by changes
in populations.

Gutierrez: The South generally will continue to

flourish, particularly states like Texas that have had
a favorable business climate for a few years. Also,
cities like Houston may see additional activity
from the efforts to rebuild the areas damaged by
the hurricanes.

24
20-28_KBB_0118_IndustryOutlook.indd 24

What are the expected kitchen trends for 2018?
Darcy: Farmhouse and traditional [styles] have been trending and will con-

tinue to.Transitional is popular as a style that blends the comfort and warmth
of traditional with the clean profiles of contemporary looks. We will still see
white- and gray-painted cabinets, quartz as a leader in countertop materials,
ceramic or porcelain backsplashes and hardwood floors. Design professionals will also specify more task lighting for the kitchen - under cabinets and
pendants over islands.

Miller: Over the last 10 to 15 years, appliances have evolved. Many traditional

homes have been remodeled to reflect a more modern look, which includes
blending sleek, new appliances into cabinets. Gray is a strong color, but
kitchens will also incorporate some brighter colors in cabinetry. Mixing
cabinet colors and finishes within a kitchen for striking accents continues
to be popular.

Dietz: In our surveys, we find homeowners are looking for essential and musthave items. In the kitchen, homeowners want table space for eating, walk-in
pantries, double sinks and a central island.They want enough space for
food prep and group activities, as well as clever storage solutions.

Kitchen & Bath Business / JANUARY 2018 / KBBONLINE.COM / The official publication of KBIS (KBIS.com)

1/4/18 1:59 PM

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

Kitchen & Bath Business - January 2018

Table of Contents for the Digital Edition of Kitchen & Bath Business - January 2018