KBB - January/February 2011 - (Page 14)

Focus Looking Ahead Industry veterans voice their perspectives on 2011 With the new year just begun, many in the industry may be wondering if 2011 will bring the proverbial light at the end of the tunnel. K+BB asked ve k and b professionals for their views on this new year. They are: Troy Adams, Troy Adams Design; Ellen Cheever, CMKBD, ASID, CAPS, Ellen Cheever & Associates; Mick De Giulio, de Giulio Kitchen Design; David Alderman, CMKBD, 2011 NKBA president and co-owner of Dave’s Cabinet Inc.; and Brenda Bryan, executive director of the Research Institute of Cooking Intelligence (RICKI). What’s your outlook for the kitchen and bath industry in 2011? Troy Adams: I think we’re going to be in a very slow recovery because the banks haven’t been completely candid about the number of foreclosures on their books, and there’s an overabundance of commercial space that isn’t being leased out. Those two factors will drag the economy down and keep people from spending like they used to. But I am seeing a little more activity. Americans are born in their souls to spend, but they’re being more conservative when they shop and taking more time to make their decisions. Ellen Cheever: I believe the luxury market will be much stronger in 2011. Holiday retails sales demonstrated this trend: Luxury was dramatically up and mid-range was slightly up. Any project that must be nanced will remain dif cult to close, so mid-range work may still be “in a holding pattern.” Spec or new construction will not be strong, yet some building will be started for families who are building for themselves. Mick De Giulio: Overall, things will improve, but we’re still on rocky ground because there are too many disturbing factors, such as the amount of debt in our country and other countries, as well as rising taxes and unemployment. I don’t think there’s going to be a robust recovery until the unemployment situation is corrected, which will take some time. You’re not going to go from 10 percent unemployment to 7 percent overnight. Brenda Bryan: Based on feedback from designers and RICKI members, I think 2011 is going to be another tough year economically. Projections for remodeling and new home constructions are encouraging. And we know there’s a lot of pent-up demand among consumers. They want to make changes to their homes—improvements and full remodels. But there still seems to be this cloud hanging over, and people are hesitant to spend large amounts of money. So are consumers remodeling? David Alderman: Yes, in the recent NKBA Consumer Remodeling Study, we learned that homeowners are planning ahead and paying for kitchen and bath remodels out of their checking account. Consistent across U.S. regions, between 55 and 68 percent of respondents paid, or are planning to pay, for their renovations out of their checking account, as opposed to a credit card, loan or other method. In addition, a large majority of remodel projects begin as a rework for a new oven or a change in countertops and then evolve into a full-scale remodel. Cheever: In our remodeling business, Giorgi Kitchens & Designs, the fourth quarter 2010 was strong. January has seen calls from clients who are now ready to move forward, as well as new prospective clients requesting appointments. Our rm’s president, Joseph Giorgi, CKD, expects a very good 2011 and has held company-wide meetings to ensure everyone on the team is focused on cost-effective estimating and project production to protect/increase pro t margins. How would you describe the consumers who are remodeling? Cheever: They’re younger (40-55 years old) consumers who want to discuss the budget early in the planning process. When they look up a designer’s website, they want to see fee information and a discussion of project costs tied to the rm’s gallery of completed projects. They want to make sure the person and the rm they are considering hiring are experts in our industry and nancially stable. The consumer wants to be given choices so that they can carefully select the products and design details. Alderman: According to the NKBA 2010 Consumer Remodeling Study, consumers who are remodeling are well-prepared for the project and know what they would like for their designers to specify. Forty-six percent of respondents said they are willing to pay more for green products in their redesign. Additionally, 36 percent said they consider cabinets to be the most important item when remodeling a kitchen or bathroom. 14 + K BB January/February 2011 / www.kbbonline.com / The Of cial Sponsor of KBIS www.kbis.com http://www.kbbonline.com http://www.kbis.com

Table of Contents for the Digital Edition of KBB - January/February 2011

KBB - January/February 2011
Contents
Online Contents
Online News
Editorial
Letter to the Editor
Focus
Trends
Products
Design
Abroad
Practice
Editorial Index
Ad Index
Favorites

KBB - January/February 2011