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Gains in Single-Family Housing Expected to Increase in 2022
WASHINGTON, DC — Breaking an eight-year trend, there have been more single-family homes under construction in recent months than multifamily units, according to the National Association of Home Builders, which predicted additional gains in single-family construction in 2022.
Despite some cooling earlier this year, the continued strength of single-family construction in 2021 means that there are now 28% more single-family homes under construction than a year ago, said Robert Dietz, chief economist for the Washington, DC-based NAHB.
“These gains mean single-family completions will increase in 2022, bringing more inventory to market despite a 19% year-over-year rise in construction material costs and longer construction times,” Dietz said.
Ongoing single-family and multifamily housing production accelerated in November, due to strong demand, with overall housing starts increasing 11.8% to a seasonally adjusted annual rate of 1.68 million units, according to U.S. government figures.
Despite inflation concerns and ongoing production bottlenecks, builder confidence in the market for newly built single-family homes also edged higher for the fourth consecutive month on strong consumer demand and limited existing inventory, the NAHB added.
“While demand remains strong, finding workers, predicting pricing and dealing with material delays remains a challenge,” said Dietz. “Building has increased but the industry faces constraints, namely cost/availability of materials, labor and lots. And while 2021 single-family starts are expected to end the year 24% higher than the pre-COVID 2019 level, we expect that higher interest rates in 2022 will put a damper on housing affordability.”
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2021 Home Spending Continued at ‘Dizzying Pace,’ Report Finds
DENVER — Not only did homeowners spend more on their homes in 2021, but they also completed more projects, according to a new report by Angi, the Denver-based firm that links homeowners with remodeling and other home-related professionals.
According to Angi’s report annual 2021 State of Home Spending Report – entitled The Great Shift: How the Pandemic Put Homes in Focus – surveyed homeowners spent an average of $15,680 on home improvement, home maintenance and emergency repairs in 2021, and took on an average of 14.4 separate home projects.
“The growth in home spending we witnessed continued at a dizzying pace as people have continued spending more time in their homes,” said Mischa Fisher, chief economist for Angi, whose annual report focuses on trends in home spending including drivers, obstacles, top projects and forecasts for the years ahead.
“2021 also presented homeowners with trillions of dollars of unexpected home equity and that wealth has been, at least in part, reinvested in the home through improvements, maintenance and repairs,” Fisher observed. “Pre-pandemic, people were motivated to work on their homes for a return on investment or other financial incentives. Now, they’re prioritizing projects that help their homes better suit their new normal,” she added.
The most popular home project of 2021 was interior painting, completed by nearly one in three homeowners (32%), followed by bathroom remodels (28%) and installing smart home devices (27%). Other top projects include flooring (26.7%), landscaping (24.7%), exterior painting (24.2%), kitchen remodels (23.7%), fencing (23.1%), new roofing (19.6%) and new cabinets (19.5%).
The Angi report also asked homeowners what home projects they would do if given $10,000. While the overall top project was a living room upgrade, selected by 17% of homeowners, the different priorities of men and women were clear. Male homeowners prioritized living room upgrades (18%), outdoor space upgrades (17%) and bedroom upgrades (15%), while women were more interested in kitchen remodels (21%), bathroom upgrades (17%) and outdoor space upgrades (16%).
The State of Home Spending was based on Angi’s analysis of surveys fielded to 6,400 consumers in early October, the company said.
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Spotlight Kitchens of June – Cabinet Refacing
- Project Location: Grayslake, IL
- Remodel type: Cabinet Refacing
- Type of door style: Lancaster Profile
- Remodel style: Modern
- Color: Summerflame 3DL
For more information about this project, please visit Kitchen Solvers of Grayslake’s Gallery page.
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Leads Robust, But Margins Being Squeezed, KBDN Survey Finds
CHICAGO — Sales leads and project requests are robust, and revenue forecasts are bullish, but profit margins are reportedly being squeezed, COVID-19 remains a concern, and kitchen/bath dealers and designers continue to face supply-chain snafus, product price hikes, a skilled-labor shortage, and other headwinds to more robust growth in the months ahead.
That’s the primary consensus of a series of surveys conducted by Kitchen & Bath Design News and other industry sources attempting to get a handle on 2022 business prospects, following a year in which the kitchen/bath market witnessed sharp growth in both its remodeling and new-construction sectors, while COVID-19 continued to reshape the nation’s housing landscape, incomes and saving accounts rose, design trends and homeowner demographics evolved, and larger, more-multi-functional homes continued to remain a focus of consumer spending
But the pace of market growth, while projected to be palpable, has tapered off in recent months, and is expected to cool even more in the months ahead, as inflation scythes through the economy, product and labor availability continue to hamstring design/remodeling firms, housing affordability remains at historically low levels, and uncertainties tied to the coronavirus continue to loom.
KBDN’s nationwide survey of dealers and designers, conducted at the tail end of 2021, found that an overwhelming majority (86+%) of those polled said they expect their company’s revenue to either increase or remain roughly the same in 2022 compared to 2021. In contrast, less than 14% said they anticipate a revenue decline in 2022. Revenue gains are anticipated for both new and remodeled kitchens and baths, although dealers and designers are more bullish about revenue growth from kitchens (34.2%) than they are from baths (7.9%).
Dealers and designers also report that sales leads and project requests are up dramatically compared to the same time a year ago – understandable given how the current confluence of COVID-related demand, savings growth, home appreciation, government stimulus and other factors continue to spur homeowner spending. Specifically, a whopping 65+% of survey participants report their current sales leads are either somewhat or much higher now compared to a year ago, while only about 15% report that sales leads are lower and about 19% say they are about the same.
But while sales leads and strong, and revenue is generally expected to increase, surveyed dealers and designers paint a different picture when it comes to anticipated profit margins. For example, while 33.6% of those surveyed expect 2022 profit margins to increase, 14.2% expect margins to decline compared to 2021, and more than half (52.2%) expect margins to remain the same.
Other survey findings:
n With the COVID-driven emphasis on health and wellness, work-at-home arrangements and families sheltering in place, increases in client requests are being reported for products that range from universal design, smart appliances and aging-in-place elements to outdoor kitchens, anti-microbial materials and home ventilation.
n Pricing is apparently not a major factor for clients, many of whom seem willing to spend whatever it takes to get the kitchens and bathrooms that they want. For instance, while roughly 60% of the dealers and designers surveyed by KBDN say that pricing is either less important to clients or about the same as it was a year ago, far less (40%) say that pricing is more critical to clients now.
n While 51% of the design professionals surveyed say they are either extremely, very concerned or somewhat concerned about COVID-19 negatively impacting their business operations and profits in 2022, more than half (54%) say they are “not very” or “not at all” concerned, even in light of the new Omicron variant impacting the nation.
n While less than 5% of survey respondents report clients postponing or cancelling projects, nearly 44% report they are experiencing longer lead times for product deliveries and/or production and shipping delays.
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The Best Kitchen Appliances to Gift
Are you struggling to come up with gifts to give your partner? Are you looking to show your loved ones that you care? Are you searching for the perfect gift but keeping hitting dead ends? Well fear no more. Kitchen Solvers is here to guide you on your decision-making journey.
The kitchen is the hub of any household; it’s the place where people are brought together. The place where creativity and conversation flow freely. And a place with such a wide variety of purposes deserves to be fully utilized and appreciated. We have complied a list of the best kitchen appliances to gift your loved ones, friends, co-workers, or even yourself. Christmas, holidays, special occasions, birthdays or maybe there’s no special occasion you’re just in the market for some new appliances! Regardless your intentions, we want to ensure your kitchen is used to its utmost potential. Here are some kitchen appliance gifts below.
Kitchen Aid Mixer
A Kitchen Aid Mixer is the perfect gift for someone who’s looking to become a more frequent baker/chef. A Kitchen Aid Mixer uses specifically designed mixing bowls that snap into place on the mixer’s support arms to provide stability and backing for heavy batches. Not only do they mix, but they also shred, grind, whip, knead, and mash. This mixer is perfect for whatever you can conjure up in the kitchen whether that’s preparing pizza dough or tweaking your famous chocolate chip cookie recipe.
Cuisinart Tabletop Grill or the Cuisinart 5-in-1 Gridler
Let’s not limit grilling and all its glory to only in the summertime. If you’re a grilling enthusiast and want further your skills, the Cuisinart tabletop grill is the way to go. And if you’re looking for something similar to the tabletop grill but a little more toned down, consider the Cuisinart 5-in-1 gridler. This multifunctional countertop grill can also be used as a griddle and press. With these appliances, grilling season is year-round.
Air Fryer
An air fryer is similar to an oven in the sense that it bakes and roasts, but the difference is its heating elements are only located on top and are accompanied by a large, powerful fan. Air fryers typically heat up very quickly and they cook food fast and evenly. Think of them as an amped-up countertop convection oven. With an air fryer, it’s easy to whip up frozen foods in a slightly healthier way than deep-frying.
Rice Cooker
A rice cooker is an electric countertop device designed to automatically cook rice to perfection. You simply put some water in a pot, and you get perfectly cooked, fluffy rice every single time, even when you’re distracted. Another bonus, rice cookers are easier to clean as well! Rice cookers are excellent for steaming rice, oatmeal and even quinoa while allowing you to shift your focus on other food prep tasks.
Instant Pot
An instant pot is starting to take the place of a crock pot. An instant pot is an electric pressure cooker which means it cooks foods faster by controlling the pressure within the pot. Pressure cookers work by creating heat under a tight seal, so the temperature is much higher than the boiling point of water and the steam can’t escape. The steam cooks food much more quickly than traditional stovetop or oven cooking. An instant pot is prime for meal prepping and preparing freezer meals; perfect if you have a busy week ahead.
Kitchen Solvers
Whether you’re looking for kitchen gift inspiration or considering a remodel, our Kitchen Solvers blog is here to help and guide you on your quest. Here at Kitchen Solvers, it’s our goal to ensure you have the most Pleasant Remodeling Experience! Feel free to call us today for your kitchen consultation or read some of our latest blog articles like Trending Kitchen Styles for 2021 and How to Have an Eco-Friendly Kitchen Remodel.
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Spotlight Kitchens of November – Cabinet Refacing
- Project Location: Menomonie, WI
- Remodel type: Cabinet Refacing and New Cabinetry
- Type of door style: Mission
- Remodel style: Transitional
- Color: Classic White and Black
- Door Material: Maple
- Countertop: Cambria
- Countertop Color: Hollinsbrook
- Backsplash: White Subway Tile
For more information about this project, please visit Kitchen Solvers of Eau Claire’s Gallery page.
- Project Location: Hawthorn Woods, IL
- Remodel type: Cabinet Refacing and New Cabinets
- Type of door style: Shaker
- Remodel style: Modern
- Color: Ontario white for uppers and Haze Supermatte for lowers
- Countertop: Quartz
- Countertop color: Calacatta Laza
For more information about this project, please visit Kitchen Solvers of Grayslake’s Gallery page.
- Project Location: Pickerington, OH
- Remodel type: Cabinet Refacing
- Type of door style: Shaker
- Remodel style: Modern
- Color: Stratus Super Matte
- Countertop: Quartz
- Countertop color: Bianco Fumo
- Backsplash: Canvas La Belle Purity polished ceramic
For more information about this project, please visit Kitchen Solvers of Columbus’ Gallery page.
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William Ohs Acquires PA Luxury Cabinet Supplier
DENVER — William Ohs, the Denver-based manufacturer of luxury cabinetry and furniture, has acquired Draper DBS, a Bucks County, PA custom cabinet supplier, “merging two companies that are well-established and respected in the luxury cabinet industry,” the companies announced.
Terms of the transaction were not disclosed.
“The combination of Draper DBS and William Ohs brings together the ideas and manufacturing concepts of two legendary visionaries in the luxury kitchen market,” said Rick Casey, v.p./manufacturing for William Ohs, founded in 1972 by industry pioneer Bill Ohs. “The combined synergies create both exciting and unparalleled opportunities moving forward,” Casey added.
William Ohs and Draper DBS “will be able to provide the same detail-oriented approach to a larger market while capitalizing on increased manufacturing efficiencies,” corporate officials said.
“I am excited and humbled to be drawn into the most creative act of wood joinery in the industry, the dovetailing of the crafts, hearts, and creative legacies of Draper DBS and William Ohs,” said William Draper, founder of Draper DBS. “This will be an intertwining of our combined strengths, histories, and visions to cultivate the future inspirations of all those who love great and evolving furnishing design.”
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Builder Confidence Reported Up Despite Market Challenges
WASHINGTON, DC — Despite inflation concerns and ongoing production bottlenecks, builder confidence edged higher in December for the fourth consecutive month on strong consumer demand and limited existing inventory, the National Association of Home Builders reported.
Builder sentiment in the market for newly built single-family homes moved one point higher to 84 in December, according to the NAHB/Wells Fargo Housing Market Index (HMI), released today.
“While demand remains strong, finding workers, predicting pricing and dealing with material delays remains a challenge,” said NAHB Chairman Chuck Fowke.
“The most pressing issue for the housing sector remains lack of inventory,” observed Robert Dietz, chief economist for the Washington, DC-based NAHB. “Building has increased but the industry faces constraints, namely cost/availability of materials, labor and lots. And while 2021 single-family starts are expected to end the year 24% higher than the pre-Covid 2019 level, we expect higher interest rates in 2022 will put a damper on housing affordability.”
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Wrapping 2021 and Looking Ahead
What a long, strange year it’s been! Let’s take a look back at the dominant 2021 trends and anticipate what 2022 will likely bring.
While it’s hard to predict with clarity, given some major unknowns, here are some hot takes from across the industry and the country from unique perspectives:
- San Diego-based designer Tatiana Machado-Rosas, Jackson Design and Remodeling’s design department manager;
- Long Island, New York-based kitchen and bath designer Susan Serra;
- Home Technology Association CEO Josh Christian;
- Bob Gifford, business development director for luxury retailer Hastings Tile & Bath in New York City;
- Susan Chung, research v.p. with the American Society of Interior Designers;
- Boise, Idaho-based custom home builder Emily Clark of Clark & Co. Homes.
Wellness Trends Accelerate
Designers have been focused on wellness for decades with interest from some clients, but the pandemic really drove its importance home. Literally! “For 2021, a continued focus on health and hygiene helped drive the kitchen,” observes Chung. She also sees its importance elsewhere, noting that “the bathroom really became a place to escape the stress and fear of the outside world.” Wellness showed up in outdoor, work from home and mindfulness spaces, too. “As the home became a hub for all types of activities colliding together, homeowners were looking to design as one way to alleviate stress and promote tranquility,” the ASID executive concludes.
Beyond the spaces noted above, wellness showed up in related rooms. “The switch from what had been called the ‘mud room’ to what is now called the ‘utility room’ or pre-wash area; so many people wanted a location to drop groceries and sanitize items before heading into their homes,” shares Gifford. This is tied to an increasing interest in hands-free functionality, he explains: “Soap dispensers, faucets, hand-towels – anything and everything that gave people a sense of comfort and control over their environment.”
Kitchen Design Trends
“Multipurpose kitchens with open floor plans continued to be a strong trend as clients look to make their kitchen the vibrant heart of their home,” says Machado-Rosas. “Integrating smart technology, particularly with more people using the kitchen space to work from home or attend virtual classrooms, became even more essential. In addition, clients had a renewed interest in keeping their spaces hygienic, which led to a desire for easy-to-maintain materials for countertops and flooring,” she adds. The design manager conversely sees a resurgence in natural stone for sinks and countertops, attributing it to a desire for the sense of calm that comes from a connection to nature.
Across the country, Serra sees three dominant trends: “Wellness on steroids, cooking convenience and visual comfort.” Health and cleanliness were the top concerns she was hearing from clients. This included “performance materials in surfaces, as well as appliances [and fixtures] that promote healthy living and preserve our health, such as renewed attention to proper ventilation, enhanced touchless faucets and larger sinks going mainstream – often with two faucets” as a few examples.
Changes in shopping and eating habits are also influencing kitchen design, the New York designer believes. “A new hybrid type of cooking has emerged; time (but not too much) is being taken to create healthy homemade meals from fresh, quality foods, assisted by smart, efficient appliances. The purchase of a freezer for bulk food storage, better cabinet storage solutions and designing in more countertop space creates a near utopia for one or more cooks.”
Visual comfort is also a trend, Serra has observed. “As the kitchen has taken on more lifestyle functions in the past 18 months, homeowners are much more open to creative design solutions,” she shares. This has meant larger windows, nature-inspired texture and finish mixes, and comfortable dining areas with flexible designs or banquettes. “The transition of the kitchen aesthetic to more seamlessly integrate with surrounding rooms lessens the perception of the kitchen as workspace and nudges it more toward a living space,” she suggests.
Clark has also seen kitchens evolve, she comments, citing an “expansion of the scullery or the working pantry, work zones as opposed to a work triangle, and multiple mini-kitchens for multi-generational living.” Antimicrobial counters, touchless faucets and chef sinks also support healthy living and cooking, the home builder notes. Natural finishes, warm woods and creative design solutions with saturated cabinet colors are showing up in her northwestern region too.
Bathroom Design Trends
“The emphasis in bathroom design has been to create a highly customized space that communicates joy and tranquility,” Machado-Rosas observes. “Clients have been seeking a personal retreat with a spa-like atmosphere where they can truly relax.” These have included steam showers, heated floors, statement tubs – sometimes custom – and premium features catering to clients’ personalized needs and desires. Natural materials show up in these luxury bathrooms, too, the San Diego designer notes. “Balancing porcelain or glass tile with natural woods and stones and amplifying natural light have been popular,” she adds.
Clark sees the trend toward personalized luxury in her Idaho homes, as well. These include “sculptural soaking tubs, steam showers with light, sound and aromatherapy, tiles with hand-cut looks and subtle tonal differences, reeded or fluted textures, oversized area rugs and diaphanous drapes.”
“All during 2021, we worked with designers who wanted (and still want) the flexibility to customize their projects by using different colors and finishes for their vanities,” Hastings’ Gifford recalls. “For tubs, the solid surface materials remain popular because they have a supple texture and they are easy to clean and maintain.” The New York retailer also saw strong interest in hands-free faucets with white finishes and versatile wall-mounted vanities.
Technology Trends
Technology continued to trend in kitchen and bath projects, and it shows no sign of slowing. Smart features have a growing presence in kitchens and bathrooms, Home Technology Association CEO Christian notes. “We are seeing entertainment products being installed in kitchens like waterproof TVs built into the counter backsplash, charging docks, tablets for cooking tutorials or recipe surfing, built-in ceiling speakers or a simple wireless speaker on the counter.” He is also seeing sleek, integrated outlets, lighting keypads and flush-mounted concealment systems so that the room’s electronics are present but hidden.
“With bathrooms, we are seeing a lot of circadian rhythm lighting being installed so that time spent in the bath is consistent with a homeowner’s sleep cycles,” he says. Additional bathroom technology trends cited by the designers include smart toilets, enhanced shower systems, built-in sound and lighting systems and smart shadings.
Machado-Rosas sums up the situation this way: “We saw a significant increase in clients asking for fully integrated smart technology in their homes. Because of the combination of enhanced affordability and ease of use, we expect to see this trend grow exponentially in the years to come.”
Predictions for 2022
ASID’s Chung is anticipating that flex spaces, universal design, locally sourced products because of supply line and sustainability concerns will trend in 2022. She also believes that the pandemic has increased the perceived value of designers in helping their clients navigate the challenges brought about by the pandemic.
HTA’s Christian anticipates a strong push toward wellness technology, indoor and outdoor home theater spaces and the death (at least short-term) in ‘just-in-time’ delivery systems. He also sees designers working earlier in the process with technology professionals to more seamlessly integrate their projects.
Hasting’s Gifford predicts the increasing importance of video tours to replace travel and live events where possible. He also anticipates more integrated sink/vanity options, solid surface tubs continuing their popularity and, though no one wants to hear this, he notes, price increases across all products because of the increased costs of raw materials.
Among the designers, Serra anticipates appliances with upgradable technology, more dining space in kitchens, and more storage for multiple cooks. Machado-Rosas expects to see technology show up in more products and for smart home systems to become more affordable, a continued attention to creating calming spaces, multi-purpose rooms, larger pantries and customized bathrooms. She also expects minimalism to trend strongly for its low-
maintenance benefits.
Home builder Clark expects to see more hidden kitchens, induction, multi-function appliances and less upper cabinetry. She anticipates bathrooms getting more artisanal materials, sound and light enhancements for spa effects, and even what she calls family wellness suites. These would resemble high-end spa facilities with steam or sauna areas, grooming stations and central shower stalls.
While 2021 kept many design industry professionals at home, dealing with inventory and other challenges, 2022 is already shaping up to be a more active, in-person kind of year. The Kitchen & Bath Industry Show, paired again with the International Builders’ Show, will meet in person in Orlando in February. Exhibitors reflecting the trends observed by these professionals will be on hand to share their wares. I’ll be there. Will you?
Jamie Gold, CKD, CAPS, MCCWC is an author, wellness design consultant and industry speaker. Her third book, Wellness by Design (Simon & Schuster), published September 2020. You can learn more about her Wellness Market presentations, books, Wellness Wednesdays Clubhouse conversations and consulting services at jamiegold.net.
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Battling the Supply Chain Woes
Qianyan Cheng has felt the sting of the industry’s historic supply chain disruptions.
The co-founder of INOX – the Sacramento-based supplier of decorative hardware and door locks – Cheng has reported lengthy shipment delays of international goods since the onset of COVID-19. Shipping costs, Cheng tells Kitchen & Bath Design News, have risen exponentially in the face of the public-health crisis. The growing backlog of cargo ships waiting to offload in key ports, she says, has increased more than fourfold in some cases, impacting distribution throughout the company’s worldwide network of upscale hardware showrooms. Related bottlenecks have delayed remodeling and new-construction projects for months – or postponed them entirely.
And Cheng, of course, is far from alone.
Indeed, supply chain disruptions wrought largely by the coronavirus continue to prove a major impediment across virtually all segments of the kitchen and bath industry, including dealers, design firms, manufacturers, importers and building/remodeling construction firms.
In some instances, the supply chain timeline has doubled or tripled due to increased demand coupled with port closures, worker shortages and travel restrictions, as well as vaccine and testing mandates for seafarers, truck drivers and other transport workers. Design firms are witnessing increasing lead times, raw material scarcities and double-digit price hikes for certain products. Labor rates have skyrocketed in the face of worker shortages. Cancellations and postponements have increased, with clients opting to put projects on hold until wait times and costs normalize. At the same time, a sizable number of manufacturers report ongoing capacity restraints, a scarcity of raw materials and the discontinuation of slow-moving product lines to alleviate production constraints.
Equally vexing is the likelihood that the current disruptions will linger well into 2022, and perhaps beyond, despite growing appeals for corrective action.
To wit, the Association of Home Appliance Manufacturers, the organization representing many of the industry’s leading appliance suppliers, last month lent its support to a coalition of trade associations urging government policymakers to address ongoing challenges that business leaders say are damaging the competitiveness of manufacturers, stalling America’s economic recovery and resulting in unprecedented damage to the global product supply chain. AHAM’s call for action, following a similar appeal by the National Association of Home Builders, came one day after a coalition of workers from across the supply chain warned that global trade is facing a potential system collapse if world leaders fail to restore freedom of movement to transport workers.
While some supply chain challenges – such as import tariffs – require long-term, systemic solutions, others can be mitigated by kitchen and bath dealers, designers and remodelers who are willing to temporarily alter their business approach.
For example, many design firms report that they’ve become adaptive to current supply chain challenges, ordering products months in advance to circumvent long lead times and lessen the sting of price hikes. Others say they’ve ordered materials as soon as project contracts are signed, even if a job is weeks out, or have stocked up on commonly used products in an effort to reduce delays. Still others are offering clients alternative products that are easier to obtain or already in stock. Frequent and candid communication regarding extended lead times, back orders and volatility in delivery dates has also become more critical than ever in managing client expectations and preserving relationships, dealers and designers say.
The kitchen and bath design trade has faced a multitude of challenges over the course of its existence. The advent of big box stores and e-commerce has altered the industry’s competitive set. Corporate bankruptcies, ownership changes, factory closures and divestitures have reshaped the manufacturing and retail landscape. Fast-changing lifestyles, homeowner demographics, product introductions and consumer hot buttons have exacerbated the need to stay abreast of what’s going on. Economic downturns have occasionally knocked the industry on its heels.
Astute dealers and designers, for decades, have proven resilient to these and other changes. They’ll doubtless discover ways to survive the current supply chain disruptions, as well.
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