How COVID-19 Crisis Impacted Kitchen & Bath Businesses

How COVID-19 Crisis Impacts Kitchen & Bath Businesses

The impact of the coronavirus (COVID-19) outbreak impacted residential and commercial remodeling markets, which opened 2020 on an upward trajectory. Forecasts from the beginning of 2020, issued prior to the virus outbreak, pointed to continued growth until the end of the year. However, the impact of the current public health crisis took hold among potential remodeling prospects, kitchen & bath design professionals, cabinet showrooms, suppliers, distributors, etc.

Many kitchen and bath dealers, designers, and other industry professionals temporarily closed their brick-and-mortar shops and showrooms in March and April. They are now slowly starting to open again while ensuring the health and safety of their customers and employees. Kitchen & bath showrooms that are back open have set steps in place as per CDC guidelines, making sure they are frequently sanitizing offices and practicing safe social distancing.

All of this affects their everyday operations and still, they are concerned about delays due to the worldwide pandemic. While many projects continue as planned with a few issues, the booking of future work is a bigger concern. Appointments for design, sales, and installations are being canceled, some homeowners are putting their remodeling projects on hold because of their current financial situation, and there is a certain slowdown in the industry overall.

Kitchen & bath professionals were affected by some kitchen cabinet products being delayed as they were coming in from abroad. This put a number of remodeling projects on hold, but customers showed understanding and patience, being aware of the health crisis severity and its consequences. Because of this, they either changed their cabinetry choices or decided to wait until the situation was resolved. It seems that COVID-19 had a lesser impact on supply chains that source American-made products.

Impact Confirmed by the KBMI Research

According to the Q1 2020 Kitchen & Bath Market Index (KBMI) research, conducted as a joint venture between the National Kitchen & Bath Association and John Burns Real Estate Consulting, the COVID-19 pandemic had a major of an impact on businesses — 8.08 (on a scale of 1 to 10, with 1 being no impact and 10 being significant impact). Retail businesses (8.3) and building/construction (8.29) were the industry sectors most affected by the coronavirus, compared to manufacturing (7.84) and design (7.96), according to the KBMI.

The research also showed that kitchen & bath manufacturers operate on average at 52% capacity currently. More than half of all U.S. manufacturers say orders they receive at this time are moving ahead, but at a slower pace than before. 46% of manufacturers received order cancelations, the research shows.

How COVID-19 Crisis Impacted Kitchen & Bath Businesses

Signs of Recovery in the Kitchen & Bath Industry Despite COVID-19 Impact

However, not everything has stopped. Some of the KitchenDEV’s kitchen & bath showroom clients are reporting about new leads calling in, asking for kitchen cabinets and countertops selection for their kitchens, design appointments, and installations, and more people making appointments to come in the showroom. Also, previously scheduled and postponed appointments are being rescheduled. Templating, fabrication, design, and installation jobs are slowly starting to pick up, resulting in newly completed projects.

Also, according to the latest Kitchen & Bath Market Index (KBMI), there are indicators of recovery to come, although the impact of COVID-19 on kitchen and bath professionals is “undeniable”.

According to the NKBA and John Burns Real Estate Consulting, cancellation rates are starting to stabilize, after being at 14% in early April. Cancellation rates had decreased to 12.6% by mid-April and to 11.9% by May 1. The kitchen and bath remodeling projects had a lower cancellation rate than exterior work, according to this research. Customers aged from 45 to 64 were canceling projects less than 10%. First-time buyers were canceling their projects more often, while retirees are mainly postponing their projects until 2021, according to the research.

Also, some kitchen & bath businesses are considering new technology to improve future business processes. Making virtual consults, remote conferencing, and E-design appointments an option could help them in conducting their business in the long run and make them ready for any unpredicted crisis.

How Can KitchenDEV Help You Stay on Course

If you are a kitchen and bath business and you have experienced difficulties during the COVID-19 crisis, it is probably time to upgrade your systems and make them more effective. Now, more than ever, it is extremely important to adapt to the situation and get ready for what is coming next.

KitchenDEV development team has been working hard to keep updating and improving our Cabinet Pricing & Ordering app to perfectly fit your needs, while our kitchen & bath digital marketing pros are at your service. Whether you’re in the position to start marketing your business or to improve your processes with innovative yet simple solutions — we’ve got you covered. KitchenDEV will help you save money by reducing labor and improving sales.

Our ERP Solution for Stock Cabinet Manufacturers and Retailers will help you manage end-to-end flow, from pricing cabinets to orders and returns with our premium sales automation software. This is a flexible and component-based solution that can integrate with your existing inventory, accounting, and other systems, making your everyday processes easier, faster, and more productive, while saving your money and labor. Check out for yourself, start your free 30-day trial today.

Learn more about our Stock Cabinet Pricing & Ordering app, explore our Solutions for Manufacturers, Solutions for Retailers, see how to improve your Reputation Management, and Digital Marketing with KitchenDEV.

Contact us today.