TFG analysts have repeatedly mentioned in this space the key role the DIY consumer is playing in supporting demand for building and construction materials. A recent report from the National Kitchen & Bath Association indicates that in the large kitchen and bathroom remodeling industry, this trend is continuing – with both positive and negative effects on the industry.
Highlights of the report include:
- The percentage of homeowners indicating that they were working on a remodeling project nearly doubled, rising from 19% to 36% in the second quarter of 2020.
- More than a third of the remodeling jobs completed in the quarter were those of the DIY variety – another sharp increase from the first quarter.
- Nearly one-quarter of all US households want to undertake a remodeling project in the near future, spurred in part by the desire to add more usable space to accommodate working from home and other changes in lifestyle.
- However, the average overall spending on kitchen and bathroom renovation projects in the second quarter fell to about half of the level of the first quarter of the year – dropping from over $12,000 to $6,000.
For manufacturers of products used in kitchen and bathroom projects – plumbing fixtures and fittings, flooring, cabinets, paints, and appliances – this report is good news, indicating continuing strong demand for their products. However, for industry professionals – contractors, installers, designers – this report is less rosy. If fewer Americans employ the services of construction professionals – relying on their own labor – it will affect the health of the construction sector and the US economy overall.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.