Kitchen/Bath Market Study Shows Optimism for 2023; Coverings Draws Nearly 27,000 in April.

A market study shows a glimmer of optimism from U.S.  kitchen and bath professionals for the rest of 2023; Coverings draws nearly 27,000 in Orlando last month; Park plans digital expo in Cincinnati next month.

0:32 2023 Optimism from Kitchen/Bath Professionals
3:16 Park Industries Plans June Digital Expo in Ohio
4:31 A Word from Quantra
5:43 Coverings Draws Nearly 27,000 Last Month
7:26 Hardscape N.A. Registration Now Open
8:20 MSI Opens New Facility in Savannah Area
9:42 Brazil Natural Stone at Milan Design Week
10:46 NSI: 47th R.I.S.E. Home
12:08 MSI Top Workplace Culture Awards

Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.

Transcript

K. SCHIPPER: Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.

00:32

 There’s some good news from the National Kitchen and Bath Association – the NKBA. The organization that produces the Kitchen and Bath Industry Show – KBIS – shows a positive shift in sentiment and business among kitchen and bath professionals for the first quarter of 2023.
 
 Overall, Kitchen and Bath industry professionals reported a modest 1.8 percent year-over-year growth for first-quarter 2023, according to the NKBA/John Burns Kitchen and Bath Market Index, or KBMI.
 
 Although the number sounds small, they reported steady demand in affluent areas that have been more resilient to higher prices. Still, 60 percent of industry professionals said margins remained flat in the quarter, indicating that profitability remained stable.
 
 Fear of recession was the top concern of kitchen and bath professionals as the Federal Reserve continues to push rate hikes and inflation remains above historical norms. However, half of those surveyed are confident their business can withstand an economic downturn.
 
 The KBMI provides a quarterly rating of the industry’s health, based on a scale from one to 100. The positive shift was a result of the improved ratings for industry Health and Future conditions, two of the three components that make up the overall index .
 
 Industry Health rose to 67 from 62 in fourth quarter 2022, while Future Conditions jumped to 68 from 57, the highest rating in 12 months. The numbers reflect a significantly more confident outlook, although Current Conditions, the only one of the three components to decrease, fell to 59 from 61 in fourth-quarter 2022.
 
  Kitchen and bath professionals surveyed for the index describe the health of the industry as strong, despite a cooldown in demand, and in rating Future Conditions, they reported being cautiously optimistic for second quarter 2023 sales performance.
 
 The fact that ratings for all three components remain above 50 indicates that the market is still expanding. The overall KBMI Index has not been below 60 since second-quarter 2020 and the onset of COVID 19.
 
 The quarterly survey questions more than 800 NKBA members in four segments: designers, manufacturers, builders and retailers. Among the segments, retailers were the most confident with an index rating of nearly 68, followed by builders, designers and finally manufacturers, who were last with an index rating of just over 58.
 
 3:16

 Park Industries® will hold its second Digital Stoneworking Expo in 2023 on June 22 in Cincinnati. The company’s first DSE of the year took place in March in Anaheim, Calif.
 
 Attendees get to tour two fully digital shops, watch CNC machine demos, hear from guest fabricators, and learn about growing their businesses. The upcoming session includes tours of The Cabinet and Granite Depot in West Chester Township, Ohio, and Luxor Stone Group in Cincinnati.
 
 Featured presentations include Fabrication for all levels of digital experience from start to finish; creating a new future utilizing past experiences and applying technology; taking the next step with a shop designed to match your needs; and business planning – finding your specific next steps. In addition, three guest fabricators share their growth stories.
 
 There is no charge to attend the expo, but space is limited and expected to fill up fast. For more information to go www.parkindustries.com/stone/event/digital-stoneworking-expo/

 5:43

 Post COVID, tradeshows continue to return to – and exceed – pre-pandemic attendance levels. Organizers of Coverings are the latest to weigh in, reporting that last month’s gathering at the Orange County Convention Center in Orlando, Fla., drew nearly 27,000 attendees. That figure is a 50 percent increase from the 2022 show.
 
 Coverings, which focuses on international ceramic tile and natural stone, covered 450,000 square feet of show floor space and included global pavilions hosted by ceramic tile associations and product manufacturers from the U.S., Italy, Spain, Brazil, Turkey, Portugal, India, China and other countries. A total of 40 countries had exhibitors at the show.
 
 International exhibitors made up 74 percent of the exposition. However, 77 percent of attendees were from the United States. In all, Coverings featured more than 1,000 exhibitors, 24 learning sessions, 95 demonstrations and presenters and many other activities.
 
 Jenn Heinold, president of Taffy Event Strategies, the show management company for Coverings, says, “Positive networking connections and productive business resonated throughout Coverings 2023. We are extremely pleased with the stream of elated feedback we continue to receive.”
 
 Next year’s Coverings show will be held April 22-25, 2024, at the Georgia World Congress Center in Atlanta. To be notified when event registration opens, go to www.coverings.com.

 7:26

 Registration is now open for this year’s Hardscape North America show, which will be held in Louisville, Ky., on Oct. 18-20.
 
 Last year was the first time that the Natural Stone Institute participated in the show, which is produced by the Concrete Masonry and Hardscape Association – the CMHA. Along with sponsoring the project awards utilizing natural Stone, NSI will this year offer two educational sessions as part of the show. The sessions are: Ask the Natural Stone Experts, and Tips for Sourcing Natural Stone and How to Make More Money.
 
 To register for Hardscape North America 2023, which will be held at the Kentucky Exposition Center, go to www.HardscapeNA.com. A $25 early bird registration rate is available through Sept. 7.

 8:20

 MSI opened a new showroom and distribution center in the greater Savannah, Ga., area. Located in Pooler, Ga., the new 680,000-square-foot facility is the 45th such center to be opened by MSI and is its largest distribution center under a single roof.
 
 MSI’s Savannah showroom caters to a diverse customer base providing a product lineup that’s developed around trends, lifestyles and budgets, and includes a state-of-the-art indoor slab area featuring natural stone and Q® Premium Natural Quartz, as well as products such as Everlife® LVF, Arterra® Porcelain Pavers and more.
 
 The slab viewing area will include a wide variety of natural stone including granite and marble, while the quartz gallery will feature more than 120 colors in a variety of finishes. The space is designed for retailers, interior designers, contractors, and builders, as well as consumers, and offers the opportunity to source the best surfaces for residential remodeling, and new home and commercial construction, according to Sales Director Anish Bali.
 
 Showroom hours are 8 a.m. to 5 p.m. Monday through Friday, and 9 a.m. to noon on Saturdays.
 
 In other news around the industry….
 
 9:42

 The garden of the Universita degli Studi di Milano enjoyed a special attraction during the Interni Design Re-Evolution exhibition as part of the Milan Design Week, which was held April 17-26 in Milan, Italy. Entitled FuoriSalone, the design intervention was made entirely with Brazilian natural stone.
 
 The exhibition was organized by “It’s Natural – Brazilian Natural Stone,” The project was promoted by The Brazilian Center for Ornamental Stone Exporters – Centrorochas – and the Brazilian Trade and Investment Promotion Agency ApexBrasil.
 
 During the event, visitors had the opportunity to immerse themselves in the space designed under the essence of biophilia, a concept that brings the environment to urban spaces, which promotes well-being, emotional comforts and a sense of relaxation. It was made of quartzite, semi-precious stones, and dolomitic marble from six Brazilian companies.
 
 10:46

The Natural Stone Institute has provided natural stone and fabrication services for its 47th home with the Gary Sinise Foundation through its Restoring Independence Supporting Empowerment – or RISE program. The Foundation’s program builds 100 percent mortgage-free specially adapted smart homes for severely wounded veterans and first responders.

Natural stone and fabrication for retired U.S. Marine Corps Corporal and police officer Sharif Muzayen were provided by UMI and Florida Custom Marble.

Muzayen successfully completed a five-year enlistment in the Marine Corps, where he served in Afghanistan. Upon his discharge in 2013, he began training with the Orange, Calif., Police Department. While responding to a report of a possible drunk driver, he was struck by another drunk driver. He suffered a broken tibia and fibula, a severed femoral artery, and a brain hemorrhage.

In 2019, after two years of rehabilitation and multiple surgeries, the decision was made to amputate Muzayen’s left leg above the knee. Today, he and his family reside in St. Mary’s, Ga., where he is completing a degree in biology.

Companies interested in getting involved with future projects should email rise@naturalstoneinstitute.org.

 12:08

And, M S International, Inc. – MSI – has earned four Top Workplaces Culture Excellence Awards for 2023. The Orange, Calif-based supplier of flooring, countertops, wall tile and hardscaping products, was recognized for its Compensation and Benefits, Purpose and Values, Leadership, and Innovation.

The awards are given by Energage, a research company with more than 16 years of experience surveying more than 27 million employees at more than 70,000 organizations. The awards are based solely on employee feedback. Chris Courneen, MSI’s vice president of human resources, says the company is excited and deeply humbled to be recognized for its innovation, leadership and overall goal of supporting the lives and livelihoods of its MSI family.

Remember, our newsletter, Slab & Sheet, comes out on alternate Wednesdays. For a transcript of this broadcast, go to www.radiostoneupdate.com.
 
For Radio Stone Update, I’m K. Schipper, and we’ll see you here again soon.