APRIL 2022 l The Wholesaler l PHCPpros.com
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KOHLER CO.,
a global leader in kitchen and bath products, is proceeding with constructing a Greeneld plumbing products manu- facturing facility, ancillary warehouse, and oice space on 216 acres in Casa Grande, Arizona. The multi-million capital investment comprises a total of approximately 1 million square feet, with room onsite for future ex- pansion, and will bring more than 400 new full-time jobs to the local market. Kohler is an iconic American brand and we are proud to see the company expand its manufacturing operations to Casa Grande, said Governor Doug Ducey. The com- pany's investment brings yet another industry-leading business to Pinal County, adding hundreds of good jobs to the region's booming manu- facturing landscape. Kohler will produce the company's high-growth lines of STERLING Vikrell bath and shower xtures - popular among large single-family home- builders and multifamily developers, and retail big box stores - to support increasing customer demand. The facility will also serve as a distribu- tion center for these products, to best serve Kohler's growing customer base in the western U.S. with reduced lead times and delivery eiciency. We are pleased to expand our North American manufacturing foot- print in the western U.S. This new plant will provide the needed capac- ity to support our strong growth projections for STERLING Vikrell bath and shower products, said Shawn Oldenho, president of Kohler Kitchen and Bath North America. We look forward to becoming an active member of the greater Casa Grande community and contributing to its growing economy and quality of life. This new manufacturing facil- ity would not be possible without the ongoing support of our loyal cus- tomers and partners who have been crucial in helping to build our Vikrell business to what it is today. Set to be operational by August 2023, Kohler's new manufacturing facility will incorporate smart factory elements and cutting-edge produc- tion technology. The facility will also incorporate key sustainability measures to reduce greenhouse gas emissions, water use, and solid waste. Several alternate energy strat- egies are also being evaluated. Kohler's new manufacturing operations will expand the local economy, increase tax revenues, and bring hundreds of new full-time jobs to the area, in addition to jobs dur- ing the construction phase. The City of Casa Grande is very excited to welcome the industry leader and global manufacturer of kitchen and bath products, Kohler Company. Kohler has established itself as a highly successful company that contributes to its local commu- nities, said Craig McFarland, Mayor of Casa Grande. Kohler not only leads in its industry, but is equally responsible to the neighbors and community where it resides. The company is recognized for reducing their environmental impact in its operations, demonstrating socially responsible practices, and creating products that dene the sustainabil- ity landscape of the future. Once completed, the site in Casa Grande will be Kohlers second Vikrell production facility, joining Kohlers existing eastern facility in Huntsville, Alabama.
Kohler Co. Announces Construction of Greenfield Plumbing Ware Manufacturing Facility
THE NATIONAL KITCHEN & BATH ASSOCIATION
(NKBA) - one of the world's leading non-prot trade as- sociation for the kitchen and bath industry providing tools, research, certication, and events to thou- sands of professionals - has released its nal Kitchen & Bath Market Index (KBMI) for 2021. The quarterly report, which is aimed at measuring the health of the kitchen and bath indus- try, found that the industry ended the year on a positive note. We're extremely encouraged by these results as they conrm that the industry remains optimistic about its future - with the sector remain- ing nimble and creative in order to continue to be successful in the face of continuing challenges, said Bill Darcy, CEO, NKBA. While we're keep- ing our eye on a few things such as ongoing supply chain issues and pric- ing ination, the fundamentals for the industry remain strong including con- tinued consumer demand with strong home values and equity levels. The remodeling industry has been the beneciary of a seller's home market, with homeowners leverag- ing their home's market value to renovate spaces within their home to both increase value as well as live-ability and exibility. In Q4, all kitchen and bath segments reported double-digit sales growth YOY, as well as a solid quarter-over-quarter performance with an increase of 8.1% in total spending. While challenges persist, some of these may be helping the industry see long-term growth by spreading out projects into 2022. For example, the report found that 58% of designer respondents reported backlogs of over 3+ months, with a further 23% experiencing a backup of more than 6+ months. This has helped lead in- dustry professionals to project 13.1% annual growth in 2022. However, while there is a silver lining, the issues from 2021 continue to persist in the background. Once again, industry members rated sup- ply chain disruption, material costs, labor availability and ination as their top concerns. An overwhelming 96% of businesses in the kitchen and bath industry have reported supply chain issues aecting their bottom line, while 28% have given material shortages a maximum rating of 10. These ratings indicate a severe im- pact on their day-to-day business. Virtually every sector of the economy has been aected by the ongoing supply chain, material and labor issues, with the kitchen and bath industry being no exception. The report showed that the price of industry products has increased across the board by double-digits, underscoring the cost pressure our sector is under. However, the kitchen and bath industry continues to be resilient in the face of this adversity, setting themselves up for another year of growth. Darcy continued. Among the report's key ndings include the following:
Year Ends on a High Note:
2021 saw the industry continue to weather a series of challenges and capital- ize on high consumer demand and home equity. In the Q4 KBMI, professionals rated the industry an 82.1 out of 100. This is the second- highest recorded score since the report's inception, reecting the industry's positive sentiment due in part to the healthy growth it experi- enced throughout the quarter. The kitchen and bath industry also n- ished 2021 with a solid health rating of 7.9 out of 10, based in part on the continued high consumer demand for remodeling projects.
Unrelenting Supply Chain and Mate- rial Shortages:
As the global supply chain remains slow, consumers and businesses throughout the kitchen and bath industry continue to feel the eects. With industry members not expecting an easing of the chal- lenges any time soon, businesses and consumers alike are becoming brand agnostic, turning to second or third choice brands in order to nd product for their projects. As the crisis lingers, more are feeling the eects on their business, with 45% of respondents stating that the sup- ply chain was having a signicant or very signicant negative impact on their sales. Supply chain issues have been compounded by material shortages, leaving 98% of retailers saying their price points have been raised by vendors. This creates an in- crease in expense for consumers and can potentially lead to a dampening of their appetite for renovations.
Forecasted 2022 Growth:
The Q4 KBMI found that industry profes- sionals feel more condent about the new year compared to previ- ous quarters, revising the 2022 projected growth to 9.4%, up .3%. While the survey found that kitchen and bath industry professionals are cautious about the future, giving the overall sector a 76.6 on a 100-point scale, members remain condent in Q1 2022 sales expectations. They project increased sales growth in the new year, with the main con- tributor being consumer exibility with project materials and timelines remaining steady.
NKBA Reports Industry Finishes 2021 on Strong Note Despite Ongoing Challenges
To learn more, visit https://tinyurl.com/KBMI-2022
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