August 27, 2020

By Robert Isler

 At least one of the consequences of the pandemic is likely to have positive long term implications: A significant number of designers have taken (or soon plan to take) the plunge into e-design to keep client projects moving forward and allow for flexibility down the road, according to the Q2 NKBA/John Burns Kitchen & Bath Market Index (KBMI)  The numbers are impressive. A total of 76 percent of those surveyed either currently engage in digital design work or plan to soon, compared with just 35 percent pre-pandemic.

Other positive findings from the study include future demand for remodeling projects, which have taken a sharp upturn. About one in three (32 percent) designers in Q2 said that inquiries were growing since the onset of the pandemic, four times as high as the 8 percent who said so when asked in Q1. Additionally, 86 percent noted that they are making progress on existing or new projects by using virtual meetings and/or e-design, with 35 percent saying the progress has been substantial. In fact, according to the report, e-design is expected to grow by more than 15 percent year-over-year vs. 2019.

Challenges persist, however. One in five designers shared that the inability to physically be in the client’s space, particularly when it came to accurate measurements, was an impediment to job progress. As one respondent put it, “I need to measure my projects. That sometimes takes hours and clients do not want me to be in their home until it is safe.”

76 percent of firms surveyed engage in digital design work or plan to soon compared with 35 percent pre-pandemic.

A number also alluded to the importance of the tactile experience: “Customers still would like to come into a showroom to see and touch displays,” and, “There is an inability of clients to put their ‘hands on’ products to finalize the sale in many cases.”

Still others noted that not all clients, particularly older ones, felt comfortable going through the process virtually.

When asked which factors were affecting their business most significantly, supply chain disruptions led the list, at 16 percent. This was followed by client finance issues (12 percent), with the previously mentioned shift to e-business/online sales tied for third, along with closed showrooms. While conditions continue to fluctuate state-by-state, showroom closures  are apparently becoming less of an issue. Rounding out the top factors are project delays and staff disruptions, at 9 percent and 8 percent, respectively.

The retail segment is also showing promise, although it has a way to go. Foot traffic remains down 34 percent since before the onset of the pandemic, but that is a marked improvement compared to the 75 percent dropoff in Q1. While nearly all retailers have a physical store vs. just 15 percent online, the gap is starting to close, with another 10 percent planning to open a virtual store shortly, likely as a result of the pandemic.

Currently, 97 percent of retailer showrooms/storefronts are open for business, a dramatic jump from the 44 percent in Q1. Challenges faced by retailers are not much different from those of designers. Topping the list are supply chain disruptions, at 20 percent, followed by client finance issues, at 12 percent. Workforce disruptions and a lag in order fulfillment, at 10 percent and 9 percent, respectively, round out the most significant effects of the pandemic for retailers.