Kitchen and bath sales on the rise
A new report from the National Kitchen & Bath Association projects strong growth for the kitchen and bath industry.
“The Size of Market Study and Outlook” estimates the total kitchen and bath sector rose more than 10% to $163 billion in 2017 and will rise another 9.3% to reach $178 billion in 2018.
The association’s initial study — the first of its kind to define the size of the U.S. residential kitchen and bath market, according to the NKBA — found total market size to be $134.1 billion in 2015. A follow-up study showed the industry had grown to and $147.3 in 2016.
“This dramatic double-digit spike in just one year is a testament to the health of this key industry,” said Bill Darcy, NKBA’s CEO. “It’s a vibrant and growing segment of the economy, and based on our research, our projections indicate that it will continue to thrive.”
The study was developed relying on various sources, including secondary published market information as well as interviews conducted among key professional segments. Additionally, the study represents only products and excludes design services and costs of labor and installation. Data from the 2016 report and collected in the 2017 survey were combined to generate the projections for 2017 and forecast for 2018, the NKBA said.
The overall kitchen and bath segment accounts for about 25% of overall residential construction, according to the NKBA.
Based in Hackettstown, N.J., the NKBA is the not-for-profit trade association that owns the Kitchen & Bath Industry Show, as part of Design and Construction Week. Founded in 1963, the NKBA has nearly 14,000 member companies.
Three new board members for Lowe’s
Lowe's has appointed David Batchelder, co-founder of Relational Investors, and Lisa W. Wardell, CEO of Adtalem Global Education, to its board of directors, effective March 22.
The company will nominate Batchelder, Wardell and new nominee Brian Rogers, chairman of T. Rowe Price Group and its former chief investment officer, for election at Lowe's 2018 Annual Meeting of Shareholders.
"We are pleased to welcome David, Brian and Lisa as new independent directors to the Lowe's board and especially value the constructive discussions we have had with the D. E. Shaw group," Robert Niblock, Lowe's chairman, president and CEO, said in a prepared statement.
D. E. Shaw, a hedge fund with $48 billion in assets, has taken a largest stake in Lowe’s over the past year — as much as $1 billion — and recently became active in criticizing the retailer’s strategy. According to reports, Batchelder was D. E. Shaw’s choice to join the Lowe’s board.
Batchelder sat on The Home Depot board of directors from 2007 to 2011.
“We appreciate Lowe's collaborative approach and are pleased to have worked together to enhance the company's board of directors," said Quentin Koffey, a portfolio manager at D. E. Shaw. "Lowe's is an excellent company with tremendous value creation opportunities in front of it, and we believe the new directors will be significant assets to the board. We believe the refreshed board and the management team are committed to achieving outstanding performance and maximizing shareholder value."
Batchelder will serve for the duration of his time as a director on the board's compensation committee, chaired by Eric Wiseman, former chairman and CEO of VF Corporation, and the nominating and governance committee, chaired by Lowe's lead director Marshall Larsen, former chairman and CEO of Goodrich Corporation.
Wardell will serve on the board's audit committee, chaired by Raul Alvarez, chairman of Skylark Co., and the public policy committee, chaired by Angela Braly, former chair and CEO of WellPoint, Inc.
Rogers' committee appointments will be determined immediately following his election to the board at the shareholders meeting, Lowe’s said.