Demand combined with COVID-19-related supply issues, is causing significant shortages and price increases for products used in residential remodeling and construction. The rising cost of materials is tied to supply chain issues impacting the kitchen and bath market. Home builders are limiting new-home sales in an effort to manage supply, while some kitchen design firms are seeking alternative sources.
That’s the view of manufacturers, who are forecasting that the current challenges impacting the kitchen product supply chain is temporarily should dissipate by this time next year.
According to Christofer Von Nagel, CEO of BSH Home Appliances, “Bosch, Thermador and Gaggenau are facing unprecedented consumer demand coupled with global materials shortages and logistical issues that are impacting the supply chain.”
According to the National Association of Home Builders study, materials shortages are more widespread than 1990s. Shortages including appliances, tile and cabinets, plastic, stainless steel, semiconductors and other components which are essential to the manufacturing of refrigerators, ovens, dishwashers, microwaves, washers and dryers. Many factors have caused long delays in delivering appliances making it challenging to keep with demand, making fulfillment up to six months.
Electrolux CEO Jonas Samuelson recently told corporate shareholders, “We estimate that market demand will begin to normalize during the second half of 2021, assuming that consumer spending patterns start to normalize by mid-year.”
