Author: Myrtle Ryan

Tile of Spain Awards Call for Entries

Myrtle Ryan

Miami, FL – The Spanish Ceramic Tile Manufacturer’s Association (ASCER) has issued the call for entry for the 20th annual Tile of Spain Awards of Architecture, Interior Design and Final Degree Project.

Sponsored by Endesa, the Spanish Institute for Foreign Trade (ICEX) and Port Valencia, the Tile of Spain Awards promote the use of Spanish ceramic tiles in architecture and interior design projects worldwide.For the 2021 installment of the Awards, the jury will be chaired by architect Carlos Ferrater, who also led the jury during the first edition of the Awards in 2001. Carlos Ferrater is a founding partner of the Office of Architecture in Barcelona (OAB) and is a professor of Architectural Projects at the Polytechnic University of Catalonia, with a long history backed by numerous awards and distinctions.The Tile of Spain Awards have a prize fund of €35,000 ($41,220.11) shared between three categories. The two main categories, Architecture and Interior Design, each have cash prizes of €15,000 ($17,665.76). The Final Degree Project award has a cash prize of €5,000 ($5,888,58). The panel of judges is also entitled to give two special mentions in each category.Entries from Spain and abroad are being accepted now through October 28, 2021. Visit www.tileofspainawards.com to enter the contest or learn more about the Tile of Spain Awards.

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Home Sizes Rise With Virus-Fueled Demand for More Space

Myrtle Ryan

WASHINGTON, DC — Single-family home sizes are reported to be rising as an offshoot of the COVID-19 pandemic, reversing a recent trend toward downsizing as homeowners are seeking additional residential space for a wider range of purposes, particularly teleworking and school-related activities.

According to second-quarter 2021 U.S. government data and analysis from the National Association of Home Builders, the median size of a newly built single-family home increased to 2,297 sq. ft. The average size for new single-family homes increased to 2,540.

Since Great Recession lows, home size rose between 2009 to 2015 as entry-level new construction was constrained, according to the Washington, DC-based NAHB. In contrast, home sizes declined between 2016 and 2020, as more starter homes were developed, the NAHB said.

“Going forward we expect home size to increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes in the post-COVID-19 environment,” observed Robert Dietz, chief economist for the Washington, DC-based NAHB.

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2021 Home Spending Continued at ‘Dizzying Pace,’ Report Finds

Myrtle Ryan

DENVER — Not only did homeowners spend more on their homes in 2021, but they also completed more projects, according to a new report by Angi, the Denver-based firm that links homeowners with remodeling and other home-related professionals.

According to Angi’s report annual 2021 State of Home Spending Report – entitled The Great Shift: How the Pandemic Put Homes in Focus – surveyed homeowners spent an average of $15,680 on home improvement, home maintenance and emergency repairs in 2021, and took on an average of 14.4 separate home projects.

“The growth in home spending we witnessed continued at a dizzying pace as people have continued spending more time in their homes,” said Mischa Fisher, chief economist for Angi, whose annual report focuses on trends in home spending including drivers, obstacles, top projects and forecasts for the years ahead.

“2021 also presented homeowners with trillions of dollars of unexpected home equity and that wealth has been, at least in part, reinvested in the home through improvements, maintenance and repairs,” Fisher observed. “Pre-pandemic, people were motivated to work on their homes for a return on investment or other financial incentives. Now, they’re prioritizing projects that help their homes better suit their new normal,” she added.

The most popular home project of 2021 was interior painting, completed by nearly one in three homeowners (32%), followed by bathroom remodels (28%) and installing smart home devices (27%). Other top projects include flooring (26.7%), landscaping (24.7%), exterior painting (24.2%), kitchen remodels (23.7%), fencing (23.1%), new roofing (19.6%) and new cabinets (19.5%).

The Angi report also asked homeowners what home projects they would do if given $10,000. While the overall top project was a living room upgrade, selected by 17% of homeowners, the different priorities of men and women were clear. Male homeowners prioritized living room upgrades (18%), outdoor space upgrades (17%) and bedroom upgrades (15%), while women were more interested in kitchen remodels (21%), bathroom upgrades (17%) and outdoor space upgrades (16%).

The State of Home Spending was based on Angi’s analysis of surveys fielded to 6,400 consumers in early October, the company said.

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Exertis Acquires Almo Corporation

Myrtle Ryan

Philadelphia – DCC Technology, a Dublin, Ireland-based technology distribution and services business that trades as Exertis, has acquired Almo Corporation in North America.

The move extends the company’s international scale in the Pro AV sector and ramps up its expansion in the North American market. The addition of Almo Corporation builds on other acquisitions in North America such as Stampede, Jam Industries, The Music People and JB&A. It expands Exertis’ Pro AV capability to form the largest specialist Pro AV business in North America.

Alongside its Pro AV business, Almo Corporation is the largest distributor of mainstream appliances, delivering a comprehensive portfolio of products including full kitchen packages with essential appliances to small and medium-sized retailers throughout the U.S. In addition, it is the leading distributor of premium appliances, serving retailers and builders designing luxury residential installations for refrigeration, ventilation and cooking in both indoor and outdoor settings. Almo’s business in consumer appliances and lifestyle products will add scale to Exertis North America’s business in the consumer channel.

Almo’s 75-year-old, third-generation, family-owned business brings 660 employees, nine distribution centers and more than 2.5 million square feet of warehousing space across North America. Almo Corporation will benefit from leveraging Exertis’ financial resources and supply-chain logistics, according to the company. The acquisition will provide Exertis North America with increased back-end economies of scale allied to the front-end specialization.

Almo will continue to be operated by the Chaiken Family, with Warren Chaiken as president and CEO and Gene Chaiken as Chairman. The combined Exertis and Almo Pro AV divisions will, in due course, be led by Sam Taylor, current exec. v.p. & COO of Almo Pro AV. Shortly after the completion of the integration, the combined business will be rebranded as Exertis Almo Pro AV.

John Dunne, a long-time senior executive with Exertis, currently leading the Exertis Pro AV team in North America, will join the Almo executive team and help lead the integration. The Premium Appliances and Mainstream Appliances divisions will continue to be led by Steve Terry and Jack Halperin, respectively.

Exertis’ expanded North American operation becomes a $2.4 billion business overseen by Martin Szpiro, managing director of Exertis North America. It forms part of the international expansion strategy of Exertis International, under Managing Director Clive Fitzharris.

Tim Griffin, DCC Technology & Exertis managing director said, “The acquisition of Almo Corporation is the largest in DCC’s history and signals our confident and ambitious intent to expand DCC Technology. By integrating Almo with our North American business, we will form the largest specialist Pro AV business in North America. Almo’s 75-year history of growth and success, combined with its longstanding relationships with industry partners and its ability to continually innovate and expand will be great assets to Exertis. In turn, we will bring significant economies of scale, global supply chain access and other benefits to the customers of Almo Corporation.”

Warren Chaiken, Almo Corporation president & CEO stated, “Having just completed a year-long celebration of 75 years of growth and business success, the time is right to give our manufacturer and channel partners a truly global distribution stage so they can operate their businesses at a greater capacity, leverage more buying power and the ability to compete for a more comprehensive position in the global supply chain. We are committed to growing with our partners by remaining their value-added distributor with larger scale and access to more products, more services and more financial support. For them, this transition will be seamless in that we will operate business as usual.”

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Quartz Products Importers Reportedly Found Evading Tariffs

Myrtle Ryan

MINNEAPOLIS — U.S. Customs and Border Protection has taken punitive action against several companies charged with violating U.S. trade laws by attempting to evade tariffs on quartz surface product imports from China, Cambria Company LLC announced last week.

The Le Sueur, MN-based manufacturer of quartz surface products said that Customs officials, taking action under The Enforce and Protect Act (EAPA), found that 15 U.S. importers were guilty of misclassifying, undervaluing and illegally transshipping Chinese quartz surface products through Malaysia in order to evade the payment of antidumping and countervailing (AD/CVD) duties. Days later, Customs cracked down on two additional importers for illegally misclassifying their imports of Chinese quartz surface products as “crushed glass” surfaces, said Cambria, which has charged numerous Chinese producers and exporters, several Malaysian companies involved in transshipping merchandise, and numerous importers with participating in the tariff-evasion efforts.

Customs will suspend the entries of quartz surface products by the importers subject to the agency’s investigation until it receives instructions from the U.S. Commerce Dept. as to the correct AD/CVD rates that should be applied to the entries, Cambria said. Duties will then be imposed.

“Customs should be commended for its efforts in digging into the facts of this evasion scheme to ensure that the U.S. importers that were involved are held accountable for their illegal activity,” said Luke Meisner of Schagrin Associates, Cambria’s legal counsel. “Enforcement action in this investigation targets an unprecedented large number of U.S. importers and should send a clear signal to the industry that evaders can and will be caught.”

“This illegal evasion of the antidumping and countervailing duties on quartz surface products will not be tolerated,” said Arik Tendler, chief sales officer for Cambria. “Customs’ aggressive actions are important because they hold these importers accountable for their illegal evasion, deter other importers from engaging in similar evasion tactics, and ensure that the domestic industry receives the relief to which it is entitled under the U.S. trade laws.”

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Showcasing the Shower

Myrtle Ryan

Showers have come a long way in design, from a basic area adorned with standard subway tile and heavy framed doors to an oasis adorned with spectacular tile and advanced shower systems showcased through stunning frameless glass surrounds. In keeping with this trend, many homeowners are removing seldom-used tubs to expand their showers, making them the focal point of the space.

While frameless shower doors remain the most popular versions, doors that feature etched designs, decorative borders and patterns are also garnering significant attention. Whether the design is contemporary or traditional, there is a shower enclosure to fit the space.

Below are some of the hottest trends in shower enclosures.

— Many clear shower enclosures are designed with minimal hardware for a streamlined look, creating a sense of openness in the bath.

— Frames, trims and handles are offered in a range of finishes, from the more standard chrome and polished nickel to the more current brushed brass and rose gold.

— As boomers adapt their homes to become safer and physically more accessible as they age, low-threshold and barrier-free showers are gaining in popularity, and easy-to-use and push-to-open shower doors are garnering more attention.

— Taller shower enclosures (at least 76”) are popular for their ability to take advantage of floor-to-ceiling tile designs.

–Matte black is featured in many gridscape and trim elements, coordinating with bath fittings in similar finishes.

–Frosted glass and distinctive patterns that blur the interior and deliver privacy to the bather are among the requests from today’s homeowners.

 

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Cabinet Sales Gains Extend Through July, KCMA Reports

Myrtle Ryan

RESTON, VA — Domestic kitchen cabinet and vanity manufacturers continued to post substantial sales gains through the first seven months of 2021, according to the latest in a series of monthly surveys by the Kitchen Cabinet Manufacturers Association.

The KCMA’s latest “Trend of Business Survey” reflected a year-to-date sales increase of 18.3% through July, compared to the same seven-month period in 2020. Custom cabinet sales through the first seven months were reported up 21.5% over the same period last year, while semi-custom sales rose 17.6% and sales of stock cabinets gained 18.1%, the Reston, VA-based KCMA said.

July sales were up 7.2% compared to the same month last year, the association added.

 

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Leads Robust, But Margins Being Squeezed, KBDN Survey Finds

Myrtle Ryan

CHICAGO — Sales leads and project requests are robust, and revenue forecasts are bullish, but profit margins are reportedly being squeezed, COVID-19 remains a concern, and kitchen/bath dealers and designers continue to face supply-chain snafus, product price hikes, a skilled-labor shortage, and other headwinds to more robust growth in the months ahead.

That’s the primary consensus of a series of surveys conducted by Kitchen & Bath Design News and other industry sources attempting to get a handle on 2022 business prospects, following a year in which the kitchen/bath market witnessed sharp growth in both its remodeling and new-construction sectors, while COVID-19 continued to reshape the nation’s housing landscape, incomes and saving accounts rose, design trends and homeowner demographics evolved, and larger, more-multi-functional homes continued to remain a focus of consumer spending

But the pace of market growth, while projected to be palpable, has tapered off in recent months, and is expected to cool even more in the months ahead, as inflation scythes through the economy, product and labor availability continue to hamstring design/remodeling firms, housing affordability remains at historically low levels, and uncertainties tied to the coronavirus continue to loom.

KBDN’s nationwide survey of dealers and designers, conducted at the tail end of 2021, found that an overwhelming majority (86+%) of those polled said they expect their company’s revenue to either increase or remain roughly the same in 2022 compared to 2021. In contrast, less than 14% said they anticipate a revenue decline in 2022. Revenue gains are anticipated for both new and remodeled kitchens and baths, although dealers and designers are more bullish about revenue growth from kitchens (34.2%) than they are from baths (7.9%).

Dealers and designers also report that sales leads and project requests are up dramatically compared to the same time a year ago – understandable given how the current confluence of COVID-related demand, savings growth, home appreciation, government stimulus and other factors continue to spur homeowner spending. Specifically, a whopping 65+% of survey participants report their current sales leads are either somewhat or much higher now compared to a year ago, while only about 15% report that sales leads are lower and about 19% say they are about the same.

But while sales leads and strong, and revenue is generally expected to increase, surveyed dealers and designers paint a different picture when it comes to anticipated profit margins. For example, while 33.6% of those surveyed expect 2022 profit margins to increase, 14.2% expect margins to decline compared to 2021, and more than half (52.2%) expect margins to remain the same.

Other survey findings:

n With the COVID-driven emphasis on health and wellness, work-at-home arrangements and families sheltering in place, increases in client requests are being reported for products that range from universal design, smart appliances and aging-in-place elements to outdoor kitchens, anti-microbial materials and home ventilation.

n Pricing is apparently not a major factor for clients, many of whom seem willing to spend whatever it takes to get the kitchens and bathrooms that they want. For instance, while roughly 60% of the dealers and designers surveyed by KBDN say that pricing is either less important to clients or about the same as it was a year ago, far less (40%) say that pricing is more critical to clients now.

n While 51% of the design professionals surveyed say they are either extremely, very concerned or somewhat concerned about COVID-19 negatively impacting their business operations and profits in 2022, more than half (54%) say they are “not very” or “not at all” concerned, even in light of the new Omicron variant impacting the nation.

n While less than 5% of survey respondents report clients postponing or cancelling projects, nearly 44% report they are experiencing longer lead times for product deliveries and/or production and shipping delays.

 

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Pace of Market Growth Seen Cooling After Strong 2021 Gains

Myrtle Ryan

HACKETTSTOWN, NJ — Ongoing supply-chain disruptions coupled with labor shortages, higher material costs and emerging uncertainties wrought by COVID-19 are cooling the pace of kitchen and bath market growth in the wake of an exceptionally strong year in 2021.

According to the latest Market Forecast Report issued in recent weeks by the National Kitchen & Bath Association, the 2021 kitchen and bath industry posted healthy, double-digit gains over 2020, although growth projections were “pared back a bit” compared to the NKBA’s previous (July 2021) forecast, “as lingering issues caused by the pandemic seem to be catching up to consumer sentiment.”

The NKBA projected total 2021 revenues of $167 billion, a 19% increase over the $141 billion that was posted in 2020, but lower than earlier forecasts, which predicted that full-year revenue totals would reach $171 billion.

“2021 has been like none other for our industry, as strong growth across virtually every sector led to record revenues,” said Bill Darcy, CEO of the Hackettstown, NJ-based NKBA. However, some homeowners, faced with price increases related to supply chain disruptions, “are deferring projects until they’ve enough saved to get exactly what they want, or in the hope that costs will come down,” Darcy added.

The NKBA reported a nearly 10% year-over-year growth in the kitchen and bath remodeling sector in 2021, and a 26% growth in the new construction sector. Premium projects were up by more than 22%, while low-end projects grew about 11%, “suggesting a cooling of the DIY trend,” the NKBA said.

“These findings are very encouraging and indicate that…growth should be sustained into 2022,” Darcy said.

In related news, the latest NKBA/John Burns Real Estate Consulting “Kitchen & Bath Market Index,” issued in December, remained in “solidly expanding territory,” but cooled from the record number posted in the previous quarter. Expected future activity “also tailed off a bit,” having peaked in the first quarter of 2021, reported the NKBA and John Burns.

“In relative terms, the outlook remains quite positive,” with association members projecting about a 9% sales gain in 2022 – “impressive if it holds true, given 2021’s strong growth,” said the NKBA, adding that supply chain disruptions, cost of materials and availability of skilled labor are hampering the industry’s ability to take full advantage of strong demand…as NKBA members scramble to meet client needs, with most resorting to brands they’ve never previously used.”

Other findings of the NKBA/John Burns Report were as follows:

n The challenging business environment has forced the industry to become “supplier/vendor agnostic” – prioritizing product availability above other factors. The industry has also moved toward sourcing more domestic-based products in an attempt to circumvent global supply chain issues. Manufacturers are prioritizing high-value products to protect profit margins while stockpiling excess materials to help ease lead times and overall constraints.

n The kitchen and bath industry continues to feel the pains of ongoing supply chain challenges. Port congestion is further compounding strained supply chains that are still recovering from the effects of Winter Storm Uri and Hurricane Ida, while labor shortages are causing delays in the trucking industry. Meanwhile, lead times for domestic and foreign raw materials are well over 6+ weeks and has many within the sector struggling to keep up with demand in today’s economy. As a result, product backlogs extend well into 2022 as these difficulties prevent those in the industry from staffing full production schedules.

n Even in the face of ongoing challenges, the industry remains cautiously optimistic about the health of the sector. Despite projects being pushed into 2022, the industry is continuing to see demand for building and construction projects as 84% of firms report low postponement rates and 90% report low cancellation rates relative to their overall project volume.

 

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Bubbling Up

Myrtle Ryan

At a time when activities and stress abound, the escape to the bath has never been more pronounced. While a warm soak is usually a welcome respite, many homeowners still crave the massaging waters of a jetted tub to soothe aching muscles and psyches.

The interest in freestanding soakers has allowed the tub to inch its way back into bathroom design. The bonus to that is the fact that many manufacturers provide a range of options that can be incorporated into the tub, allowing bathing to be elevated to a truly personalized experience.

Among the trends in spa baths are the following:

–Many soaking tubs include options that can be added, such as air injection, whirlpools and massage jets, all designed to customize the bathing experience.

–Several new technologies include tiny bubble enhancements that soften skin while providing a relaxing soak.

–The latest jetted systems employ technology that keeps the pipes cleaner and accessible for easier maintenance.

–Many spa tubs also incorporate elements such as mood lighting/chromatherapy and aromatherapy for greater relaxation.

–Ergonomics is key to comfort in the bath, and today’s tubs feature backrests, slanted designs and armrests to provide the body with the ultimate experience.

–Tub sizes are being adjusted to fit today’s bathrooms, with designs ranging from 60” to fit into standard tub spaces all the way up to fixtures that will fit two bathers comfortably.

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