Bill Darcy's annual address at KBIS highlights a resilient market in spite of tariff challenges

While KBIS CEO Bill Darcy didn't shy away from the thorny subject of tariffs, he sought to reassure NKBA members of the overall robustness of the North American K&B sector in his State of the Association address in Orlando, Florida.

Despite challenges in the economy overall and the kitchen, bathroom and remodeling industries specifically, the sector is resilient and flexible – and the NKBA remains a strong and positive voice for advocacy and member support.

That was the overarching message from Bill Darcy, global president and CEO of NKBA | KBIS, as he delivered the State of the Association address at the annual meeting of the membership at KBIS. He also recapped NKBA’s accomplishments in 2025 and offered observations for the year ahead.

Among the biggest challenges the industry faced in 2025 were tariffs – particularly changing tariff policies – the rising costs of building materials, the persistent labour crisis, and the housing shortage, all of which contribute to consumer caution.

“There’s no way to sugarcoat it,” Darcy said. “The last year was challenging for our industry. It was a period of less-than-optimal growth. That’s better than decline, for sure, but it’s not the success we know is possible.”

Pointing to the complex tariff situation as having “upended global economic dynamics,” he said: “We’ve heard from our members that tariffs, along with continued consumer uncertainty, have generally slowed business growth and restricted opportunities… [and caused] higher prices and decreases in margins and consumer confidence.”

But he noted that “as we confront these challenges, it’s more important than ever for our industry to have a strong, public voice — and the NKBA is proud to be that voice.”

Darcy recapped the association’s 2025 highlights:

• ● Strong Financials: Since 2012, annual revenue has grown nearly 150% to over $20million in 2025. KBIS revenue growth was 11% in 2025 alone.
• ● High Point Alliance: In May, NKBA and the High Point Market Authority formed a strategic alliance partnership, uniting K&B with the home-furnishings sector. As part of this alliance, NKBA introduced a dedicated presence at Broad Hall at High Point Fall Market, demonstrating an increased focus on connecting kitchen and bath to whole-home design.
• ● Global Connect: NKBA’s international business membership programme added 25 members last year and now represents 18 countries. The NKBA team participated at several major design fairs in the last year, in Germany, the UK, France and Brazil.
• ● Addressing the Skilled Labour Crisis: The skilled labour crisis is a priority for NKBA. Chapters and members are helping people interested in exploring careers in K&B and skilled trades through scholarships, grants, career-focused events and working with the Skilled Labor Fund.

Looking to the future, Darcy noted that “even amid unpredictable macroeconomic forces, the growth conditions for the residential design industry remain solid. Consumer interest is still incredibly strong, and they want to enjoy their homes and enhance their most important investment. Many of those homes are in or entering their prime remodeling years, and millions of homeowners remain locked into mortgages with historically low rates, which means they are still inclined to stay put and improve their existing spaces. Older homeowners, especially, are staying put and investing in their homes rather than looking to move or downsize.”

The 2026 K&B Market Outlook projects that the US residential kitchen and bathroom industry will begin to recover in the second half, returning to growth gradually after 3 years of contraction. US kitchen and bathroom revenue, including materials and labour, will grow slightly to $228billion in 2026. This growth is primarily in repair/remodeling, which is forecast to increase by +2.9%. In contrast, spending on new construction is expected to decline by 3% in 2026.

“The NKBA is focused on keeping our industry competitive, relevant, and thriving. That means staying front-footed with our advocacy colleagues in Washington, coordinating closely with our international partners, and leveraging our research and relationships to keep you ready for whatever comes next.”

Darcy concluded by urging members to participate in NKBA research and surveys, to join efforts to mitigate the skilled labour shortage, and finally, to believe in the strength and resilience of the industry.

“Consumers continue to want what we can deliver: beautiful spaces and products that make their lives better,” he said. “We’re smart, and we’re prepared. There’s incredible power in this collective. We do better when we work together. I’m very confident in our shared future, and you should be, too.”