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Wolf KBI for July = 59.33

WOLF published this article on July 12, 2013 in KBI,. No comments. | Comment

WOLF KBI Score for July 2013 – 59.33

The WOLF KBI Score dropped slightly in July to 59.33 from its June level of 62.67.  This small drop is most likely the result of summer vacation season and a slowdown in residential construction at this time of the year.

The WOLF KBI is calculated monthly based on the sentiments of the key buyers at a selected sample of WOLF’s best customers.  These customers buy kitchen and bath and building products from WOLF and are located in an eighteen state region in the Eastern United States extending from Georgia in the South to Maine in the North.

WOLF sales representatives simply ask these key buyers whether they believe they will buy more, the same or less from WOLF in the coming four weeks.  WOLF takes these responses and uses much the same formula as the Purchasing Managers’ Index (PMI).  The WOLF KBI formula is as follows:

 

WOLF KBI = {(P1*1) + (P2*0.5) + (P3*0)}*100

            Where:

  • P1 = Percentage of buyers expecting to increase orders of WOLF products in the next four weeks
  • P2 = Percentage of buyers expecting no change in orders of WOLF products in the next four weeks
  • P3 = Percentage of buyers expecting a decline in orders of WOLF products in the next four weeks

 

Thus, scores above 50 suggest that key buyers believe they will buy more from WOLF in the coming four weeks; a score of 50 suggests that these buyers will see little change in their buying patterns over the next four weeks; and a score below 50 suggests that buyers believe they will buy less from WOLF in the coming four weeks.  Table 1 shows the month to month changes in the KBI scores broken down by product division as well as the overall scores for the respective months.

As Table 1 shows, the kitchen and bath sentiment is less bullish than that of the building products buyers.  The kitchen and bath KBI score dropped from 58.85 in June to 55.21 in July.  The building product KBI score dropped about the same percentage points from 69.44 in June to 66.67 in July which overall is still very high.  For both sets of buyers, July appears at this point to be in a steady state of buying and selling for the month.

Table 1 – Monthly WOLF KBI Scores

 

 

Building Products

Kitchen Products

Total KBI Score

April 2012

81.00

81.10

81.06

May 2012

74.51

65.06

68.66

June 2012

58.93

67.47

64.06

July 2012

61.40

51.81

56.43

August 2012

60.71

57.74

58.93

September 2012

42.95

40.30

41.36

October 2012

52.68

65.48

60.36

November 2012

53.57

59.52

57.14

December 2012

51.79

51.19

51.43

January 2013

58.33

50.00

53.00

February 2013

61.11

68.23

65.67

March 2013

66.67

66.67

66.67

April 2013

75.93

72.40

73.67

May 2013

75.00

71.35

72.67                                               

June 2013

69.44

58.85

62.67

July 2013

66.67

55.21

59.33

 

Northeastern buyer’s sentiment dropped significantly in July.  Building products buyers returned a KBI score of 67.86 in July compared to 75.00 in June.  Kitchen and bath buyers returned a score 47.16 in July compared to 54.75 in June.   Dealers continue to see increased activity but do not have the consistency they need to build confidence.  In addition, a significant drop in the lumber market is adding to the pessimism.

The Middle Atlantic building product respondents report they will either remain neutral in the coming weeks or increase slightly with a strong regional KBI score of 83.33.  Buyers do not anticipate the steep decline in July that has occurred in previous years during vacation season due in part to super storm Sandy.  Affected areas of Long Island and Coastal/North/Central NJ continue to be robust markets.  Although summer months typically yield less store traffic, the buyer’s outlook for Middle Atlantic kitchen & bath products also remains positive with a regional KBI score of 59.01. The shore points that experienced the wrath of super storm Sandy are still very much in the re-building phases and anticipate business will remain steady, which still bodes well, to a slight increase.  

In the Southeast, building products business activity level appears to be flat or somewhat stagnant.  The business climate for kitchen and bath activity is more favorable with a “thumbs up” for current and future activity.  The Southeast regional KBI score for kitchen and bath is 52.50%. 

As a whole, the KBI score of 66.67 remains a strong indicator that buyers believe they will buy a reasonable amount of WOLF’s products in the coming weeks.

About WOLF

WOLF provides kitchen and bath cabinetry and building materials, marketing and sales support and financial services exclusively to independent LBM dealers in 28 states in the Eastern and Midwestern U.S. Since its founding in 1843, York, Pa.-based WOLF has evolved into a sourcing company that offers American-made, WOLF-branded products and other high-quality product lines. Learn more about WOLF at www.wolfleader.com and www.wolfhomeproducts.com.

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