A difficult 2002 for Italian ceramic tiles

May 27, 2003

A difficult 2002 for Italian ceramic tiles27/05/2003 - The figures from the national statistical survey of the Italian ceramic tile industry were announced during the Assopiastrelle general meeting, the same meeting at which Sergio Sassi was reconfirmed president with more than 98% of the votes. According to the survey, 2002 was another difficult year for the sector with a fall in the main economic indicators.
Sales volumes fell by 1.89% from 620.1 million sq.m in 2001 to 608.4 million sq.m last year. The greatest fall was in the domestic market, where sales fell by about 5 percentage points to 170.7 million sq.m. Exports remained essentially stationary, down 0.69% to 437.7 million sq.m. As a result, exports continue to drive the Italian industry and cover more than 72% of production. Production likewise fell sharply, down by 5.16% to 605.5 million sq.m compared to 638.4 million sq.m in 2001, the worst fall since 1985. (See in-focus section for table)

By contrast, turnover increased by 0.68% to the record figure of 5,318.6 million euro. This positive result was due to the good performance in foreign markets (up 1.86% to 3,868.97 million euro) and the 2.61% increase in overall average selling price.
First the first time in years, there was a 5 million sq.m fall in warehouse stock (213 million sq.m). The fall in stock mainly concerned single and double fired tiles, whereas the quantities of porcelain tile - particularly glazed porcelain tile - increased under the pressure of production.

In-focus section contains:

Foreign markets

Structure of the industry

Production by product type

Kilns operating in Italy

The comments of Assopiastrelle

Tables with the most important economic figures and ceramic tile exports worldwideespositorepiccolo.jpgForeign marketsForeign markets

With 72% exports, Italy confirms its leading position in international trade.
There was a 4.05% fall in sales by volumes and a 1.12% fall in values in the European Union countries in 2002. The largest falls in volumes occurred in Portugal (-13.62%) and Germany (-10.57%), while the greatest increases were in Sweden (+9.62%) and the UK (+7.48%). In the other export markets, the worst result was reported in Poland with a 39.14% fall in exported quantities. The markets instead performed well in Australia (+17.32), the United States (+16.22%) and Russia (+13.92%).
In spite of the sharp market contraction, Germany confirmed its position as the leading export market at 70.7 million sq.m. The United States was in second place with 65.4 million sq.m followed by France in third with 56.9 million sq.m (-1%).Structure of the industryStructure of the industry

As of 31 December 2002 in Italy there were 241 industrial ceramic tile manufacturing companies (7 down on 2001) employing 30,799 people, 1.75% down on 2001 and 549 fewer than 1995.
The sector is continuing the rationalisation process that began a few years ago, involving the closure of small companies, corporate mergers, the transformation of manufacturing companies into sales companies, and in some cases the creation of brand names identifying specific product types/market segments. Investments have fallen by 10.89% (to ? 268 million, equivalent to 5.04% of turnover) and are mainly channelled into the production of porcelain tile.
The main production areas are confirmed as the provinces of Modena and Reggio Emilia (80.15% of total quantities) and the other provinces in the Emilia Romagna region (9.67%). The quantities produced in other regions amount to 10.17%.Production by product typeProduction by product type

The growth in porcelain tile continues (329.2 million square metres, or 54% of total tile production). The increase is mainly due to glazed tiles (188.8 million square metres, about 31% of the total), the production of which has risen by 17.20% (10% less than the increase in 2001). Through-bodied porcelain tile has suffered a 4.86% fall in production to 140.4 million square metres.
By contrast, last year the production of single fired tile fell to 186.9 million square metres, 30.86% of the total. Double fired tile production also fell (down 9.11% to 60.7 million square metres), while a 5.5% fall in rustic terracotta and clinker brought these product types to 5.9 and 4.9 million square metres respectively. The percentage of floor tiles has increased from 78.70% to 79.83% of the total.
Floor tiles amount to 471.9 million square metres, consisting of about 326 million square metres of porcelain tiles and 132 million square metres of single fired tiles. The main types of wall tiles are double fired tile (59.6 million sq.m) and single fired tile (54.8 million sq.m).Kilns operating in ItalyKilns operating in Italy

The industrial sector totalled 773 kilns operating at the end of 2002, 27 fewer than in 2001 and 46 fewer than in 2000. The largest fall in numbers of kilns was for single fired tiles (down by 38 to a total of 167 kilns), in line with the progressive substitution of this product type by glazed porcelain tile. Out of a total of 308 kilns for porcelain tile, 29 were installed last year. There are 157 kilns for double fired tiles (13 fewer than in 2001), 74 for rustic terracotta (1 more than in 2001), while the number for clinker has remained stable (11 installed lines).The comments of AssopiastrelleThe comments of Assopiastrelle

According to an analysis by Gian Pietro Mondini, chairman of Assopiastrelle's statistics commission, and Franco Vantaggi, general manager of Assopiastrelle, 2003 will be another difficult year for the Italian ceramic industry and the recovery will not begin until 2004. The first 20 days of May have shown positive signs, if still too weak to be able to speak of recovery.
The tile manufacturers are concerned by the weak dollar. In the USA, however, sales are increasing due to the rediscovery of housing as an investment and because ceramic floor tiles are winning market share from other materials such as carpet and vinyl.
There are also concerns about China. "The traceability of tiles is an issue that has to be dealt with," said Mondini. "Some manufacturers mark boxes with Italian trade marks without affixing the mark of origin. Clarity is essential for end users."
The Italian ceramic tile industry has appealed to the government to renew the incentives for remodelling property and has condemned the difficult situation concerning mobility infrastructures in the Italian ceramic district. According to the Assopiastrelle leadership, the Italian companies must upgrade logistics in the areas where they can expand and focus on the high-end segment, the only area in which the Italian industry remains the unchallenged leader. For the other products, the costs faced by the Italian industry make it uncompetitive. There have been increases in raw materials, energy, transport and other components of industrial cost.the most important economic figuresind_economici_Assopiastrelle.pdfItalian ceramic tile exports worldwideesportazioni_mondiali.pdf