The Italian ceramic tile industry in 2005

May 29, 2006

29/05/06 - The Italian ceramic tile industry has seen another year of rationalisation.
The sector is continuing to streamline its production system by creating larger industrial groups, increasing the productivity of individual facilities and internationalising through investments in production abroad.
This latter trend has been analysed for the first time in the national statistical survey conducted by Assopiastrelle which was unveiled this morning, 29 May, in Sassuolo.

In 2005 the Italian tile industry reported a production of 570 million sq.m, 3.26% down on last year’s figure.
Sales also dropped to 560.3 million sq.m (-4.01%) as a result of the industry’s performance in foreign markets, where sales fell by 5.37% to 390.3 million sq.m.
In 2005 exports accounted for 70% of total sales. However, a significant amount of production is also carried out abroad by companies partly or wholly owned by Italian firms.

As regards foreign outlet markets in 2005, the difficult situation in the German-speaking area (particularly Germany with sales down by 15.5% in volume) was offset by strong expansion in Scandinavian countries and fair growth in France, Italy’s second largest export market.
Outside Europe, there was a sharp downturn in the United States (down 9.5% in volume), Asia and Australia, largely due to fierce competition from producers in the Far East.

The domestic market remains stable at 170 million sq.m (down 0.72% on 2004).

Average selling prices rose by 4.73% (+2.14% in Italy and +5.89% abroad). This is a result of the high quality and strong market standing of Italian products and is a response to the increase in production costs, particularly energy and raw materials.
This has led to a very small increase in total turnover to 5,372.4 million euro (+0.53%). In absolute value terms, domestic turnover amounted to 1,508.5 million euro (+1.40%) and export turnover 3,863.9 million euro (+0.20%).

Warehouse stock remains significant, up by 7 million sq.m to 233.6 million sq.m.

Brand sales have increased to more than 85% and remain the principal focus of Italian companies’ marketing activities both in Italy and abroad. Italian brands are perceived and recognised in the various markets more than their international competitors, demonstrating the high degree of added value that characterises Italian output.
Assopiastrelle is working to set up a mark of origin at a European level that will further distinguish Italian products from those of emerging countries.

As for product types, porcelain tile in all its versions maintains the leadership position with 360 million sq.m, 64.7% of total output. The trade off continues between white body single fired tile and glazed porcelain tile.

At the end of 2005 the industrial structure consisted of 225 companies, three fewer than in 2004, operating 317 factories and 697 kilns (24 fewer than in 2004).
Investments have recovered well, increasing by 15.89% and corresponding to 5.20% of turnover. The gradual shift towards large sizes (in the porcelain tile segment the percentage of sizes bigger than 30x30 cm is continuing to increase) and in general the conversion of production facilities to porcelain tile is resulting in a need for high tonnage presses and investments in auxiliary production activities such as polishing and squaring lines.