Federica Minozzi (Iris Ceramica Group) confirms a strong growth in the U.S. commercial building segments

Ahead of the appointment with Coverings 2019 (Orlando, 9 to 12 April), we asked some of the leading figures in the US ceramic industry to comment on the current state and future prospects of the US market.

Federica Minozzi, Iris Ceramica Group’s CEO

“ In 2018, our American group’s revenues remained in line with the previous year’s figures. While sales in the Home Center channel contracted due to the slowdown in residential renovation work and the rapid growth of LVT in this segment, we performed strongly in the commercial building segments, consolidating major supply contracts with national accounts operating in the catering and hospitality sectors. Another driving factor was the expansion in the business of large-size tiles, which are particularly popular in the segments of commercial projects, architecture and design.

For this purpose, we recently started up a new Continua+ line in our factory in Crossville, Tennessee for an investment of almost $70 million. This has established StonePeak as the US market leader for the production of porcelain slabs in a 300x150 cm size and a variety of thicknesses: 6 mm for floor and wall covering applications; 12 mm and 20 mm for use as countertops. Manufacturing these materials directly in the United States will enable our American companies (StonePeak and Iris US) to expand into new market segments such as kitchens and bathrooms and exterior rainscreen cladding, ensuring that we will have a competitive edge over our rivals for several years to come. This, together with our ability to consolidate our partnership with a number of major commercial players, should enable us to improve our market positioning in 2019.

The forecasts for the US building industry in general are pointing to a further slowdown in the residential segment this year (with downturns expected both in new build and in renovation projects given the decline in sales of second-hand properties). Fierce competition from LVT will also make itself felt.  By contrast, the outlook remains positive for commercial building (a segment that makes up 35-40% of the market), with the Architectural Billings Index reporting execution times of between 9 and 12 months.  „