2015 forecasts for the ceramic tile industry

According to the Confindustria Ceramica - Prometeia Forecasting Report updated to May, the industry will see a steady recovery in 2015 followed by a rapid acceleration in 2016.

Italian tile production is expected to increase during these two years by 1.1% and 3.4% respectively, as are total sales (+1% and +3.2%). Sales continue to be buoyed by the strong performance in international markets, with exports projected to increase by 1.7% this year and by 4% in 2016.

The downturn in domestic demand is also expected to flatten out, with a fall of just 1.6% this year set to be followed by a return to positive territory next year (+0.3%).

Italian exports are predicted to grow in 2015 in all geographical areas apart from Central and Eastern Europe (-3.5%), which continues to be affected by the Russian crisis and where a recovery in sales is not expected until 2016 (+2.6%).

The outlook is particularly positive in the Gulf region (+10.5% in 2015 and +9.1% in 2016), where demand consists mainly of products with very high added value for large building projects. The forecasts are equally positive in the NAFTA region (+4.6% in 2015 and +6.8% in 2016) and in North Africa and the Middle East (+4.1% and +5.5% respectively).

"Businesses are becoming more confident," noted Vittorio Borelli, Chairman of Confindustria Ceramica, who listed the external factors that are currently helping companies. These include the fall in energy costs as a result of lower oil prices, a more favourable Euro/Dollar exchange rate which is boosting exports, and lower interest rates due to the policy of Quantitative Easing introduced by the ECB.

However, Borelli believes that these positive economic factors must not detract attention from the many unsolved problems facing Italy, particularly the lack of a serious national energy policy, stifling bureaucracy and the excessive taxes and parafiscal charges imposed on companies, such as the controversial 5% tax on the use of clean energy self-produced by cogeneration.