The American ceramic tile market: the opinion of StonePeak Ceramics

Mar 31, 2006

31/03/06 - The US ceramic tile market is expanding and this trend will continue in the future, probably without any major variations.
It remains to be seen whether the growth will be in one or two figures. In the small but robust high-end floor coverings market, the materials in competition with ceramic tile are principally stone, marble and wood.
Porcelain tile has enormous growth potential and will win further market share as end customers learn to appreciate not only this productâ€™s aesthetic qualities but also its outstanding technical characteristics. To promote an awareness of the technical credentials of porcelain tile, we are devising a training programme for architects, designers and distributors.

Competition from Brazil and China? Given that we produce products geared to the high end of the market, we are not directly affected by the competition of Brazilian or Chinese companies which operate in other segments.
Furthermore, in some parts of the United States in particular, transport costs and customs duty impact significantly on imported products, and this applies equally to Chinese manufacturers.
Service is an extremely important factor, first and foremost speed of deliveries and the certainty that ordered products are immediate available.
We are also able to supply products tailored specially to this market, with specific colours and designs, trim pieces and merchandising tools deriving from a constant attention to customerâ€™s needs and a desire to satisfy them.

We currently have a production capacity of 22 million square feet and expect to double this by the end of 2006. We are also completing work to introduce a third line which will bring us a production capacity of 66 million square feet. During our first six months of activity, we secured 95% of our agreements to distribute products throughout the United States and we have reached an enviable level of product quality. All in all, we are very satisfied with how things are going.