Italian ceramic tiles return to pre-crisis levels amid boom in investments

Confirming the estimates announced by Confindustria Ceramica at the end of the year, the Italian ceramic tile industry closed 2016 with a further upturn with respect to 2015 to return to pre-crisis turnover levels. The 147 companies in the sector generated a turnover of more than 5.4 billion euros (up 5.9% on the previous year), not far short of the 5.5 billion euros posted in 2008.

Another key figure is the boom in investments made by Italian ceramic tile manufacturers, the 400.4 million euros of 2016 marking double-figure growth (+14%) for the third year running (after +22.7% in 2015 and +27% in 2014) and corresponding to 7.4% of annual turnover. According to the leaders of Confindustria Ceramica, Vittorio Borelli (Chairman) and Armando Cafiero (Director General) who presented the data during the annual members’ meeting, such a high percentage maintained for a number of years is quite unique in the Italian manufacturing industry and demonstrates the sector’s strong focus on product innovation through the use of more advanced technologies. The goal is to "maintain the world leadership position in a positive, if increasingly competitive, scenario", said Borelli, who added: "This year we are sure to see a further acceleration in investments thanks to the government’s tax incentives, which companies are fully exploiting with the aim of moving towards a Ceramic Factory 4.0 model", a digitalised factory with integrated and interconnected processes leading to previously unseen levels of efficiency.

• Production and sales

The figures unveiled by Confindustria Ceramica revealed growth in Italian tile production to 416 million m² (+5.4%). In volume terms, total sales reached 414.5 million m² (+4.5%).

However, exports still accounted for the lion’s share of tile manufacturers’ revenues. Exports grew in volume by 4.8% to 331.7 million m² and generated a turnover of 4.6 billion euros (+6.3%), 85% of total sales, and also saw a significant increase in average selling price.

But 2016 also marked a turning point for the Italian market, which began to recover after 8 years of contraction. Domestic sales rose by 3.2% a 82.8 million m² and generated revenues of 829 million euros (+3.7%). Although these are positive results, they are still far short of the pre-crisis levels of 2008 when domestic sales were more than double the current figure.

• Export markets

The best export performances were in the United States, the UK, Germany and even in France, where the market is showing encouraging signs of recovery. A more detailed analysis of the various geographical areas confirms the strong performance in Western Europe with export sales of 167 million m² (50% of total Italian exports), 5% growth following the +1.9% of 2015). Central and Eastern Europe is also recovering after the double-digit downturn (-17.3%) of 2015, reaching 31 million m² (+2%) despite the severe difficulties in the Russian market.

Good results were also secured in the NAFTA region with sales of 49 million m² (+8.5%), equivalent to 14.8% of total exports. Sales likewise rose in the Far East (19 million m², + 4.8%), the Balkans (17 million m², +5.3%), the Gulf region (12 million m², +3.2%) and North Africa and the Middle East (11 million m², +2%). By contrast, Latin America has seen a sharp fall over the last three years (4 million m², -21.1%).