USA tile consumption set to increase by 6% annually until 2010

Apr 29, 2005

29/04/05 - Fuelled by the continuous growth of the US market, Coverings in Orlando is drawing large numbers of tile producers who see the event as the perfect opportunity to showcase their products in the American continent.
US ceramic tile consumption is expected to increase over the next few years by 6% annually until 2010.

In 2004 domestic consumption totalled 293.3 million sq.m (9.9% up on 2003), mostly comprising floor tiles.
Ceramic tile is the third most widely used floor covering material in the United States with a market share of 11.2% behind carpet (67.5%) and vinyl (13.8%). Ceramic tile is relatively little used as a wall covering (about 15% of the total).

Imports hold strong

The increase in volumes continues to be fuelled by a growth in imports (up 11.5% on 2003), although local production is beginning to increase its market share.
The estimated final figure for 2004 indicates a 3.5% increase, equivalent to 64.6 million square metres. This figure is expected to rise as a number of new facilities reach full-scale operation (see in-focus section).

The increase in imports is almost entirely attributable to the influx of low-cost products onto the US market, facilitated by distribution through Home Centers and the good quality/price ratio. Italy maintains its leadership in the medium-high segment (imports have fallen by 3.2% in volume but the average price per sq.m has increased by 12.04%).
The situation is similar for Spanish companies with a 12.01% increase in average price per sq.m and a 4.7% fall in quantities.
In 2004, imports from Brazil were higher than those from Spain for the first time (36.75 million/sq.m compared to 33.97 million/sq.m).usa0495.jpgThe new American factoriesThe new American factories

In recent years American and international producers have been making substantial investments in the United States.
Dal Tile’s new joint venture facility with Emilceramica is giving excellent results. The Marazzi Group (American Marazzi Tile, Monarch, Ragno, Esedra, Masterker) has also achieved growth, and following the extension and refurbishment of two factories in Texas and Alabama has reached a production capacity of 20 million square metres, putting it comfortably in second place amongst local producers.
The Florim Group (American, Florim, Gold Seal, Esquire) is likewise boosting production and is turning its plants over to glazed porcelain tile. The same applies to the Roca Group (US Ceramics, Laufen) and Crossville, which already operates in the through-bodied porcelain tile sector. GranitiFiandre has announced that it will be starting up a porcelain tile facility during 2005.

The US industry is effectively preparing to supply products to the medium-high market segment. Imports made by producers for the purpose of complementing their ranges account for more than 20% of total sales (US producers cover a total of 26.8% of the market).