Article Number : 2088 |
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| Date | 6/22/2007 11:46:24 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2088 |
| Abstract | POSTSCRIPT: After all the figures were in and the graphs and pie charts were drawn, I walked through the statistics more thoughtfully and was surprised by some of the changes time has made to what used to be “the facts.” In fiber market share, nylon (62... |
| Article | POSTSCRIPT: After all the figures were in and the graphs and pie charts were drawn, I walked through the statistics more thoughtfully and was surprised by some of the changes time has made to what used to be “the facts.” In fiber market share, nylon (62.7%) has always been king, but now polyester (20.6%) moved into second place, dropping polypropylene (15.4%) to third. The change was inevitable, since polypropylene relies on petrochemicals, unlike polyester, which today is primarily manufactured from recycled bottles. Also, new technology has improved the properties of polyester so that in carpet it is as soft and plush as nylon, and it’s less expensive. REVELATION: I was shocked to learn that the United States is now the biggest supplier of tile to the U.S. market, unseating Italy, which held the top spot for years, decades. Actually, the market share list changed radically. Spain, perennially in second place, is now tied for fifth with China. After Italy comes Mexico, then Brazil. The silver lining here is that Italian and Spanish manufacturers have set up facilities in the United States and are making tile here—and selling it here. The process is the opposite of outsourcing, it’s insourcing; instead of exporting jobs, American labor is used. That makes everyone happy—the foreign manufacturer and the American worker. ILLUSION: Here’s an interesting tidbit: Total soft surface sales (carpet and rugs) in 2006 was $15.721 billion or 63.6% of total industry sales. Did it grow? Yes and no. In 2005, sales were less—$15.49 billion, but market share was 63.9%—higher. From year to year, sales increase and market share decreases, so carpet and rugs annually get a smaller piece of a bigger pie. Simply put, that is the anatomy of growth, the formula for success: Pray the pie expands faster than market share declines—much, much faster. NO SURPRISES: The hard surface category performed as expected in 2006. Comprised of resilient, tile, wood, laminate and rubber, the group rang up $8.994 billion in sales or 36.4% of total industry volume. In 2005, sales were $8.742 billion or 36.1% of industry volume. So, last year the group improved by $252 million and picked up .3% of market share. Growth within the category might raise an eyebrow. From 2005 to 2006, resilient dropped from 28% to 26.4%; tile went from 26.8% to 27.4%; wood dipped imperceptibly from 25.3% to 25.2%; laminate moved up from 14.6% to 15.4%, and rubber went from 5.3% to 5.6%. Most notable is that laminate had the biggest increase in the group, .8%. FAST FORWARD: Back to the present, the World Floor Covering Association (WFCA) just announced the results of its member survey taken in the first quarter. Though builder sales were dramatically depressed in that period, about 40% of the respondents reported residential sales were up, about 40% said they were down and the balance reported no change. That’s pretty much a wash. However, 46% noted commercial sales were up; 18% said they were down and 29% described them as flat. The survey also revealed the best product category in sales volume was overwhelmingly broadloom carpet at 65% followed by hardwood at 17%. Chris Davis, WFCA president and CEO, said, “As expected, results varied from region to region of the country. Where the local economy is strong, so are floor covering sales, and when the economy is weak, floor covering sales are, too.” Davis said the WFCA will conduct a series of quarterly surveys, “snapshots” of the marketplace exclusively for its members. His members should love this Statistical Issue. |