Article Number : 2630 |
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| Date | 10/30/2007 9:27:06 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2630 |
| Abstract | By Sarah Zimmerman The year’s economic downturn has obviously taken its toll on industry growth and sales, and ceramic has not been spared. But that doesn’t mean all aspects of the category have been dormant... |
| Article | By Sarah Zimmerman The year’s economic downturn has obviously taken its toll on industry growth and sales, and ceramic has not been spared. But that doesn’t mean all aspects of the category have been dormant. The ceramic arena has continued to advance in a mix of new technology, fashions and trends with continually heightened focus toward the future. Though ceramic has been making marks on consumer scoreboards across the country for the last 10 years, the total tallies in 2007 are a departure from the past decade. According to FCNews’ research, industry experts say American-made category sales dropped approximately 10% to 15% and imports fell nearly 20% this year, a much different score than 2006, which posted an overall increase of about 2% to 3%. “This is the worst year we’ve seen since the ceramic tile market really began in 1980,” said Donato Grosser of Grosser & Associates, one of the industry’s premier tile consultants. He noted the industry has not given up, however, as it continues to progress in preparation for a “sensible” recovery by mid-2008. “We’re dealing with a market that depends mostly on new residential construction and remodeling; we have to wait for building and construction to pick back up.” He did point out although residential dropped excessively, commercial business “held its own” this year. Jim Dougherty, executive vice president of Florim, agreed 2007 has been a “very challenging” year for the tile industry due to “external factors that directly affect our business—particularly in the residential arena.” He said, however, despite a sputtering housing market, Florim, like many others in the segment, has looked to strong partnerships, product appeal and the merit of tile as a preferred surfacing choice to make the most of these trying times. “The reality is every home, be it new or existing construction, needs flooring,” he noted, “and thanks to the success of our industry in the past decade, tile is established in the consumer mindset as an ‘essential’ selection—not merely an upgrade.” Lori Kirk-Rolley, Dal-Tile’s marketing director, also noted the industry continues to be impacted by the significant slowdown in the residential sector. She confirmed the NAHB’s projected report that housing starts in 2007 would be worse than ’06. She maintained, though, the commercial segment continued to be very active in the first half of the year. “We have seen a lot of urban development in many of the major markets, which is positively affecting the segment. However, even with commercial remaining strong, the significant downturn in new home construction will more than offset any overall growth we see in the commercial category, resulting in a down year for the industry.” Tile trending Just because business is slow does not mean the segment is stagnant. As Kirk-Rolley pointed out, every year technology advancements allow mills to create better and more exciting products than in years past. “The improvements in glazes, application techniques for glazes and different ways of mixing porcelain allow us to realistically create the natural beauty of stone, stained concrete, metal, wood, fabric and other materials,” she said. This is good, since Dal-Tile reported a demand for products with contemporary looks, both residentially and commercially. The company noted style trends this year included minimalist concrete and fabric looks, glass and metal, and large rectangular units. Kirk-Rolley chalked this up to homeowners expanding their “living spaces” to include outdoor areas, such as patios, outdoor kitchens and pool decks. “Homeowners are looking to create the same comfortable and stylish experiences outdoors as they have indoors,” she explained. Danielle De Vita, account manager at Novita Communications, who recently attended Cersaie 2007, said Italian tile manufacturers presented a wide range of formats, pushing sizes to the extreme including extra large 48 x 48 squares and rectangular field tiles measuring as big as 3m x 1m. She noted a crossover between design sectors, stating trends popular in the furnishings arena also dominated hard surface. For example, she listed metallic, fiber optical patterns in abundance. “This look adds modern sophistication to boutiques, hotels and restaurants,” she said. Taking additional cues from the fashion industry, she noted shades of silver, black, white and red as leaders. De Vita also mentioned the wood look as a continual force in the industry. “This aesthetically pleasing and extremely durable material is ideal for residential or commercial applications.” She thanked technology, which allows manufacturers to “perfectly replicate the texture and grain of natural timber.” What’s in store With business gripping the fence and an unknown rebound, many in the segment continued to turn their focus toward industry progression. One such advancement is further investment in the U.S. market. Florim, for instance, which has been in the country for 10 years now, said it honed in on its American design process, sales force, branding, marketing and customer service and product sampling this year. “We welcome continued growth of U.S. tile manufacturing,” Dougherty exclaimed, naming the end user—homeowners and commercial product specifiers who’ll have great tile readily available at any given time—the ultimate beneficiary of the growing U.S. tile industry. “No matter market challenges, great opportunities abound domestically,” he said. “We will continue our focus on sales, marketing and distributor partnerships to carry our message agressively to the american market.” Kirk-Rolley said regarding the future, there are several factors to watch in 2008: rebound of the residential market, high-energy prices impacting the industry and the weakness of the U.S. dollar versus foreign currency. However, staying positive, she noted, “We see opportunities in two important areas—commercial segment activity stemming from urban development and hospitality projects, and tile use extending to exteriors as homeowners look to expand into the outdoors.” Environment is of course another avenue being consistently explored. Currently, the Italians lead in the development of eco-friendly tiles, De Vita pointed out. She said as a material, tile is innately sustainable. In addition, manufacturers adhere to strict production standards. Following such guidelines, an increasing number of Italian tile collections are getting certified with the Eco-Label—a product-certification policy created by the European Community—enabling consumers to easily identify and purchase environmentally reliable products. The label ensures products have been manufactured by way of reduced air pollution, lower energy consumption and reduced toxicity. She also mentioned interest growth in the association of Italian tile manufacturers’ publication dedicated to sustainability. Its Web site—www.s-tiles.it—serves as an active register of case studies related to sustainable building worldwide with a special focus on Italian ceramic tile. |