Valencia, Spain—When it comes to using ceramic tile, the United States is not only purchasing more and more each year, it ranks among the world leaders in total consumption, yet on a per capita basis America still lags far behind many other countries. These two factors, combined with an industry dedicating itself to servicing the U.S. market as well as re-investing in better equipment and technology, had many tile executives at the 20th edition of Cevisama proclaiming the future for America is still unlimited.

Cevisama is the category’s second most important trade show in the world behind Italy’s Cersaie, held each fall in Bologna. More than 1,400 companies, over 950 from Spain, exhibited their wares to approximately 83,000 people of which 12% came from outside the country. “The United States market continues to be our great hope,” said Fernando Diago, president of the Spanish Ceramic Tile Manufacturer’ Association (ASCER) and managing director of one of the country’s most innovative players, Diago Cermamicas, which has been in business for more than 90 years. “We have great expectations for the U.S. due to its low consumption rate compared to the rest of the world.” He noted, for example, the annual per capita rate in Spain, which has one of the world’s largest consumption rates per person, is approximately 75 square feet, while in America it is less than 11 square feet.

At Rocersa Ceramica, which is celebrating its 25th anniversary this year, Jacobo Pardo, export manager, feels America still has plenty of untapped potential. “In most of the industrialized countries, ceramic tile is firmly established and growth is stable. In fact, making a significant impact in market share is very hard due to these markets being so mature. That is not the case in the U.S., where the country is under utilized by 90%. The American market is showing signs of maturity but its importance cannot be understated because there is still so much business out there. For many factories, the U.S. is their most important market due to its growth rate and potential.”

In addition to its 25th year in operation, Rocersa is entering its 19th year of doing business in the U.S. It was actually one of the first Spanish tile producers to firmly establish itself in America and currently does most of its business through floor covering distributors. Officials at Pamesa Ceramica, another company with long ties to the U.S. since the 1970s, echoed Pardo’s sentiments. “America is the most important export market in the world,” said Cesar Perez, U.S. export manager. “And because it is such a huge market there is still plenty of room to grow. In fact, the country is only at 10% of its capacity.” Perez explained one of the reasons for the category’s recent growth surge is due to how American consumers view the product. “Ceramic used to be a luxury item in the U.S., but slowly it is becoming a necessity for everyone.”

While the potential for success in the U.S. is enormous, most manufacturers realize it is not a guarantee, due to the overall size of the market, the mind set of the American consumer, various logistical obstacles, etc. Therefore, in order to make it over the long haul, a strategy tailored to America is needed. And, as those who do business here already have found out, the plan needs time and dedication to be fully implemented and realized. “It is very important to be physically in the U.S.,” said Manuel Martinez, export manager for Natucer. “That’s why we started Natucer of America. Right now, America represents a small percentage of our sales, but it is growing rapidly and we want to ensure we are successful.” “By having a U.S. division,” explained Juan Benavent, director general for Metropol, “we can better support our customers.” The company started Metropol USA two years ago with headquarters in New York and already has a number of agents and two warehouses. “This way we can stock the product for our customers so they don’t have to order containers. They can concentrate on trying to sell the right product to the end user.” Luca Carena, area manager for Ceracasa, said, “The key to success is to be Americanized. You can’t go in as a Spanish company. You have to act American. We try to be more involved with our customers and develop programs just for them.”

Mike Ward, vice president of sales for EPC America, the U.S. division of Gres de Valls, said maintaining a domestic inventory supply of products tailored for the American consumer is one of the best combinations for success. He should know, as his company is Spain’s number one exporter to the U.S., with up to 42% of its products made for America. “The U.S. is our single largest customer—it’s bigger than Spain for us, so it plays a large role in our strategic thinking. “That strategy includes,” he continued, “making products specifically for the U.S. and ensuring they are inventoried and available when asked for.”

Having the products available is one thing, but coming up with designs and styles for America requires a strategy unto itself as many mill officials noted. “The United States is like 50 countries; each state is different,” said Guillermo Puente, managing director for Alcalagres America. “The one constant is, everyone is looking for something new.” Finding new, innovative products was not hard at this year’s Cevisama as Spain’s tile factories started showing the fruits of what has been a large re-investment period for the industry. ASCER’s Diago said, in 2001, the industry re-invested nearly 286 million Euros (at press time, one Euro was equal to 87 U.S. cents), 155% more than the previous year, for improvements and modernization in equipment and facilities. “These investments have allowed the technical and aesthetic properties of Spanish tile to reach a state of maturity through increased quality and diversity.”

Pamesa’s Perez said the numerous technological advances the industry has achieved in the past year has made exhibiting once again exciting. “New technology helps create excitement and makes the industry fun again because there are so many new and different things. And, most of the innovations are coming in the porcelain area which is where most of the demand is coming from.” Technological advances were certainly easy to find as most companies surveyed by FCNews were exhibiting at least one product featuring some form of advanced manufacturing process which was developed within the last two years. Some of the more notable examples included Grespana Ceramica, which offered porcelain products featuring a polished, glazed finish, a sophisticated process introduced last year. “This is just starting to become popular,” said Manuel Roca, export manager. “It usually takes one to two years for a new technology to take hold.” Manuel Esteve of Alfa Ceramica said the company’s investment in the industry’s most state-of-the-art equipment led to the mill’s monocaliber process. “The entire production line is based on one caliber, re-gardless of the product. This makes for the same exact size and shading in each piece. It allows us to control the entire process so the customer will always get the same product when-ever its ordered; there will be no variation. “Another advantage is,” he continued, “lab tests show products are two to three times the industry standards in various areas such as psi, A-rating, etc.”

Roca, which does business in the U.S. under its own name as well as through its Laufen and USCT subsidiaries, was one of a handful of companies to introduce the double-press technology to the industry. Carlos Socias, export manager, explained the process al-lows a mill to replicate natural stone better than ever. “It’s the closest look you can get and we will certainly be bringing this to the U.S.” He explained, double-press is a three-phase process before the product is fired. First, the body is pressed at a low density, followed by its normal glazing. Then, it is pressed a second time with a stronger, heavier press so the glaze is cast in the body of the product. The advantages of this technique are, explained Manuel Carda, marketing deputy for Azuvi, it provides for easier maintenance and the product is not porus, since the glaze not only completely covers the body, but is imbedded in it.

Finally, Diago was one again pushing the innovation envelope with a series of products that build upon recent introductions such as its Cuir collection of ceramics which look and feel like leather. “Innovation is a very high priority in the company,” said Raul Jimenez, area manager. This year, the mill came out with a number of lines replicating jute backing, wood and bamboo looks, and striated, sisal textures. He noted, these as well as all porcelain products in Diago’s collection feature the patented Ligeramica manufacturing technique which makes the product both lighter and stronger (FCNews, April 3/10, 2000).

In addition to utilizing technology, a number of Spanish producers have taken a cue from American companies by tapping into the creativity of the country’s top designers. For example, Saloni, which markets to the U.S. under its own name as well as the Eternity label, signed a five-year licensing deal with Roberto Verino, one of the country’s most respected fashion designers, to create one new line per year. The first is Celta and, according to Joe Vial, area sales director, “is very modern looking. It’s a rectified, glazed porcelain that can fit into a variety of decors.” Having the right product is certainly key to success, but as many of the companies doing business in America noted, servicing and educating American retailers and consumers are just as important. “The most important thing is service, said Alcalagres’ Puente. “Not just in material. We have to help them with their needs. It’s all a matter of education.” “We’ve developed programs to support our customers and in turn help them support their customers,” said Alfa’s Esteve. “For instance, we provide marketing materials and tools, education tools, such as displays specifically developed for the U.S. featuring lots of consumer information in a very visual, open format. “You need to do this,” he added, “because there is a lot of misinformation that carries over to the dealer and consumer and we want to change that. It makes for a better experience which helps the overall industry.”