Resilient Flooring

Report Description

SUMMARY OF MAJOR FINDINGS

The $2.5 billion (manufacturers’ dollars) U.S. resilient flooring market has significantly increased its share of the domestic floor coverings industry. Resilient flooring gained share due to growing commercial market demand, successful introduction and acceptance of luxury vinyl tile and fiberglass-backed vinyl sheet, and consumer’s growing preference for low-cost hard surface flooring as the housing market weakened and the economy contracted. However, the sharp cut in residential demand and the surge in material costs cut plant profit margins. Margins were also adversely affected by increasing competitive pressures from foreign- and domestic-based manufacturers. Resilient flooring is forecast to make additional inroads in the U.S. floor coverings industry during 2009 as the Federal stimulus package encourages construction of healthcare and educational facilities, two key end-use markets. Profit margins may also rebound along with moderating in material costs.

RESILIENT FLOORING SALES TRENDS

Catalina Research has uncovered these trends in our 190-page in-depth analysis of the global resilient flooring market. U.S. shipments, exports, imports, and price trends are evaluated for vinyl sheet products, vinyl tile, rubber flooring, linoleum, cork flooring and other flooring materials. Data is provided on a dollar and unit basis. Catalina also reviews product innovations such as luxury vinyl tile and fiberglass-backed vinyl sheet. Import data analyzes shipments of foreign-sourced products by major country of origin, and export data analyzes foreign sales by major country of destination. Catalina also investigated global demand by product segment and world area.

END-USE MARKET PURCHASES AND DISTRIBUTION

The report’s end-use market analysis provides executives with the growing sales opportunities in residential, nonresidential, and transportation equipment markets. Residential markets are further divided into new construction, residential remodeling, and manufactured housing markets. Nonresidential markets are segmented into new construction and commercial contract purchasers. Catalina used these data trends to calculate resilient flooring’s share of total residential and nonresidential flooring markets. Retail sales are provided as well.

FACTORS AFFECTING DEMAND

End-use market trends are correlated with U.S. housing demand, nonresidential construction spending, mortgage interest rates, and other housing and economic indicators to uncover the factors affecting demand, and provide insights into the direction of domestic demand in 2009 and beyond.

PROFIT MARGINS AND THE COMPETITIVE ENVIRONMENT

In addition, Catalina Research examined the cost structure and profitability of U.S. resilient flooring plants. Data trends are compiled for material, labor, and capital inputs. As part of this analysis, Catalina profiled 27 global manufactures and marketers, and compiled company resilient flooring sales. Catalina used this information to calculate U. S. market shares of the leading competitors. Company profiles cover product lines, manufacturing and distribution, capital investments, acquisitions, and new products. Executives are urged to review the growth- and profit-oriented strategies of leading worldwide resilient flooring manufacturers and compare their company’s own performance to the industry averages.

RUBBER MAT, STAIR TREAD, AND COVE BASE MARKET

Catalina Research also evaluated the U.S. and Canadian market for rubber mats, stair treads, and cove base. Product shipments cover roll goods, automotive mats, other mats, and cove base and other products. Export and import trends are also included.

WORLD RESILIENT FLOORING MARKET

The global resilient flooring market is investigated as well. Market trends are segmented for vinyl, rubber, and linoleum flooring; and by world area. Sales of Tarkett and Armstrong are also segmented by world area. Global market shares are calculated for 10 leading manufacturers. Canadian market trends include shipments, imports, and exports.

Resilient Flooring

TABLE OF CONTENTS

SECTION 1 EXECUTIVE SUMMARY AND US RESILIENT FLOORING INDUSTRY

TRENDS  1

Executive Summary 1

US Resilient Flooring Sales And Rising Share Of Floor Coverings Market  2

Market Sales Mix And Products Driving Growth 3

Growing End-Use Markets And Changing Distribution Channels  5

Plant Operating Ratios And Profit Margins  6

Competitive Environment And Pricing Situation  6

Market Outlook  7

Table 1-1   Value Of US Resilient Floor Coverings Sales And Share Of

                  Total US Floor Coverings Sales, 1987-2014 (dollars)  9

Table 1-2   Value Of US Resilient Floor Coverings Sales By Material,

                  1997-2014 (dollars): Vinyl, Rubber, And Other Materials  10

Table 1-3   Quantity US Resilient Floor Coverings Sales And Share Of

                  Total US Floor Coverings Sales, 1987-2014 (square feet)  11

Table 1-4   Quantity US Resilient Floor Coverings Sales By Material,

                  1997-2014 (square feet): Vinyl, Rubber, And Other Materials 12

Table 1-5   US Average Value Per Square Foot Of Resilient Floor

                  Coverings Sold And By Material, 1997-2014 (dollars): Total

                  Flooring, Total Resilient, Vinyl, Rubber, And Other Materials 13

Table 1-6   Comparative Floor Coverings Pricing, 2008 (dollars and

                  percent): Resilient Flooring, Carpet And Area Rugs, Ceramic

                  Tile, Laminate Flooring, Wood Flooring, Stone Flooring, And

                  Total Floor Coverings  14

Table 1-7   US Producer Price Index For Resilient Floor Coverings And

                   Plastic Resins, 1997-2009 (index)  15

Table 1-8   Monthly US Producer Price Index For Resilient Floor

                  Coverings, 2007-2009 (index)  16

Table 1-9   Value Of US Vinyl Sheet And Floor Tile Sales, 1997-2009

                  (dollars and square feet) 17

Table 1-10  US Resilient Flooring Sales By Product Type, 2008 (square

                  feet and percent): VCT/Linoleum, Vinyl Sheet, LVT, Fiberglass-

                  Backed, Rubber, Cork, And Other Materials  18

SCOPE AND METHODOLOGY  19

SECTION 2 USSHIPMENTS AND IMPORTS BY TYPE OF FLOORING MATERIAL  22

Summary Of Major Findings 22

US Resilient Flooring Shipments  23

Resilient Flooring Import Trends 24

Product Innovations 26

Luxury Vinyl Tile  26

Fiberglass-Backed Vinyl Sheet 27

Linoleum 28

Rubber Flooring 29

Cork Flooring  30

Environmental Product Developments  31

Table 2-1   Value Of US Resilient Floor Coverings Shipments By Material,

                  1987-2009 (dollars): Vinyl, Rubber, And Other Materials  32

Table 2-2   Quantity US Resilient Floor Coverings Shipments By Material,

                  1987-2009 (square feet): Vinyl, Rubber, And Other Materials 33

Table 2-3   US Vinyl Sheet And Floor Tile Shipments, 1997-2009 (square

                  feet and dollars): Vinyl Sheet Flooring And Vinyl Floor Tile 34

Table 2-4   Average Value Per Square Foot Of Vinyl Sheet And Floor Tile

                  Shipped, 1997-2009 (dollars): Domestic Manufacturers And

                  Foreign-Sourced Products 35

Table 2-5   Total Cost Of Importing Resilient Flooring To The United States,

                  1997-2009 (dollars): Products, Insurance And Freight, Tariff,

                   And Total Costs 36

Table 2-6   Percent Distribution Of Resilient Flooring Import Costs By Type,

                  1997-2009 (percent): Products, Insurance And Freight, And

                  Tariff  37

Table 2-7   Value Of US Vinyl And Other Resilient Flooring Imports, 1997-

                   2009 (dollars): Vinyl Sheet And Floor Tiles And Other Resilient

                   Flooring  38

Table 2-8   Quantity US Vinyl And Other Resilient Flooring Imports, 1997-

                  2009 (square feet): Vinyl Sheet And Floor Tiles And Other

                  Resilient Flooring 39

Table 2-9   Value Of US Resilient Flooring Imports For The Top Fourteen

            Countries Of Origin, 2002-2008 (dollars) 40

Table 2-10   US Imports Of Resilient Floor Coverings Product Lines, 1997-

                    2008 (square feet and dollars): Vinyl Tile, Vinyl Sheet, Other

                    Plastics, Linoleum, Cork, And Other Materials  41

Table 2-11   Imports’ Share Of US Vinyl Sheet And Vinyl Floor Tile Sales,

                    1997-2009 (percent): Vinyl Sheet Flooring And Vinyl Floor Tile  42

Table 2-12   US Vinyl Tile Imports For The Top Twelve Countries Of Origin,

                    2002-2008 (square feet and dollars) 43

Table 2-13   US Vinyl Tile Imports For The Top Twelve Countries Of Origin,

                    2002-2008 (square feet and dollars) 44

Table 2-14   US Non-Vinyl Plastic Flooring Imports For The Top Twelve

                    Countries Of Origin, 2002-2008 (square feet and dollars)  45

Table 2-15   US Linoleum Imports For The Top Four Countries Of Origin,

                    2002-2008 (dollars and square feet) 46

Table 2-16   US Cork Flooring Imports For The Top Six Countries Of Origin,

                    2002-2008 (dollars)  47

SECTION 3 USEND-USE MARKET PURCHASES AND DISTRIBUTION CHANNELS  48

Summary Of Major Findings 48

Commercial Markets 48

Residential Markets  50

Distribution Channels  51

Export Shipments  52

Table 3-1   US Resilient Flooring Purchases By End-Use Market, 1997-

                  2009 (dollars): New Residential, Residential Replacement,

                  Factory-Built Housing, New Nonresidential Construction,

                  Commercial Contract, And Transportation Equipment  53

Table 3-2   Percent Distribution Of US Floor Coverings Purchases By End-

                  Use Market, 1997-2009 (percent): New Residential, Residential

                  Replacement, Factory-Built Housing, New Nonresidential

                  Construction, Commercial Contract, And Transportation

                  Equipment  54

Table 3-3   Resilient Flooring’s Share Of Total US Residential And

                  Nonresidential Flooring Markets, 1997-2009 (percent) 55

Table 3-4   US Resilient Flooring Quantity Sales By Market, 2008-2009

                  (square feet): Residential And Nonresidential  56

Table 3-5   US Resilient Flooring Retail Sales, 1997-2009 (dollars) 57

Table 3-6   Monthly US Floor Coverings Store Sales, 2006-2009 (dollars)  58

Table 3-7   Value Of US Vinyl And Other Resilient Flooring Exports, 1997-

                  2009 (dollars): Vinyl Sheet And Floor Tiles And Other Resilient

                  Flooring  59

Table 3-8   Quantity US Vinyl And Other Resilient Flooring Exports, 1997-

                  2009 (square feet): Vinyl Sheet And Floor Tiles And Other

                  Resilient Flooring 60

Table 3-9   Value Of US Resilient Flooring Exports For The Top Fourteen

                  Countries Of Destination, 2002-2008 (dollars)  61

Table 3-10   US Exports Of Resilient Flooring Product Lines, 1997-2008

                    (square feet and dollars): Vinyl Tile, Vinyl Sheet, Other Plastics,

                    Linoleum, And Other Materials  62

Table 3-11   Exports’ Share Of US Vinyl Sheet And Floor Tile Shipments,

                    1997-2009 (percent): Vinyl Sheet Flooring And Vinyl Floor Tile  63

Table 3-12   US Vinyl Tile Exports For The Top Ten Countries Of

                     Destination, 2002-2008 (square feet and dollars) 64

Table 3-13   Value Of Vinyl Sheet Exports For The Top Eleven Countries Of

                     Destination, 2002-2008 (square feet and dollars) 65

SECTION 4 FACTORS AFFECTING US RESILIENT FLOORING DEMAND  66

Summary Of Major Findings 66

Nonresidential Markets 66

New Residential Construction Market 67

Residential Remodeling And Replacement Market  68

Household Demographics  69

Manufactured Housing And Recreation Vehicle Markets  70

Table 4-1   US Spending On Building Construction, 1987-2009 (dollars):

                  Total Buildings, Residential Buildings, And Nonresidential

                  Buildings 71

Table 4-2   US Spending On Construction Put In Place By Market And

                  Building Type, 2004-2008 (dollars): Residential, Lodging, Office,

                  Commercial, Healthcare, Educational, Religious, Public Safety,

                 Amusement And Recreation, Manufacturing, And Public

                 Buildings 72

Table 4-3   Percent Of US Households Purchasing A New Or Existing

                  Housing Unit, 1992-2009 (number, percent, and dollars): Total

                  Households, Total Housing Demand, Percent Households

                  Purchasing, Interest Rates, And Average Value Per Existing

                  Home Sold 74

Table 4-4   Total US Housing Demand By Sector By Region, 2004-2009

                  (number): Existing Home Sales, New Housing Completions, And

                   Mobile Home Placements 75

Table 4-5   New US Privately Owned Housing Units Started And By Type

                 Of Structure, 1980-2009 (number): Total Starts; In Structures

                With 1 Unit, 2 To 4 Units, And 5 Units Or More  76

Table 4-6   Monthly New Private US Housing Units Authorized By 20,000

                  Building Permit Places By Region, 2008 And 2009 (number)  77

Table 4-7   New Privately Owned Housing Units Authorized By 20,000

                  Building Permit Places By Region And State, 2006-2008

                 ( number) 78

Table 4-8   Number Of Existing Single-Family Homes, Condos, And Co-Ops

                  Sold By Region And State, 2002-2008 (number)  80

Table 4-9   Value Of Private Nonresidential Building Construction Spending

                  By Region, By Building Type, 2002-2007 (dollars): Lodging,

                  Office, Commercial, Healthcare, Education, Religion,

                  Amusement And Recreation, Manufacturing, And Total;

                  Northeast, Midwest, South, And West 82

Table 4-10   New US Single-Family Houses Sold By Sales Price, 1985-

                    2008 (number): Under $150,000, $150,000 To $199,999,

                    $200,000 To $299,999, $300,000 To $499,999, And $500,000

                    And Over  84

Table 4-11   Characteristics Of New US Housing Units Affecting Floor

                    Covering Product Demand, 1990-2007 (units): Region, Number

                    Of Bathrooms, Number Of Bedrooms, Garages, And Number Of

                    Stories; For Single-Family, Multi-Family Structures, And Mobile

                    Homes 85

 Table 4-12   Average Size Per New US Housing Unit By Type Of Unit And

                    Region, 1990-2008 (square feet): Single-Family Homes, Multi-

                     Family Units, And Mobile Homes 88

Table 4-13   US Homes Closed By Ten Leading Domestic Home Builders,

                    2002-2008 (number) 89

Table 4-14   US Residential Property Owner Expenditures For

                     Improvements, Additions, Alterations, And Repairs And

                     Spending By Single-Family Homeowners, 1985-2009 (dollars) 90

Table 4-15  US Home Mortgage Interest Rates And Personal Income,

                   1982-2009 (percent and dollars)  91

Table 4-16   Distribution Of US Households By Demographic Characteristic,

                    1986-2007 (percent): Household Income, Age Of Household

                    Head, Household Size, Region, And Total Households  92

Table 4-17   Number Of US Commercial Buildings, Their Principal Activity,

                    And Square Feet, 2003 (number) 93

Table 4-18   US Recreation Vehicle Shipments, 1987-2009 (number)  94

Table 4-19   Monthly US Transportation Equipment Production Trends,

                    2007-2009 (index)  95

SECTION 5 USRESILIENT PLANT PROFITABILITY AND THE COMPETITIVE

ENVIRONMENT 96

Summary Of Major Findings 96

Resilient Flooring Plant Cost Structure 96

Plant Profit Margins  97

Competitive Environment  98

Niche Market Shares  99

Table 5-1    Number Of US Resilient Flooring Manufacturers And Plants,

                   And Facility Revenues, 1987-2009 (number and dollars) 100

Table 5-2   Plant Operating Ratios And Profitability For US Resilient Floor

                  Coverings Manufacturers, 1987-2009 (percent): Payroll, Other

                  Labor Costs, Material Costs, And Gross Profit Margin  101

Table 5-3   Value Of Material Purchases By Kind By US Resilient Flooring

                  Plants, 2002-2009 (dollars): Plastic Resins, Felts, Plasticizers,

                  Pigments, Containers, And Others  102

 Table 5-4   Monthly US Producer Price Index For Plastic Resins, 2007-

                  2009 (percent)  103

Table 5-5   US Resilient Flooring Plant Labor Situation, 1987-2009

                  (number and percent): Number Of Employees, Shipments Per

                  Employee, Average Hourly Wages, And Average Weekly Hours 104

Table 5-6   US Resilient Flooring Plant Capital Expenditures, 1987-2008

                  (dollars and percent) 105

Table 5-7   Share Of US Resilient Supply For The Top Four

                  Manufacturers, 2005-2008 (percent)  106

SECTION 6 WORLD RESILIENT FLOORING MARKET TRENDS  107

World Market Trends And Leading Manufacturers  107

Western Europe Market 108

Eastern European Market 109

Pacific Rim Market 110

Canadian Market  111

Latin American Market 112

Table 6-1   World Resilient Flooring Market, 2007 And 2008 (square feet

                  and dollars) 113

Table 6-2   Share Of World Dollar Resilient Flooring Sales For Ten Leading

                  Manufacturers, 2008 (percent)  114

Table 6-3   Resilient Flooring Sales And Profit Margins For Seven

                  Worldwide Manufacturers, 2003-2008 (dollars and percent)  115

Table 6-4   Armstrong’s Resilient Flooring Sales By World Area, 2003-2008

                 (dollars)  117

Table 6-5   Altro Sales By World Area, 2006 And 2007 (dollars)  118

Table 6-6   Tarkett Sales By Product And World Area, 2006 And 2007

                  (dollars)  119

Table 6-7   Value Of Canadian Resilient Floor Coverings Shipments,

                  Exports, Imports, And Sales, 1992-2008 (Canadian dollars) 120

Table 6-8   Value Of Canadian Resilient Flooring Shipments, Imports, And

                   Exports, 1992-2008 (Canadian dollars)  121

Table 6-9   Value Of Canadian Resilient Flooring Exports For The Top

                   Seven Countries Of Destination, 2002-2008 (Canadian dollars)  122

Table 6-10   Value Of Canadian Resilient Flooring Imports For The Top

                    Twelve Countries Of Origin, 2002-2008 (Canadian dollars)  123

Table 6-11   Value Of Canadian Building Permits And Canadian Housing

                    Starts, 1993-2008 (number and Canadian dollars) 124

SECTION 7 USRUBBER MAT, STAIR TREAD, AND COVE BASE MARKET  125

US And Canadian Market Trends 125

Source Of Supply And US Plant Operating Ratios  125

US Shipments Product Mix 126

US Export Shipments  127

Canadian Market Trends  127

Table 7-1   Value Of US Rubber Mats, Stair Tread, And Cove Base Sales,

                  1992-2014 (dollars)  129

Table 7-2   Value Of US Rubber Mat, Stair Tread, And Cove Base

                   Shipments, 1987-2009 (dollars)  130

Table 7-3   Value Of US Rubber Mat, Stair Tread, And Cove Base

                  Shipments By Product Type, 1992-2009 (dollars): Rolls,

                  Automotive Mats, Other Mats, And Other Products 131

Table 7-4   Value Of US Rubber Mat, Stair Tread, And Cove Base

                   Imports, 1992-2009 (dollars)  132

Table 7-5   Value Of US Rubber Mat, Stair Tread, And Cove Base Imports

                   For The Top Fifteen Countries Of Origin, 2002-2008 (dollars)  133

Table 7-6   Value Of US Rubber Mat, Stair Tread, And Cove Base

                  Exports, 1992-2009 (dollars)  134

Table 7-7   Value Of US Rubber Mat, Stair Tread, And Cove Base Exports

                   For The Top Fifteen Countries Of Destination, 2002-2008

                   (dollars)  135

Table 7-8   US Producer Price Trends For Rubber Mats, Stair Treads, And

                  Cove Base, 1987-2009 (index)  136

 Table 7-9   Economic Structure Of US Rubber Mat, Stair Tread, And Cove

                  Base Plants, 1992-2007 (number, dollars, and percent): Number

                  Of Plants, Plant Shipments, Payroll And Material Costs,

                  Employees And Wages, And Capital Expenditures  137

Table 7-10   Value Of Canadian Rubber Mats, Stair Tread, And Cove Base

               Sales, 1992-2008 (Canadian dollars): Shipments, Exports,

               Imports, And Sales  138

Table 7-11   Value Of Canadian Rubber Mat, Stair Tread, And Cove Base

                    Shipments, Imports, And Exports, 1992-2008 (Canadian dollars) 139

Table 7-12   Value Of Canadian Rubber Mat, Stair Tread, And Cove Base

                    Exports For The Top Fourteen Countries Of Destination, 2002-

                    2008 (Canadian dollars)  140

Table 7-13   Value Of Canadian Rubber Mat, Stair Tread, And Cove Base

                    Imports For The Top Twelve Countries Of Origin, 2002-2008

                    (Canadian dollars)  141

SECTION 8 COMPANY PROFILES AND RECENT DEVELOPMENTS 142

Allied Companies LLC  143

Resilient Flooring Products And Sales  143

Altro Ltd  144

Resilient Flooring Products 144

Sales Trends And Markets  145

American Biltrite (Canada) Ltd  146

Resilient Flooring Products 146

Sales Trends  146

Amtico International  148

Resilient Flooring Products And Markets 148

Company’s Owners And Sales  149

Armstrong World Industries  150

Resilient Flooring Products 150

Manufacturing And Markets 151

Sales And Market Shares 152

Beaulieu International Group NV  154

Resilient Flooring Products 154

Distribution Agreement With Beaulieu Canada 154

CBC (America) Corp  155

Resilient Flooring Products 155

Capri Cork  156

Resilient Flooring Products 156

Centiva International Floors Of America  157

Resilient Flooring Products And Sales  157

Congoleum Corp 158

Floor Coverings Products  158

Manufacturing And Distribution 160

Sales Trends And Market Share 160

Corticeira Amorim  162

Cork Flooring Products 162

Sales Trends  163

Ecore International 164

Resilient Flooring Products And Sales  164

Investments And Distribution Agreements 164

FloorFolio Industries  166

Resilient Flooring Products 166

Forbo International 168

Resilient Flooring Products And Markets 168

Sales And Profit Share  169

US Products And Sales  170

Gerflor Group 171

Resilient Flooring Products And Markets 171

Manufacturing, Distribution, And Sales 171

Gerflor USA  172

Graboplast zRt  173

Resilient Flooring Products And Sales  173

IVC Group  174

Resilient Flooring Products And Markets 174

Karndean International Ltd 175

Resilient Flooring Products And Markets 175

LG Chem Ltd  176

LG Flooring Products And Markets 176

US Distribution 176

Lonseal Corp 178

Resilient Flooring Products And Sales  178

Mannington Mills, Inc  179

Resilient Flooring Products And Markets 179

Sales And Market Share 180

Metroflor  182

Resilient Flooring Products 182

nora systems GmbH 183

Resilient Flooring Products And Markets 183

Sales And Market Share 183

Roppe Holding Co 184

Resilient Flooring Products 184

Tarkett SA  185

Flooring Products And Markets  185

Western Europe Business  185

Eastern Europe Business  186

North America 187

Sales And Market Shares 188

US Floors, Inc  189

Resilient Flooring Products 189

Investments And Partner  189

VPI Corp  190

Resilient Flooring Products And Sales  190