Floor Coverings Industry

Catalina Research
July 1, 2011
301 Pages - SKU: CATR6486490
License type:
Countries covered: United States

SUMMARY OF MAJOR FINDINGS
U.S. floor coverings sales showed an increase in square foot sales in 2010 for the first time in six years. The increase was driven by an upturn in existing home sales in the first half of the year, and the restocking of distribution channel inventories after a deep cut in 2009. The gain in 2010 was centered in the residential replacement market, especially in the higher-end products as the stock market recovered. This benefited the wood flooring and ceramic tile sectors. Vinyl and laminate flooring sectors also outpaced overall industry trends as consumers generally remained value conscious since unemployment rates remained stubbornly high. The U.S. floor coverings market, however, weakened again by the end of 2010 and the first half of 2011 as the housing market took a double-dip. The double-dip occurred due to the high unemployment rates, tightening credit standards, and continued declines in home prices. Dollar sales, however, remain on an upward trend as manufacturers push through price increases as material costs rise. The dollar sale increase in 2011, however, is being led by gains in commercial purchases.

FLOORING SECTOR TRENDS
Catalina Research uncovered these trends in our in-depth 301-page report on the U.S. floor coverings industry. U.S. shipments, exports, imports, and price trends are evaluated for carpet and area rugs, wood flooring, ceramic tile, vinyl sheet and floor tile, rubber sheet and floor tile, other resilient flooring, laminate flooring, and stone flooring

PROFIT MARGINS AND THE COMPETITIVE ENVIRONMENT
In addition, Catalina Research investigated the cost structure and profit margins of U.S. floor coverings plants. Data trends are compiled for material, labor, and capital inputs. As part of this analysis, Catalina Research profiled 15 leading U.S. manufacturers, compiled company sales and profit margins, and calculated market share. Company profiles cover product lines, manufacturing and distribution, capital investments, acquisitions, and new products.

END-USE MARKET ANALYSIS
Our end-use market analysis segments residential, commercial and other nonresidential, and transportation equipment markets. Construction markets are further segmented into new and replacement purchases, and purchases by manufactured housing manufacturers. End-use market trends are correlated with U.S. housing demand, nonresidential construction, mortgage interest rates, and other economic indicators to uncover the factors affecting U.S. floor coverings demand, and provide insights into the direction of domestic demand in 2011 and beyond. Residential and commercial carpet shipments are also provided.

DISTRIBUTION CHANNELS AND DEMOGRAPHICS
Sales are analyzed for retail and wholesale distribution channels. Retail floor coverings sales are supplied for specialty floor coverings stores, home centers, hard surface flooring and other building material dealers, furniture stores, department stores and mass merchandisers, paint and wallpaper stores, direct/internet, and other retailers. The total number of retail outlets selling floor coverings and total floor coverings sales by region and state are provided as well. Based on this data, Catalina Research calculated per capita sales. The report also includes a regional and state analysis of floor coverings sales by retail outlet and flooring type, as well as sales to households, builders, businesses, and governments. The report analyses the distribution business as well. In addition, Catalina provides sales estimates for the leading specialty floor coverings retailers and flooring distributors. A separate section investigates the demographics of household floor coverings purchases. Household spending trends are studied by family income, age of household head, persons per household, and region. Spending demographics are segmented for carpet, area rugs, and hard surface flooring. Spending trends are provided for homeowners and renters, and for DIY/BIY and contractor jobs. The number of residential replacement jobs is also included.9
INSTALLATION CONTRACTOR MARKET
A separate section analyzes the installation market. Data trends are provided for the number and revenues of U.S. floor coverings installation contractors, revenues by type of job and building, material and labor costs, revenue per square foot of floor coverings installed, and regional and state data. Installation costs are evaluated to consider their impact on the different types of floor coverings sales.



Additional Information

SCOPE AND METHODOLOGY

Catalina Research has conducted their annual analysis of the U.S. floor coverings industry. U.S. shipments, exports, imports, and price trends were evaluated in order to calculate total U.S. manufacturer sales on a dollar and volume basis (Sections 1 and 2). Similar data was also compiled and calculated for carpet and area rugs, wood flooring, ceramic floor and wall tile, vinyl sheet and floor tile, other resilient flooring, laminate flooring, and stone flooring. U.S. sales are in manufacturers’ dollars.

Dollar and quantity factory shipments by industry sector (except laminate and stone flooring) are from U.S. Department of Commerce surveys. For 2010, shipments were estimated based on monthly and quarterly data and historical trends. Shipments are further segmented for carpet and area rugs by product type and fiber. Laminate flooring, vinyl sheet and floor tile, rubber sheet and floor tile, and stone flooring statistics are derived partly from non-government data and interviews with industry players. Stone flooring is modular stone tile used for floor and wall applications, and is made from natural, manufactured, and engineered stone. For additional information on stone floors see the Catalina Report on Stone Products.

Shipment data includes exports. Export and import statistics are derived from U.S. Customs records. The import value represents custom value plus freight and insurance (CIF). U.S. sales are calculated by adding imports to shipments and subtracting exports (Section 1).

The average value per square foot is calculated for each industry sector. Average prices exclude installation costs. Price trends are also tracked based on the Bureau of Labor Statistics’ Producer Price Index.

The government data is subject to revision, and may show variations from edition to edition. For example, data from the 2007 Economic Census re-benchmarks shipments from 2003 to 2007, and data from the 2009 Annual Survey of Manufacturers revise our estimates from the 2010 edition. Section and report findings are included in the Executive Summary in order for readers to quickly review the present and future health of this industry. The report excludes rubber mats, matting, and stair treads and carpet cushions from the total industry statistics. Data for carpet cushions are included in Section 2. Data for rubber mats, matting, and stair treads are included in the Catalina Report on Resilient Flooring.

The report also analyzes the cost structure of U.S. floor coverings plants, industry profit margins, and the competitive environment (Section 3). Plant statistics are from the Census of Manufacturers and the Annual Survey of Manufacturers. Government data covers all plants with 50% or more of total revenues derived from the manufacture and sale of some type of floor covering (except plants specializing in laminate and stone flooring). Data are provided for the number of plants, payroll and material costs as a percent of shipments, wage rates, labor productivity, and capital expenditures. U.S. Department of Commerce survey data covering these plants are supplemented with individual company sales data in order to calculate company market share. Market share is calculated as a percent of supply, which is shipments plus imports. Company sales statistics are compiled as part of our effort to profile the industry’s top competitors (Section 4). Annual reports, databases, and trade journals were searched for growth- and profit-oriented strategies.

The section on end-use markets is based on the Benchmark Input-Output Accounts of the United States published by the Bureau of Economic Analysis of the U.S. Department of Commerce and discussions with manufacturers (Section 5). End-use purchases are divided into residential, nonresidential, and transportation markets. Residential and nonresidential markets are further segmented by builder (new) and replacement purchases. Each end-use market table provides data on purchases by floor coverings product.

Data from the Bureau of Labor Statistics provides additional analysis on do-it-yourself, buy-it-yourself, and contractor markets. Bureau of Labor Statistics data also supplies demographic snapshots of household floor coverings purchasers (Section 6). Household purchases are calculated from Bureau of Labor Statistics surveys and spending is provided by household income, age of household head, size of household, and region. The American Housing Survey provides data on homeowner replacement jobs for soft and hard surface flooring by demographic characteristic.

Sales by distribution retail channel are based on the U.S. Department of Commerce Census of Retail Trade and major retailer sales trends (Section 7). Retail sales by channel are estimated for 2010 based on government monthly retail trade surveys and top retailer sales. A regional retail floor coverings sales analysis is included as well. Catalina Research provides data on the number of outlets and retail sales by all types of floor coverings retailers by region and state. A similar analysis was conducted for specialty floor coverings retail stores (stores with 50% or more of total outlet sales derived from soft surface flooring). Data is also provided by type of retailer selling flooring and soft versus soft surface sales by region and state. In addition, Section 7 tracks wholesale floor coverings sales by product sector and market. A separate section tracks data for floor coverings installation contractors (Section 8). Statistics are provided for ceramic tile contractors and other floor laying and floor work contractors. Tables present data on the number and revenues of contractors, revenues by type of work and building material purchases, and statistics by region and state.

Catalina Research investigated the factors driving demand by analyzing government and private data on residential and nonresidential construction markets and transportation equipment output (Section 9). Residential housing statistics include data on new housing completions, existing home resales, and mobile home placements. Housing starts and residential building permits further track new residential construction markets. The characteristics of newly completed U.S. housing units are also provided. Total residential remodeling and repair spending are analyzed as well. In addition, data is provided on household demographics, personal income, and interest rates.

Action-oriented executives are urged to use this comprehensive statistical database to survive the current housing slump, uncover growing end-use market sales opportunities, target key demographic markets, expand foreign market sales, and initiate profitable operating strategies. Executives are urged to compute their own company’s market share and compare their company’s operating ratios to the industry averages as part of this process.

Catalina Research also stands ready to conduct custom reports on state, county, and metropolitan markets. Catalina will compile and analyze retail sales, contractor revenues, and builder markets to pinpoint trends by state, county and metropolitan areas. Please contact us at 561-988-0853 for more information.

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