The $2.6 billion (manufacturers' dollars) U.S. wood flooring market has made significant inroads in the domestic floor coverings industry over the past two decades The inroads were stimulated by growing consumer acceptance of high-end hard surface flooring, as well as more diverse offerings by wood flooring manufacturers. Manufacturers now offer a wide range of species, colors, and custom-type designs. The industry has also stimulated demand with easier and less costly to install products such as prefinished, engineered, and glueless wood floors. These new products and technologies have increased competitive pressures, especially from foreign-based manufacturers. This has led to a sluggish industry bottom line performance.
WOOD FLOORING INDUSTRY TRENDS
Catalina Research has uncovered these trends in our in-depth analysis of the North American wood flooring industry. U.S. shipments, exports, and price trends are evaluated for hardwood and softwood flooring products. Hardwood flooring shipments are further segmented for strip oak, oak parquetry, specialty oak, maple, and other hardwood flooring products. Data is provided on a dollar and unit basis. Catalina also reviews market trends for prefinished and engineered products, and increased demand for exotics, rustics, and other products.
INTERNATIONAL TRADE ACTIVITY
Import data is included in order to evaluate the growing share of foreign-sourced wood flooring products. Import data is provided for softwood flooring; and maple, birch, and other hardwood flooring products. Import data is also provided for major countries of origin. Similar data is available for export shipments.
END-USE MARKET ANALYSIS
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. The demographics of hard surface flooring residential replacement customers are discussed in order to target the most likely purchasers. Nonresidential markets are segmented into new construction and commercial contract purchasers. Installation revenues and costs are also evaluated. Retail distribution channels are analyzed to review the position of floor covering stores, home centers, and other retailer.
FACTORS AFFECTING DEMAND AND DISTRIBUTION
End-use market trends are correlated with U.S. housing demand, nonresidential construction spending, mortgage interest rates, and other economic indicators to uncover the factors affecting demand, and provide insights into the direction of domestic demand in 2005 and beyond. Catalina Research investigates the growing flooring distributor and retail channels as well.
PROFIT MARGINS AND THE COMPETITIVE ENVIRONMENT
In addition, Catalina Research examined the cost structure and profitability of U.S. hardwood flooring plants. Data trends are compiled for material, labor, and capital inputs. As part of this analysis, Catalina profiled 41 leading North American manufactures and marketers, and compiled company wood flooring sales. Catalina used this information to calculate market shares of leading manufacturers. 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 North American and foreign-based wood flooring manufacturers and compare their company's own performance to the industry averages.
WORLD WOOD FLOORING MARKET
Catalina estimated the total world market and by market area by analyzing trends in North America, Europe, China, and other world areas. For China and Canada market sales are calculated from shipments, exports, and import data. Canadian shipments are segmented for oak, maple, birch, and other hardwood floorings. Market shares and also calculated for the leading Canadian and European manufacturers.
Additional Information
SCOPE AND METHODOLOGY
The Catalina Report on Wood Flooring is a guide to the growth and profit opportunities in the manufacturing, importing, and distribution of hardwood and softwood flooring. This comprehensive database covers U.S. shipments, imports and exports, residential and nonresidential markets, retail sales, the installation contractor business, factors affecting domestic demand and distribution, the cost structure of hardwood flooring plants, the competitive environment, and the world market situation. In addition, major North American- and foreign-based manufacturers are profiled in order to uncover competitor strategies.
U.S. sales are calculated from U.S. Department of Commerce statistics by collecting data on domestic plant shipments, subtracting exports, and adding imports (Section 1). Sales are calculated on a dollar and square foot (or board foot) basis and calculated as a share of total U.S. floor coverings sales (shipments minus exports plus imports) and hard surface flooring sales. Catalina Research uses the measurement of board feet and square feet interchangeably. The average value per square foot supplied is calculated and compared with other floor coverings materials. Catalina also estimates the share of sales that are solid versus engineered. In addition, hardwood flooring plant profit margins are compared with the U.S. floor coverings industry average. Section and report findings are summarized in our Executive Summary in order for readers to quickly review the present and future health of this industry and assess whether their company's performance is in line with industry trends.
Section 2 analyzes U.S. shipments of hardwood and softwood flooring. Hardwood shipments are segmented into oak strip, oak parquetry, other oak flooring, maple flooring, and other hardwood flooring products. Shipments are for all domestic manufactures, whether plants are owned by U.S.- or foreign-based companies, and whether or not plants specialize (50% or more of total facility revenues) in wood flooring.
Section 3 rounds out the total U.S. supply by evaluating the role of foreign-based companies in the U.S. market. Data trends include import statistics which are derived from U.S. Customs records. Import data is provided by product and by major country of origin.
Wood flooring end-use markets and retail distribution channels are analyzed in Section 4. Hardwood flooring purchases are provided for new residential construction and residential remodeling markets, new nonresidential construction and commercial contract markets, as well as transportation equipment markets. This data is based on U.S. Department of Commerce surveys. Section 4 also analyzes the wood flooring installation business and retail hardwood flooring sales by type of outlet. The size of the wholesale business is also evaluated. Hardwood Flooring magazine survey results cover distribution and installation contractor revenues by type of product, species, and finish sold. In addition, U.S. export trends are included in order to determine world market opportunities.
Catalina investigated the factors driving domestic demand and distribution by analyzing U.S. construction activity and total floor covering retail sales (Section 5). Residential housing statistics include data on new housing completions, existing home resales, and mobile home placements. Housing starts and residential building permits track current trends in new residential construction markets. The characteristics of newly completed U.S. housing units are also provided. These data include the average value of new housing units. Total homeowner remodeling and repair spending are analyzed as well. In addition, data are provided on household demographics and economic trends. Retail floor covering sales by type of outlet is provided, including monthly sales trends of specialty floor coverings sales. Nonresidential construction trends are tracked by type of building.
Catalina supplies data on the cost structure and profitability of U.S. plants specializing (50% or more of total plant revenues) in the manufacture and sale of hardwood flooring (Section 6). U.S. Department of Commerce survey data covering these plants are supplemented with individual company profiles and sales data in order to provide growth- and profit-oriented strategies and company market shares (Sections 7 and 9). Annual reports, trade journals, and databases were searched. Professional Builder's Brand Study results were included to show the leading brands penetrating the U.S. home builder and remodeling contractor markets.
The Canadian market situation is evaluated from Statistics Canada data (Section 8). Data trends include plant shipments, exports, and imports, as well as a review of the leading manufacturers. The European market is also investigated by product, country, and major manufacturer, as well as trends in the Chinese wood flooring market. This data was used to estimate the world wood flooring market.
Action-oriented executives are urged to use this comprehensive statistical database and the competitor information to develop new products, penetrate end-use markets, 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.
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