Floor Coverings Industry Trends

EXECUTIVE SUMMARY CONTENTS

Summary and Outlook

• Market Size and Factors Driving Demand
• Market Product Mix
• Source of Supply
• Industry Profit Margins and Capital Expenditures
• Competitive Environment
• World Market
• Outlook

U.S. Floor Coverings Market Trends (Section 1)

• Summary of Major Findings
• Market Product Mix
• Carpet and Area Rugs
• Wood Flooring
• Ceramic and Stone Tile
• LVT and Other Vinyl Tile
• Vinyl Sheet and Other Resilient Flooring
• Laminate Flooring

U.S. Source Of Supply (Sections 2 and 3)

• Summary of Major Findings
• Floor Coverings Sourcing by Country
• U.S. Shipments Trends
• U.S. Imports Trends
• Major  Sources of Supply by Product
• Tariff Charges and USITC Actions

U.S. End-Use Market Trends (Sections 4)

• Size and Growth of End-Use Markets
• Flooring Material Usage by End-Use Market

Residential Replacement Market Trends (Section 5)

• Residential Purchases and Factors Driving Demand
• Soft Versus Hard Surface Flooring Purchases
• Hard Surface DIY/BIY Purchases

Builder Market Trends (Sections 6)

• Builder Purchases and Factors Driving Demand
• Soft Versus Hard Surface Flooring Purchases

Commercial Market Trends (Section 7)

• Commercial Purchases and Factors Driving Demand
• New Versus Commercial Contract Market
• Soft Versus Hard Surface Flooring
• Transportation Equipment Market

U.S. Manufacturer Profitability And Capital Expenditures (Section 8)

• Industry Profit Margins
• Profit Margins by Industry Sector
• Capital Expenditures

Competitive Environment (Section 9)

• U.S. Floor Coverings Competitive Environment and the Industry Leaders
• Soft Surface Flooring Competitive Environment and Market Leaders
• Hard Surface Flooring Competitive Environment and Market Leaders

World Markets And U.S. Exports (Section 10)

• World Floor Coverings Market and U.S. Share
• World Market by Flooring Type
• U.S. Floor Coverings Exports and by Product
• Exports by Major Countries of Destination

Scope And Methodology

SECTION TABLES AND DATA ANALYSIS

Section 1: U.S. Floor Coverings Industry and Product Trends, 1997-2028

Table 1-1: Total U.S. Dollar and Square Foot Floor Coverings Sales
Table 1-2: U.S Floor Coverings Dollar Sales by Product Sector
Table 1-3: Percent Total U.S. Floor Coverings Dollar Sales by Product Sector
Table 1-4: U.S. Floor Coverings Square Foot Sales by Product Sector
Table 1-5: Percent Total U.S. Floor Coverings Square Foot Sales by Product Sector
Table 1-6: Average Value Per Square Foot of U.S. Floor Coverings by Product
Table 1-7: Share of U.S. Floor Coverings Dollar Supply by Country of Origin
Table 1-8: U.S. Soft Surface Flooring Sales by Type

Section 2: U.S. Floor Coverings Factory Shipments, 1997-2022

Table 2-1: Total U.S. Floor Coverings Factory Shipments
Table 2-2:  U.S. Floor Coverings Dollar Factory Shipments by Product
Table 2-3: U.S. Floor Coverings Square Foot Factory Shipments by Product
Table 2-4: Average Value Per Square Foot of Floor Coverings Shipped from a U.S. Plant by Product
Table 2-5: U.S. Carpet and Rug Production Index

Section 3: U.S. Floor Coverings Imports, 1997-2022

Table 3-1: Total U.S. Floor Coverings Imports
Table 3-2: Imports’ Share of U.S. Floor Coverings Sales
Table 3-3: U.S. Floor Coverings Dollar Imports by Product
Table 3-4: U.S. Floor Coverings Square Foot Imports by Product
Table 3-5: Average Value Per Square Foot Imported by Product
Table 3-6: Imports’ Share of Dollar U.S. Floor Coverings Sales by Product
Table 3-7: Imports’ Share of Square Foot U.S. Floor Coverings Sales by Product
Table 3-8: U.S. Floor Coverings Dollar Imports by Major Country of Origin
Table 3-9: Tariff Charges’ Share of Total Dollar Imports by Flooring Product

Section 4: U.S. Floor Coverings End-Use Market Purchases, 1997-2023

Table 4-1: Dollar Floor Coverings Purchases by End-Use Market
Table 4-2: End-Use Market Purchases Percent Total U.S. Floor Coverings Sales
Table 4-3: Percent Total Carpet and Area Rug Purchases by End-Use Market
Table 4-4: Percent Total Wood Flooring Purchases by End-Use Market
Table 4-5: Percent Total Ceramic Floor and Wall Tile Purchases by End-Use Market
Table 4-6: Percent Total Resilient Flooring Purchases by End-Use Market
Table 4-7: Percent Total Laminate Flooring Purchases by End-Use Market
Table 4-8: Percent Total Stone Floor and Wall Tile Purchases by End-Use Market
Table 4-9: U.S. Spending on Residential and Nonresidential Building Construction

Section 5: U.S. Residential Replacement Market Analysis and by Flooring Type, 1997-2023

Table 5-1: Residential Floor Coverings Replacement Purchases and Share of Residential Improvement Construction Spending
Table 5-2: Residential Replacement Floor Coverings Dollar Purchases by Flooring Type
Table 5-3: Percent Total Residential Replacement Floor Coverings Dollar Purchases by Flooring Type
Table 5-4: Residential Purchases of Wall-to-Wall Carpet and Area Rugs
Table 5-5: Percent Total Residential Floor Coverings Spending For BIY/DIY Purchases Versus Contractor Purchases by Flooring Type
Table 5-6: U.S. Existing Home Sales
Table 5-7: Factors Affecting U.S. Housing Demand

Section 6: U.S. Builder Market Analysis and by Flooring Type, 1997-2023

Table 6-1: Builder Floor Coverings Replacement Purchases and Share of New Residential Construction Spending
Table 6-2: Contractor-Built Housing Floor Coverings Dollar Purchases by Flooring Type
Table 6-3: Percent Total Contractor-Built Housing Floor Coverings Dollar Purchases by Flooring Type
Table 6-4: Factory-Built Housing Floor Coverings Dollar Purchases by Flooring Type
Table 6-5: Percent Total Factory-Built Housing Floor Coverings Dollar Purchases by Flooring Type
Table 6-6: Floor Coverings Purchases Per New Housing Unit
Table 6-7: U.S. Housing Construction Trends
Table 6-8: Square Feet of New U.S. Housing Constructed
Table 6-9: Percent Total New U.S. Single-Family Houses Sold by Sales Price

Section 7: U.S. Commercial Market Analysis and by Flooring Type, 1997-2023

Table 7-1: Commercial Floor Coverings Purchases and Share of Non-Residential Construction Spending
Table 7-2: Percent Total Commercial Floor Coverings Purchases by Type of Buyer
Table 7-3: Commercial Floor Coverings Dollar Purchases by Flooring Type
Table 7-4: Percent Total Commercial Floor Coverings Dollar Purchases by Flooring Type
Table 7-5: U.S. Commercial Carpet and Carpet Tile Market
Table 7-6: Percent Total New Non-Residential Contractor Floor Coverings Dollar by Flooring Type
Table 7-7: Percent Total Commercial Contract Floor Coverings Dollar Purchases by Flooring Type
Table 7-8: U.S. Non-Residential Building Construction Spending by Type of Building
Table 7-9: Transportation Equipment Manufacturer Floor Coverings Dollar Purchases by Flooring Type
Table 7-10: Percent Total Transportation Equipment Manufacturers Floor Coverings Dollar Purchases by Flooring Type
Table 7-11: Transportation Equipment Production Trends

Section 8: Industry and Company Cost Structure and Profitability, 1997-2022

Table 8-1: Number and Revenues of U.S. Floor Coverings Plants
Table 8-2: U.S. Floor Coverings Plant Operating Ratios and Profit Margins
Table 8-3: U.S. Floor Coverings Plant Profitability by Product Sector
Table 8-4: Producer Price Trends For Major Material Inputs (2012=100)
Table 8-5: U.S. Capital Spending by Product Sector
Table 8-6: Operating Income Percent Sales by Company

Section 9: Company Sales and Market Shares, 2012-2022

Table 9-1: Share of U.S. Floor Coverings Supply for the Top Eight Competitors
Table 9-2: Share of U.S. Soft Surface Supply for the Top Six Competitors
Table 9-3: Share of U.S. Hard Surface Supply for the Top Six Competitors
Table 9-4: Company Sales Trends

Section 10: World Markets and U.S. Exports Shipments, 1997-2022

Table 10-1: Total World Floor Coverings Market and by Product Type
Table 10-2: Percent Total World Floor Coverings Market by Product Type
Table 10-3: U.S., China, and Europe Percent Total World Production
Table 10-4: Total U.S. Floor Coverings Exports
Table 10-5: Export’s Share of U.S. Floor Coverings Shipments
Table 10-6: U.S. Floor Coverings Dollar Exports by Product
Table 10-7: Export’s Share of U.S. Floor Coverings Dollar Shipments by Product
Table 10-8: U.S. Floor Coverings Square Foot Exports by Product
Table 10-9: Export’s Share of U.S. Floor Coverings Square Foot Shipments by Product
Table 10-10: Average Value Per Square Foot Exported by Floor Coverings Product
Table 10-11: Value of U.S. Floor Coverings Exports for the Top Six Countries of Destination

ABSTRACT FOR THE CATALINA REPORT ON THE FLOOR COVERINGS INDUSTRY TRENDS AND END-USE MARKETS

SUMMARY OF MAJOR FINDINGS

During 2022, U.S. floor coverings sales could have increased by 8.0% in dollars to $36.2 billion, and square feet sales were flat at 28.2 billion. The dollar sales gain was entirely due to price increases as manufacturers passed through rising material, labor, and transportation costs. The year started off strong since the surge in the U.S. housing market after the pandemic continued into the first months of 2022. Flooring sales began to weaken with the Federal Reserve rates increases, which immediately cut demand for new and existing homes. As demand slowed inventories began to accumulate at distributors and retailers. This put further downward pressure on manufacturer sales. As a result, square foot sales declined in the second half of the year. Builder purchase led the downward trend. Residential replacement sales also turned sluggish, however, homeowner spending held up since the residential market continued to benefit from the rising existing home sales in late 2021 and early 2022. Non-movers also contributed to homeowner purchases since home values and employment remained on an upward trend. In addition, strengthening non-residential building construction spending contributed to a rebound in private commercial market sales growth. The ceramic tile and resilient flooring sectors benefited from this trend since these sectors have above average dependence on commercial markets.  Dollar sales growth was led by gains in LVT sales, which continued to increase over 20% in 2022. U.S. floor coverings sales could decline in dollars and square feet during 2023 due to the sharp drop in domestic housing demand in the fourth quarter of 2022. U.S. housing demand could continue to decline over the first half of 2023 since the Federal Reserve is expected to increase interest rates again in the first quarter.

FLOORING SECTOR TRENDS

Catalina Research uncovered these findings in our in-depth report on U.S. floor coverings industry trends and an analysis of end-use markets. U.S. shipments, exports, imports, and price trends are evaluated for wall-to-wall carpet, carpet tile, area rugs, wood flooring, ceramic tile, vinyl tile, vinyl sheet, other resilient flooring, laminate flooring, and stone flooring. Data is in dollars and square feet.  Import sales are tracked by major country of origin, which uncover the inroads made by Chinese and other foreign-based manufacturers. Tariff charges are also investigated.

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 compiled company sales and profit margins, and calculated company market shares. Market shares were also calculated for the soft and hard surface flooring sectors.

END-USE MARKET ANALYSIS

Catalina investigates the industry’s end-use markets in three separate sections: Residential Replacement Sales, Builder and Manufactured Home Producer Purchases, and Commercial and Transportation Equipment Markets. Each section evaluates end-use market sales trends, purchases by flooring type, share of total flooring sales, and floor coverings share of inputs for each end-use market. For example, Catalina examines flooring material’s share of total builder spending and the average value per square foot of flooring purchased. Existing home sales and household income are analyzed to evaluate the drivers of residential replacement demand. A similar analysis was conducted for the builder and manufactured home markets. In this section, Catalina analyzed new home completions, total square footage built, housing starts and permits to uncover opportunities in this market. For commercial markets, Catalina tracked flooring purchases for new construction and remodeling projects. Construction spending by type of building was analyzed as part of this process.

WORLD MARKET TRENDS AND EXPORT SHIPMENTS

A separate section analyses world floor coverings production and U.S. export shipments. World production is segmented by flooring material and by major producing country. This section also analyzes U.S. manufacturer sales on world markets. Catalina calculated the importance of export shipments by flooring sector and by major country of destination.