| AM45174 |
| AMA RESEARCH MARKET REPORT : UK Contract Floorcoverings Market Report January 2004 |
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BRIEF DESCRIPTION
| AMA Research have recently published the 3rd edition of the "Contract Floorcoverings Market - UK 2004" report. This report incorporates original research and provides a comprehensive review of the demand for a range of floorcoverings products in non-domestic applications. |
| Product areas covered in the report include: - |
| Carpets |
| Vinyl |
| Ceramic Tiles |
| Wood/Laminates |
| Resin |
| Others - Linoleum, Rubber & Cork |
| The contract floorcoverings market is estimated at over £850 million in 2003 at manufacturers prices and has exhibited moderate growth over the past 2-3 years. Key end use applications include commercial offices, retail, leisure, education and healthcare sectors. |
EXECUTIVE SUMMARY
| Demand for floorcoverings in the contract sector is heavily influenced by the level of commercial construction within the economy, both in terms of new build and refurbishment activity. |
| The contract floorcoverings market was estimated to be worth £887m in 2003 and current forecast indicate growth levels of 2-3% during 2004 with the market expected to reach an estimated £905m, rising to an estimated £969m in 2007 based on steady growth in the UK economy. |
| The sector tends to be less volatile than the domestic floorcoverings sector but is still susceptible to downturns in economic confidence and levels of commercial and industrial construction activity. |
| The major factors underpinning consistent growth levels within the contract floorcoverings market include strong growth in public sector construction (particularly health and education), higher specification levels, increasing health and safety considerations and the volume of pedestrian traffic to which contract floorcoverings are subjected. This ensures that replacement and refurbishment programmes are often undertaken on a planned basis and are not always subject to prevailing economic conditions. |
| Recent development within the sector has been moderate, with the carpet sector in particular having experienced a difficult period. The market has been affected by recent events such as the September 11th attacks and the threat of terrorism, which has caused a global downturn and a slowdown in some specific key end use markets such as the tourism sector. Conversely, some end use markets, such as education and health, have received increased funding from the government as well as from PFI projects, and are continuing to provide some stability. Health and safety regulations and buoyancy in general construction levels at present has also provided some growth to the sector. |
| Short-medium term prospects for the market should see growth rates of around 2-3% to reach £969m by 2007. Further growth will be supported by continued funding from the government and PFI sectors in health and education, as well as sustained healthy levels of new build and RMI construction. |
| In terms of product mix, contract carpets still dominate although have lost significant share recently and currently account for around 60% of the sector. The carpet sector has come under heavy pressure from other floorcovering types, especially wood/laminate floorcoverings. The downturn in the tourism sector has also affected the contract carpet market, with hotels a large end user of the product. The carpet sector has also suffered from the growth of cheap imports, with some UK companies in particular suffering. |
| Wood/laminate floorcoverings have seen significant increases in the past few years and now are the second largest sector within the contract market, with a share around 15%. The product has benefited from current fashion trends and high levels of media exposure and is experiencing wider use in retail and commercial applications. |
| Vinyls are estimated to account for 12% value share of the contract floorcoverings market in 2003. The product has benefited from the growth in safety flooring and increased specification in retail outlets. Vinyl can also provide a low-cost alternative to wooden flooring. However, increases in raw materials (oil) in 2003/04 may put pressure on the price of the product. |
| Ceramic tiles and resins each account for an estimated 6% value share of the contract floorcoverings market and have both recorded healthy levels of growth in recent years with RMI work in the leisure industry providing impetus. |
| Linoleum has enjoyed something of a slight resurgence in recent years, benefiting from increased spending in the health and education sectors, though is still a niche product. Both cork and rubber floorcoverings are also mainly used for niche end-use applications which utilise the hard-wearing and chemical/agent resistance properties of these products. |
| In terms of key suppliers, the contract market is very similar to the domestic market with a number of manufacturers supplying to both sectors. Supply of contract carpets is dominated by major importers and companies such as Interface, Low and Bonar and Brintons, whilst Carpets International have been placed into administrative receivership. The contract vinyls sector is dominated by Forbo-Nairn, Marley, James Halstead and Armstrong. The supply of contract linoleum floorcoverings is dominated by Forbo-Nairn. |
| The wooden flooring sector has experienced a substantial increase in suppliers in recent years, with major companies including Unilin, Kronospan, Junckers, Egger, Tarkett and a wide range of imports from Europe and North America. |
| In terms of end-use applications, commercial offices/buildings remains the main end-user with an estimated 20% value share of the contract sector. Healthcare, education, leisure and retail are all significant end-use applications estimated to account for individual market shares of over 10%. The healthcare and education sector are expected to benefit in the short to medium term from PFI projects and government funding, which should increase their importance as end-use applications, unless there is a change of Government at the next General Election likely to be held in 2005. |
| The fragmented nature of the flooring contractor/installer sector has meant that distribution is either direct supply or via wholesalers. The use of direct supply tends to be for larger contracts with wholesalers particularly active within the vinyls sector. In terms of the overall floorcoverings market, Headlam Group dominates the distribution/wholesaler sector. |
TABLE OF CONTENTS
| 1 | INTRODUCTION | 7 |
| 2 | SUMMARY | 8 |
| 3 | ECONOMIC ENVIRONMENT | 11 |
| 3.1 | GDP | 11 |
| 3.2 | INFLATION & INTEREST RATES | 12 |
| 3.3 | UNEMPLOYMENT | 13 |
| 3.4 | HOUSEHOLD CONSUMPTION | 13 |
| 3.5 | HOUSING & CONSTRUCTION | 14 |
| 3.6 | STERLING | 15 |
| 3.7 | POPULATION PROFILE | 16 |
| 3.8 | CONCLUSIONS | 18 |
| 4 | THE UK MARKET FOR CONTRACT FLOORCOVERINGS | 19 |
| 4.1 | MARKET SIZE | 20 |
| 4.2 | PRODUCT MIX | 24 |
| 5 | PRODUCT MIX | 26 |
| 5.1 | CARPETS | 26 |
| 5.1.1 | Market Developments | 27 |
| 5.1.2 | Imports and Exports | 28 |
| 5.1.3 | Contract Sector | 30 |
| 5.1.4 | Carpet Product Mix | 30 |
| 5.1.5 | Future Prospects | 35 |
| 5.1.6 | Supply Structure | 37 |
| 5.2 | WOOD AND LAMINATE FLOORING | 42 |
| 5.2.1 | Market Development | 43 |
| 5.2.2 | Future Prospects | 46 |
| 5.2.3 | Supply Structure | 48 |
| 5.2.4 | Solid & Engineered Wood Market | 50 |
| 5.2.5 | Leading Suppliers | 52 |
| 5.2.6 | Distributors and Wholesalers | 56 |
| 5.3 | VINYLS | 58 |
| 5.3.1 | Definition | 58 |
| 5.3.2 | Market Developments | 58 |
| 5.3.3 | Vinyl Product Mix | 60 |
| 5.3.4 | Future Prospects | 62 |
| 5.3.5 | Supply Structure | 64 |
| 5.4 | RESINS | 66 |
| 5.4.1 | Market Development | 67 |
| 5.4.2 | Major Suppliers | 69 |
| 5.5 | CERAMIC FLOOR TILES | 70 |
| 5.5.1 | Market Development | 71 |
| 5.5.2 | Future Prospects | 74 |
| 5.5.3 | Supply Structure | 74 |
| 5.6 | OTHER FLOORCOVERINGS | 76 |
| 5.6.1 | Market Development | 77 |
| 5.6.2 | Linoleum | 77 |
| 5.6.3 | Rubber Floorcoverings | 80 |
| 5.6.4 | Cork | 83 |
| 6 | END-USE MARKETS | 84 |
| 6.1 | APPLICATION AND SPECIFICATION CRITERIA | 84 |
| 6.2 | KEY END USE APPLICATIONS | 85 |
| 6.2.1 | Commercial Buildings/Offices | 86 |
| 6.2.2 | Leisure | 88 |
| 6.2.3 | Education | 92 |
| 6.2.4 | Healthcare | 96 |
| 6.2.5 | Retail | 101 |
| 6.2.6 | Industrial | 104 |
| 6.2.7 | Others | 107 |
| 7 | DISTRIBUTION | 109 |
| 7.1 | MAJOR WHOLESALERS | 109 |
| 7.2 | CONTRACT FLOORCOVERINGS DISTRIBUTION | 111 |
| 8 | FUTURE PROSPECTS | 113 |
Tables and Charts
| CHART 1 | CONTRACT FLOORCOVERINGS MARKET, 1997-2007 BY VALUE (£ MILLION) |
| CHART 2 | INTEREST RATES AND INFLATION (RPI) FROM 1990-2005 |
| CHART 3 | PDI & SAVINGS RATIO 1980-2005 |
| TABLE 4 | EXCHANGE RATE FLUCTUATIONS 1997-2004 - DOLLARS, AND THE ECU TO THE POUND STERLING, SPOT RATES |
| CHART 5 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 ('000) |
| TABLE 6 | UK FLOORCOVERINGS MARKET - DOMESTIC/CONTRACT MIX 2003 BY VALUE |
| TABLE 7 | CONTRACT FLOORCOVERINGS MARKET 1997-2003 (£M MSP) |
| TABLE 8 | CONTRACT FLOORCOVERINGS MARKET 2003-2007 (£M MSP) |
| TABLE 9 | PRODUCT MIX UK MARKET FOR CONTRACT FLOORCOVERINGS - 2003 BY VALUE |
| TABLE 10 | CONTRACT CARPET MARKET 1993-2003 BY VALUE (£ MILLION MSP) |
| TABLE 11 | MIX OF IMPORTS AND EXPORTS OF CARPETS - 1993-2002 BY VALUE (£ MILLION) |
| CHART 12 | MIX OF CONTRACT CARPET TYPES 2003 - BY VALUE (£ MILLION MSP) |
| CHART 13 | UK WOVEN CONTRACT CARPET MARKET - 2003 BY VALUE |
| CHART 14 | CONTRACT CARPET MARKET 2003 TO 2007 - BY VALUE (£ MILLION MSP) |
| TABLE 15 | LEADING CONTRACT CARPET SUPPLIERS 2003 |
| TABLE 16 | CONTRACT WOOD/LAMINATE FLOORING MARKET 1994-2007 BY VALUE (£ MILLION) |
| CHART 17 | CONTRACT WOODEN FLOORING MARKET 2003-2007 (£M) |
| TABLE 18 | LEADING SUPPLIERS TO THE TOTAL WOOD FLOORCOVERINGS MARKET 2002 |
| TABLE 19 | LEADING SUPPLIERS OF SOLID/ENGINEERED WOOD FLOORCOVERINGS 2002 |
| TABLE 20 | CONTRACT VINYLS MARKET 1994-2003 BY VALUE £ MILLION |
| CHART 21 | PRODUCT MIX FOR CONTRACT VINYLS 2003 - % MIX BY VALUE |
| CHART 22 | CONTRACT VINYL FLOORCOVERINGS MARKET 2003-2007 (£M) |
| TABLE 23 | SUPPLIERS TO THE UK CONTRACT VINYL FLOORCOVERINGS SECTOR 2003 |
| TABLE 24 | CONTRACT RESIN MARKET 1997-2007 BY VALUE |
| TABLE 25 | CONTRACT MARKET FOR CERAMIC FLOOR TILES 1996 TO 2006 (£ MILLION MSP) |
| TABLE 26 | USE OF CERAMIC FLOORCOVERINGS IN CONTRACT MARKET |
| TABLE 27 | UK OVERSEAS TRADE IN GLAZED/UNGLAZED CERAMIC FLAGS & PAVING, HEARTH OR WALL TILES & GLAZED/UNGLAZED MOSAIC CUBES |
| CHART 28 | 'OTHER' CONTRACT FLOORCOVERINGS - 2003 MARKET SIZE BY PRODUCT BY VALUE |
| TABLE 29 | CONTRACT LINOLEUM MARKET 1996-2007 BY VALUE (£ MILLION AT MSP) |
| TABLE 30 | UK FOREIGN TRADE IN LINOLEUM BY VALUE £ MILLION MSP 1993-2002 |
| TABLE 31 | CONTRACT RUBBER FLOORCOVERINGS MARKET 1996-2007 BY VALUE (£ MILLION MSP) |
| TABLE 32 | END-USE APPLICATIONS FOR UK CONTRACT FLOORCOVERINGS DURING 2003 |
| TABLE 33 | CONTRACTORS OUTPUT NEW WORK PUBLIC/PRIVATE SECTOR OFFICES (£M) |
| TABLE 34 | CONTRACTORS OUTPUT NEW WORK PUBLIC/PRIVATE SECTOR ENTERTAINMENT (£M) |
| TABLE 35 | FLOORCOVERING USAGE IN LEISURE SECTOR |
| TABLE 36 | CONTRACTORS OUTPUT NEW WORK PUBLIC/PRIVATE SECTOR EDUCATION* (£M) |
| CHART 37 | PRODUCT MIX WITHIN EDUCATION FLOOR COVERINGS |
| TABLE 38 | CONTRACTORS OUTPUT NEW WORK PUBLIC/PRIVATE SECTOR HEALTH (£M) |
| TABLE 39 | CONTRACTORS OUTPUT NEW WORK PUBLIC/PRIVATE SECTOR RETAIL (£M) |
| TABLE 40 | CONTRACTORS OUTPUT INDUSTRIAL APPLICATIONS (£M) |
| TABLE 41 | SPECIFIC REQUIREMENT OF DIFFERENT INDUSTRIAL APPLICATIONS |
| TABLE 42 | PRIVATE CONTRACTORS TOTAL EMPLOYMENT (000S) |
| TABLE 43 | KEY DISTRIBUTION CHANNELS BY PRODUCT |
Text © 2004 AMA Research
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Last updated by Amanda Porteous 2004
