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Contract: State of the industry—Key end-use sectors drive specifications

May 28/June 4, 2018: Volume 33, Issue 25

By K.J. Quinn

 

In many ways the commercial contractor flooring market is like an onion—as you delve into each sector, one layer at a time, you start uncovering macro issues impacting flooring choices that go beyond traditional metrics. Sustainability, wellness principles and environmental impacts are among the major factors affecting facility design across the board, experts say.

“Manufacturers have increased focus on the impacts of their products on occupant well-being and productivity, offering a wider range of aesthetic and functional solutions to deliver against the requests of designers’ clients,” said Matthew Miller, president, Interface Americas.

Industry projections indicate the commercial market is on pace to experience similar growth as last year, with some segments faring much better than others. To put it in perspective, soft surfaces generated an estimated $3.6 to $4 billion in sales and upwards of 300 million square yards last year, according to industry estimates. Carpet tile claimed approximately 50% of volume and 60% of the value over broadloom—increases of 9% and 10%, respectively, over 2016.

Many trends that impacted commercial segments last year are carrying over into 2018. “I think the market for carpet will continue to lose share to hard surfaces,” said Brenda Knowles, vice president of marketing for Shaw Industries’ commercial business. “We’ll continue to see an emphasis on product design across all segments and more offerings that combine soft and hard surfaces.”

Nonetheless, there is still a good amount of broadloom being sold into commercial spaces, especially in sectors that demand a luxurious look and feel underfoot. “We still see some higher-end broadloom sold to the hospitality, legal and financial services sectors,” observed Richard French, vice president of sales, Bentley Mills. “At the high end of the spectrum, carpet tile is still not able to meet aesthetic needs.”

Hard surface seizes share

The market size for hard surfaces is nearly as much as carpet, estimated at $3.7 billion in sales. But that’s where the similarities end. Sales and volume grew by double digits, led by ceramic tile and stone ($1.45 million in 2017 sales), rubber ($650 million) and luxury vinyl tile ($600 million), according to industry estimates.

LVT is the fastest growing sector, with sales rising by double digits and usage expanding across all segments. “Hard surface growth in the commercial segment is being driven by LVT and ceramic,” Jeff Fenwick, president and COO, Tarkett North America, told FCNews. “LVT is showing up in more commercial spaces and design features of ceramic are taking it out of the ‘back of the house’ and letting it be utilized in other spaces.”

VCT, estimated at $250 million in 2017 sales, and sheet goods, which generated about $300 million, remain viable options. Healthcare and education, long strongholds of the sector, are reportedly losing market share. Hardwood, laminate flooring and linoleum are being specified for certain niches, although each category accounts for only a small percentage (less than 5% apiece) of the overall commercial market, statistics show. “For people who want that visual a little different and want to make more of a statement than a neutral gray floor, then linoleum is your answer,” said Denis Darragh, vice president, North America, Forbo Flooring.

While LVT dominates the headlines, one category maintaining steady growth is ceramic. While it’s difficult to determine sales and volume due to fragmented distribution channels, anecdotal research indicates tile commands approximately 15% of total commercial flooring sales and volume, with specified contract accounting for about 70% of the business. Growth rates are projected to mirror last year, when the category grew an estimated 6% in sales and 5% in square footage.

End-use activity

There are diverse applications for flooring within the five major sectors of the commercial business, the majority of which (an estimated 70% to 75%) is specified contract and the remainder Main Street commercial applications. Each has its own set of issues, trends and requirements which, in some cases, are unique to specific areas. As such, flooring choices and volume are expected to vary this year in some segments while remaining constant in others, industry watchers say.

“Traditional hard surface markets like retail and healthcare still are very strong, and non-traditional markets such as offices and hospitality are shifting toward hard surfaces in many areas they did not consider before,” said Robert Brockman, segment marketing manager, commercial, Armstrong Flooring.

The largest sector remains corporate/offices, representing roughly 40% of commercial flooring sales. Design strategies have traditionally centered on integrating natural elements into work spaces that help energize employees, encourage collaboration and make them feel more at home. “The goal is to leave work at the end of the day feeling recharged,” said Sharon Steinberg, AIA, LEEP AP, a principal architect at Stantec’s Houston office. “The design of the space, including flooring materials, can contribute to these feelings.”

Carpet tile has emerged as the top flooring choice, representing an estimated 55% to 60% share of the segment. “Carpet tile reduces sound transmission and provides underfoot comfort,” Interface’s Miller stated. “Carpet tile is also easy to upkeep and maintain—and since it is modular, it can easily be replaced or redesigned, providing the flexibility to update or refresh flooring as needed.”

Industry observers report the use of hard surfaces such as LVT, hardwood, porcelain tile and polished concrete is expanding beyond coffee and bar/break areas and into more diverse office environments. “While tile usage is typically limited to areas such as lobbies, bathrooms and kitchenettes, we predict there will be more tile being used in traditionally unexpected spaces,” said Gianni Mattioli, executive vice president, product and marketing, Dal-Tile. He cited advancements in the tile printing technology space as one of the primary reasons.

Another sector to watch is healthcare, which some believe represent the greatest growth potential for LVT. “Slip/fall issues help LVT vs. other hard surface options as well as infection control,” said Paul Eanes, vice president of new business development, Metroflor. “The segment is now more receptive to LVT in most places except operating rooms.”

Ceramic, porcelain and terrazzo tile are commonly found in hallways, making it easier to maneuver rolling equipment and mobile aids. “The health benefits and low maintenance of tile makes it ideal for this space, and our advancements in manufacturing have allowed us to make tile slip resistant through our proprietary StepWise technology, catering to residents’ safety needs,” Dal-Tile’s Mattioli said.

Fashion and function are paramount in hospitality, an industry reportedly investing millions of dollars to remodel their properties. It is expected to remain a bedrock segment for broadloom in particular as high-end products are the norm for guest rooms and public areas. “People still want to feel a soft surface when they hit the floor,” Shaw’s Knowles pointed out. “So even though the trend is towards hard surface, we’re seeing a combination of the two—and we’re providing solutions for that.”

LVT is reportedly growing at a faster rate than broadloom as the product gains wider acceptance, especially in guest rooms. “Most of these hospitality end users are also looking to make a change to something more timeless in terms of pattern and color,” observed Al Boulogne, vice president, commercial resilient business, Mannington Commercial. “That, coupled with the easier maintenance requirements, make it an ideal product for these environments.”

Further fueling usage is hotel owners’ interest in switching to interior decorating products that blend with the latest design styles and last longer—a big reason why ceramic is making inroads. “Designers in the hospitality space demand unique designs, and we are taking style and design to the next level through our latest introductions,” Dal-Tile’s Mattioli said.

One segment at the forefront of design is retail as end users not only seek products that are trendy, but also address performance/functional issues.

“You can create a pattern in a hardwood or stone look that leads you into different departments of the retail store,” noted Milton Goodwin, vice president of commercial sales, Karndean Designflooring. “There’s a lot of mixing and matching of SKUs.”

Even the education sector is getting a little more sophisticated in terms of the design aesthetic, observers report. “It’s copying what we’ve seen in other public segments by trying to become a little more trendy with their looks,” Mannington’s Boulogne stated. “So that pushes more and more business to the LVT category, where there are more design opportunities.”

R&D efforts center on beefing up performance levels to ensure flooring meets the varying needs of each space. “Designers can take LVT into places that maybe they hadn’t considered before,” added Melissa Quick, product and marketing manager, AVA by Novalis Innovative Flooring. “All of this has contributed to more confidence in the use of LVT in Main Street and specified spaces.”

 

 

 

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Coverings: Latest tile, stone introductions hit all the right notes

May 14/21, 2018: Volume 33, Issue 24

By Mara Bollettieri

Coverings, billed as the largest international tile and stone event in North America, delivered as promised as attendees from near and far came to see the hottest and freshest trends in the industry. More than 1,100 vendors showcased their respective products across the vast showroom floor at the Georgia World Congress Center in Atlanta

“It’s really about connections for anyone who attends,” said Alena Capra, Coverings industry ambassador. “You can meet new vendors, people you can partner with. It’s for tile installers, fabricators, retailers, distributors. Everyone wins because [the connections are] what the show is really about.”

With respect to trends, larger-format tiles, which were prominent throughout the show floor, continue to trend. While the larger format is overtaking the European market, the U.S. is still slowly absorbing the trend, explained Juan Molina, general manager of sales and marketing, Del Conca USA. However, larger tiles are now being used in certain high-volume metropolitan markets, such as Miami, New York, Los Angeles and Chicago, to create open spaces.

At the show, Del Conca USA highlighted its Alchimia porcelain stoneware collection, which is available in different sizes and colors—from 120 × 120 cm to 40 × 80 cm. “We are here every year and believe in the show,” Molina said. “This particular convention is the most important one in all of North America. It’s the best environment for customers in our industry to make good comparisons from one factory to another.”

Larger format tiles were also seen in the show’s tiny home displays. Many of the homes used formats as large as 48 x 48, which Capra referred to as a “super large format.” Capra noted that, “some of the homes only had six tiles throughout the whole house.”

While larger, thin-format tiles are currently on the rise, many were on display with more standardized sizes that are wider and not as tall, according to Diana Friedman, Novita Communications, Ceramics of Italy. “Along with that, we are seeing some companies that are doing thick tiles—20mm—but in actually smaller sizes,” she explained. “It’s a new way of showing these thick tiles.”

Wood is (still) good

Wood-look tiles are still holding strong in the marketplace as these visuals are finding their home both inside and outside. What’s more, wood-look tile is incorporating other tile trends such as thinner, longer formats.

“We’re seeing a couple of companies have thin wood looks,” Friedman explained. “We are seeing a 3 x 24-inch version that’s really nice and smooth—almost like a buttery wood, a leathery texture.”

Gianni Mattioli, president and CEO, Ragno USA, sees the importance of wood looks in the marketplace, although he explained it is probably leveling off. Ragno USA saw brisk traffic at its booth during the show, with many attendees stopping to look at wood visuals. To cater to this market, the manufacturer continues to introduce new wood finishes such as traditional and rustic wood looks.

Blast from the past

Honoring the past was an ongoing theme throughout this year’s show, as many exhibitors embraced old-fashioned designs and styles. According to Friedman, a lot of textured tiles with classic looks and ideas were on display in the Italian Pavilion, which displayed over 120 brands of Italian exhibitors.

A huge retro trend that a majority of companies displayed was terrazzo. “Terrazzo has been big and is getting even bigger,” Friedman stated. “We’re seeing a hyper-realized idea of this post-modern look, so there are a lot of colors, a lot of these pastel tones.” She explained that there is almost a “terrazzo inception” going on, where lots of companies are displaying tiles that have terrazzo within a terrazzo pattern.

“Ornamenta has a beautiful ombre tile, which is large and thin,” Friedman noted. “It’s called the Operae collection, and it has a stylized palm leaf motif. The company takes these hyper-realized, classic known elements and makes them bold and bright with a new take.”

Capra also noted the return of terrazzo as well as patchwork. “Terrazzo has been around for a long time in tile form,” she explained. “It has a batch of different benefits and features, so that’s a great option.” With respect to patchwork, “We definitely saw a lot of the patchwork-type look, whether it’s all consistent in black and white—and a lot of color as well, softer tones,” Capra said. “There were a lot of coordinating soft color tones that go with this patchwork—everything from bold geometric patterns to the more traditional-type looks.”

Color tile conquers

Many exhibitors and attendees commented on the usage of bright colors, blues and pastels at the show. As Beth Wickliffe, Clayton Tile, Greenville, S.C., told FCNews, “Anything with color—bright colors—is coming back. A lot more blues coming around—bright blues and navy—but grays are still around as well.”

Manufacturers, such as Marazzi, are tapping into this wide range of colors to create tile for all occasions. Marazzi’s popular line, Middleton Square, is full of bright, vibrant colors in 4 x 12 wall tiles with undulations, 3 x 12 and 6 x 6. “We’re getting a lot of good feedback that people want to move away from blacks, whites and grays,” said Ray Piña, Northeast regional sales manager.

Capra also emphasized the rise in color tile. “Something we noticed is a lot more color—a lot of bright color,” she said. “A lot of dark teals and aquas, different shades of blues, soft pinks and soft greens and yellows.”

One new trend that caught Capra’s eye is contrasting colored grout with neutral or colored tiles, such as gray tile with yellow grout, or turquoise grout with black and white tile. This style, she said, would work great for an accent wall as a kind of statement.

Technological advancements

Although many suppliers are feeling nostalgic what with the return to old-fashioned designs, many are also embracing technological advancements to create innovative tile, such as digital printing. For example, Refin Ceramics displayed its new line, Kasai, a collection that pays tribute to Japanese culture. The line is simple and made in three colors with various decorations inspired by Japan, according to Nick Schenetti, sales rep for the Northeast and Midwest American market, Refin Ceramics. Through the usage of digital printing on the tile, the company has created a tile that gives a look of burned wood.

Many show exhibitors are digitally printing their tiles to develop new styles. “There was also a lot of metallic gold veining on already digitally printed porcelain,” Capra said. “There was a lot of gold over existing design. People are playing with technology to go ahead and create new things.”

Texture has also played a huge role at this year’s show. “I noticed some pattern tile had some texture on it,” Capra added. “There was one with a cactus on it, and you could feel it. You’re seeing subtle textures to really strong textures, like 3D texture. With the advancement in technology, they are able to do that.”

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Executive forecast: Ceramic producers investing in technology for 2012

By Louis Iannaco

 

Much like last year, while most tile producers did not see economics conditions in 2011 rebound as quickly as they would have liked, they continue to make investments in technology and look to do more of this going into 2012. Digital printing technology has made a huge impact on what manufacturers can create, and it seems as though they’ll continue this trend moving forward. Mills are also being challenged from abroad, with an increase in imports from places like China only adding to pressure on pricing. Continue reading Executive forecast: Ceramic producers investing in technology for 2012