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The level of demand within the contract floorcoverings
market is dependent upon the level of business confidence, investment
and growth of commercial new build & refurbishment activities. The
market for contract floorcoverings has tended to be more subdued in
terms of growth and decline than its domestic equivalent over the last
ten years but has also followed key fashion trends that dictate the
performance of individual sectors in common with the domestic sector.
The
contract floorcoverings
market
was estimated to be worth
£996 million
in
2005,
having grown by an estimated 2% on the previous year. The market has
exhibited growth of 17% since 1999, with forecasts currently indicating
moderate annual value increases to 2009 when the market is expected to
reach just over £1.05 billion.
Factors
underpinning the steady performance of the contract floorcoverings
market in recent years include the longer term planning processes
involved in the commercial new build and refurbishment projects and
short-term decline of one key end-use sector being balanced by growth in
other sectors. Recent examples of this include a relatively buoyant
public sector contrasting, with a more mixed performance of the
commercial sector over the last 2-3 years.
The major
determinants of the consistent growth levels within the contract
floorcoverings market include strong 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.
In terms of
product mix, contract
carpets still
dominate although have lost significant share recently and currently
account for an estimated 50-51% of the total market in value terms.
Factors fuelling the decline include pressure from other floorcoverings
types and the decline of the UK manufacturing base. The main casualty
of the declining contract carpet market has been the broadloom woven
sector, which has experienced diminishing volume and value share as the
fashion trend swings away from highly patterned carpet to subtle and
neutral colours. In addition, this sector has also been superseded by
the increasing application of carpet tiles in some key end-use sectors.
In common with the
domestic sector,
contract wood/laminate floorcoverings
have seen significant increases in share in the past few years, now
estimated to account for 13-14% in value terms in 2005. Recent trends
have included the specification of woods in areas previously determined
as unsuitable due to noise aspects. This is mainly due to developments
in acoustic underlay that have helped to alleviate these problems in the
face of increasingly stringent building regulations. Trends in contract
wood floorcoverings over the last 2-3 years have seen the installation
of higher value laminates and an increasing share taken by engineered
woods. In addition, wood is now being specified for areas where other
floorcoverings would previously have dominated – eg reception areas,
walkways, entrance lobbies, etc.
The performance of the
vinyl
sector in the contract market has been much improved on their domestic
equivalents during the last 3 years. Estimates for 2005 indicate value
share of 13-14% with the sector underpinned by new build and
refurbishment projects in the public sector. Product trends have
included the continued development of sector specific products, further
developments in safety flooring and innovations in designs that have led
to the introduction of more realistic reproductions of other
floorcoverings types – especially through the use of embossing
techniques. However, value growth in the short-medium term may be
affected by the continuing high price of oil on the world markets.
The
specialist industrial
flooring sector has particularly benefited from the development of the
warehousing and distribution sectors in recent years. The development
of large hub distribution networks by leading players in the retail and
distributive trades has seen an increase in new build warehousing over
the last 3 years, which has helped to alleviate the decline in the
industrial sector, previously a major user of resin and cementitious
flooring systems. Developments in installation systems, curing/drying
processes and finishing have meant that these flooring systems have
become more attractive to a wider variety of end-users, such as
specialist retailers.
The
ceramic tiles
sector has continued to record good levels of growth but has come under
pressure from both wood and natural stone in some application areas. A
key boost to the tiles sector has come from the specification of larger
floor tiles and also greater interest in porcelain tiles for both indoor
and outdoor applications. Natural stone has experienced good growth in
recent years with key specification areas including reception areas. In
contrast, the terrazzo market has come under increasing pressure from
other flooring materials, although grocery multiples remain a key sector
for this material.
In terms of key
suppliers, the contract market is very similar to the domestic market
with a number of manufacturers supplying to both sectors. The major
changes to the supply structure for contract carpet have seen the demise
of Carpets
International, Stoddard
and Gaskell plc
in recent years which has resulted in the setting up of a number of much
smaller companies such as
Abingdon Flooring,
Donaghadee Carpets
and
Gaskell-Mackay.
Leading supplies of contract carpets include
Interface, Low and
Bonar, Brintons, Axminster,
etc.
The main change in
the supply structure of the vinyl market has been the emergence of
Tarkett-Marley Floors,
following the merger two of the leading suppliers of vinyl
floorcoverings in 2004. The contract vinyls sector continues to be
dominated by a small number of larger suppliers including
James Halstead,
Tarkett-Marley
and Armstrong.
The supply of contract linoleum floorcoverings is dominated by
Forbo-Nairn.
The contract wood floorcoverings sector is characterised by a large
number of suppliers with manufacturers such as
Kronospan, Unilin,
Junckers, Tarkett
and Kahrs
joined by leading distributors, merchants and agents such as
Havwoods, IDS
and Timbmet
etc.
In terms of
end-use applications, commercial offices/buildings remains the main
end-user with an estimated 21% value share of the contract sector in
2005. Healthcare, education, leisure and retail are all significant
end-use applications estimated to account for individual market shares
of over 10%. The industrial sector has continued to diminish in
importance as an end-use sector and mirrors the decline of the
larger-scale manufacturing basis of the UK economy as it is increasing
replaced by service based applications and smaller scale industrial
projects.
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