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Market performance in recent years has been
reasonably buoyant with the market currently estimated at over £1
billion, though 2008-09 is set to see the first market decline in
over a decade In contrast to the domestic market, contract
floorcoverings are less volatile and tend to record only moderate
variations in market value. This trend has continued in 2005-07 with
the market reaching £1063 million in 2007, an increase of 3% on
2006, though this underlying growth masks significant variations
between key product sectors.
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Carpet remains the largest sector with value estimated at
around £540 million in 2007 and accounting for approximately 51% of the
market. However, value share for contract carpets has continued to decline
in recent years with increased competition from alternative floorcoverings
and changing product mix within the sector away from traditional broadloom
to carpet tiles.
The vinyl sector has continued
to perform well, exhibiting growth rates above the market average and
gaining share in recent years – and now accounts for an estimated 15% of
the contract sector. The success of vinyl can be attributed to extended
areas of application in key end-use sectors and also to the improvements
to designs, colours and “added value” products that have continued to make
vinyl more attractive to specifiers. Ceramic tiles have also performed
well, benefiting from the trend to larger format tiles and greater use of
porcelain products.
Although solid & engineered
woods continue to gain ground in several key contract sectors, laminates
are declining in popularity, resulting in relatively low growth overall
for wood / laminates compared to a boom period in 2002-04 – though overall
share is still around 13%.
Future prospects for the
contract floorcoverings market currently remain difficult to predict given
the volatility surrounding the UK economy in mid 2008. Key sectors such as
commercial offices, entertainment and retail are likely to be affected by
possible postponement of new build and refurbishment work into the medium
term as business confidence falters. However, the public sector,
particularly education, is likely to underpin the market due to the
effects of capital projects such as the Building Schools for the Future
programme. Current indications are that the contract floorcoverings market
will decline in 2008-09 in real terms, before recovering with moderate
rates of growth 2010-12 when the market expected to reach £1.13 billion at
the end of the period.
Finally, environmental issues
are exerting a growing influence on the specification of alternative
materials and suppliers, with specifiers increasingly looking at BRE
ratings as an integral part of the product selection process.
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