SCOPE AND METHODOLOGY

The Catalina Report on Ceramic Tile is a guide to the sales and profit-oriented opportunities in this growing sector of the U.S. floor coverings industry. This comprehensive database covers U.S. shipments, imports, factors affecting domestic demand, distribution and demographics, exports, the cost structure of U.S. plants, and the competitive environment. In addition, major U.S. manufacturers and marketers are profiled to review competitor strengths and strategies.

U.S. market sales are calculated from U.S. Department of Commerce statistics by collecting data on domestic plant shipments subtracting exports and adding imports (Section 1). Market sales are provided in square feet and dollars and average prices are calculated as well. Data is provided on an annual and quarterly basis. Catalina also conducted a comparative growth analysis with the key factors driving U.S. ceramic tile demand, and compared ceramic tile prices to other floor covering materials. In addition, the industry's plant profit margins are compared to the U.S. manufacturing average. Section and report findings are provided in the Executive Summary in order to develop strategies to outperform the industry averages.

Sections 2 and 3 analyze the industry's source of supply and product mix. Data is provided for glazed and unglazed tile and mosaic and non-mosaic tile. U.S. shipments are compiled from Department of Commerce surveys. Shipments are for all domestic manufacturers, whether plants are owned by U.S.- or foreign-based companies, and whether or not plants specialize (50.0% or more of total facility revenues) in ceramic tile. U.S. import data is derived from U.S. Customs records. Import data is segmented by product and country of origin.

Catalina correlated these trends with factors affecting domestic demand in order to estimate and forecast the data provided in the previous sections (Section 4). This section analyzes data on U.S. residential and nonresidential construction activity, residential remodeling markets, and other factors affecting U.S. demand. An analysis of U.S. ceramic tile purchases by end-use market is also included. Brand preferences are ranked for new home builders and remodeling contractors from Professional Builder surveys.

U.S. ceramic tile distribution patterns and consumer demographics are discussed in Section 5. Government data include retail sales of hard surface flooring by type of outlet and revenues of ceramic tile, mosaic, and terrazzo work contractors. Contractor revenues are provided by type of building, type of work, and by region and state. The average value per square foot of installed tile is calculated as well. A survey by the Bureau of Labor Statistics provides data on household hard surface flooring purchases by demographic characteristic. Spending is segmented by income, age, size of household, and region. A separate section provides data on U.S. exports and Canadian ceramic tile imports (Section 6).

Catalina also supplies data on the cost structure and profitability of U.S. plants specializing in the manufacture and sale of ceramic tile (Section 7). U.S. Department of Commerce data covering these plants and imports are supplemented with individual company sales data in order to calculate top company market shares. Company sales statistics are compiled as part of an exhaustive effort to provide competitor intelligence (Section 8). Annual reports, databases, and trade journals were searched for growth- and profit-oriented strategies.

Action-oriented executives are urged to use this comprehensive statistical database and competitor information to uncover growing product lines, end-use markets, distribution channels, and profitable operating strategies. Executives are urged to compute their own company's market share and compare their company's operating ratios to the industry averages as part of this process.