SCOPE AND METHODOLOGY

The Catalina Report on Wood Flooring is a guide to the growth and profit opportunities in the manufacturing, importing, and distribution of hardwood and softwood flooring. This comprehensive database covers U.S. shipments, imports and exports, residential and nonresidential markets, retail sales, the installation contractor business, factors affecting domestic demand and distribution, the cost structure of hardwood flooring plants, the competitive environment, and the Canadian and European market situation. In addition, major North American- and foreign-based manufacturers are profiled in order to uncover competitor 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 calculated on a dollar and square foot basis and calculated as a share of total U.S. floor coverings market sales (shipments minus exports plus imports) and hard surface flooring market sales. The average value per square foot supplied is calculated and compared with other floor coverings materials. Hardwood flooring plant profit margins are also compared with the U.S. floor coverings industry average. Section and report findings are summarized in our Executive Summary in order for readers to quickly review the present and future health of this industry and assess whether their company's performance is in line with industry trends.

Section 2 analyzes U.S. shipments of hardwood and softwood flooring. Hardwood shipments are segmented into oak strip, oak parquetry, other oak flooring, maple flooring, and other hardwood flooring products. Shipments are for all domestic manufactures, whether plants are owned by U.S.- or foreign-based companies, and whether or not plants specialize (50% or more of total facility revenues) in wood flooring.

Section 3 rounds out the total U.S. supply by evaluating the role of foreign-based companies in the U.S. market. Data trends include import statistics which are derived from U.S. Customs records. Import data is provided by product and by major country of origin.

Wood flooring end-use markets and retail distribution channels are analyzed in Section 4. Hardwood flooring purchases are provided for new residential construction and residential remodeling markets, new nonresidential construction and commercial contract markets, as well as transportation equipment markets. This data is based on U.S. Department of Commerce surveys. Section 4 also analyzes the wood flooring installation business and retail hardwood flooring sales by type of outlet. Hardwood Flooring magazine survey results cover distribution and installation contractor revenues by type of product, species, and finish sold. In addition, U.S. export trends are included in order to determine world market opportunities.

Catalina investigated the factors driving domestic demand and distribution by analyzing U.S. construction activity and total floor covering retail sales (Section 5). Residential housing statistics include data on new housing completions, existing home resales, and mobile home placements. Housing starts and residential building permits track current trends in new residential construction markets. The characteristics of newly completed U.S. housing units are also provided. These data include the average value of new housing units. Total homeowner remodeling and repair spending are analyzed as well. In addition, data are provided on household demographics and economic trends. Retail floor covering sales by type of outlet is provided, including monthly sales trends of specialty floor coverings sales. Nonresidential construction trends are tracked by type of building.

Catalina supplies data on the cost structure and profitability of U.S. plants specializing (50% or more of total plant revenues) in the manufacture and sale of hardwood flooring (Section 6). U.S. Department of Commerce survey data covering these plants are supplemented with individual company profiles and sales data in order to provide growth- and profit-oriented strategies and company market shares (Section 8). Annual reports, trade journals, and databases were searched. Professional Builder's 2002 Brand Study results were included to show the leading brands penetrating the U.S. home builder and remodeling contractor markets.

The Canadian market situation is evaluated from Statistics Canada data (Section 7). Data trends include plant shipments, exports, and imports, as well as a review of the leading manufacturers. The European market is also investigated by product, country, and major manufacturer.

Action-oriented executives are urged to use this comprehensive statistical database and the competitor information to develop new products, penetrate end-use markets, target key demographic markets, expand foreign market sales, and initiate 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.