In the News – The State of the US Market
Well, here we are at the beginning of 2021 and all ready for the “new norm”, whatever that may end up being. We must all plan for the future taking stock of what is happening today, so let’s take a look at what is happening in the US market in terms of sales and distribution.
The final consumption numbers will be released soon, but we are estimating the US market will be down approximately 6% in 2020 versus 2019. We expect US producers will finish flat with respect to 2019, while imports will have declined. The good news is that the residential business, which accounts for 70% of the ceramic tile consumption in the US (both new and remodeling), is performing well, while the commercial market is suffering and is expected to suffer through most of 2021. A number of factors have led to a robust residential market in the US: the low interest rates and US government stimulus checks; the fact that homeowners are spending more time at home, even during vacations (opting instead for “staycations”, a period when people stay at home and go on day trips), hence leading to a savings surplus which in turn is being invested into their homes.
While all the focus has been on the impact of the coronavirus, it is important to understand that the US market is still settling into a new norm without Chinese imports, which at their peak in 2018 accounted for over 30% of US imports and ended in late 2019 with the introduction of anti-dumping duties against China. The US market is experiencing vast increases in imports from Spain, Turkey and Brazil, but new countries are now also increasing their US share of imports including India, Malaysia and Vietnam. The true impact of the anti-dumping duties against China is still fluid, which means we see US distributors filling product line gaps with suppliers capable of satisfying the immediate need for Chinese replacements. We expect this process to continue for the next 12-18 months as distributors continue to search the world for viable sources, all the while dealing with the coronavirus which has obviously slowed this process down.
An important note is that the US distributors have a vast array of manufacturers to choose from and inventory is a key component.
Check out the full article from Joe Lundgren here: The State of the US Market – Ceramic World Review
For the full article version of Ceramic World Review featuring Joe Lundgren’s article go to, https://www.ceramicworldweb.it/cww-en/magazines/ceramic-world-review-1402021/