CATALINA RESEARCH INC

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Catalina Research Presents

WOOD FLOORING CR064:

Released December 2009

Catalina Research announces the release of our 222-page Catalina Report on Wood Flooring.  This fact-filled report provides action-oriented executives with up-to-date information on softwood, oak, maple, and other hardwood flooring products.  Each page will assist the wood flooring executive exploit growing product lines, improve plant efficiency, strengthen distribution, penetrate end-use markets, exploit growing world markets, and plan for 2010 and beyond.

Catalina Reports contain the timely data that allows users to evaluate market size, growth potential, end-use markets, profitability, market share, and the competitive environment.  So turn to a Catalina Report when developing strategies to take advantage of opportunities in residential and nonresidential wood flooring sales, retail distribution channels, and foreign markets.

 SUBJECT MATTER

1.      U.S. WOOD FLOORING INDUSTRY TRENDS (1977- 2015)

· Wood flooring market sales                                 

· Share of U.S. floor coverings industry                

· Solid versus engineered products                      

· Prefinished versus unfinished

· Shipments, imports, and exports

· Price and profit trends

2.      WOOD FLOORING SHIPMENTS, IMPORTS, AND PRICES (1972-2015)

· Oak and maple flooring                                        

· Other hardwoods                                      

· Exotic species                                           

· Bamboo                                                     

· Softwoods                                      

· Engineered flooring by thickness

            · Rustic and reclaimed flooring markets

            · Lacey Act and environmental certification

· Imports by major country of origin

3.      WOOD FLOORING END-USE MARKETS (1997-2010)

· New residential construction                               

· Residential remodeling                                        

· Factory-built housing                                            

· New nonresidential construction

· Commercial contract

· Transportation equipment

4.      WOOD FLOORING DISTRIBUTION CHANNELS (1977-2010)

· Retail sales by floor coverings stores, home centers, and others                   

· Home Depot, Lowe's, and Lumber Liquidators' share of wood flooring    total retail sales

· Retail hardwood flooring retail sales by region

           · Distributor business by species, product, and finish sold                     

· Contractor business revenues

· Contractor revenues by type of work

· Contractor revenues by specie, product, and finish sold

· Export shipments by product by country of destination

· Wholesaler sales trends

5.      FACTORS AFFECTING DEMAND AND DISTRIBUTION (1977-2010)

· Building construction spending                           

· Spending by building type                        

· Housing completions and resales                       

· Housing starts, permits, and factory-built housing                                                · Characteristics of new housing                          

· New single-family houses sold by sales price and average value

· Top ten builders

· Regional housing market analysis

· Floor covering retail sales by outlet

· Homeowner remodeling spending

· Hard surface flooring spending and by household demographics

· Number and average cost of hard surface flooring jobs

· Mortgage rates and personal income

· Household demographics: income, age, size, and region

6.      PLANT PROFITABILITY AND THE COMPETITIVE ENVIRONMENT (1972-2009)

· Number of plants and revenues              

· Payroll and material costs                        

· Plant profit margins                                               

· Lumber production and price trends       

· Lumber production, exports, and imports by species   

· Capital expenditures                                            

· Plant labor situation

· Top 7 company market shares

· Armstrong sales and profit margins

7.  WORLD WOOD FLOORING MARKETS (1992-2009)

            · World wood flooring markets                                                                      

· Canadian market sales                            

            · Canadian solid and engineered wood flooring exports/imports            

            · Canadian building permits/housing starts         

· Canadian exports and imports by major trading country 

            · Production for 8 Canadian companies

            · Financials for 6 foreign-based manufacturers

            · Top European company market shares

8.      COMPANY PROFILES

· Catalina Research has profiled 33 leading North American and other worldwide wood flooring product manufacturers and marketers.  Some of the top companies include:

            · Arborcraft               

            · Armstrong                                      

· BR-111                   

            · Kahrs                                  

            · Lumber Liquidators                                  

· Mannington Mills

            · Mohawk Industries

· Mullican Floors

· Shaw Industries

           · Tarkett

ABSTRACT FOR THE CATALINA REPORT ON THE WOOD FLOORING INDUSTRY

SUMMARY OF MAJOR FINDINGS

The $1.7 billion (manufacturers' dollars) U.S. wood flooring market is expected to begin to recover in 2010.  The gain will primarily be in the second half of the year and will be led by the upturn in the residential remodeling and replacement market.  The upturn reflects the increase in existing home sales that began in the third quarter of 2009.  The builder market could also begin to show some life by the end of 2010, however, the nonresidential market is expected to continue to decline over the next year. Manufacturers and retailers will also benefit from the improved competitive pricing for wood flooring as lumber prices dropped.  Lower wood flooring prices also reflect the increased supply of lower-priced imported wood flooring.  In addition, rising imports increased the availability of exotic species and bamboo flooring.

WOOD FLOORING INDUSTRY TRENDS

Catalina Research has uncovered these trends in our in-depth 222-page analysis of the North American wood flooring industry.  U.S. shipments, exports, and price trends are evaluated for hardwood and softwood flooring products.  Data is provided on a dollar and unit basis.  Catalina also reviews market trends for prefinished and engineered products, and increased demand for exotics, rustics, bamboo and other products.

INTERNATIONAL TRADE ACTIVITY

Import data is included in order to evaluate the share of foreign-sourced wood flooring products.  Import data is provided for softwood flooring; and maple, birch, exotic species and other hardwood flooring products, as well as bamboo and engineered products.  Import data is also provided for major countries of origin.  Similar data is available for export shipments.

END-USE MARKET ANALYSIS

The report's end-use market analysis provides executives with the sales opportunities in residential, nonresidential, and transportation equipment markets.  Residential markets are further divided into new construction, residential remodeling, and manufactured housing markets.   The demographics of hard surface flooring residential replacement customers are discussed in order to target the most likely purchasers.  Nonresidential markets are segmented into new construction and commercial contract purchasers.  Distributor and installation revenues are also evaluated.  Retail distribution channels are analyzed to review the position of floor covering stores, home centers, and other retailers.  Leading wood flooring retailer shares are also provided.

FACTORS AFFECTING DEMAND AND DISTRIBUTION

End-use market trends are correlated with U.S. housing demand, nonresidential construction spending, mortgage interest rates, and other economic indicators to uncover the factors affecting demand, and provide insights into the direction of domestic demand in 2010 and beyond.  Catalina Research also investigates the growing flooring distributor and retail channels as well.

PROFIT MARGINS AND THE COMPETITIVE ENVIRONMENT

In addition, Catalina Research examined the cost structure and profitability of U.S. hardwood flooring plants.  Data trends are compiled for material, labor, and capital inputs.  As part of this analysis, Catalina profiled 20 leading North American manufactures and marketers, and compiled company wood flooring sales.  Catalina used this information to calculate market shares of leading manufacturers.   Company profiles cover product lines, manufacturing and distribution, capital investments, acquisitions, and new products.  Executives are urged to review the growth- and profit-oriented strategies of leading North American and foreign-based wood flooring manufacturers and compare their company's own performance to the industry averages.

WORLD WOOD FLOORING MARKET

Catalina estimated the total world market and by market area by analyzing trends in Canada, Europe, China, and other areas.  Canada market sales are calculated from shipments, exports, and import data.  Chinese production is segmented for solid, engineered, and bamboo flooring.  Market shares are also calculated for the leading European manufacturers.  Catalina profiled 13 foreign-based producers.

Report Number: CR064                        Published: December 2009

Pages: 222                                             Price: $3,495 hard copy or e-mail version

To order this report or receive more information about this valuable research report, contact our Sales Department @ (561) 988-0853 or e-mail: sales@InformationGiant.com.  You can also visit our web site: www.InformationGiant.com.

SCOPE AND METHODOLOGY

The Catalina Report on Wood Flooring is a guide to the growth and profit opportunities in the manufacturing, importing, and U.S. and worldwide 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 world market situation.  In addition, major North American- and foreign-based manufacturers are profiled in order to uncover competitor strategies.

U.S. sales are calculated from U.S. Department of Commerce statistics by collecting data on domestic plant shipments, subtracting exports, and adding imports (Section 1).  Sales are calculated on a dollar and square foot basis and calculated as a share of total U.S. floor coverings sales (shipments minus exports plus imports) and hard surface flooring sales.  Catalina Research uses the measurement of board feet and square feet interchangeably.  The average value per square foot supplied is calculated and compared with other floor coverings materials.  Catalina also estimates the share of sales that are solid versus engineered.  In addition, hardwood flooring plant profit margins are 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, as well as solid and engineered flooring.  Hardwood shipments are segmented into oak and 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.  For the 2009 edition, import data was expanded to include exotic species and bamboo.

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.  Share is calculated for the leading retailers.  In addition, the size of the wholesale business is also evaluated.  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 sales, 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.  Homeowner hard surface flooring spending is 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 (Sections 7 and 9).  Annual reports, trade journals, and databases were searched.

The Canadian market situation is evaluated from Statistics Canada data (Section 8).  Data trends include plant shipments, exports, and imports, as well as a review of the leading manufacturers.  The European market is also investigated, as well as trends in the Chinese and Brazilian wood flooring markets.  This data was used to estimate the world wood flooring market.

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.