US Laminate Flooring Industry Survey

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: I was recently asked to complete a survey for an analyst at Fischer Partners Fondkommission AB, a member of The Stockholm Stock Exchange. Thought you all might find it interesting. : By the way, what do you all think of the new laminated flooring products? : -Dave : -----------------US laminate survey follows------------- : Dear Mr. Wattin. : Following are responses to the survey of the laminate flooring industry in the United States. My primary source is the 7/7-7/14/97 issue of Floor Covering Weekly(Hearst Business Publishing). FCW commissioned Specialists in Business Information to compile this 6th annual report on the US floor covering market. Please let me know how it compares to your other findings. Its been a pleasure to be of service. Sincerely, : >1) In value, how large is the flooring market in The United States? : A 1996 statistical report shows US floor covering sales(domestic shipments, minus exports, plus imports) at $14.8 billion. Volume for the year was 22.5 billion square feet. : >2) How large market share has laminate floor? : For 1996 sales were $134 million, roughly 1% of overall industry sales and about 0.3% of volume. : >3) How has this share developed under the last five years? : The US laminate flooring market is really only about 2 years old. Figures for 1995(and prior) are not readily available, but estimates range from 25 to 30% growth in this segment of the market from 1995 to 1996. : >4) What is the current trend for laminate floors? : Predictions are for double digit growth through 1998 and gaining close to 5% share of overall US floor covering industry sales. : >5) Is there an organic growth in the flooring market, that is does the market grow as a whole? : The market often reflects US housing starts. Thus, from 1991 to 1994, there was an overall growth rate of 8.2% annually. 1995 was almost flat and 1996 saw a 2.8% increase in sales. : >6) How have prices on laminate flooring developed over the last five years? : Again, statistics are really only available for the last 2 years. The prices have been level at an average manufacturer's sales value of $2.00 per square foot. : >7) What is the current price trend? : The increase in competition seems to have been balanced by the increase in demand and kept prices level. Not sure how much to factor in prices of raw materials, exchange rates and inflation here. : >8) Are there any particular parts of the United States there you see a strong growth? : This may be more related to the economy of various regions than the product itself. Its interesting to note that for 1996 US laminate flooring sales, 83% was residential, 10 builder and 7% commercial use. : >9) Who do you believe are the largest players in laminate flooring in The United States? : Perstorp(Pergo) probably has 67 to 75% market share and Wilsonart 10 to 15%. Big names Armstrong and Formica are late entries. BHK, Fibo-Tresbo, Pickering, Witex and several others make up a balance of about 30 players overall. : >10) What is an average price for laminate floor per square meter? : Manufacturer sales were $134 million at an average value of $2.00 per square foot(you'll have to do the conversion to the unit of your choice). : >11) On a comparable basis is laminate flooring in the low end or high end of the price scale of wood or resilient flooring? : Statistics show the average square foot price was $1.85 for wood, $0.50 for vinyl and $0.20 for rubber. Compare that the $2.00 figure for laminate flooring. : >12) Do you see any new competitors entering to the laminate flooring market? : There were basically 6 players in 1995. Then another 24 entered the arena in 1996, but there are few new manufacturers on the horizen. I would expect to see signs of acquisitions and consolidation of existing companies by the end of 1997 and during 1998. : ----------------------end survey-------------------------

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