Carpets & Rugs to 2019

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Date: 24-Mar-2015
No. of pages: 307
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US demand to rise 4.5% annually through 2019

US demand for carpets and rugs is projected to advance 4.5 percent annually to 14.6 billion square feet in 2019, valued at $16.2 billion. Growth will be spurred by rebounding building construction expenditures and continuing consumer interest in replacement and remodeling projects, such as the removal of worn or out-of-style carpets and rugs. However, more rapid gains will be checked by competition from hard surface flooring, which has taken market share from carpets and rugs in the floor covering market over the past decade and will continue to do so through 2019.

New housing to pace demand in key residential market

The residential market, which accounted for 62 percent of carpet and rug demand in 2014, will remain the leading end use for carpets and rugs in 2019. The new housing segment will see the faster growth in demand as housing completions rise at a double-digit pace through 2019. Carpets and rugs are often installed in newly built houses because of their moderate cost, ease of installation, and favorable aesthetics. The larger residential remodeling and replacement segment will see gains as homeowners replace older or worn carpets and rugs. However, advances will be checked by heightened interest in hard surface flooring. Some homeowners will opt for these products -- despite a higher initial cost than carpets and rugs -- because they are seen as being more durable or providing enhanced aesthetics. Carpet and rug demand in the nonresidential market will exhibit gains through 2019, driven by growing office and commercial and institutional construction spending, the markets where carpets and rugs are utilized most extensively. In the transportation equipment segment, US demand is forecast to increase modestly through 2019 as motor vehicle production decelerates from the pace seen between 2009 and 2014.

Carpet tiles to grow fastest

Among carpet and rug types, tufted products accounted for the largest share of demand in area terms in 2014 with 82 percent. These carpets dominate demand due to their low cost, ease of installation, and favorable aesthetic and performance properties. Tufted carpet and rug demand is expected to increase through 2019 as building construction expenditures advance. Carpet tiles will post the fastest growth because they offer the look of broadloom carpet, but can be easily re-moved or replaced in case of staining or premature wear and tear, boosting their use in nonresidential structures. However, broadloom carpets will account for the largest share of tufted carpet and rug demand in 2019 due to their moderate cost and consumer desire for “wall to wall” carpeting.

Domestic carpet & rug shipments to outpace imports

Carpet and rug imports totaled 23 percent of US demand in 2014. Inexpensive carpeting made in China and other Asian nations sees widespread usage in many structures, while handcrafted area rugs and woven carpets are installed in high-end houses and such facilities as corporate headquarters to enhance their interior appearance. Carpet and rug imports are forecast to rise through 2019; however, domestic carpet and rug production is expected to see stronger gains. Growth in domestic demand will support advances, as will the efforts of US producers to take advantage of low energy costs by expanding and relocating manufacturing sites to the US.

Company Profiles

Profiles 37 US competitors including Beaulieu of America, Dixie Group, Engineered Floors, Interface, Mohawk Industries, Shaw Industries & Tarkett

Additional Information

This comprehensive study examines the US carpet and rug industry. A carpet is defined as a material used to cover the entire surface of the floor area and is fastened in place, while a rug typically covers only a portion of the floor and is not held in place, allowing it to be moved to another location. Demand for carpets and rugs is discussed in terms of product (tufted, woven, and other carpets and rugs) and market (new and replacement and remodeling residential and nonresidential buildings, and transportation equipment). In addition, major manufacturers of carpet and rugs are identified and profiled, and key industry competitive variables are discussed. The entire report is framed within the carpet and rug industry’s economic, technological, and market environments.

Carpets & Rugs to 2019

Table of Contents

Introduction X

I. Executive Summary 1

II. Market Environment 4
General 4
Macroeconomic Trends 5
Consumer Trends 9
Consumer Spending 10
Consumer Financing 13
Demographic Trends 16
Building Construction Trends 20
Residential Buildings 23
Housing Completions 25
Residential Floor Space 30
Improvements & Repairs 32
Nonresidential Buildings 34
New Construction 34
Nonresidential Floor Space 37
Improvements & Repairs 40
Transportation Equipment Trends 42
Motor Vehicles 42
Other Transportation Equipment 45
Pricing 48
Historical Market Trends 50
Environmental & Regulatory Issues 54
Carpet Recycling & Material Reclamation Programs 55
Carpet Collection Activities 55
Carpet Material Recycling 56
Use of Reclaimed PET 59
Indoor Air Quality 60
Green Building Practices 63
LEED 63
Other Certification Programs 65
Other Issues 66
Foreign Trade 67
Imports 68
Exports 70
Competitive Floor Coverings Outlook 72
World Carpet & Rug Outlook 74

III. Materials 77
General 77
Face Fibers 80
Nylon 83
Polyester 86
Polypropylene 89
Wool & Other Fibers 91
Primary Backing 93
Secondary Backing 96
Adhesives 98
Styrene-Butadiene Latex 100
Other Adhesives 101

IV. Products 104
General 104
Demand by Area 105
Demand by Value 109
Tufted Carpets & Rugs 113
Broadloom 117
Vehicular Carpets & Rugs 121
Carpet Tile 123
Scatter Rugs, Bath Mats, & Accent Rugs 126
Artificial Grass 129
Woven Carpets & Rugs 132
Axminster 136
Wilton 137
Velvet 138
Other Carpets & Rugs 138
Needlepunched 142
All Other 143

V. Markets 144
General 144
Residential 147
Residential Floor Covering Overview 147
Residential Carpet & Rug Demand 149
New 152
Replacement & Remodeling 154
Demand by Housing Type 157
Single-Family 159
Multifamily Housing 162
Manufactured Housing 164
Nonresidential Buildings 166
Nonresidential Floor Covering Overview 167
Nonresidential Carpet & Rug Demand 168
New 171
Replacement & Remodeling 174
Demand by Building Type 177
Office & Commercial 178
Institutional 182
Industrial 185
Other Nonresidential Buildings 187
Transportation Equipment 189
Motor Vehicles 192
Other Transportation Equipment 194

VI. Industry Structure 196
General 196
Industry Composition 197
Market Share 200
Competitive Strategies 203
Product Development 204
Manufacturing 207
Marketing 208
Distribution 211
Mergers & Acquisitions 215
Cooperative Agreements 218
Company Profiles 221
Abbey Carpet Company Incorporated 222
Ascend Performance Materials LLC 223
Astroturf LLC 224
Atlas Carpet Mills, see Dixie Group Autoneum Holding AG 227
Avant Contract, see Dixie Group Bacova Guild, see Ronile BASF SE 229
Beaulieu Group LLC 230
Bentley Mills Incorporated 234
Bentley Prince Street, see Bentley Mills Berkshire Hathaway Incorporated 236
Burtco Enterprises, see Dixie Group Camelot Carpet Mills, see Royalty Carpet Mills Capel Incorporated 241
Cargill Incorporated 244
Desso Holding, see Tarkett Dixie Group Incorporated 246
Dow Chemical Company 250
DuPont (EI) de Nemours 251
Engineered Floors LLC 253
Fabrica International, see Dixie Group Feizy Import and Export Company Limited 254
FieldTurf USA, see Tarkett Hokanson Carpets, see Scott Group Custom Carpets Interface Incorporated 256
International Automotive Components Group SA 258
J&J Industries Incorporated 260
Koch Industries Incorporated 263
Kraus Group 266
Mannington Mills Incorporated 268
Maples Industries Incorporated 270
Masland Carpets & Rugs, see Dixie Group Mc Three Group 271
Milliken & Company 272
Mohawk Industries Incorporated 275
NatureWorks, see Cargill Nourison Rug Corporation 279
Orian Rugs, see Mc Three Group Oriental Weavers Group 282
OW Hospitality, see Oriental Weavers Group PacifiCrest Mills, see Royalty Carpet Mills Propex Operating Company LLC 286
Robertex Associates, see Dixie Group Ronile Incorporated 287
Royalty Carpet Mills Incorporated 289
Scott Group Custom Carpets Incorporated 291
Shaw Industries Group, see Berkshire Hathaway Styron, see Trinseo Surya Incorporated 292
Tai Ping Carpets International Limited 294
Tandus Group, see Tarkett Tarkett SA 296
Textile Rubber & Chemical Company Incorporated 301
3M Company 304
Trinseo SA 305
UGN, see Autoneum Holding

List of Tables

Section I -- Executive Summary
Summary Table 3

Section II -- Market Environment
1 Macroeconomic Indicators 9
2 Personal Consumption Expenditures 12
3 Consumer Financing Environment, 2004-2014 15
4 Population & Households 20
5 Building Construction Expenditures 22
6 Residential Building Construction Expenditures 25
7 New Housing Indicators 30
8 Residential Floor Space 32
9 Residential Improvement & Repair Expenditures 34
10 Nonresidential Building Construction Expenditures 37
11 Nonresidential Building Floor Space 40
12 Nonresidential Building Improvement & Repair Expenditures 41
13 Motor Vehicle Indicators 45
14 Transportation Equipment Shipments 48
15 Carpet & Rug Pricing Trends 50
16 Carpet & Rug Historical Market Trends, 2004-2014 53
17 Carpet & Rug Foreign Trade 68
18 Floor Covering Demand 73

Section III -- Materials
1 Carpet & Rug Material Consumption 79
2 Face Fiber Consumption 82
3 Nylon Face Fiber Consumption 85
4 Polyester Face Fiber Consumption 89
5 Polypropylene Face Fiber Consumption 91
6 Wool & Other Face Fibers Consumption 93
7 Primary Backing Consumption 95
8 Secondary Backing Consumption 98
9 Adhesives Consumption 100

Section IV -- Products
1 Carpet & Rug Supply & Demand by Area 109
2 Carpet & Rug Supply & Demand by Value 111
3 Tufted Carpet & Rug Supply & Demand 116
4 Broadloom Carpet & Rug Demand 121
5 Vehicular Carpet & Rug Demand 123
6 Carpet Tile Demand 126
7 Scatter Rugs, Bath Mats, & Accent Rugs Demand 128
8 Artificial Grass Demand 132
9 Woven Carpet & Rug Supply & Demand 136
10 Other Carpet & Rug Supply & Demand 141

Section V -- Markets
1 Carpet & Rug Demand by Market 146
2 Residential Carpet & Rug Demand by Application & Product 152
3 New Residential Carpet & Rug Demand 154
4 Residential Replacement & Remodeling Carpet & Rug Demand 157
5 Residential Carpet & Rug Demand by Housing Type 159
6 Single-Family Housing Carpet & Rug Demand 161
7 Multifamily Housing Carpet & Rug Demand 164
8 Manufactured Housing Carpet & Rug Demand 166
9 Nonresidential Building Carpet & Rug Demand by Application & Product 171
10 New Nonresidential Carpet & Rug Demand 174
11 Nonresidential Replacement & Remodeling Carpet & Rug Demand 177
12 Nonresidential Carpet & Rug Demand by Building Type 178
13 Office & Commercial Building Carpet & Rug Demand 181
14 Institutional Building Carpet & Rug Demand 185
15 Industrial Building Carpet & Rug Demand 187
16 Other Nonresidential Building Carpet & Rug Demand 189
17 Transportation Equipment Carpet & Rug Demand 192
18 Motor Vehicle Carpet & Rug Demand 194
19 Other Transportation Equipment Carpet & Rug Demand 195

Section VI -- Industry STRUCTURE
1 Carpet & Rug Sales by Company, 2014 199
2 Selected Acquisitions & Divestitures 217
3 Selected Cooperative Agreements 219

List of Charts

Section II -- Market Environment
1 Carpet & Rug Demand, 2004-2014 54
2 Carpet & Rug Imports by Source, 2014 70
3 Carpet & Rug Exports by Destination, 2014 71

Section III -- Materials
1 Carpet & Rug Material Consumption, 2014 79
2 Face Fiber Consumption by Type, 2014 82

Section IV -- Products
1 Carpet & Rug Demand by Type, 2014 112
2 Tufted Carpet & Rug Demand by Type, 2014 117

Section V -- Markets
1 Carpet & Rug Demand by Market, 2014 146
2 Residential Floor Coverings Demand by Product Type,
2004-2024 149

Section VI -- Industry Structure
1 US Carpet & Rug Market Share, 2014 200

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