Ceramic Tile Report: Ceramic suppliers are exploring a variety of growth opportunities - April 2024

By Jennifer Bardoner

There are several long-term strategies at play in the ceramic market that suppliers see as meaningful opportunities for growth. New formats are expanding the category’s applications, and enhanced visuals and surface treatments are making ceramic a more attractive option for floors and walls. Domestic manufacturers are responding by growing their operations to not only capitalize on these new capabilities but also to shrink the gap in marketshare between domestic and imported products.

The road ahead is not without challenges. Ceramic installation requires the most specialized skills, driving up the time and cost to get it installed at a time when the installer pool is already taxed. Meanwhile, increased competition and widespread shifts in the workforce are making it difficult for factories to find and retain enough qualified workers. Still, category leaders are optimistic, and initiatives are underway to address these challenges.

SHIFTING DOMESTICS’ MARKETSHARE
The U.S. market offers a long runway of opportunity for domestic tile manufacturers. Even though America’s per capita usage of tile is the lowest in the developed world, according to industry consultant Joe Lundgren, the country is populous and underbuilt, so there is still a lot of volume, and imports have historically accounted for roughly 70% of the U.S. market.

“We think the opportunity in the U.S. is vast,” says Mike Ward, vice president of sales for Portobello America, which began domestic production last year at its new plant in Baxter, Tennessee. “We believed that when we started this project almost six years ago, and we believe it today. While the ceramic tile market itself may not be growing at a huge double-digit rate, it’s dominated by manufacturers outside the U.S., so manufacturers inside the U.S. have tremendous opportunity.”

With the benefits of a close, reliable supply of product still fresh in people’s minds following the pandemic-and being underscored by new challenges around the globe-domestic producers’ service model remains a valuable plus. And in today’s society, speed and convenience reign, no matter the circumstances.

“When you are manufacturing in the country [of consumption], you can give better service, and service is so important, because you can deliver within 24 hours anywhere in the U.S., and with imports, it takes four to six weeks,” says industry consultant Donato Grosser.

Polish ceramic producer Cerrad is the latest to express interest in opening a domestic factory and is eyeing Tennessee, where eight ceramic producers, most of them foreign owned, have operations-many of which are currently expanding their capacity and capabilities.

“We are focused on increasing capacity that will give us more room for future growth, so we believe in this market and the growth of this market,” says Filippo Sgarbi, CEO of Landmark Ceramics, which has a plant in Mt. Pleasant, Tennessee. “For a business that is not growing or is flat, and with imports’ position improving because of the normalization of the supply chain, you have to leverage the advantages you have, and the main advantage is service.”

Wonder Porcelain executive vice president Juan Molina says, “I think the future of the tile industry is domestic operation. It allows you to address the market needs with ‘just in time’ quick service. The market will continue to demand factories and services that are U.S.-based.”

There are caveats to establishing a successful U.S. operation, however. To start with, it is expensive. Lundgren estimates it as a minimum $160 million investment, which can take a while to recoup. If the company has not already built a presence and market for itself here, it can be a losing battle, notes Grosser. And it can be difficult to find enough qualified labor to run the factory.

“Finding enough good, qualified people has always been challenging, but we’ve been lucky,” says Ward. “We’re at full employment, but it’s always a challenge to make sure you keep it at full employment. It’s the same for every factory in the U.S. The labor market is tight.”
With Tennessee’s access to the raw materials necessary for ceramic production and its centralized location with regard to the U.S. population, which is largely concentrated in the east, the state has become ground zero for U.S. ceramic operations.

“They are doing an awesome job at growing business in Tennessee,” Sgarbi says. “But if they want to make it sustainable, they have to invest an adequate focus on the workforce at the same pace as the business itself. Otherwise, they are creating competition that, in the future, could create disadvantages. Maybe some businesses will leave or die.”

Michael Kephart helped establish the domestic Wonder plant and is a former Dal-Tile executive. He is now working with the state of Tennessee, the Tile Council of North America (TCNA), National Tile Contractors Association (NTCA) and others to grow the tile industry in Tennessee. That includes a multipronged approach to creating and growing a qualified labor pool.

“We have plenty of natural gas in the U.S. market and plenty of raw material here in Tennessee,” he notes. “We need to improve our trained labor footprint here, and this training platform is a really aggressive and foundational step to do that.”

The Technical Colleges of Applied Technology (TCAT) is a public technical college system with 24 campuses across the state that already offer the kinds of skills-based training needed for ceramic production operators, supervisors, lab technicians and maintenance workers. To help further hone this, Kephart took TCAT and other state education leaders on plant tours in December to show them the exact skills necessary. He also engaged Tennessee Tech, a four-year university that specializes in engineering, technology and computer science education, and is working with the school to provide the more specialized training needed for graphic designers, glaze technicians and the like.

Recognizing that “it’s great to make more tile, but you have to have more people to install it,” Kephart also facilitated a meeting between NTCA and TCAT presidents to discuss developing and adding installation training programs.

“Twelve of the 24 presidents around the state said, ‘We can do that,’” Kephart reports. “It was a thrilling move forward to understand that we may be able to initiate training into the TCAT model, and within 18 to 24 months, we can turn these kids out into the industry while raising the bar on installation.”

Ward cites the installer shortage as the single biggest issue holding the category back from substantial growth. Addressing this could also help lower costs, another detriment to the category. Lundgren estimates that tile installation costs about 30% more than other flooring categories, and Iris Ceramica Group executive vice president Hector Narvaez notes that it’s the final cost that matters, as “it’s all one budget.”

“We need to find new, innovative ways to lower the cost of installation and the barriers to installation,” says Molina.

PER CAPITA CONUNDRUM
As the hard surface flooring market has grown in the U.S., ceramic has grown alongside by maintaining its marketshare, by and large, according to the last ten years of Floor Focus’ Annual Report data. But Grosser believes that without meaningful growth through a shift in share, “somebody is going to be left without a chair when the music stops,” especially if domestic production continues to grow. U.S. factories tend to focus on volume-driving products, so there will always be a need for imports, he says. 

Pointing to the Italian and Spanish ceramic industries’ marketshare-driving ad campaigns in the 1980s and ‘90s, he notes the adverse effects that pulling back on those campaigns has had. Those leading countries are now losing share to cheaper sources. He sees a lesson in this for the industry as a whole.

“In order to increase marketshare, you have to do a lot of work in promoting the product,” he explains, adding that it will take a concerted effort. “The companies that manufacture other categories are much, much larger, and if you look at the magazines in this sector of the market, you will see they spend a lot of money on advertising. If you look at the advertising for ceramic tile, it is minimal. The most important thing is to try to convince people to use more ceramic tile, underlining the advantages of the product, but there is not enough promotion going on.”

GROWING APPLICATIONS
New formats are opening up additional growth areas for the category, with porcelain pavers and gauged panels adding a variety of exterior applications to its list of unique possibilities.

“Pavers and panels are definitely shifting marketshare,” says Scott Maslowski, senior vice president of sales for Dal-Tile. “Pavers gave us the opportunity to really take tile outdoors in a bigger way. We’ve got a lot more opportunities happening there that we weren’t necessarily participating in, so a lot if not all of that is incremental growth, both commercially and residentially. When you look at porcelain panels, you see a little bit of it in countertops, but really, it’s more traditional vertical and horizontal applications in both the commercial and residential segments: tub surrounds, more panels on the floors and walls. The porcelain panel business is really gaining momentum and taking marketshare from other areas. Both are growth engines for us, for sure.”

The International Building Code now allows for porcelain panels to be used as building facades, and in traditional settings, they minimize the need for grout lines and the related maintenance, offering a sleek, hassle-free aesthetic that is growing in popularity for both floors and walls. Molina reports that panel usage is especially growing in markets like south Florida, and Narvaez points to specifications in airports across the country, including San Diego, Denver, Detroit, Nashville and New York City.

“We love walls, because there are four of those for every floor,” notes Larry Browder, executive vice president of sales for Crossville. “I think that’s why everybody is really starting to lean into panels. It’s a significant opportunity as we move forward.” In some cases, he adds, panels can even be installed over existing material with the proper substrate conditions, negating the need for costly and messy tear-outs.

Panels are still a small part of the U.S. market, accounting for an estimated 2% to 5% of tile sales here, according to Lundgren, but as they grow, more manufacturers are expected to begin producing them domestically versus shipping them in from overseas. Florim USA recently began producing panels with “Digital Texture” at its Clarksville, Tennessee plant. Iris Ceramica’s Stonepeak factory in Crossville, Tennessee has been producing porcelain since 2013 and just enhanced its offering with new technology to create through-body veining and visuals.

“I do believe slabs of different thicknesses, sizes, looks and technologies are not just here to stay, I think they will continue to gain against natural stones, quartz, and maybe even against other types of laminated hard surfaces,” Narvaez says. “We’re showing 6mm slabs being used to cover islands, cabinets, doors, you name it. So, it’s basically now a surface that is beautiful, and you can cut it to cover anything. You can even do furniture with it.”

Though our sources agree that panels’ use is growing domestically, it has been a slow process, and their use is still not as widespread as in other leading countries around the world. The U.S. suffers from a general lack of qualified installers, and new formats only compound the issue, which has hindered market acceptance here.

“Frankly, we’re waiting for the market to grow before we really start taking it more seriously, but we’re studying to be able to build that size, and we have room at the factory to put in that plant,” Molina says of Wonder’s factory in Lebanon, Tennessee.

But progress is being made. Industry organizations have added related programs to their rosters, and manufacturers including Dal-Tile, Stonepeak, Crossville and Florim USA have helped train thousands of installers to work with the material. NTCA executive director Bart Bettiga says he has been impressed by members’ openness and willingness to invest in the training and equipment necessary.

“I think our members see a unique opportunity to expand their business by embracing this new technology,” he says. However, he notes that “it is a challenge to keep recruiting new people into the trade, and to train them on all of these products and systems takes time. To understand all the complexity of tile installation and to master it, in my opinion, is equivalent to a master’s degree. I don’t think people understand this.”

In addition to the time and specialized tools required to successfully install porcelain panels, they also require teamwork to handle the unwieldy material, and they are expensive if something goes wrong, which carries a lot of liability for the installers. Narvaez says Stonepeak has been targeting fabricators who are used to working with slabs of stone and quartz and has seen success with this training model, as they are more comfortable with the format and therefore “more open to it.”

Maslowski points out that there is always a labor component when new technology is brought to market, as the trade must learn how to handle the material, how to cut and install it and how to do everything safely. But he adds, “If you look back over the last five or so years, in the beginning, we had a labor community that was fighting against panels; then it evolved into kind of accepting them but not wanting to install them; whereas today, they’re being more readily accepted and are more prevalent in the marketplace. We have fabrication shops and installers now that are just doing this full time. I think panels will continue to grow over the next decade to be a sizable part of the market.”

Pavers are likely to ultimately possess a smaller share of the market, but they represent another growth opportunity for ceramic, likewise creating opportunities for the category that, in some cases, did not exist before. Popular as patios, courtyards, rooftop gardens and around pool areas, the material has applications in both the commercial and residential markets. Emser’s vice president of sales, Mike Weaver, cites outdoor and wall tiles as the company’s leading growth categories, noting that “all up and down the East Coast, porcelain pavers are what’s installed outside versus concrete.” And Leonardo Pesce, CEO of Panariagroup USA, which includes Florida Tile, notes “remarkable” success with the category. Both expanded their related lines last year.

Landmark Ceramics has been producing porcelain pavers since the company’s inception in 2013, and while Sgarbi sees it as a “promising” business, he expects it to remain a niche market. Pavers are constrained by some of the same installation challenges as porcelain panels, and pavers aren’t viable in as many applications. Nonetheless, the format is growing in the marketplace, primarily 2cm pavers, but 3cm versions are also emerging.

With 2cm and 3cm pavers as “popular as can be right now,” Bettiga says, industry agencies are working to establish related standards, which could help smooth out the learning curve for installers. Using porcelain panels as an example, he explains that “when they hit the market, there was nothing for them, no standard at all. We were relying on manufacturers who, frankly, do not install tile in the U.S. and don’t have a lot of experience with our installation methods.”

The process will take time, though. Developing the standards for panels took years of experimentation and close collaboration with setting material companies and porcelain suppliers to establish agreed-upon best practices for panels’ wide variety of applications.

ENHANCING OUTDOOR APPLICATIONS
Another front that is giving tile an edge outdoors is new surface finishes that combine slip resistance with a soft feel. Traditionally, providing a high dynamic coefficient of friction (DCOF) involved adding minerals to the surface of the tile, but the gritty texture was uncomfortable and hard to clean.

“It does open up some business opportunities,” Narvaez says, noting that the technology makes tile an even more attractive alternative to natural stone in exterior applications. “But it also provides a solution so [commercial] designers can say, ‘OK, I’m going to specify this product now,’” he adds, as even indoor commercial applications carry stringent anti-slip standards and cleaning regimens.

At Surfaces, Crossville debuted its first related offering, Beljn, which had guests taking their shoes off to feel the “Feathersoft” finish, and Brian Carson, president and CEO of Crossville’s new parent company, AHF, says the technology will be expanded to other collections. Emser and Stonepeak both offer a number of similar products with a honed finish, while MSI has trademarked its ZeroSlip application, and Atlas Concorde has a European patent for its Sensitech technology.

Dal-Tile’s StepWise technology helped pioneer the related DCOF standards in 2012, which recommend a rating of at least 0.60 for exterior wet applications. It should be noted that not all enhanced anti-slip finishes meet this criterion, though most of the ones mentioned do.

Anatolia is working to develop its own soft anti-slip surface treatment, which co-CEO Cengiz Elmaagacli expects to unveil in the next six months. The company is also working on new finishes that capture the effect of machined stone surfaces, such as bush hammering and sandblasting.

“I think that will open up a tremendously huge segment in exterior applications and surface cladding-the more authentic you can make it, the greater the opportunity to expand tile’s use and take marketshare from another material,” Elmaagacli says. “I think the obstacle in the U.S. is just awareness that there’s a new type of application that truly looks like authentic stone but with far superior attributes. It can open new opportunities for our industry; it will just take time, awareness and marketing it in those channels.”

WHAT’S SELLING
Ceramic has long favored a variety of stone looks, which it can mimic better than any other alternative material. Marble remains ubiquitous, but the visual is evolving into softer looks with warmer colorways.

“We are definitely seeing a shift from the cooler tones to more of the naturals and golds,” Weaver says. “There is still kind of a white background, but instead of white and grey, it’s becoming white and taupes or soft gold tones.”

Ward believes the rise of marble looks coincided with a move away from the heavy aesthetics of the 1990s and early 2000s, which were punctuated by other stone visuals. The shift to marble’s more contemporary aesthetic also coincided with the introduction of inkjet technology, he points out. But, as Sgarbi notes, fashion is cyclical, and many of those other stone looks are now coming back, aided by recent advancements in inkjet and glazing technology.

“For the last five or six years, we’ve been seeing more stone looks at the international tile shows, even some that remind you of the stone looks back in the ’90s but much better done,” Ward says. “The evolution of tile has always been to mimic the natural product as closely as possible, and the more we’re able to do with these textures, the better we’re able to mimic stone. With the glaze technology that exists today, we’re able to achieve some of those stone looks with inkjet machines that we couldn’t do before.”

Sgarbi adds that the scanning technology used in porcelain panel production is also aiding in the enhancement of stone looks, perhaps another reason for their current resurgence. The ability to reproduce large-scale images adds dimension and clarity when cut down into smaller formats, while large-format reproductions offer a new aesthetic opportunity altogether.

At its new factory in Turkey, Anatolia has developed patented technology that allows the company to scan full slabs without having to cut them and then replicate them at 800 dpi in large formats.

“As far as I know, there’s no other factory in the world that can do that,” Elmaagacli says. “What we decided to make just didn’t exist. There’s no technology in the world that allows you to scan a full slab at a 1:1 scale…that truly looks authentic. If it has a natural stress crack, it looks like the porcelain is cracked.”

Elmaagacli says the company is starting with marble slabs because they don’t require a lot of surface manipulation. Ward also notes that while limestone, travertine and slate looks are growing in popularity, “they certainly aren’t the dominant looks yet.”

“I keep seeing all the trends, but we still sell a lot of marble, concrete and wood looks,” says Lundgren. “If I had to venture, I’d say that’s probably half of our sales in the U.S.”

Our sources see the predominant shift not so much in the visuals but in the sizes.
“High-end residential is using very large formats like 48”x48” and 48”x60”, but even your mainstream consumer is going now to 24”x24” or 24”x48”,” Narvaez says.

Our sources agree that 12”x24” still represents the bulk of the domestic market-Browder estimates it at 60% to 70%-but as end users move toward larger formats, 24”x48” especially is gaining, both commercially and residentially.

“I think commercial drives that first, then people see that in commercial spaces and want to mimic those sizes in their home,” says Ward, also noting 36”x36” and 48”x48” as growing in popularity. “Our investment is in those large sizes currently and will be more moving forward. The industry sees value in these large formats, and once they get past the install, I think the customer sees value as well.”

As with porcelain panels, these larger formats have faced hurdles on the installation side, with Sgarbi saying the trade “is just now probably starting to get used to 12”x24”.” The U.S. lags the rest of the world, which has already migrated to larger sizes due to the enhanced aesthetic provided. Larger formats also help to differentiate ceramic from other hard surface categories.

“We have worked to increase production in terms of sizes because it is something that will protect our business compared to other materials like LVT,” Sgarbi says.

Wall tile, meanwhile, is experiencing a dichotomy in terms of sizing, with a countermovement back toward smaller formats alongside the rise in panels. This aligns with the trend toward artisanal and decorative looks, explains Maslowski, adding that 3D designs are also gaining momentum.

“The neutrals and natural colors are very strong, but you also have consumers wanting to make a big pop and bring some color and life into a space,” says Dal-Tile PR manager Michelle Corley, citing blues and greens as popular colorways. “It’s something we entered into after Covid, and it never left.”

COMPANY UPDATES
Anatolia’s nearly 2.3-million-square-foot production facility came online last summer in Gulf of Izmir, Turkey, and Elmaagacli believes it represents the ceramic industry’s largest investment to date, citing feedback from Italian production equipment supplier Sacmi, which has outfitted most of the factories in the modern world. Reaching full-capacity production in September, the first kiln is dedicated to porcelain panels, and the unique looks-the result of Anatolia’s patented new scanning technology-were well received at Cersaie and Cevisama, Elmaagacli reports. The panels, which are strictly being sold to stone and quartz fabricators, are a new channel for the company.

A second and third kiln were scheduled to start production last month, providing flexibility to produce everything from 12”x24” field tiles up to 4’x9’ “mini slabs,” with Elmaagacli noting that the facility will focus on “higher value-add products.” Up until this point, Anatolia has outsourced production of its proprietary designs to factories around the world, serving the middle and high end with competitive offerings. These new products will go through Anatolia’s typical network of independent tile distributors and national retailers, but they open up a new market for the Canadian supplier.

“One of the main reasons we invested in smaller-format production was for commercial,” Elmaagacli says. “There aren’t a lot of well-designed competitive commercial lines in the world, and we felt it would be a huge opportunity for us to develop that ourselves.”

Last year, Crossville was acquired by AHF, which is owned by Paceline Equity. With private equity now backing the ceramic producer, it has greater access to funding for strategic capital investments, several of which are underway at Crossville’s Tennessee plant. Begun before the company’s purchase, a new ball mill was set to come online at the end of March, ahead of schedule, according to AHF’s Parker. A new press dryer was already up and running ahead of the ball mill.

Additionally, Crossville is transitioning its Savannah, Georgia warehouse to Loudon, Tennessee, located an hour from the manufacturing site and just off I-75, which traverses the country from Miami to Detroit. The move, which was also scheduled for completion by the end of March, will bundle Crossville’s imported products with its domestic inventory, enhancing its service model.

Crossville is also diversifying its market strategies, with a focus on building its residential business. A new showroom was scheduled to open in Miami last quarter. And in July, the manufacturer launched a contractor-focused program called CrossValue, comprising one million square feet of guaranteed inventory across three price points-including Crossville’s first value offering, Access Point-targeted at discretionary contractor and e-bid business.

Working over the past few years to create a stress-free shopping experience through curated product pairings, Dal-Tile is extending that approach to its quartz countertop program. Late last year, its Daltile brand launched a new countertop display that pairs its top-selling quartz options with complementary wall tile and mosaics. QR codes on the backs of the samples link to the brand’s online visualizer, helping consumers envision the products in their space while offering retailers a small-footprint way to increase sales.

Early last year, sister brands American Olean-which celebrated its 100th anniversary-and Marazzi gained product visualizers on their respective websites, as well.

Similar to parent company Mohawk’s Infinite Rewards program for dealers and RSAs, Daltile Rewards launched earlier this year to help incentivize sales, and vice president of residential sales Patrick Warren says it’s been successful.

Comprising manufacturing facilities across North America, Dal-Tile has been working to enhance its capabilities and increase capacity, especially as related to polishing, porcelain paver production and textured wall tiles. Additionally, it opened a new showroom in Boise, Idaho.

At its nearly 80 industry professional-facing showrooms nationwide, Emser recently added Design Selection Services, enhancing its in-person appointments with tailored concierge design assistance. To help with sales in the field, the supplier has been enhancing its CRM system to allow reps to check pricing from a phone or tablet, including customer-specific pricing through their accounts, and pull up pictures of products along with other information. Additionally, it is working to incorporate 360-degree rotating imagery and architectural files to its visualizer, a capability Emser hopes to add this year.

This show season was a big one for Emser, with several of its recent product introductions garnering numerous awards. Its proprietary Empervious rigid shower system won a Golden Hammer, recognizing the best of the best in the home improvement industry, as well as the Best of IBS award in the kitchen and bath category at the 2024 International Builders Show. And its patented Radiant extruded LED-lit wall and, now, floor porcelain tile system received the Best of Surfaces: Innovation and Best of TileExpo: Overall Product awards at this year’s showcase.

In addition to expanding the Radiant technology to include indoor and outdoor flooring and developing its own LED lighting system, Emser debuted its first surface-texture product at this year’s Surfaces: Terramor. The stone-look collection features a double glazing that adds a realistic texture but with a soft feel thanks to its lappato finish. Available in sizes up to 47”x47”, the collection marks Emser’s foray into larger formats.

An importer partnered with factories in more than 20 countries, Emser last year opened its own product testing facility at its Houston distribution center. Though Weaver notes that products are inspected at its various partner facilities before being imported, he says the company is excited about the additional level of quality control having its own state-of-the-art testing provides.

In celebration of its 20th anniversary, Iris Ceramica’s Stonepeak brand is investing in plant upgrades and updating its market strategy and branding.

Comprising the latest in inkjet, glazing and polishing technology, a recent $10 million upgrade doubled the Tennessee plant’s print quality (now 400 dpi), enhanced its color quality (now 12 bars) and added the capability to produce through-veining, which Iris Ceramica calls 4D. The new polishing technology, installed on both the traditional and porcelain panel presses, seals the surface twice, and Narvaez notes the finished products’ clarity.

Dedicated to high-end residential and specified commercial, Stonepeak produces porcelain panels in varying thicknesses and large-format field tiles, some of which are cut from the panels in sizes up to 60”x60”. It augments its mix with custom-cut mosaics and imports from its sister facilities.

Narvaez calls the privately held company’s owners “solutionists,” noting that at Coverings, Stonepeak will introduce Iris’ new Attract technology. Featured in a recent Dolce & Gabbana runway show, it allows for the dry lay and reuse of tile thanks to a magnetic underlayment system, which Narvaez expects to be available domestically for walls this year. Following additional testing, it should be available for floors next year.

Run by the Minozzi family, Iris is the fourth-largest ceramics group in Italy and encompasses Fiandre, Ariostea, FMG, SapienStone, Iris Ceramica and Porcelain Gres. To streamline its sales and marketing, the company has aligned domestic offerings under the new ICG Italia brand and unified the sales force by region.

Last month, Landmark Ceramics cut the ribbon on its Tennessee plant expansion, which increased the total covered warehouse area to 650,000 square feet and increased production capacity to around 80 million square feet per year, up from around 50 million square feet. In addition to increased production capacity, the expansion is expected to bring better positioning from suppliers, as well as better cost per unit, Sgarbi says.

The investment, initiated in 2022, also created a brand-new North American logistics hub for the producer, which manufactures porcelain pavers and field tiles. More than just a warehouse, the new distribution center represents a complete revamp of Landmark’s shipping and logistics operations to an automated system that will improve service quality, efficiency and precision, says Sgarbi. Most of Landmark’s sales are in the U.S., but its market does include Canada.

The American business unit of Panariagroup lndustrie Ceramiche S.p.A., Panariagroup USA features an array of brands, including Florida Tile, Panaria Ceramica, Cotto d’Este, Lea Ceramiche, Love Tiles and Margres. In a reorganization to enhance its operations, services and products, the company adopted a group-centric approach in late 2023, offering customers a more comprehensive range of products while regionalizing sales services.

The aim is to “significantly expand our position in the American market…through access to a well-organized sales model that includes important American-made products, yet also provides the quality and sophistication of the group’s European collections, recognized as the benchmark for flooring and cladding surfaces worldwide,” Pesce says.

Following its success with outdoor pavers, Panariagroup USA is now focused on developing a comprehensive strategy around its 12mm porcelain panels for countertop applications, imported through its Italian brands Cotto d’Este and Lea Ceramiche. The marble, stone and concrete visuals are tailored specifically for the U.S. market.

At its Florida Tile plant in Lawrenceburg, Kentucky, Panariagroup USA has begun installation of a polishing line. Scheduled for completion in the late spring, it will be able to polish tiles up to 48”x48”.

Having begun operations at its Tennessee plant last July, Portobello America recently brought its second kiln online. That line began producing wall tiles last month. Between that line and the initial one for field tiles, current capacity is around 65 million square feet. Another kiln dedicated to floor tiles is planned for next year, which will bring the overall capacity to around 125 million square feet per year.

Focused on achieving a fairly even split between residential and commercial, the Brazil-headquartered supplier will continue to augment its assortment with imports, both sourced and self-produced. The U.S. plant focuses on large formats up to 48”x48” as well as unique wall tiles, which it sells primarily through

distribution but also to select home centers, with Canada representing a small percentage of sales. Ward reports that despite the year’s economic challenges and market slowdown, Portobello significantly grew its distributor network in 2023.

At Coverings, the company will debut its first U.S.-made products, including 24”x48” field tiles and 3D reliefs inspired by global décor and architectural trends. Ward notes that the group’s global presence gives it a unique design perspective, though it is tailoring its offerings for the U.S. market, which it began serving in a significant way years before the plant came online.

At Coverings, Wonder Porcelain will announce several investments at its Tennessee plant. Molina describes the upgrades as “investments in manufacturing to do different things at the factory,” adding that the company is exploring how to integrate AI.

He highlights the plant’s marble and onyx programs as differentiators, adding that Wonder has the largest polishing and rectifying line in the United States. The U.S. operation, founded in 2015, had a record year in 2022 and beat it by double digits last year, Molina reports. The plant’s three kilns and six glazing lines produce only field tiles.

A subsidiary of Marco Polo-the largest ceramic group and category sales leader in China-Wonder’s Tennessee factory represents the company’s first step in truly internationalizing its offerings. Molina reports that the company is exploring some “interesting” opportunities to import its products into Mexico, and he says Canada represents an important and growing market in Wonder’s strategic plan.

SUSTAINABILITY AS A SELLING POINT
Made of natural materials and with its long lifespan, ceramic is inherently sustainable, which is a leading consideration in the commercial sector. “I don’t think it’s the top driver, but it’s a huge driver,” Ward notes.

Browder reports that Crossville’s recent carbon-neutral-product launches and commitment to lowering its carbon footprint have “helped open doors,” though he adds that sustainability is “definitely more of a topic in New York City, Los Angeles and some of the other major metro markets, as well as some secondary markets.”

TCNA officials hope that this summer’s sustainability conference with lawmakers in Washington, D.C., will help solidify ceramic’s sustainability benefits as purchase drivers through the adoption of a standardized definition of embodied carbon. Cradle to cradle assessments, versus cradle to gate reporting, would better position tile-especially compared to resilient flooring-but it would also help set clear benchmarks for the entire industry.

Our sources agree that sustainability is not a meaningful consideration on the residential side, but some believe it could be. Last year, Crossville invested $1 million in consumer-facing displays that communicate ceramic’s environmental benefits and what they mean for homeowners.

“There are more and more customers who view sustainability as something that’s important to them, and particularly the younger generations,” says Browder.

However, many in the industry point to a discrepancy between consumers’ words and actions.

“The Millennials are all concerned with green, but they’re concerned with the green in their wallet before they’re concerned with the green in the environment,” Lundgren says. “If they can save $2,000 to $3,000 on their kitchen floor by using LVT, they’re going to do it.”

Citing the typical trend cycle, Elmaagacli believes this could change, explaining that movements, whether product-related or otherwise, generally start in Europe but eventually make their way to the U.S.

“In my opinion, the next big thing in the ceramic industry will involve more technology and prioritizing sustainability to create unique design and customization for clients-we are already working on this,” Pesce says, noting Panariagroup USA’s investment in sustainable energy sources and efforts to reduce carbon emissions, including slimming the profile of porcelain panels with a goal of creating slabs that are carbon neutral.


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