Catalina Wood Flooring Report Reflects Arc of Hous

Boca Raton, FL, November 18, 2005--According to Catalina Research's latest in-depth report, U.S. sales of wood flooring are forecast to increase at a 5.7% compound annual rate through 2010 to 1.5 billion square feet. This reflects some slowing from the 2002 to 2005 housing boom. Wood flooring, however, is expected to continue to make inroads in the overall U.S. floorcovering market. Inroads are being driven by consumer's desire for high-end hard surface flooring. Wood flooring manufacturers have taken advantage of these trends by offering a wide range of wood species, such as exotics and bamboo, as well as, textured floors such as hand-scraped product lines. Producers are also offering more design-oriented looks that coordinate with current furnishing styles and colors. In addition, manufacturers made wood flooring easier and less costly to install. The industry now depends more heavily on prefinished, engineered floors that can be installed without glue. These products are especially attractive to residential remodelers. The most recent product innovations are being launched with the goal to boost average prices. Industry prices, however, have come under pressure from growing competition among U.S.-and foreign-based manufacturers. Competition is increasing from lumber and other wood product manufacturers diversifying into wood flooring, major floor covering manufactures adding wood flooring to their lines, and Chinese and Brazilian manufacturers expanding in the U.S. market. Foreign-based manufacturers have either setup their own U.S distribution network or are selling wood flooring under private label to other U.S. manufacturers and marketers. U.S. manufacturers have added to this competitive stew by increasing production capacity and expanding their range of product offerings. Rising competitive pressures are expected to keep wood flooring prices under control and allow wood to make further inroads in the U.S. floorcovering market. Weak prices, however, have led sluggish industry profit margins. Sluggish margins, however, could lead to some industry consolidation over the next few years. Catalina's in-depth report also covers U.S. distribution channels and world market sales opportunities.