Report Compares European & North American Flooring

Wilmslow, U.K., October 12, 2005—Textiles Intelligence issued a research report today indicating striking differences in the structure of companies in the floorcovering sector in Western Europe compared with that of North America. The report said that the latter is dominated by huge companies, often with international operations, such as Mohawk, Shaw Industries, Beaulieu of America, Oriental Weavers, Interface and Collins & Aikman. In fact the two leading companies in the USA, Mohawk and Shaw, also dominate the global industry. In 2004 they generated more in sales than the next 23 put together, according to the report. The report said that Western Europe's industry is much more fragmented. An analysis of the world's top 50 companies reveals that 20 of the bottom 25 players are located in Western Europe. And it said the difference is illustrated by comparing the turnovers of the leading 15 floorcovering concerns which have their headquarters in the USA with the top 15 whose head offices are in Europe. The report included a table, which is based solely on turnover, regardless of the degree of internationalisation of the manufacturing operations or fields of activity of the companies concerned. They also exclude some carpet distributors that do not do any manufacturing. One example is Headlam, based in the U.K., which had a turnover in 2004 of Euro669 mn (US$831 mn). The reported cited a conference hosted by Radici Group in Prague, Czech Republic, on June 24-25, 2005, where a senior executive at Milliken, Bob Yates, spelled out the extent to which the U.S. market is dominated by big players and the problems this causes for smaller players in the country. Milliken has two competitors which are well over ten times its size. So its chances of being cost competitive on similar products are fairly slim, according to the report. Milliken's strategy, said the report, is based on its highly successful Millitron technology, has therefore been to become a "make to order" company. It does not produce anything which has not previously been requested by customers. (Millitron technology is a carpet printing technology based on the ink-jet system.) The report stated other general differences between the two markets, including North America's growing population, compared with minimal population growth in Western Europe; and a higher rate of floorcovering replacement in North America compared with Western Europe. North America Turnover : 1 Mohawk Industries 4,763 2 Shaw Industries 3,539 3 Beaulieu of America 990 4 Oriental Weavers 680 5 Interface 552 6 Collins and Aikman 445 7 Milliken 267 8 Kraus Carpet 264 9 Lear Corporation 245 10 Collins & Aikman Floorcoverings 243 11 Dixie Group 237 12 Royalty Carpets 235 13 Springs Industries 231 14 Maples Industries 194 15 Mannington Carpets 134 Total 13,019 Western Europe: 1 Rieter Automotive 295 2 Ideal Group 290 3 Associated Weavers 271 4 Domo Group 256 5 Desso DLW 235 6 Condor Group 235 7 Berry Carpets 201 8 Beaulieu Kruishoutem 167 9 Brintons 150 10 Tarkett(a) 144 11 Radici Group 140 12 Beaulieu Wielsbeke 127 13 Dura 123 14 Mc Three Industries(b) 110 15 Enia Carpets 102 Total 2,846 (a) Excluding automotive. (b) Includes Bajong Carpets. Sources: Intercontuft; author's estimates.

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