Two Year Drop in Tile First Since Early 1990s
Anderson, SC, April 23, 2009--After reaching a record level of 3.32 billion square feet in 2006, U.S. tile consumption declined in consecutive years (2007-08) for the first time since 1990-91, according to the Tile Council of America.
This downturn in the tile market comes on the heels of more than a decade of growth.
Total U.S. tile consumption for 2008 decreased 21.5% (vs. 2007) to 2.10 billion square feet, about the same consumption level as 1999.
The majority of the consumption decrease came from imports, which fell 22.6% from 2.18 billion square feet in 2007 to 1.69 billion square feet in 2008.
Although imports continue to make up a significant portion of U.S. consumption, import penetration decreased each of the last two years - from an all-time high of 82.4% in 2006 to 80.2% in 2008 - the lowest import penetration has been since 2004.
In 2008, Mexico surpassed Italy to become the top tile exporter to the U.S. (in feet), constituting almost a quarter (24.9%) of U.S. imports. This was the first time a country other than Italy has held the top exporter position. In dollar value, Italy retained the top exporter position.
Approximately two-thirds (66.1%) of U.S. imports in 2008 in square feet came from three countries: Mexico, Italy and China.
The top five countries from which tile was imported were:
COUNTRY SQ FT 2008 SQ FT 2007 2008/2007 % Change 2007/2006 % Change
Mexico 419,437,556 439,945,248 -4.7% -2.7%
Italy 385,829,947 523,623,382 -26.3% -20.8%
China 309,388,713 351,285,136 -11.9% 1.4%
Brazil 163,690,919 297,835,862 -45.0% -30.8%
Spain 122,820,007 215,157,211 -42.9% -37.8%
The top five countries from which tile was imported in 2008 based on total U.S. value (including duty, freight, and insurance) were:
COUNTRY TOT $ VAL 2008 TOT $ VAL 2007 2008/2007 % Change 2007/2006 % Change
Italy 712,177,454 889,642,881 -19.9% -14.5%
Mexico 271,111,707 262,877,966 3.1% -4.5%
China 233,701,821 225,580,029 3.6% 4.6%
Spain 166,538,897 256,022,948 -35.0% -30.5%
Brazil 115,877,348 185,887,442 -37.7% -30.7%
U.S. shipments were at 466 million square feet in 2008, their lowest level since 1986. Although this total represented a 14.5% decrease from 2007, it was not nearly as large as the 22.6% decline imports experienced.
On a positive note for the industry, exports rose 6.4% in 2008 to their highest level ever (50.5 million square feet). Most of these exports were to Canada (53.6%) and Mexico (17.6%).
“Though our industry has been greatly affected by the economic and housing market crises of the past two years, we are hopeful falling interest rates and tax credits for potential homebuyers will be positive steps towards an economic recovery,” said Andrew Whitmire, trade data analyst for Tile Council of North America.