Topps Tiles Plc has acquired the CTD Tiles brands, 30 stores, selected stock, and all related intellectual property from CTD Tiles Limited, acting by its administrators, James Lumb and Will Wright of Interpath Limited, for a consideration of £9 million.

Prior to entering administration on 19 August 2024, CTD supplied tiles to the retail, trade and commercial markets through a collection of related brands including CTD Tiles, CTD Trade and CTD Architectural Tiles, with total annual revenue of c. £75 million . The CTD retail business operated 86 stores across the UK, each with a separate trade and retail showroom, and had total store revenue of c. £50 million in the year to June 2024.  In addition, CTD’s commercial business reported revenues of c. £16 million from the volume housebuilder segment and c. £8 million of revenues from the Architect and Designer segment in the same period.

The stores being acquired by Topps Group had total sales of c. £20 million in the year to June 2024, and the Acquisition also includes all the CTD brands, selected stock and customer data. As well as adding 30 new well-established stand-alone stores to the Topps Group estate, the Acquisition will provide Topps Group with the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the A&D segment.  The remaining 56 CTD Tiles stores not being acquired will be disposed of through the administration.

The CTD brand is complementary to the Group’s existing businesses and the acquired stores and other assets will continue to trade under the CTD brand name.

Consideration for the Acquisition will be satisfied from the Group’s existing financial resources.  The Acquisition is expected to be accretive to Topps Group earnings in the year ending 30 September 2025.

Rob Parker, Topps Group CEO said: “The CTD brand and assets are an excellent fit with our existing business and the Acquisition creates a new and complementary specialist tile business within the Topps Group.”

“CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offers within each unit and a number of market-specific sub-brands which are differentiated from our existing offer. The acquisition of 30 high quality stores and selected supporting infrastructure, together with the intellectual property and customer data required to service CTD’s existing commercial customers in the housebuilding and A&D markets, provide us with an opportunity to make material progress towards our Mission 365 sales goal. We are excited about the future of CTD within the Topps Group and look forward to welcoming our new colleagues to the business.”

56 store closures: Aintree, Liverpool; Ashford, Kent; Aylesbury, Buckinghamshire; Basildon, Essex; Blackpool, Lancashire; Bolton, Lancashire; Brierley Hill, West Midlands; Cambridge Central, Cambridgeshire; Canterbury, Kent; Carlisle, Cumbria; Chelmsford, Essex; Chester, Cheshire; Colchester, Essex; Coventry, Warwickshire; Cricklewood, Greater London; Croydon, Greater London; Denton, Greater Manchester; Derby Ascot Drive, Derbyshire; Dundee, Scotland; Eastbourne, East Sussex; Exeter, Devon; Falkirk, Scotland; Gateshead, Tyne and Wear; Glasgow Helen Street, Scotland; Hanwell, Greater London; Harlow, Essex; Huddersfield, West Yorkshire; Ipswich, Suffolk; Kilmarnock, Scotland; King’s Lynn, Norfolk; Leeds, West Yorkshire; Lincoln, Lincolnshire; Livingston, Scotland; Maidstone, Kent; Newcastle North Shields, Tyne and Wear; Newcastle West Kingston Park, Tyne and Wear; Northampton, Northamptonshire; Peterlee, Scotland; Plymouth, Devon; Portsmouth, Hampshire; Preston, Lancashire; Rochdale, Lancashire; Rotherham, South Yorkshire; Slough, Berkshire; Southampton, Hampshire; St Albans, Hertfordshire; Stirling, Scotland; Stratford Upon Avon, Warwickshire; Sunderland, Tyne and Wear; Sutton Coldfield, West Midlands; Swindon, Wiltshire; Tonbridge, Kent; Uxbridge, Greater London; Wembley Stadium, Greater London; Weston-Super-Mare, Somerset; and Whetstone, Leicestershire.

The 30 stores rescued by Topps are: Aberdeen, Scotland; Basingstoke, Hampshire; Birkenhead, Merseyside; Cambridge Bar Hill, Cambridgeshire; Chichester, West Sussex; Coatbridge, Scotland; Coulsdon, Greater London; Crawley, West Sussex; Darlington, County Durham; Dorking, Surrey; Edinburgh Seafield, Scotland; Edinburgh Stenhouse, Scotland; Fakenham, Norfolk; Farnham, Surrey; Glasgow London Road, Scotland; Hampton, Greater London; Hull, East Yorkshire; Inverness, Scotland; Newbury, Berkshire; Newcastle Under Lyme, Staffordshire; Norwich, Norfolk; Nottingham, Nottinghamshire; Perth, Scotland; Peterborough, Cambridgeshire; Poole, Dorset; Stockton, County Durham; Warrington, Cheshire; Watford, Hertfordshire; Wimbledon, Greater London; and Woking, Surrey.

CTD Tiles set for administration

On 5th August 2024 Sky News reported that CTD Tiles Limited has filed a notice of intention (NOI) to appoint administrators.  The act of filing an NOI provides CTD with ten days in which it is protected from creditor action, during which the company can determine a way to proceed to avoid insolvency.  

The Birmingham-based company is a key player in the UK tile sector which, alongside its competitors, has suffered amid challenging trading conditions.  A core part of CTD’s business is B2B sales to housebuilders, who have been impacted by a subdued housing market.

CTD Tiles trades from a network of 87 stores and several trading distribution hubs, employing around 400 staff.  Sources told Sky News that revenues at the company are expected to fall by around 30% in 2024, down from £112.5 million for the year ending 31st March 2023. 

It is believed that Interpath Advisory is supporting the business as it seeks to find a buyer.  A pre-pack administration deal is thought to be a likely outcome but a potential buyer is yet to be named.

Private investment firm Aurelius, which acquired the CTD business in February 2022 from Saint-Gobain, declined to comment when approached by Sky News. 

Source: https://news.sky.com/uk

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Italcer completes debt refinancing

Italcer, the fast-growing Italian designer ceramics group, has completed a refinancing operation for the single-payment bond of Euro 201 million issued in 2018.  The Italcer group is the result of a venture by the private equity fund Mindful Capital Partners, the main shareholder of the group, and the group’s CEO Graziano Verdi, that set itself the aim of creating a leading player in the ceramic sector through business combinations in order to exploit significant manufacturing, logistical and commercial synergies. Starting from 2017 the following eight acquisitions were completed – La Fabbrica, Elios Ceramica, Devon & Devon, Ceramica Rondine, Equipe Ceramicas, Cedir, Ceramica Fondovalle, and Terratinta Group SB, with the latter taking place in December 2023. Since its founding, the group has grown constantly -including a strong organic growth -and has Lorenzo Stanca, managing partner at Mindful Capital, commented: “We are very pleased with this transaction. The new financing structure brings down the overall cost of the debt, compared to that maturing in October 2024”. 

Italcer’s CEO, Graziano Verdi, added: “The completion of the refinancing marks a new phase of further growth and development for Italcer, that will continue to be characterised by a strong focus on high-end products”. 

More at: https://www.gruppoitalcer.it/

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BMJ reports UK’s first worktop-related silicosis cases

A new paper in the BMJ’s International Respiratory & Critical Care Journal has reported the first eight cases of silicosis in those who cut and finish artificial stone worktops in the UK. The review found that one patient died and others are waiting for assessment for a lung transplant.

Globally, cases of silicosis among worktop manufacturers have been reported since 2010 but this is the first time the UK has seen worktop tradespeople with the condition. The paper’s lead author, Dr Johanna Feary warns there are likely to be many more similar cases as yet unreported and is calling for greater awareness of the disease to help earlier detection.

All eight patients highlighted in the paper were seen by experts in occupational lung disease at Royal Brompton Hospital, a specialist centre for respiratory diseases and part of Guy’s and St Thomas’. All were men, with an average age of 34 years old, and at least one had only four years’ exposure before developing the disease after inhaling the dust from cutting the artificial stone worktops.  All the men worked for small companies and reported dry-cutting and polishing these worktops without adequate respiratory protection, exposing them to high amounts of silica dust.

“Silicosis is a devastating and deadly disease for which we have no cure. The first cases of it resulting from artificial stone manufacturing we have seen at Royal Brompton have all been in young, otherwise fit men who became very ill, very quickly,” stated Dr Feary.  “We anticipate there are many more people out there with this type of silicosis and we would urgently call for greater awareness of this disease, further research to determine the scale of the problem and for enforcement of regulations to try and prevent a large number of cases occurring in the UK as seen elsewhere in the world.”

Source: https://www.stonespecialist.com/

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USA silicosis guidance published

In the USA, The Natural Stone Institute and The International Surface Fabricators Association have introduced two guidance documents for workplace silica exposure assessment, which has been assembled by the Yale School of Medicine. These documents are available in both English and Spanish and can be found on the NSI website: https://www.naturalstoneinstitute.org/.

The Fabricator Guidance document provides resources for sourcing workplace air monitoring for respirable dust and crystalline silica. It also includes best practices for when sampling should be scheduled, what information should be provided to the consultant and how long reports should be retained.

The Sampling Firm/Consultant Guidance document shares general requirements, sample strategies, minimum documentation and laboratory results. It also details what should be included in a final consultant report, including both regulatory and best practice-based recommendations for the client.

“These documents should help our members and the industry at large better understand the process of air monitoring for respirable crystalline silica (RCS),” said Mark Meriaux, NSI accreditation and technical manager. “A recent survey and data collection project with Yale researchers revealed that there is little consistency of information gathered in professional sampling reports. These two new documents define best practices in air monitoring for RCS and give a better understanding of expectations to those companies who haven’t started air monitoring.”

Source: Floor Covering News https://www.fcnews.net/

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Stronger together

Three leading USA flooring distribution companies – The Belknap White Group, JJ Haines & Company, and Swiff-Train Company – recently merged to form a new brand, Ultimate Customer Experience (UCX). 

More at: https://ucxflooring.com/

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TCNA receives EPD development grant

Tile Council of North America (TCNA) has been selected by the U.S. Environmental Protection Agency (EPA) to receive $2.2 million in grant funding to reduce embodied carbon emissions in construction materials and products. In support of the Inflation Reduction Act, the goal of this grant program is to assist businesses that manufacture construction materials and products to develop and verify Environmental Product Declarations (EPDs), as well as support businesses, universities, and nonprofit organisations that facilitate these efforts.

TCNA is one of 38 organisations selected to receive a total of $160M. TCNA’s project will expand the number of available industry-wide and product-specific EPDs for ceramic tile and related installation materials, improve PCRs to better differentiate between different types of ceramic tile, and develop a tile industry-specific software program that will streamline valid EPD delivery.

“Ceramic tile is among the top 15 common building materials in cradle-to-gate embodied carbon emissions in federal building projects,” noted Bill Griese, TCNA Deputy Executive Director.  “We’re eager to leverage our leadership role in the ceramic tile industry to advance the work of EPD development and provide data well-beyond the gate so that full lifecycle embodied carbon factors can more readily be taken into consideration.”

More at: https://tcnatile.com/

5th July 2024

Florim opens flagship store in London

Florim’s new Flagship store in London has opened its doors in the design district of Clerkenwell. Present in the city since 2020, the company has moved to 56-60 St John St, Grant House Ground floor, where it has created a monobrand space intended to be a meeting and dialogue place for project professionals as well as a place to get to know and experience firsthand the “Made in Florim” porcelain stoneware.

Inside the store, visitors can take advantage of functional tables designed to facilitate sharing and collaboration on projects. These spaces are designed to offer an optimal work experience, with access to advanced materials, samples and digital tools for design.

The new store in London is the latest testament to Florim’s global expansion strategy in design districts: from the first Flagship store in Milan in 2009, followed by openings in Moscow in 2014 and New York in 2015, to Singapore in 2019, Frankfurt and London in 2020, Abu Dhabi in 2021, Paris and Rome in 2022. In 2023, after the inauguration of the pop-up store in Los Angeles, Florim moved its New York Flagship to 5th Avenue in Manhattan. In 2024, the Milan showroom underwent a complete restyling during Design Week, and the opening of a new space in Rome is expected.

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America’s Floor Source opens huge new showroom 

America’s Floor Source recently unveiled its new 265,000 sq ft headquarters facility in Columbus, Ohio, USA which features a showroom, corporate offices, training, and warehouse space.  The retail showroom showcases flooring products merchandised in standard displays with a roomier layout. The additional floor space allows for a thoughtful display of area rugs and window treatments. The showroom also has interactive displays, such as a putting green that showcases artificial turf. Cornhole game boards display concrete finishing options. A dog house clad in wood-look LVT flooring anchors the pet-friendly flooring display area. 

A builder showroom, branded “The Studio,” is designed in a residential style and offers private meeting spaces where builders can meet with their customers to discuss surface and cabinet selections. 

The new headquarters building also offers space for meetings and education. AFS subcontracts installation and invests heavily in installer education.

America’s Floor Source is part of AFS Group, which has been on a rapid growth trajectory.  In May of this year, AFS Group acquired Lewis Floor & Home, a flooring, countertop, cabinet, and window treatment dealer for the North Shore of Chicago, Illinois. In February, AFS Group acquired C&S Flooring, an e-commerce hard surface retailer based in Rochelle, Illinois. C&S operates the Flooringmarket.com and Floorlife.com websites and serves more than 10,000 customers a year. In 2023, AFS Group acquired MK Interiors, a flooring company in Northern Kentucky that also does cabinets and countertops. In 2021, AFS acquired JP Flooring, a flooring retailer in the Cincinnati area. 

Source: https://www.floortrendsmag.com/

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Australia’s ban on engineered stone now in place

Australia’s landmark ban on the manufacture, supply, processing and installation of engineered stone benchtops, panels and slabs commenced today. The ban has been introduced to protect workers from silicosis – a lung disease caused by exposure to respirable crystalline silica. 

According to a statement from health and safety policy body Safe Work Australia: “the ban does not apply to the controlled processing of previously installed engineered stone benchtops, panels or slabs for the purposes of removal, repair or minor modification, or the controlled processing of installed or uninstalled engineered stone benchtops, panels and slabs for the purposes of disposal.

Any processing involved in work with legacy engineered stone for the above purposes must be controlled and PCBUs* must notify the relevant WHS regulator prior to carrying out this work with legacy engineered stone.”

Stronger regulations of all crystalline silica substances will come into effect from 1 September 2024. 

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National Masonry Ltd acquired by Stonegate Tooling

Stonegate Precision Tooling Ltd has announced its acquisition of National Masonry Ltd, also known as Stone Equipment International.  National Masonry Ltd is the UK supplier of Marmo Meccanica machinery. Until the acquisition earlier this week, it was headed up by managing director, Andy Bell.

Known to be one of Europe’s most competitive suppliers of new and used machinery, National Masonry Ltd’s business model focuses on enabling fabricators to save money on costly repairs, by part exchanging their existing machinery for newer and more effective models. Stonegate has stated it will “look to continue the important work done by Andy Bell, by working closely with Marmo Meccanica to ensure that UK fabricators receive the support, guidance, and advice needed when assessing edge polishing options.”

Stonegate Tooling’s managing director, Graham Hazell, said: “Our mission is to put innovation at the core of our business and provide valuable advice that leads to an impeccable customer experience. We do this by working with fabricators and listening to their challenges, in order to provide the solutions and support they need to excel in what they do.

Source: https://www.stonespecialist.com/

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Transom Capital Group acquires Virginia Tile Co

Transom Capital Group, a private equity firm based in California, announced the acquisition of Virginia Tile Company, a specialty distributor of tile, decorative surfaces and installation accessory products from Detroit, Michigan, which has 19 showrooms across 12 states.

Virginia Tile will join forces with Galleher to create a national flooring and tile products distributor with unique product development, merchandising and fulfillment capabilities. Galleher is the largest floor covering distributor in the western U.S. and the third largest flooring distributor in the U.S. Transom acquired Gallher in 2023. 

The two companies’ combined geographic reach will provide customers with complementary products and additional resources to solve complex problems, the company said in a statement.

The combined company will be led by Sunil Palakodati as CEO, who will also remain president of Virginia Tile; Rick Coates as president of Galleher; and David Burke as CFO.

Source: https://www.floortrendsmag.com/

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NTCA releases July workshop schedule

The National Tile Contractors Association (NTCA) has announced its July tour across 17 US states, delivering an extensive lineup of standards-based educational workshops and regional trainings to industry professionals. With a total of 24 free workshops and six free regional trainings, this initiative is said to mark a significant expansion compared to the offerings provided in 2023.

The goal is to equip industry professionals with essential skills and knowledge while facilitating meaningful connections with peers and industry experts. These workshops and regional trainings serve as opportunities for professionals to stay updated on industry standards, best practices and emerging trends while aligning with NTCA’s ongoing mission to elevate the standards of tile craftsmanship and promote continuous learning within the industry.

Thanks to the generous support of sponsors dedicated to advancing the industry through education, all workshops and regional trainings are offered free of charge. Each workshop and regional training will be presented by NTCA technical trainers—individuals with extensive experience in tile installation.

The workshops, spanning three hours in the afternoon or evening, are open to tile installers, contractors, sales personnel and members of the architecture and design community. Participants will have the opportunity to engage in an interactive learning environment to connect with peers and industry experts during the workshops, providing time for networking and knowledge exchange. Meals will be provided and there will be chances to win valuable prizes.

Source:  https://www.fcnews.net/

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12th July 2024

Ca’ Pietra parent company names new group MD

Sarsen Stone Group, Ca’ Pietra’s parent company, has appointed Steve McGuire as its new group managing director.  McGuire has a wealth of experience in strategic leadership and brand management, having previously had roles at companies such as Tom Dixon, LSA International and Established & Sons.

McGuire will be responsible for the management of Sarsen Stone Group’s brands, which includes Artisans of Devizes, National Trust Tile Collection and Proper Good Paint, as well as Ca’ Pietra. The company says McGuire will also seek to foster further collaborations within the design industry.

Hamish Smith, CEO at Sarsen Stone Group, commented: “Appointing Steve is a major milestone for the company, as we look to capitalise on Steve’s expertise to spearhead our future growth and standing within the tile and stone industry. Steve’s unwavering commitment to extraordinary design and customer satisfaction aligns perfectly with our mission of merging creativity with quality. We’re thrilled to have him spearheading initiatives that amplify our premium brands and solidify our standing in the design sector.”

At the end of last year, Ca’ Pietra launched a comprehensive visual rebrand, which it described as the culmination of years of work.

Source: https://www.kbbreview.com/

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Ceramica Cañuelas continues plant investment

Ceramica Cañuelas, the Argentine ceramic tile manufacturer, has started up its third production line. The new plant is configured for a production of up to 36,000 square metres per day in 50x50cm and 60x60cm floor tile sizes, while also producing a new 60x120cm size. 

Sacmi supplied all the key machines, including four PH3950 presses complete with loading devices, an EM5 320 dryer and an FMS355 Maestro kiln, the largest and most productive model ever installed by Sacmi in Argentina.

“For us this is a far-sighted investment that aims to deliver the quality and productivity that have always been our hallmarks,” explains Luiz Pinto, Plant Director. “The decision to install the Maestro kiln means we’ll be able to maintain very high levels of productivity and achieve the desired results in terms of quality and efficiency.”

Source:  https://ceramicworldweb.com/

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Cevisama campaign targets Spanish distributors

Cevisama is giving a significant boost to its Spanish guest buyer recruitment campaign, with a particular focus on retail and buying groups.  The exhibition will be running a special scheme for Spain’s main retail and buying groups, who will be offered free hotel accommodation. The scheme may also be extended to include leading specifiers, such as architects, builders, and interior designers.

Cevisama will use its own databases of Spanish and international buyers to deliver the above but the exhibitors themselves will also play a bigger role in 2025.  

More at: https://cevisama.feriavalencia.com/

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Second bidder for UK housebuilder Crest Nicholson

UK housebuilder Crest Nicholson has said it is “minded” to recommend a £720 million takeover offer from rival Bellway after its listed rival improved its bid.  The FTSE 250 group had rejected two earlier bids from Bellway as undervaluing the business, and also rebuffed a rival proposal from Avant Homes, the housebuilder controlled by the New York hedge fund Elliott.

Bellway increased its bid to 273p a share: a premium of 28% on Crest Nicholson’s closing share price on 13th June, compared with a premium of 19% for its previous offer. The revised offer values Crest Nicholson’s equity at £720 million, up from £667 million.

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Johnson Tiles to open second retail location

Tile supplier Johnson Tiles is opening a second retail outlet in the north of England.  The new Johnson Tiles retail store is located in Wakefield, West Yorkshire. The company says the opening represents “a major milestone for the company’s new UK management team and underscores their commitment to serving the northern market”.

The retail site launch follows news earlier this year that Johnson Tiles had undergone a management buyout – led by the company’s senior management team – from the Norcros Group, owners of Triton Showers, Merlyn, Vado, Grant Westfield and Abode.

As part of the buyout, the management team announced their intention to close the company’s production facility in Tunstall to move to an outsourced production model.

Rich Kelsall, commercial director for Johnson Tiles, commented: “We’re delighted to be expanding our showroom footprint, providing a convenient location for customers to discover the latest tile trends, all price matched and ready to drive away.  According to the 2024 Houzz and Home UK report, 49% of homeowners plan to renovate their home this year, and we expect the bathroom and kitchen to remain a key priority as homeowners look to enhance their most used living areas. While our ranges are all available online, we wanted to ensure customers who prefer to see and touch products in a retail environment prior to purchasing, have the option to do so.  This is the beginning of an exciting new chapter for the business as we look to expand our reach and bring our exceptional design and quality to even more customers across the UK.”

Source: https://www.kbbreview.com/

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Gian Luca Sghedoni appointed CEO of Litokol

Litokol, a global leader in the ceramic tile installation products sector based in Rubiera, Italy, recently appointed Gian Luca Sghedoni as CEO.  Sghedoni’s appointment was announced by Chairwoman Daniela Cottafavi, majority shareholder and daughter of Litokol’s founder Luciano Cottafavi.  Sghedoni has also joined the Board of Directors, where he will serve alongside Daniela Cottafavi and Elisa Pecchi.

“The appointment of Gian Luca Sghedoni represents a significant step forward for our company,” said Daniela Cottafavi. “His extensive professional experience and proven innovation skills will help us to accelerate our growth and solidify our position as a leading player in the building materials sector. I have known Gian Luca for many years, and know that we share the same values of integrity, seriousness, transparency, respect and a commitment to honour our obligations to all our stakeholders, including customers, suppliers, banks, authorities and institutions. His qualities will be extremely valuable to us.”

“I am thrilled to join the Litokol team and thank Daniela for her confidence in me,” said Sghedoni. “The conditions are favourable, and success is within our reach. It all comes down to inspiration, passion and people. Our goal is to build a successful company that fosters the exchange of ideas and skills, and to create a healthy, safe and stimulating work environment where everyone can contribute to the company’s growth. We have a big task ahead of us, but we are not daunted by this challenge. Instead, it motivates us and strengthens our belief in a bright future.”

Today, Litokol is an international group comprising eight companies located in Italy, Greece, China, India, Armenia, Ukraine and Russia. It employs around 650 people and generates global revenue of approximately €100 million.

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Total construction output continues to rise

The UK construction sector remained inside growth territory as the second quarter of the year drew to a close, although the overall expansion softened amid a renewed fall in housing activity. A slower rise in new orders was also recorded, in some cases linked to election uncertainty, but the pace of job creation picked up. Meanwhile, the rate of input cost inflation quickened from May, but remained muted. 

The headline S&P Global UK Construction Purchasing Managers’ Index registered 52.2 in June, down from 54.7 in May. Remaining above the 50.0 no-change mark for the fourth consecutive month, the latest reading signalled a sustained improvement in overall construction activity in the UK, albeit with the pace of growth softening from the previous month. 

The main driver of growth continued to come from commercial activity, which increased markedly again in June. That said, the rate of expansion softened from May’s two-year high. A slower increase in civil engineering activity was also recorded, with output up modestly. The only category to record a drop in activity was housing, where output fell solidly following a first increase in 19 months during May.  Moreover, the rate of job creation was solid and the sharpest since August last year. 

Meanwhile, input costs rose only slightly again in June as some suppliers limited price rises in an effort to secure new business. The rate of inflation ticked higher amid rising costs for some raw materials, but remained well below the series average. Meanwhile, sub-contractor rates also increased modestly, and at the slowest pace in four months. 

Confidence in their ability to secure new contracts over the coming year supported continued optimism in the 12-month outlook for construction activity in June. Expectations that interest rates will start to come down also contributed to positive sentiment. More than half of respondents predicted an increase in construction activity, with the level of confidence broadly in line with that seen in May. 

Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “Continued growth of the UK construction sector in June meant that the sector has recorded sustained expansion throughout the second quarter of the year. While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty. We may therefore see trends improve once the election period comes to an end.  Moreover, confidence in the year ahead outlook remained strong and firms increased employment to the largest extent in ten months. In terms of inflation, there remains little sign of cost pressures picking up to any great extent, encouraging firms to expand purchasing activity. Supply-chain conditions also remained favourable.” 

Source: S&P Global UK Construction PMI

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Roca Group reveals strong results

Roca Group, a world leader in the design, manufacture and marketing of ceramic sanitaryware and bathroom products, reported a turnover of €2,057 million in 2023, a slight decrease of 1.7% from the €2,092 million recorded in 2022, and an EBITDA of €318 million, equivalent to 15% of revenues. Net profit, which was heavily impacted by the hyperinflation adjustment in Argentina, stood at €27 million.

For the Barcelona-based multinational, which has 79 factories and 20,000 employees across Europe, America, North Africa and Asia, these were significant results given the market context marked by a severe contraction in construction activity and strong inflationary pressures.  During 2023, the group’s investments increased to €153 million, a 13% rise from the €135 million of 2022. These funds were primarily allocated to expanding and increasing production capacity, boosting the Competence Centres, pursuing digitalisation and new product development, meeting the targets outlined in the sustainability roadmap and upgrading facilities and showrooms, including Roca Galleries and Laufen Spaces.

The group concluded three acquisitions last year: Madeli in the USA with the aim of bolstering its position in the premium bathroom furnishings segment; Clarke, also in the USA, to complete its bathtub and shower tray portfolio; and Alape, a German manufacturer of high-quality steel washbasins. In addition, the acquisition of the Italian company Idral was announced on 1 July this year, further strengthening Roca’s presence in the tapware segment.

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Speakers announced for Flooring Sustainability Summit

Three closing keynote speakers have been announced for the 2024 Flooring Sustainability Summit taking place July 17-18 in Washington, DC, USA.   Attendees will spend Day 2 of the Summit at the U.S Capitol Visitor Center, where they will be briefed by leading authorities on federal procurement, standardization, and architect and design initiatives.

Jeff Grove, ASTM International, on Standardization.  As Vice President of Global Policy, Cooperation and Communications, Grove formulates public policy and collaboration strategies engaging the business community, policymakers and trade negotiators. He represents ASTM International in regulatory dialogues, serves on the U.S. Industry Trade Advisory Committee on Standards and Technical Trade Barriers, and chairs the American National Standards Institute’s National Policy Advisory Group. Grove previously directed the House Committee on Science Subcommittee on Technology, where his portfolio included legislation involving technical standards and trade, manufacturing and industrial competitiveness, and oversight of international scientific and technical cooperation agreements.

Sarah Templin, Gensler, on A&D Initiatives.  As the Sustainable Materials Specialist for Gensler’s Washington DC office and Manager of the Gensler Product Sustainability Standards, Templin supports initiatives that bolster the firm’s commitment to reducing environmental impact. Templin collaborates with architecture firms, global technology businesses, textile innovators, and product-focused companies across the home goods sector to improve product sustainability for the circular economy. Her research has centered on an examination of sustainable solutions in traditional craft techniques and scaling them for the constraints of contemporary manufacturing.

Elliot Doomes, U.S. General Services Administration (GSA), on Federal Procurement.  Serving as Commissioner of the Public Building Service, Doomes manages the nationwide asset management, design, construction, leasing, building management and disposal of approximately 360 million square feet of government-owned and leased space across the United States. Doomes’ passage of the Federal and District of Columbia Real Property Act of 2006, executed a complicated land exchange between the District of Columbia, GSA, the National Park Service, and the Architect of the Capitol that has enabled hundreds of millions of dollars of economic development within the District of Columbia.

Co-hosting the Flooring Sustainability Summit are Tile Council of North America (TCNA), Natural Stone Institute (NSI), National Wood Flooring Association (NWFA), and North American Laminate Flooring Association (NALFA). 

More at: at FlooringSummit.com. 

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19th July 2024

Laminam launch first 2mm thick ceramic surface

twO by Laminam is the Italian brand’s latest initiative aimed at revolutionising the world of ceramic surfaces for construction and furnishing.  The thinnest and lightest material ever produced in the ceramic industry, it is both innovative and sustainable and maintains the renowned technical and aesthetic performance of Laminam products despite its minimal thickness of just 2 mm. This breakthrough expands the potential uses of ceramic materials and opens up new market areas.

Production of the patent-pending twO by Laminam surfaces requires numerous changes compared to the methods and processes normally used by the company. These involve areas ranging from the body mix to the spray-dried powder, from pressing to internal transport, and from more rapid firing in electric kilns to gluing, packaging and logistics. At the same time, the surfaces have an extremely low environmental impact over their entire life cycle as the use of less material equates with reduced energy and water consumption and less waste

Source: https://www.ceramicworldweb.com/

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UK’s concrete shows set to combine

Media 10, organisers of Concrete Expo, have announced that the expo will be joining forces with The UK Concrete Show, with immediate effect. Uniting under The UK Concrete Show banner, this will bring the whole industry together under one roof at the NEC, Birmingham from 26th to 27th February 2025.

Richard Bradbury, Managing Director of The QMJ Group, Organisers of the UK Concrete Show explained:  “Following the success of the 2024 UK Concrete Show, which enjoyed significant exhibitor and visitor growth, we are excited to have this opportunity to expand the show further. The acquisition of Concrete Expo allows us to deliver the event to even more visitors and exhibitors than ever before, accelerating our development plans for the exhibition. A range of new partnerships and visitor features will be announced over the coming months.”

Sam Patel, Divisional Director, Media 10, organisers of Concrete Expo commented: “The industry benefits from this, as it creates a single, concentrated event that serves the whole breadth of the concrete market.”

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First carbon negative building boards

The UK-based manufacturer, EnviraBoard, has announced its plans to bring a carbon-negative building board to the construction industry.  Using proven Danish technology,. EnviraBoard utilises recycled paper sludge as the raw material for its sustainable building boards. This paper sludge, which is a secondary waste material that would usually end up in landfill or incineration, is free from toxins and is environmentally safe.

The EnviraBoard product offers both a solution to the waste disposal challenges in the paper recycling industry, and a new, sustainable, and totally circular alternative to the widely used plasterboard products – typically made from gypsum, which is not only mined, but environmentally challenging and requires specialist recycling solutions.

The new EnviraBoards demonstrate a net reduction in carbon emission (compared to disposing of the waste) and can be recycled to produce new boards, or simply allowed to biodegrade naturally. They also offer strong acoustic and fire-retardant performance, excellent impact resistance, and are flexible, clean, quick and easy to install, handle and finish.

EnviraBoard has launched a SEED funding round (4th July 2024), with a target of £2 million, to support the expansion of its UK manufacturing business including the construction of a mini-plant. The business is forecasting significant international growth as there could be the potential to set-up production facilities at up to 1,000 paper recycling sites.

Source: https://www.azobuild.com/

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Post-election boost for UK construction forecast

The key takeaway from Glenigan’s UK Construction Industry Forecast 2024-2026, which focuses on the next three years (2024-2026), is that the construction industry will face near-term challenges including slow economic growth and persistently high interest rates. These factors are expected to further constrain private-sector investment and delay public-sector projects.

However, the outlook brightens as the forecast period progresses. The new Government, which has a substantial majority, is already reducing political uncertainty and rallying markets. Policy decisions around construction projects will likely be made at a faster pace, boosting performance. This points to a strengthening economy expected to boost consumer spending and investor confidence in the back-end of 2024.

This signals recovery in the not-so-distant future, with a modest increase in project-starts predicted in the latter half of 2024 lifting starts by 3% this year. As the economy picks up further in 2025, Glenigan forecasts 7% growth, and 6% in 2026.

Construction starts have remained sluggish during the first six months of 2024, as high interest rates and a weak economic outlook dented investor and consumer confidence.  The General Election has also affected the pipeline of public-sector construction projects. The purdah period has disrupted the progress of public-funded projects, while decisions will also be delayed post-election as the new Labour government reviews existing programmes such as the Lower Thames Crossing.  However, an easing in borrowing costs and improved economic conditions – with the UK economy forecast to grow around 0.8% in 2024 – together with greater political certainty, should help to lift investor confidence from the second half of 2024 and into next year.

Despite a tough start, renewed growth in project-starts is forecast for H2 2024. The gradual easing of interest rates is also expected to feed through to lift housing market activity from the second half of this year.  Further, the Spending Review will set out the new government’s funding commitments and priorities and is expected to strengthen public sector construction activity during the second half of the forecast period.

Source: https://bdcmagazine.com/

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Scottish façade specialist collapses after 120 years

Charles Henshaw & Sons Ltd, one of Scotland’s leading façade specialists, has fallen into administration.  The failure of Charles Henshaw & Sons has been attributed to financial pressures arising from additional costs on legacy contracts and delays on start dates for new projects, leading to reduced margins and trading losses.  After considering the available options, the directors made the decision to appoint an administrator, and a buyer is now being sought for the business and all its assets.  72 employees now face redundancy

Charles Henshaw & Sons started in Edinburgh 120 years ago as a decorative architectural metal working company. In 1982 it launched its aluminium glazing systems division, offering curtain walling and windows to the construction industry. Its landmark projects range from cultural buildings including the Usher Hall in Edinburgh to commercial and public buildings such as Harvey Nichols, Waverley and Glasgow Queen Street stations and latterly the new University of Glasgow buildings. Its specialist skills remained in demand for the conservation of sculptures including Greyfriars Bobby and Piccadilly’s Eros statue.

Shona Campbell, business recovery and insolvency partner at Henderson Loggie, has been appointed administrator of the business. She said: “We are actively seeking interested buyers for the business and assets, which offers a unique opportunity to acquire a company with a solid reputation and extensive portfolio. Despite its strengths, the business has faced significant financial pressures due to escalating costs, problematic legacy contracts, and delays in initiating new projects. Our goal is to navigate these challenges effectively, preserving as much value as possible for all stakeholders involved.” 

Source: https://www.theconstructionindex.co.uk/

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£20 billion investment predicted for UK Build-to-Rent

Savills latest report on the UK Build-to-Rent sector shows a promising forecast for increased investment, with the first quarter of 2024 seeing the highest proportion of investment into BtR schemes since 2015.  Savills found that only a fifth of the £20bn investment into Build-to-Rent between 2018 and 2023 has been deployed; and more is expected  60% of Build-to-Rent investment was actioned in operational assets and the remaining 4.0% into funding development.

Savills went on to predict that between 2024 and 2028, investment in the UK Build-to-Rent market will represent a 25% share of total investment, rising to 30% in the four years after.

The past decade has seen £35bn of institutional investment.  This figure has supported the delivery of 100,000 BtR homes, comprising 542 apartment schemes let and managed by industry operators.  Of the £20bn invested in the last five years, only a fifth has been utilised by investors. The Savills research also found that there are 110,000 BtR homes planned, the largest number recorded so far, suggesting the sector’s period of growth is yet to see its peak. If Build-to-Rent mirrors the success seen in student accommodation, Savills added that it would “start to double in size every couple of years”. 

Piers de Winton of Savills, stated: “The BtR market has made significant progress over the last 10 years.  Although the sector is emerging as mainstream investment in the UK, it still represents just 2 per cent of private rented sector households.  When we look at more established markets such as Germany and the USA, where institutions own 41% and 37% of homes respectively, it’s clear that there is significant growth potential of the UK BtR market.  Should the UK adopt a similar level of institutional ownership, institutions would own between 2.1 and 2.4m PRS homes compared to just 100,000 today.”

Source: https://www.pbctoday.co.uk//

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The Stone Show & Hard Surfaces link with UK Construction Week

Sam Patel, Divisional Director for UK Construction Week commented: ‘We at UK Construction Week are incredibly pleased to welcome The Stone Show & Hard Surfaces into the UK’s largest built environment trade show. The co-location is an exciting proposition for the architectural and design community, developers, fabricators, and contractors. I’m proud to be working with Richard and his talented team to help fulfil their ambition of growing their community, and building on what is already the market leading event for the sector’

Taking place at ExCeL, London, UK Construction Week is the only event designed to cater for the whole construction supply chain.  It attracts over 21,000 visitors, alongside The Offsite Show and Grand Designs Live, making it the largest construction trade show in London, and is organised by the same team that also run the highly successful Clerkenwell Design Week every year.  

Richard Bradbury, Managing Director of The QMJ Group, Organisers of The Stone Show & Hard Surfaces explained: ‘Co-locating with UK Construction Week presents a fantastic opportunity for The Stone Show & Hard Surfaces to connect with a vast, high-quality audience of building professionals. It will allow exhibitors and visitors alike to benefit both from our specialist focus, and a wider construction event that delivers 300+ seminars, 20+ live demonstrations and 400 exhibitors.

The Stone Show & Hard Surfaces will retain its unique focus with independent visitor registration and even more dedicated content over three days including: an insightful seminar programme; The Emerging Talent Awards; The Industry Choice Award for best stone project; the Stone Federation Village showcasing the best of UK stone; and much more….’ 

More at http://www.stoneshow.co.uk and http://www.ukconstructionweek.com

Source: https://www.stonespecialist.com/

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26th July 2024

Iris unveils the world’s first 4D technical ceramic slab 

Iris Ceramica Group, world leader in the production of high-end technical ceramic slabs, and Edison Next (part of Edison Group) announce the production of the world’s first 4D technical ceramic slab using a blend of green hydrogen (obtained using renewable energy) and natural gas.

Specifically, the slab produced is 3.2 metres long, 1.6 metres wide and 12 mm thick, and stands out for its four dimensions, thus the name 4D Ceramics: In addition to the three-dimensionality of the material and its grains, crossing the whole thickness of the slab, the fourth dimension is sustainability.  The slab has been produced at the Iris Ceramica Group’s H2 Factory, the new plant in Castellarano, Italy, which was completed in 2023 and already equipped with the innovative technologies and infrastructures needed to use 100% green hydrogen.

“Today marks a major achievement, yet another tangible fact that bears witness to our commitment to decarbonising the ceramics sector”, Federica Minozzi, CEO of Iris Ceramica Group said. “This is a unique and pioneering project with world-wide scope that offers new prospects for hard-to-abate manufacturing, showing that it can be done”.

As Federica Minozzi has explained, the test phase will help to fine tune the production process, before moving on to the next phase, which will allow to increase the percentage of green hydrogen more and more, up to 50% with the bespoke production system that Edison Next is creating for Iris Ceramica Group.

“This is a highly valuable partnership,” Minozzi added, “and we are proud of this achievement, the result of teamwork within the whole supply chain and a virtuous example of integrated sustainability. We hope that other companies will follow our path, so that we can work as a system and become a driver of change, both nationally and beyond”.

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Italian machinery sales continue to rise

In 2023, the Italian ceramic machinery and equipment industry saw its sales revenue climb to a new record high of €2.373 billion, continuing its trend of year-on-year growth. However, the growth rate of +0.9% marked a notable slowdown compared to the significant increases of +39% in 2021 and +14% in 2022. Last year’s more modest rise reflects a mixed performance, with export sales up by +1.8% while domestic sales experienced a slight decline of -1.2%. Despite this, the industry’s performance exceeded expectations, surpassing the preliminary year-end estimate of €2.31 billion.

These figures were published by the MECS – Acimac Research Centre in its 32nd National Statistical Survey, which each year analyses the performance of an industry that in 2023 was made up of 138 companies (one more than in 2022) with 7,281 employees (-0.6% on 2022).

In 2023, Italian ceramic machinery and equipment suppliers achieved a record-breaking export turnover of €1.72 billion (+1.8% on 2022), the highest figure since records began. Exports accounted for 72.7% of total revenues.  Despite a 27% decline in Italian imports to €387 million, the European Union remained the largest market for Italian ceramic machinery and equipment in 2023. South America climbed to second place with imports of €302 million (+38%). Asia, excluding China but including countries like India, Indonesia, Vietnam, Thailand and Bangladesh, secured third place with sales of €296 million (+14% from 2022), followed by the Middle East, North America, Eastern Europe, Africa, East Asia (comprising China and Taiwan) and Oceania.

Italian domestic sales remained essentially stable, dropping by just 1.2% to €648 million (compared to €657 million in 2022).

“The consolidated 2023 figures have essentially confirmed the preliminary projections and set another all-time record, but there’s little to celebrate given the significant slowdown in the sector’s growth curve,” said Acimac Chairman Paolo Lamberti.  “The 2023 performance appeared to be the prelude to a decrease in turnover, which we are indeed experiencing in 2024. However, the Italian ceramic machinery industry’s adaptability has enabled it to offset declines in some export markets with growth in others, while also compensating for slower tile machinery sales with robust growth in other client sectors, notably heavy clay and sanitaryware. The ongoing conflict on Europe’s doorstep is exacerbating geopolitical uncertainties, and the high interest rates continue to impact not only Acimac member companies but also their customers. We expect 2024 to be a challenging year, but remain committed to advancing our technological leadership and delivering increasingly sophisticated technologies to the global ceramic industry.”

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Kerajet enhances printhead potential

The K10 piezoelectric printhead for selective digital glazing have benefited from Kerajet’s vertical integration strategy that has led to the development of a range of printheads designed and produced entirely in-house. These printheads are extremely durable and compatible with all types of ink chemistry, and feature an efficient recirculation system that ensures uniform print quality across the entire printing line.  The existing K8 and K9 models have now been joined by the latest high-performance K10 version, which represents a significant breakthrough in selective or full-field digital glazing. The result of years of research and a total investment of around €30 million, the K10 piezoelectric printhead allows for a high discharge (up to 200 g/sqm) of materials with particle sizes of up to 8 microns, a 600 dpi resolution, 16 grey levels, a jetting frequency of up to 100 kHz and a drop volume of 15 pL (S).  It is compatible with all types of digitally jettable fluids (solvent-based, water-based, UV) and ideal for a wide range of applications (glazes, protective treatments, glues and water-repellent coatings).

The K10 printhead offers numerous advantages. Its ability to use inks with a particle size of up to 8 microns allows for precise and versatile selective glazing, lowering costs and providing manufacturers with greater creative freedom.  In addition, the printhead’s advanced construction technology features a piezoelectric actuator inside the nozzle plate, which allows for operation at higher temperatures than normal (up to 115-130°C) and further expands its range of applications.

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Mexican group sees partial sales rebound

Grupo Lamosa saw a partial recovery in market demand in the first quarter of 2024, although not yet back to 2022 levels.  Sales fell 2% on Q1 2023 to MX$8.13 billion (around €450 million at 31/3 exchange rate) but were 4.9% up on Q4 2023.  Some 59% of revenue was generated from domestic sales (MX$4.78 billion, down 4% on Q1 2023), while exports reached MX$3.35 billion (+1%).  Out of the Mexican group’s two core businesses of ceramic tiles and adhesives, the former was worst hit by the contraction in the construction sector, with the segment’s revenues down 4% against Q1 2023 to MX$5.8 billion, or 72% of total sales.  In contrast, the adhesive segment showed good resilience with a 3% increase in sales to MX$2.32 billion.

During the quarter, the Mexican group continued its investment plan, allocating MX$303 million (about €17 million) to the upgrading of production facilities. It also continued the process of integrating Baldocer, a Spanish ceramic company acquired in October 2023.

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Mohawk reveals solid results

The world’s largest tile manufacturing group, Mohawk Industries, has announced second quarter 2024 net earnings of $157 million and earnings per share of $2.46; adjusted net earnings were $192 million, and adjusted EPS was $3.00. Net sales for the second quarter of 2024 were $2.8 billion, a decrease of 5.1% as reported and 4.5% on an adjusted basis versus the prior year. During the second quarter of 2023, the Company reported net sales of $3.0 billion, net earnings of $101 million and EPS of $1.58; adjusted net earnings were $176 million, and adjusted EPS was $2.76.

For the six months ended June 29, 2024, net earnings and EPS were $262 million and $4.10, respectively; adjusted net earnings were $310 million, and adjusted EPS was $4.85. Net sales for the first six months of 2024 were $5.5 billion, a decrease of 4.8% as reported and 5.0% on an adjusted basis versus the prior year. For the six months ended July 1, 2023, net sales were $5.8 billion, net earnings were $181 million and EPS was $2.84; adjusted net earnings were $288 million, and adjusted EPS was $4.51.

Commenting on the results, Chairman and CEO Jeff Lorberbaum stated, “Our performance in the quarter reflected our focus on the controllable factors of our business, including sales initiatives, cost containment and restructuring actions. Our adjusted earnings per share rose as a result of productivity initiatives and restructuring as well as lower energy and material costs, partially offset by market pressure on pricing, mix and foreign exchange headwinds. We generated free cash flow of approximately $142 million during the quarter, for a total of $239 million year to date. In the quarter, we purchased approximately 755 thousand shares, or 1.2%, of our stock for approximately $90 million.  Our second quarter results exceeded our expectations despite soft market conditions around the globe. The commercial channel continues to outperform residential, although some softness in the category is occurring. While the long-term demand for our products is strong, residential purchases across our geographies remain weak. During the quarter, the actions we have taken improved volumes in many product categories, though the gains were offset by consumers trading down and competitive pricing. Residential remodeling is under the greatest pressure as consumers continue to defer large discretionary purchases due to inflation and uncertainty about the future. In addition, flooring remodeling is significantly influenced by housing turnover rates, which remain suppressed due to elevated mortgage rates, higher home prices and the ‘locked-in effect’ on homeowners.

For the second quarter, the Global Ceramic Segment reported a 3.4% decline in net sales as reported, or a 2.9% decline on an adjusted basis, versus the prior year. The Segment’s operating margin was 7.4% as reported, or 8.5% on an adjusted basis, as a result of the unfavorable impact of price and product mix and foreign exchange headwinds, partially offset by lower input costs and productivity gains. In addition to our restructuring initiatives, we are implementing numerous cost reduction projects across the Segment, including product re-engineering, process improvements and streamlining administrative functions. To improve our mix, we are investing in product differentiation with leading-edge printing, polishing and rectifying technologies. On May 10, the U.S. Department of Commerce announced the commencement of antidumping and countervailing duty investigations of ceramic tile imported from India. The U.S. ceramic tile trade association believes this could lead to tariffs between 400% and 800%. Given India’s widespread dumping, Mexico has increased import duties on Indian tile, and our other markets are currently investigating similar options. In the U.S., our high-end design capabilities, domestic manufacturing and extensive distribution infrastructure are enhancing our participation in the builder and commercial sectors. In Europe, our unit sales exceeded last year’s levels as we leveraged our manufacturing and styling advantages to create higher value products.

Mohawk Industries brands are among the most recognized in the industry and include American Olean, Daltile, Eliane, Elizabeth,Grupo Daltile, Karastan, Marazzi, and Vitromex.  Over the past two decades, Mohawk has transformed its business from an American carpet manufacturer into the world’s largest flooring company with operations in Australia, Brazil, Europe, Malaysia, Mexico, New Zealand, Russia, and the United States.

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Portobello Group resumes growth

The Brazilian Portobello Group made significant progress in 2023 despite the macroeconomic and sectoral instability in Brazil and in the group’s main export markets.  In the domestic market, the Tijucas-based ceramic tile group reported 3.4% revenue growth in 2022, surpassing R$1.74 billion (approximately US$358.5 million at the exchange rate on 31/12/2023). This growth outpaced the national average for the sector. According to data published by the Brazilian tile manufacturers’ association Anfacer, total tile sales in the domestic market fell by 5.7% in volume last year, forcing manufacturers to reduce plant utilisation rate to just 64% of the country’s total installed capacity.

However, exports performed less well, with the Portobello Group’s export revenues falling by 12.2% compared to 2023 to reach R$450.7 million (a decrease of 8% in US dollars to US $85.4 million). This contraction was primarily due to a negative performance in the first nine months of the year. However, the fourth quarter showed a marked recovery of 22.9% compared to the same period in 2022, with no less than 67% of sales generated by large-format tiles.  Overall, Portobello Group posted consolidated revenue of R$2.2 billion in 2023 (at 31/12/2023 exchange rate, about US$453.2 million), broadly in line with the previous year’s performance (-0.3%), and an EBITDA margin of 13%.  

In the domestic market, which accounted for about 80% of total sales, the Group benefited from the strong performance of the Portobello Shop division, which posted revenue of R$917 million for the year. This marked a 12.7% increase compared to 2022 and accounted for 41.3% of consolidated revenue. The success of this business unit helped to counterbalance the negative results from the other divisions: Portobello at -6.5%, Pointer at -14% and Portobello America at -2.2%.

In addition to launching the US plant, the year also saw the opening of 16 new Portobello Shops, increasing the total number of outlets to 158, of which 25 are owned by the group and 133 are franchised. Even excluding the contribution made by the new openings, the division’s sales grew by 5% in 2022. Furthermore, the strategy to strengthen the group’s presence in the retail segment continued into the first quarter of 2024, with the number of company-owned shops increasing to 28 and the number of franchised shops falling to 128.

In Q1 2024, Portobello Group saw a positive performance in revenue and an increase in market share, partly driven by the gradual recovery of the Brazilian ceramic tile market, which experienced a 3.8% growth in consumption compared to Q1 2023.  The group’s consolidated turnover reached R$525.5 million (approximately US$104.7 million at the exchange rates of March 31, 2024), marking a 7.7% increase compared to Q1 2023. EBITDA also showed an excellent performance, rising to R$81.4 million, a 62.8% increase, with a margin of 15.5%.

Domestic sales rose by 7.1% in value and 15.4% in volume, well above the sector average, while exports increased by 10.4% over Q1 2023, or 14.4% in US dollar terms, again outperforming the national figure, which saw Brazilian tile exports grow by 5.1% in the quarter.

Regarding the breakdown of revenue across sales channels, exports contributed 19.4% to the total, while within Brazil, the retail segment (Portobello Shop) made up 40.5% of the group’s consolidated revenue. Engineering and projects accounted for 21.1% and other retail sales 19%.

In Q1 2024, the group’s investments totalled R$45.1 million (approximately US$9 million), representing a 47% decrease compared to the first quarter of 2023. These investments were primarily focused on Portobello America (50.4%), Portobello Shop (23.2%) and Portobello (23%). 

In the first quarter of 2024, the Portobello BU reported net revenue of R$229 million, marking a 5.6% increase from the same period in 2023, driven by a strong performance in the domestic market. Despite a 10.2% increase in export volumes, a decline in average prices led to a 10.9% reduction in export revenues. Consistent with its internationalisation strategy, the business unit continued to expand its sales activities into new geographical areas, including Central America, Europe, the Middle East and Africa. Portobello’s capacity utilisation reached 88%, significantly higher than the industry average of 65.6% as reported by Anfacer.

The Portobello Shop continued to grow in the first quarter, generating revenue of R$217.3 million (+3%), equivalent to 41.6% of the Group’s consolidated revenue, and a gross margin of R$105.8 million (+3%).

From January to March 2024, the new US facility bolstered the revenue of the Portobello America business unit, which grew to R$55.6 million. This represents a 33.1% increase over Q1 2023, or a 46% increase when measured in US dollar terms.

The Pointer business unit also performed well with a 10.5% increase in revenue to R$48 million. It posted excellent sales results in both the domestic (+14.5% in volume) and export markets (+160.4% in volume and +125% in US dollar terms), with export revenue accounting for 12.5% of the division’s revenue. Capacity utilisation at the Pointer plant was 79.2%.

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New: Next Experience Surfaces

As part of its ongoing research into new materials capable of further enhancing the tactile sensation of ceramic surfaces, Sicer Technology Lab is unveiling a major new product, Next Experience Surfaces: which it is billing as the future of surface technology.  This unique and innovative formula guarantees the production of the best possible surface for any requirement, while maintaining its exclusive characteristics.

It is a special mix of microgrits with a very fine and highly calibrated particle size, resulting in textured and fully matt non-reflecting surfaces. Its uniqueness lies in the fact that the finished ceramic surface is able to meet two requirements that are normally difficult to reconcile: as well as being totally non-reflective (very low gloss value of between 1.0 and 2.0), it is also perfectly cleanable and resistant to chemicals.

Next Experience Surfaces is a ready-to-use mixture that is very easy to prepare and apply and does not require the use of any additives. The result is a technical vitrified surface with a very pleasant touch and certified slip-resistance value of R10 or R11, making the floor attractive and safe to walk on both indoors and outdoors.

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Top takeaways from the Flooring Sustainability Summit

The recent Flooring Sustainability Summit brought together industry leaders, innovators, and experts to address critical challenges and opportunities in advancing sustainable building practices within the flooring sector. Two hundred and twenty-five key stakeholders convened in Washington, DC, USA to discuss pressing issues and formulate actionable strategies to drive positive change across the supply chain. Day 1 of the Summit included a packed program of expert-led panel sessions and interactive workshops designed to increase dialogue across a broad group of flooring industry stakeholders. Day 2, held at the U.S. Capitol Visitor Center, included high-level briefings by leading authorities on government procurement, green building standardization, and design specification. Here are the Summit’s top takeaways:

Consensus on Terms and Definitions: Participants stressed the urgent need to standardize terms and definitions related to sustainability in flooring, particularly around embodied carbon. Despite significant market attention, there lacks an agreed-upon definition, and accounting methods vary widely. Clear, standardized terminology and reporting practices will improve communication and understanding across the industry.

Radical Collaboration: Mike Johnson of the International Living Future Institute (ILFI) highlighted the importance of building partnerships and fostering open dialogue among stakeholders. More specifically, he stressed the need for “radical collaboration”. This theme resonated with other speakers and attendees. “It’s such a relief to not be talking amongst ourselves, in our own silos and disciplines,” said Cheryl Durst, CEO of the International Interior Design Association (IIDA). “If we are to solve the problems and challenges that face us as a culture, as organizations, and as an industry, we have to have these larger conversations with one another. I’m appreciative to [the Summit] for bringing us together.”

Alignment Across the Supply Chain: There was a strong call for alignment across the entire supply chain. This includes education, simplification of terminologies, and effective communication to ensure all stakeholders are working towards common sustainability objectives.

Demand Driver Alignment: Participants recognized the need for aligning market demands with sustainable practices. Understanding and responding to consumer preferences for environmentally friendly products will drive innovation and market competitiveness.

Standardization Alignment: A critical focus was placed on standardization across various aspects, including cradle-to-grave sustainability assessments and owner awareness of service life impacts on both carbon footprints and fiscal accounting. “Durable, sustainable materials result in operational savings,” noted Elliot Doomes, Commissioner of the Public Buildings Service at the U.S. General Services Administration.

Multi-Attribute Considerations: The Summit underscored the importance of considering multiple attributes in product development and design to avoid carbon tunnel vision. Manufacturers were encouraged to balance ingredients to create durable, healthy, low-carbon products, while designers should consider budget constraints, energy efficiency, aesthetics, and durability.

Holistic Assessments: Kathleen Lane of the American Institute of Architects challenged architects to look holistically at product selection across five categories of holistic health impacts: human health, ecosystem health, climate health, social health and equity, and a circular economy. Cheryl Durst added, “Building performance transparency is now a much larger conversation, considering the context of how a building performs in its neighborhood and city. Comfort, safety, clarity, simplicity, and wherewithal are five words that will resonate over the next few years. Telling the story of carbon from a hyperlocal standpoint is also critical.”

Role of the Distributor: Participants emphasized the critical role of distributors in the supply chain, highlighting their responsibility in effectively promoting and delivering sustainable flooring solutions to the market.

Relationships Matter: The Summit concluded on the significance of fostering strong relationships throughout the industry. Collaborative relationships built on trust and shared goals will be pivotal in driving sustainable practices forward.

The Flooring Sustainability Summit provided a platform for robust discussions and actionable insights, paving the way for a more sustainable future in the flooring industry. Participants left with a renewed commitment to innovation, collaboration, and responsible stewardship of environmental resources. Following the event’s success, the 2025 Flooring Sustainability Summit has been announced for 16th to 17th July 2025, in Washington, DC.

More at: FlooringSummit.com.

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System Ceramics launches Slabstore

System Ceramics, the Coesia Group brand, announces the launch of Slabstore, the latest solution designed for optimising the storage and the management of large dimension ceramic surfaces.

Slabstore is the result of intense research and development aimed at meeting the unique needs of major slab producers. This innovative automated storage solution offers a series of advantages that will radically transform the way that large surfaces, whether ceramic or of other materials, are managed and distributed.   Besides flexibility and modularity, Slabstore also allows for significant energy savings, in line with the Group’s sustainability goals. Slabstore, in fact, actively contributes to reducing environmental impact: thanks to cutting-edge handling and transport systems, the use of energy is optimised and operating costs are significantly reduced.

Designed to adapt to the specific needs of each customer, Slabstore allows for the personalised selection and packaging of slabs, ensuring unparalleled precision in storage operations. Thanks to its modular nature, moreover, the system can be easily extended and managed to meet the growing and changing needs of producers. A lifting capacity of up to 300 kg in weight and a gripping structure with 15 suction cups enable practical and efficient inventory management with an optimised distribution concept.  One of the main challenges today for stocking large surfaces in industry is the efficient management of the growing demand for ever smaller and more diversified lots of slabs. With Slabstore, manufacturers can more easily respond to these market needs, optimising operational efficiency, reducing overall inventory administration costs and, therefore, improving productivity and competitiveness in the global market.

Ca’ Pietra parent company names new group MD

Sarsen Stone Group, the parent company behind tile specialist Ca’ Pietra, has appointed Steve McGuire as its new group managing director. The company said that McGuire has a wealth of experience in strategic leadership and brand management, having previously had roles at companies such as Tom Dixon, LSA International and Established & Sons.

In his new role, McGuire will now be responsible for the management of Sarsen Stone Group’s brands, which includes Artisans of Devizes, National Trust Tile Collection and Proper Good Paint, as well as Ca’ Pietra. The company says McGuire will also seek to foster further collaborations within the design industry.

Hamish Smith, CEO at Sarsen Stone Group, commented: “Appointing Steve is a major milestone for the company, as we look to capitalise on Steve’s expertise to spearhead our future growth and standing within the tile and stone industry.  Steve’s unwavering commitment to extraordinary design and customer satisfaction aligns perfectly with our mission of merging creativity with quality. We’re thrilled to have him spearheading initiatives that amplify our premium brands and solidify our standing in the design sector.”

Steve McGuire also added: “I am honoured to be a part of this extraordinary group of brands, and I look forward to working with our talented teams to fulfil our promise of delivering expert design and craftsmanship to all our partners and customers.”

Source: https://www.kbbreview.com/

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Ceramica Cañuelas invests in plant

Ceramica Cañuelas, an Argentine ceramic tile manufacturer founded in 2006, successfully started up its third production line at the end of 2023. The new plant is configured for a production of up to 36,000 square metres per day in 50×50 cm and 60×60 cm floor tile sizes, while also beginning production of the new 60×120 cm size. Sacmi supplied all the key machines, including four PH3950 presses complete with loading devices, an EM5 320 dryer and an FMS355 Maestro kiln, the largest and most productive model ever installed by Sacmi in Argentina.

“For us this is a far-sighted investment that aims to deliver the quality and productivity that have always been our hallmarks,” explains Luiz Pinto, Plant Director. “The decision to install the Maestro kiln means we’ll be able to maintain very high levels of productivity and achieve the desired results in terms of quality and efficiency.”

Source:  https://ceramicworldweb.com/

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Spanish distributors the target for Cevisama 25

Cevisama will also be giving a significant boost to its Spanish guest buyer recruitment campaign, with a particular focus on retail and buying groups. The fact is that there will be a bigger presence of the Spanish market at the next edition of Cevisama, and with this in mind the fair has negotiated special rates in hotels, discounts on transport, transfers and free parking places.

The fair will in addition be running a special scheme for Spain’s main retail and buying groups, which will be offered free hotel accommodation. The scheme may also be extended to include leading specifiers (architects, builders and interior designers).

Cevisama will use its own databases of Spanish and international buyers to deliver the above but the exhibitors themselves will also be involved. This has in fact been the case for several years but in response to their own request, exhibitors will play a bigger role in 2025.

What this means is that exhibitors will be able to invite their customers directly, as part of the guest buyers programme, thus doubling the strength of the drive to recruit buyers to attend. On the one hand the companies will be enhancing their commercial image whilst on the other, the fair will build a pool of top-level buyers that will make the event even more attractive.

Portada 2023

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Second bidder enters fray to buy Crest NicholsonBy Dave Rogers5 July 2024crest

Avant Homes has offer rejected after Bellway approach also turned down

A housebuilder run by former Persimmon boss Jeff Fairburn and controlled by a New York hedge fund has made a bid to buy Crest Nicholson, according to media reports.

UK housebuilder Crest Nicholson has said it is “minded” to recommend a £720mn takeover offer from rival Bellway after its listed rival sweetened its bid.

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Transom Capital Group acquires Virginia Tile Company

Transom Capital Group, a private equity firm based in El Segundo, California, has acquired Virginia Tile Company from Detroit, Michigan; a distributor of tile, decorative surfaces, and installation accessories with 19 showrooms across 12 US states. Virginia Tile will join forces with Galleher – which Transom acquired in 2023 – to create a national flooring and tile products distributor with unique product development, merchandising and fulfillment capabilities. Galleher is the largest floor covering distributor in the western US and the third largest flooring distributor in the US.  

The combined company will be led by Rick Coates, President of Galleher; CFO David Burke, Sunil Palakodati as CEO. Palakodati will remain President of Virginia Tile. He brings 22 years of experience in the building products industry, including four years as CEO of Architectural Surfaces Group.

Source: https://www.floortrendsmag.com/

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National Masonry Limited acquired by Stonegate Tooling

Stonegate Precision Tooling Ltd has announced its acquisition of National Masonry Ltd, also known as Stone Equipment International.  National Masonry Ltd has been in business for more than 30 years and is the UK supplier of Marmo Meccanica machinery, primarily focusing on edge polishing machines. Until the acquisition earlier this week, it was headed up by MD, Andy Bell.

National Masonry Ltd’s business model focuses on enabling fabricators to save money on costly repairs, by part exchanging their existing machinery for newer and more effective models. Stonegate has stated it will “look to continue the important work done by Andy Bell, by working closely with Marmo Meccanica to ensure that UK fabricators receive the support, guidance, and advice needed when assessing edge polishing options.”

Stonegate Tooling’s MD, Graham Hazell, said: “Our mission is to put innovation at the core of our business and provide valuable advice that leads to an impeccable customer experience. We do this by working with fabricators and listening to their challenges, in order to provide the solutions and support they need to excel in what they do.”

Andy Bell added: “I will be staying with the business in a consultancy basis and am I excited to be part of the next stage in the progression of National Masonry Ltd and Marmo Meccanica in the UK market.

Source: https://www.stonespecialist.com/

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America’s Floor Source unveils stunning showroom and HQ

US-based retailer America’s Floor Source has unveiled its new 265,000 sq. ft HQ in Columbus, Ohio, USA, that features a showroom, corporate offices, training, and warehouse space. 

America’s Floor Source, part of AFS Group, has seen rapid growth, with retail showrooms across the Midwest USA that sell floor coverings and window treatments to homeowners, homebuilders, property managers, wholesalers, and businesses. It also offers a unique shop-at-home experience through Mobile Floor Source vehicles.

In May of this year, AFS Group acquired Lewis Floor & Home, a flooring, countertop, cabinet, and window treatment dealer from Chicago, Illinois. In February, AFS Group acquired C&S Flooring, an e-commerce hard surface retailer based in Rochelle, Illinois. C&S operates the Flooringmarket.com and Floorlife.com websites. In 2023, AFS Group acquired MK Interiors of Kentucky that sells cabinets and countertops. In 2021, AFS acquired JP Flooring, a flooring retailer from Cincinnati. 

The new retail showroom showcases flooring products merchandised in standard displays with a roomier layout. It also has interactive displays, such as a putting green that showcases artificial turf. Cornhole game boards display concrete finishing options. A dog house clad in wood-look LVT flooring anchors the pet-friendly flooring display area. 

A builder showroom, branded “The Studio,” is designed in a residential style and offers private meeting spaces where builders can meet with their customers to discuss surface and cabinet selections. 

The new HQ also offers space for meetings and education. AFS subcontracts installation and invests heavily in installer education.

Source: https://www.floortrendsmag.com/

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Florim opens flagship store in London’s design district

Florim’s new flagship store in London has opened its doors in the design district of Clerkenwell. Present in the city since 2020, the company has moved to St John Street, where it has created a monobrand space intended to be a meeting place for project professionals, as well as a place to get to know “Made in Florim” porcelain stoneware.

Inside the store, visitors can take advantage of functional tables designed to facilitate sharing and collaboration on projects. These spaces are designed to offer an optimal work experience, with access to advanced materials, samples and digital tools for design.

The new store in London is the latest step in Florim’s global expansion strategy in design districts: starting with the first Flagship store in Milan in 2009, followed by openings in Moscow in 2014, New York in 2015, Singapore in 2019, Frankfurt and London in 2020, Abu Dhabi in 2021, and Paris and Rome in 2022. In 2023, after the inauguration of the pop-up store in Los Angeles, Florim moved its New York flagship to 5th Avenue in Manhattan. In 2024, the Milan showroom was completely restyled, while a new space will be opened in Rome later this year.

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Australia’s ban on engineered stone now in place

Australia’s landmark ban on the manufacture, supply, processing and installation of engineered stone benchtops, panels and slabs has now started. It has been introduced to protect workers from silicosis: a lung disease caused by exposure to respirable crystalline silica. 

According to a statement from Safe Work Australia: “the ban does not apply to the controlled processing of previously installed engineered stone benchtops, panels, or slabs for the purposes of removal, repair or minor modification, or the controlled processing of installed or uninstalled engineered stone benchtops, panels and slabs for the purposes of disposal.”

Stronger regulations of all crystalline silica substances will come into effect on 1st September 2024. 

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NTCA rolls out July workshop schedule

In America, The National Tile Contractors Association (NTCA) is running a July tour across 17 states, delivering an extensive lineup of standards-based educational workshops and regional trainings to industry professionals. With a total of 24 free workshops and six free regional trainings, this initiative is said to mark a significant expansion compared to the offerings provided in 2023.

The goal is to equip industry professionals with essential skills and knowledge while facilitating meaningful connections with peers and industry experts. These workshops and regional trainings serve as opportunities for professionals to stay updated on industry standards, best practices and emerging trends while aligning with NTCA’s ongoing mission to elevate the standards of tile craftsmanship and promote continuous learning within the industry.

The workshops, spanning three hours in the afternoon or evening, are open to tile installers, contractors, sales personnel and members of the architecture and design community.

The workshops will focus on one of the following topics: Ins and outs of layout for contractors; Tile matters – Best practices for the pros; Failures – Could it be me? and Tile technology – Membranes.

Regional Training sessions, offer tile installers an immersive, all-day experience to hone their skills using both traditional and cutting-edge tools, materials and techniques. These hands-on sessions are designed to empower participants with practical knowledge rooted in ANSI standards and methods outlined in the Tile Council of North America (TCNA) Handbook for Ceramic, Glass and Stone Tile Installation. The NTCA Reference Manual serves as a guiding resource throughout the training.

The sessions are carefully crafted to provide solutions-based training, addressing real-world challenges faced by tile installers. The content is aligned with industry standards and methods to ensure relevance and applicability. The GPTP/Slabs Training equips attendees to install porcelain panels with confidence and accuracy. Learn new tile industry standards and methods for installing GPTP, how GPTP is made, where it can be used and special tools, setting materials and techniques required to install it.

The Substrate Preparation and Large-Format Tile Training will show you how to use the ANSI A 108 standards and TCNA Handbook to address real world challenges in hands-on installations focusing on substrate examination and preparation for setting large-format tile.

Source:  https://www.fcnews.net/

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USA housing market slump takes wind out of tile sales

Like most flooring products in 2023, tile declined in both sales and volume last year due to various factors: most significantly, the struggling housing market. 

When the dust settled, tile flooring experienced about an 8% decline in dollar sales in 2023 to $3.226 billion vs. $3.507 billion in 2022, according to Floor Covering News research. Flooring tile volume also found itself in the red in 2023, registering a 6% decline to 2.306 billion square feet. That is compared to 2.453 billion square feet in 2022 and 2.477 in 2021. 

The discrepancy between dollars and volume was due largely to minor deflation in price after several years of record highs, as well as excess inventory for many. Those record high prices, some say, peaked in 2022. As evidence, FCNews research showed a 14% increase in dollar sales from $3.077 in 2021 to $3.507 in 2022 while still experiencing a 1% decline in volume. That was when pricing jumped from its historic average of $1.20 per square foot to $1.43. In 2023, pricing dropped slightly to $1.40. 

While this is the tile category’s first dollar sales decline in years, it is still a 13.43% increase from 2020’s $2.844 billion when the category experienced its first decline since 2009 amid the Great Recession. What’s more, 2022’s $3.507 billion was a record high for the category, and the 2.442 billion square feet in volume was the third-highest total since 2006 when housing sales were at unprecedented levels. It’s not too unreasonable to expect a decline from powerhouse numbers, especially after the particularly hard shot the housing market took in 2023. 

Putting things into perspective, 10 years ago in 2013, FCNews research showed the ceramic market clocked in at $1.879 billion, which was up 15.8% from 2012’s $1.623 billion. It was the category’s fifth consecutive year of growth, which wouldn’t wane until 2020’s 5% decrease in dollar sales and 3.5% decrease in volume. In the last 10 years, that is a 71.7% increase in dollar sales. 

The category also kept its standing in 2023 as the third-largest sector in flooring, representing 12.8% of total dollar sales ($25.122 billion) in 2023. That’s not significantly changed from 2022’s 12.5% but is still up from 2021’s 11.5% share. The category’s share of total hard surface sales ($15.069 billion) was also largely unchanged, coming in at 21.4% versus 2022’s 21%. 

In terms of volume, ceramic garnered 13% of total square feet, or 2.306 billion square feet of the 17.727-billion-square-foot pie. It also grabbed 23.37% of total hard surface volume, which also includes resilient, wood and laminate. 

The majority of tile’s challenges in 2023 came from the sluggish housing market. Like the rest of the industry, the category was impacted by higher interest rates and slow housing starts and sales. 

According to the U.S. Census Bureau, total housing starts for 2023 were 1.41 million, a 9% decline from the 1.55 million total from 2022. Single-family new home starts in 2023 totaled 945,000, down 6% from the previous year. Multifamily starts in 2023 totaled 469,000, down 14.4% compared to the previous year. “The U.S. ceramic tile market contracted in 2023 as the U.S. housing market, with which it is closely linked, continued to struggle because of high mortgage rates, inflation and labor shortages,” Eric Astrachan, executive director of the Tile Council of North America (TCNA), told FCNews. 

Scott Maslowski, senior vice president of sales, Dal-Tile, agreed. “We look at [the residential market] in regard to two big buckets: new residential and residential remodeled—and both were drivers to the decline in 2023,” he said. 

On a positive note, total U.S. construction spending last year reached an all-time high of $1.98 trillion, up 7% from the prior year, according to the U.S. Census Bureau. 

Imports vs. domestic  For the second year running after a 15-year high, U.S. ceramic tile imports experienced an 8.4% decline from the prior year to 2 billion square feet in 2023, according to TCNA. That’s back down to nearly 2020 levels when imports sat at 1.97 billion square feet. 

In terms of consumption, imports comprised 70.2% of 2023 U.S. tile sales by volume, down from 71.1% in 2022. India usurped Spain’s position as the largest exporter by volume to the U.S. with a 20.3% share of U.S. imports, followed by Spain (17.4%) and Mexico (16.7%). 

The five countries from which the most tiles were imported in 2023 based on volume were: India (42.6%); Spain -19.4%; Mexico -7.8%; Italy -20.5%; and Brazil -18.6%. 

In regard to India’s takeover, several U.S. manufacturers— representing over 90% of all U.S. ceramic tile manufacturing— filed anti-dumping and countervailing duty petitions with the federal government seeking the imposition of substantial tariffs on imports of ceramic tile from India to remedy unfairly low-priced imports that have injured domestic manufacturers and flooded the market with uncertified porcelain tiles. 

Specifically, the industry’s anti-dumping petition seeks the imposition of tariffs estimated between 408%-828%, in response to ongoing massive and widespread dumping. The countervailing duty petition seeks the imposition of additional tariffs to remedy the impact of numerous Indian government subsidies— subsidies that have further injured domestic manufacturers.

“American tile manufacturers have always welcomed fair competition from imports,” TCNA’s Astrachan said. “However, Indian tile producers enjoy substantial government subsidies, which in conjunction with selling excess capacity at dumped prices, has allowed them to flood the U.S. market. Over the last 10 years, sales of tile from India have increased from a mere 344,000 square feet in 2013 to nearly 405 million square feet by the end of 2023.” 

On the domestic side, U.S. suppliers shipped 847.3 million square feet domestically in 2023, down 4.7% from the previous year, according to TCNA. U.S. shipments’ share of total U.S. consumption was 29.8%, up from 28.9% the preceding year. Domestically produced tiles’ share remained higher than the shares of any individual country exporting to the U.S.; the next highest shares of total consumption by volume belonged to India (14.2%), Spain (12.2%) and Mexico (11.8%). 

U.S. FOB factory sales of domestic shipments in 2023 reached $1.5 billion, a 1.7% increase from the prior year, according to the TCNA. U.S. shipments accounted for 36.9% of total U.S. tile consumption by value, up from 33.4% in 2022. 

Interestingly, U.S. ceramic tile exports in 2023 were 51 million square feet, up 0.5% from the previous year and the highest total on record. The vast majority of these exports went to Canada (65.8%) and Mexico (19.7%). 

Commercial vs. residential  The commercial and residential markets tend to mirror each other when it comes to the tile category. When residential is up, commercial is down and vice versa. In 2023, both sides of the business struggled—much of that, suppliers agreed, had to do with interest rates. 

However, the struggling housing market in 2023 left a bigger mark on the residential side of the business. While residential garnered about 60% of overall ceramic sales and held onto its lead over commercial, commercial gained ground from its previous 34% to around 40% in 2023—or $1.29 billion of the total $3.226 billion ceramic market, that’s vs. $1.2 billion in 2022. 

Ceramic’s share of the overall commercial market increased to nearly 18% in 2023 vs. 2022’s 16.3%. That’s up from 14.2% in 2021 and 14.8% in 2020. 

Putting that into perspective, 10 years ago in 2013, commercial represented 28.2% of tile market sales (not including Main Street)—that’s a nearly 42% increase over 10 years. In fact, over the past 10 years, the commercial tile market has built itself back up to 40% of the overall flooring market, which is where it landed in 2013 when ceramic experienced its greatest increase since the early 2000s. 

Suppliers agreed one of the factors influencing commercial’s measured success in 2023 was the commencement of projects that had been pushed back during the pandemic and were finally back on the docket. 

“The commercial market remained strong for most of the year,” Raj Shah, president, MSI, told FCNews. “The primary reason is that there is a lagging effect on commercial installs. Projects that were originally planned and funded earlier than 2023 was what was installed in 2023. We did see a decrease in overall bidding, which may mean that 2024 will see a slowdown in commercial.” 

The segments of the commercial market that helped spur that growth, suppliers agreed, included education, healthcare and hospitality. “Our K-12 market and healthcare are really our top two segments, followed up by the quick-service restaurant business—and we saw big gains there,” said Larry Browder, vice president of sales, Crossville. “Those segments have always been strong. The amount of bond money that’s come in the K-12 markets over the last few years has been very significant when you look across the United States. Districts are investing in their schools.” 

Browder added that commercial has also experienced LVT fatigue. “LVT, across all the sectors, we’re seeing end users and specifiers not only coming back to more natural products but also coming back to products that are going to stand the test of time.” 

Suppliers agreed that tile sales were also buoyed by the commercial market’s focus on sustainability and more natural products—more so than the residential market. 

Looking ahead  There are several points of contention the tile category will have to deal with moving forward—the Federal Reserve’s decision on interest rate cuts being one of them. At the start of 2024, most analysts predicted about three reductions for the year; however, five months in and that hasn’t happened. Experts do agree one cut is still probable, but there will likely be a wait until the fall for a final decision. Considering how heavily impacted the tile category is by the housing market, it’s easy to say the category will be waiting with bated breath. 

At the same time, the tile category will also continue to contend with the ongoing labor shortage. Given tile’s need for expert installers—even artisans—the predicament has hit the category hard for years. 

“A shortage of qualified tile installers and tile factory workers continues to be a challenge,” TCNA’s Astrachan noted. “TCNA and the National Tile Contractors Association (NTCA) are assisting with an initiative to potentially develop TCAT programs that incorporate tile installation curricula. Furthermore, the University of Tennessee-Martin has expressed interest in working with TCNA and tile manufacturers to identify collaboration opportunities.” 

Challenges aside, suppliers say they are expecting better outcomes in 2024 compared to last year. “Overall demand is fueling the housing market and is only expected to remain steady (and grow) this year,” said Jim Parello, executive vice president of sales, Emser. “New builds, multifamily housing, remodels and major renovations are all expected to lead the way in the residential market as consumer spending increases. Specific to residential renovations, demand for adaptability features continues to grow and ceramic has proven to be an important material in a variety of related applications, due to its anti-slip, etc., features.” 

TCNA’s Astrachan concurred. “If the housing market can rebound this year as predicted, tile consumption would likely follow suit and experience a gain.” 

Dal-Tile’s Maslowski concurred. “We’re excited about what the future holds. We’re a firm believer that residential will continue to rebound as we work our way into ’24 and ’25. So we’re encouraged about the tile industry, where it is and where it’s going.” 

For suppliers like Crossville, it’s all about investing in the future of the tile business. “AHF Products, [which acquired Crossville last year,] is making significant investments in the Crossville business,” Crowder stated. “We believe coming into the last half of this year, going into ’25- 26, residential is going to be a significant growth driver within the category.” 

Source: https://www.fcnews.net/

Meta Wolf invests in the future at Deutsche Steinzeug

Meta Wolf AG has joined the largest German ceramic tile manufacturer – Deutsche Steinzeug Cremer & Breuer AG and Agrob Buchtal GmbH – as a strategic partner. 

The agreement, which was concluded on 13th June 2024, involves an investment in the mid double-digit million euro range.  As a result of the takeover, Deutsche Steinzeug will be debt-free and all liabilities to banks and other creditors will be repaid. All four production sites will remain active, and the company’s core architectural focus remains in place.

“Our vision is to gradually electrify and thus decarbonise the production of tiles and to create the necessary transformation that has already been initiated in other industries such as steel and cement,” says Tom Wolf, Chairman of Meta Wolf AG. 

Deutsche Steinzeug’s employees will continue to play the most important role, as their expertise and experience are crucial to the success of the new partnership. Deutsche Steinzeug’s customers can continue to count on the proven product quality and service, while benefiting from the additional resources and opportunities resulting from the strategic partnership with Meta Wolf Group. 

In addition to various optimisation measures on the production side, a reduction in personnel will also be unavoidable, although the vast majority of jobs will be retained.

“We are not yet able to comment on the details of the agreement and reorganisation during the current process. We will only be able to provide further information once the closing has been finalised – which is expected to take place in the third quarter of 2024,” concludes Dieter Schäfer, CEO of Deutsche Steinzeug. 

More at: https://deutsche-steinzeug.de/de

More at: https://www.metawolf.com/

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Production stops at Johnson Tiles

After the May announcement that Johnson Tiles is moving forward as a standalone business in a management buyout deal agreed with Norcros plc, tile production at Tunstall has now ceased.

The last remaining UK volume tile manufacturer had been operational in Stoke-on-Trent since 1901. The UK management team – comprising Managing Director, Stephen Dixon (above), Commercial Director, Rich Kelsall, and Procurement Director, Jason Bridges – has adopted an outsourced business model, impacting up to 105 production roles.

Managing Director, Stephen Dixon comments: ”… the cost of making tiles in this country – despite ongoing investment – has become increasingly unsustainable.”

“We have a great sourcing business and, together with our strong design and customer service capabilities, we are well placed for the future,” claims Dixon.  “This deal secures Johnson Tiles position as a leading UK designer and supplier of tiles, as well as ensuring we remain a significant employer in the Staffordshire region.”

More at: https://www.johnson-tiles.com/

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Indian tile tariffs

The anti-dumping on Indian tiles being urged by the North American tile industry under the TCNA banner has given the Spanish tile sector hope, having been overtaken as the largest exported of tiles to the US in terms of volume by India, that the tables may be turned going forward. Ascer, the Spanish trade association, also hopes that the action in the US should ‘open the eyes’ of the EC with regard to European tariffs on Indian tiles, including the anti-dumping measures that were applied in February 2023.

Alberto Echavarría, Secretary General of Ascer (above), observed that the US has proposed tariffs of between 408% to 828% meaning that, even if the low range is selected, the final result will be much, much higher than the 7% tariff in the EU.  Ascer believes that the EU should stop ignoring the alarm messages from European producers and start protecting them from overseas products that are not produced under the same highly-controlled production laws.

More at: https://portal.ascer.es/en/

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Mapei opens a new facility in the UK

Mapei has opened a new UK facility in Speke, near Liverpool.  The concrete admixture plant in Speke stands on a 3,200 sq. m site that houses offices, a warehouse and research laboratories. It is Mapei’s second facility in the UK after the one located in Halesowen, near Birmingham. The Halesowen site also hosts the Mapei Academy, which offers free training events aimed at boosting the skills of professionals and businesses.

“Mapei UK was founded in 1989, in Middlesbrough,” says Veronica Squinzi, CEO of Mapei. “Today, also thanks to the local production capacity, we are the market leader in products for the installation of ceramic and stone materials.”

Marco Squinzi, CEO, added:  “We will introduce in the UK our innovative solutions that can help the concrete industry to maintain high quality standards, reducing the climate impact both in the construction of large works and in residential building.”

Mapei UK employs 360 people in the UK.  It has three warehouses in the West Midlands that supply distributors throughout the UK and Ireland.

More at: https://www.mapei.com/

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Merola acquires Pan American Ceramics

Merola Tile Distributors of America, the New Jersey based company that specialises in small format, decorative, European tiles, has acquired Pan American Ceramics.  This California-based business, with warehouses in Northern and Southern California, stocks products produced in Europe, China, Mexico, South America, and the USA. 

Merola Tile, which also operates under the SomerTile brand in the USA, is perhaps best known for its long-standing supply relationship with Home Depot.  The company has grown significantly over the past 20 years and now has over 125 employees and a turnover in excess of $40 million.  Thge founder, John Merola, see this acquisition as an important milestone on Merola Tiles’ journey to even greater success.

Tom Carr and his team will be retained following the acquisition; with the new entity trading as Pan American Ceramics by Merola Tile.  It will allow the combined group to offer a complete coast to coast operation.

More at: https://merolatile.com/

More at: https://www.panamericanceramics.com/

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Mohawk results point to difficult market

Mohawk Industries,the worl’s largest tile supplier, has announced first quarter 2024 net earnings of $105 million and earnings per share of $1.64.  Adjusted net earnings were $119 million, and adjusted EPS was $1.86.  Net sales for the first quarter of 2024 were $2.7 billion, a decrease of 4.5% as reported and 5.5% on a legacy and constant basis versus the prior year. 

During the first quarter of 2023, the Company reported net sales of $2.8 billion, net earnings of $80 million and EPS of $1.26; adjusted net earnings were $112 million, and adjusted EPS was $1.75.

Commenting on the results, CEO Jeff Lorberbaum stated: “Though economic headwinds are impacting industry sales, margins and mix, our first quarter results reflected the positive effect of actions we are taking to enhance our performance. Our earnings per share rose year over year as a result of restructuring, productivity initiatives and benefits from lower cost raw materials and energy, partially offset by weaker pricing and mix.

Mohawk’s Global Ceramic Segment reported a 1.4% decline in net sales , or a 5.0% decline on a legacy and constant basis, versus the prior year. The Segment’s operating margin was 4.7%, (5.0% on an adjusted basis), as a result of the unfavourable impact of price and product mix, and foreign exchange headwinds, partially offset by lower input costs and productivity gains. 

“We are introducing decorative innovations with new glazes, three-dimensional surfaces and updated artisanal mosaics,” notes Lorberbaum.  “In Europe, we are seeing robust growth in porcelain panel sales after our recent capacity expansion, and sales have also benefited from our new premium products.”

More at: https://www.mohawkflooring.com/

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Topps Tiles report slight sales decline

Topps Tiles unaudited consolidated interim financial results for the 26 weeks ended 30th March 2024 revealed challenging trading conditions, with sales down 5.8% year-on-year.  Other key points included news that the Pro Tiler buy-out will shortly to be completed: with 5x EBITDA multiple paid for this fast growing business, and the founders retained.  The groups contract arm, Parkside, is now profitable following implementation of business improvement programme in 2023.

Overall the Group unveiled a new growth strategy, and financial targets, with the goal to grow Group sales to £365 million in the medium term, with 8 to 10% adjusted profit before tax margins.  Other points of focus will include the development of a significantly upgraded digital offer for Topps Tiles trade customers, and a co-ordinated growth strategy for B2B markets, across Topps Tiles Contracts, Parkside, and Pro-Tiler.

Rob Parker, Chief Executive said:  “Trading conditions in the first half have been challenging in a tile market which is down 20% on 2019.  Against this backdrop, we are continuing to take market share, our online pure play businesses are growing strongly and the Group remains in a robust financial position. Notwithstanding the challenges of current market conditions, we believe that Topps Group has a substantial opportunity to increase sales and profitability over the medium term through our new growth strategy of Mission 365.”

More at: https://www.toppstiles.co.uk/

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Realonda wins Alfa d’Oro prize and is set to show at InstallerSHOW’s Surface Area installation

Realonda has won an Alfa d’Oro for 2024 for its implementation in the production line of a water-based glazes with full digital decoration.  Realonda are the first company to achieve digital application of true mineral glaze in production volume settings.  The difference between a glaze and an ink is the incorporation of silicates (frit or pre-fired glass particulates with known sintering properties) to the suspension of mineral oxides.

Previously the particulate size of the silicates was too large for them to be reliably applied through the inkjet printers.  The digital application of glaze has been something desired by the industry due to the depth and saturation of tone unique to a glaze versus an ink. 

Realonda will be showcasing the first tiles produced using this pioneering technology at Surface Area, a feature in InstallerSHOW (NEC, Birmingham 25th to 27th June) that has been curated by Joe Simpson, the Founder of Diary of a Tile Addict.

More at: https://en.realonda.com/

More at: https://www.installershow.com/

Topps Tiles trading update for the 26-week period ended 30th March 2024 shows total Group sales of £122.6 million, down 5.9% year-on-year. Subdued demand in the domestic RMI sector, especially for bigger ticket projects, has resulted in lower footfall into Topps Tiles stores. Trade customers have once again proved more resilient, although trade sales were also lower year-on-year.

Like-for-like sales were 11.3% lower year-on-year in the second quarter, driven by lower footfall and volume. As expected, the gross margin percentage in Topps Tiles was up year-on-year as cost of goods pressures continued to ease, but net profits were impacted by lower volumes, operating cost inflation and the impact of operational gearing, despite strong cost control throughout the period.

Parkside continues to show a significant year-on-year improvement in its financial performance.

“Following the business improvement plan implemented last year, we have achieved our short-term aim and expect the business to be at breakeven over the first half, despite the difficult commercial market. Group profitability in the first half of the year will be impacted by a number of factors including the weaker market, the timing of the holiday pay accrual and seasonally higher energy usage in the period. We continue to expect the Group’s profits in 2024 to be weighted towards the second half as indicated in our Q1 trading update,” reported the company.

“With its market leading brands, specialist expertise and world-class service, the Group is well positioned to benefit from a cyclical recovery in the RMI market. The business remains in a strong financial position, with a robust balance sheet, and is focused on maximising market opportunities and emerging in a stronger competitive position as the market improves,” concludes the report.

More at: https://www.toppstiles.co.uk

Gruppo Romani has launched what are said to be the world’s first intelligent tiles capable of interacting with state-of-the-art home automation systems. This is the outcome of more than four years of R&D amounting to about EUR 10 million. The concept – using active ceramic tiles to monitor building structures – will be protected by two industrial property patents.

These are ceramic slabs feature a compartment in the back of the tile that holds a micro electronic card fitted with MEMS (micro electromechanical system) sensors, capable of transferring collected data to Cloud. The sensorised tile, in addition to guaranteeing the technical specifications required by the UNI EN 14411 standard and the aesthetic qualities that are a distinguishing feature of Gruppo Romani’s products, enables integrated monitoring of programmed parameters. For example, when applied on ventilated walls, one may measure temperature, humidity, dew point, shocks or deformation induced by seismic events. Another type of sensor, installed in the event of laying of floating floors, will be capable of detecting possible overload, monitoring people flow, turning on perimeter alarms and interacting with weight sensor lights.

Giorgio Romani, President of Gruppo Romani, says: ”Our work has mainly focused on the intended use of covering ventilated walls of residential and commercial buildings. The innovative characteristic of transmitting information on the most important structural and environmental parameters may open up interesting scenarios for many buildings in a safety and prevention perspective, offering a valid high value-added solution, presently one-of-a-kind.”

Gruppo Romani’s Smart Tiles will be produced in the 1,200 by 1,200mm size.

More at: https://www.grupporomanispa.com

Lifco has signed an agreement to acquire a majority of the shares in the Italian tiling tool company Brevetti Montolit. In 2023, Brevetti Montolit reported net sales of approximately EUR 18.5 million. The company is based in Cantello, Italy and has 36 employees.

Lifco offers a safe haven for small and medium-sized businesses. Lifco’s business concept is to acquire and develop market-leading niche businesses with the potential to deliver sustainable earnings growth and robust cash flows. At year-end 2023, the Lifco Group consisted of 233 operating companies in 31 countries.

More at: https://www.montolit.com/en/ or https://www.lifco.se

The US ceramic tile market contracted for the second straight year in 2023, as the housing market continued to struggle due to high mortgage rates, inflation, and labour shortages. According to figures from USA Dept. of Commerce and Tile Council of North America, total US ceramic tile consumption in 2023 was 264.5 million sq. m, down 7.3% from the previous year.

The volume of domestically produced tile decreased from 87.3 million sq.m to 83.5 million sq.m. US ceramic tile exports in 2023 were 4.7 million sq. m, up 0.5% from the previous year and the highest total on record. The vast majority of these exports went to Canada (65.8%) and Mexico (19.7%). US exports by value in 2023 were $53.3 million, up 1.4% from 2022.

Ceramic tile imports were at 185.8 million sq. m, 8.4% down on 2022, but imports from India soared 42.6% by volume, from 26.4 million sq. m in 2022 to 37.6 million sq. m in 2023. With a 20.3% share of US imports, India also became the largest exporter to the US on a volume basis for the first time, replacing Spain, which had held the top spot since 2020.

Spain was the second largest exporter to the US in 2023 even though its volume fell 19.4% compared to the previous year. Spanish imports held a 17.4% share of 2023 total US imports by volume, down from 19.8% in 2022. Mexico remained the third largest exporter to the US by volume in 2023 with a 16.7% share of total US imports. Imports from Mexico by volume declined 7.8% vs. 2022.

While Italy was the fourth largest exporter to the US in 2023 by volume, its exports to the US were down 20.5% on the previous year. Italy’s share of imports fell from 17.3% in 2022 to 15.0% in 2023, its lowest import share on record.

Brazil replaced Turkey in the fifth spot despite seeing its exports to the US fall 18.6% against 2022. Brazilian tile made up 9.2% of US imports in 2023, down from 10.4% the preceding year.

In 2023, the total value of ceramic tile imports decreased by 12.9% to US$ 2.56 billion. By value, Italy kept its place as the largest exporter to the US, making up 28.2% of 2023 US imports, followed by Spain with a 25.7% share, and Mexico with an 11.3% share. Once again in 2023, Italian tiles had the highest average price of $25.94/sq.m, up 2.3% from $25.36/sq.m in 2022. Spanish average value also increased by 3.6% from $19.64/sq.m to $20.35/sq.m. The average price of Indian tiles decreased by 26.3%, from $9,34/sq.m in 2022 to $6.88/sq.m in 2023.

Source: https://www.ceramicworldweb.com/en

Image: https://tcnatile.com/