World production and consumption of ceramic tiles

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1 World production and of ceramic tiles David Stock reports on production and of ceramic tile during, using statistics generously supplied by Paola Giacomini the editor of Ceramic World Review magazine PRODUCTION The most apparent trend in the manufacturing sector is the geographical shift in tile production from the industry s traditional European base to the nascent economies of Asia, North Africa and the Middle East. The ongoing erosion of Europe s manufacturing power was further underlined last year by a fall in production of 400 million square metres. This latest downturn was mainly confined to the member states of the European Union who registered a collective decline of 354 million square metres. WORLD MANUFACTURlNG AREAS AREAS (Sq.mt Mill.) % on production Twenty-seven EU nations produced billion square metres of ceramic tile, a figure that represents a 24.8 per cent drop in total output. The Spanish tile industry continues to shrink at an alarming rate, production has halved in seven years. In 2002, manufacturers in Spain made 651 million square metres of tile, a figure that has dropped to 324 million square metres. As recently as, Spain was ranked second on the list of tile manufacturing nations. It now lies in sixth place with Indonesia and Vietnam progressing quickly. Spanish tile production declined by 34.5 per cent last year, a rate of regression that was very nearly EUROPEAN UNION (27) 1, OTHER EUROPE (Turkey included) NORTH AMERICA (Mexico included) CENTRAL SOUTH AMERICA ASIA 5, AFRICA OCEANIA TOTAL 8, matched by struggling manufacturers in Italy. Until, the state of the Italian industry was relatively stagnant. There was no sign of the precipitous collapse which would have a detremental effect on the industry wide, following the global financial crisis. For instance, total Italian production was only one million square metres lower in than it had been in The relative stability of that particular period now seems unimaginable after a turbulent twelve months in which the output of Italian manufacturers fell by 28.2 per cent. In, Italy s 181 tile producing companies manufactured 368 million square metres of product, a far cry 42 TILEToDAY #69

2 from the 570 million square metres of five years ago. Spain and Italy currently manufacture a mere eight per cent of the s ceramic tile. The third significant slump in the European Union took place in Germany where tile production decreased by 13.6 per cent. Elsewhere, Poland and Portugal experienced identical downturns of 5.1 per cent. Outside the EU, Europe s manufacturing woes were limited and less severe. In those countries, tile production declined by 10.4 per cent, from 441 to 395 million square metres. This was almost entirely attributable to the diminished capabilities of Russian and Turkish manufacturers. Russia s lapse in productivity was the more serious of the two, coming after several years of steady and impressive growth. The s largest nation made 117 million square metres of tile, an annual total that denotes a drop in production of 20.4 per cent. In contrast, Turkey s manufacturing output of 205 million square TOP MANUFACTURING COUNTRIES 2005 % on production 1. CHINA 2,500 3,000 3,200 3,400 3, BRAZIL INDIA ITALY IRAN SPAIN VIETNAM INDONESIA TURKEY EGYPT MEXICO THAILAND RUSSIA POLAND MALAYSIA UAE PORTUGAL ARGENTINA SAUDI ARABIA MOROCCO GERMANY COLOMBIA USA UKRAINE SOUTH KOREA SOUTH AFRICA TAIWAN SYRIA ALGERIA VENEZUELA TOTAL 6,713 7,395 7,866 8,145 8, WORLD TOTAL 7,077 7,760 8,252 8,495 8, In, the 30 major manufacturing countries covered 96.0% of production WORLD CONSUMPTION AREAS AREAS (Sq.mt Mill.) % on EUROPEAN UNION (27) OTHER EUROPE (Turkey included) NORTH AMERICA (Mexico included) CENTRAL SOUTH AMERICA ASIA 5, AFRICA OCEANIA TOTAL 8, WORLD EXPORTING AREAS AREAS (Sq.mt Mill.) % on EUROPEAN UNION (27) OTHER EUROPE (Turkey included) NORTH AMERICA (Mexico included) CENTRAL SOUTH AMERICA ASIA AFRICA OCEANIA TOTAL 1, TILEToDAY #69

3 metres represented something of an improvement, however tenuous, on the performance of the previous year. This is due to the decline in (8.9 per cent) being not nearly as severe as the 13.5 per cent fall endured in. A cause for celebration in non-eu Europe is the ongoing expansion of Ukraine s tile industry. Ceramic tile production in the former Soviet state has more than doubled since with 44 million square metres of tile manufactured during the course of last year. This progress has made Ukraine Europe s eighth largest tile producer. In, Asia (including the Middle East) furthered its influence in the production sector, accounting for 65.1 per cent of all ceramic tile output. Asian manufacturers increased their productivity by more than seven per cent, ultimately making billion square metres of tile in the calendar year. China once again confirmed its status as the s leading tile producer, with its vast industrial base creating 3.6 billion square metres of product. It is astonishing to think that China alone is responsible for nearly two-thirds of Asia s tile production and 42.3 per cent of the tile industry s global output. A discernable pattern is emerging in China s production habits as the quantity of tiles produced in the People s Republic has increased by 200 million square metres in each of the last three years. India s manufacturing sector expanded rapidly, conclusively making amends for the underwhelming progress of. Tile production rose by a quarter, reaching an all-time high of 490 million square metres. As the s third largest manufacturer and consumer of ceramic tile, India has a telling effect on the industry s performance, despite the fact that few of its products are exported or used overseas. Manufacturing growth was also recorded in Iran and Vietnam, two of Asia s most reliable and promising tile producers. Iran has doubled its tile production in the past five years, during which time Vietnam has developed at an even quicker rate. In, the countries sustained similar rates of growth; 9.3 per cent in Vietnam and 9.4 per cent in Iran. Although these statistics are undeniably impressive, they pale in comparison to the recent expansion of the INTERNATIONAL TRADE (on Total World Consumption) Import Export 20.5% manufacturing sector in Saudi Arabia. Tile production in the oilrich state totalled 55 million square metres last year, following a remarkable 37.5 per cent upsurge in annual productivity. Elsewhere in the Middle East, production stalled in the United Arab Emirates at 77 million square metres, whilst an emergent Syrian industry grew for a second year in succession. There were minor variations in Asia-Pacific nations such as Indonesia and Thailand, and a 5.9 per cent increase in Malaysian output. South Korea reported an upturn in production for the first time in years, but the same cannot be said of the Taiwanese industry which once again declined. Production in North America remained the same (252 million square metres) despite a 10.4 per cent increase in U.S. manufacturing. The renewal of America s production sector was to some extent futile, as any improvements in the United States were quickly cancelled out in neighbouring Mexico. Mexican output fell by 2.4 per cent, or five million square metres, thus nullifying the greater efforts and improved productivity of their counterparts in America. In total, Mexico created 200 million square metres of tile, while U.S. manufacturers saw their output rise from 45 to 50 million square metres. Tile manufacturing in Central and South America is principally based in Argentina, Colombia, and most importantly of all, Brazil. The region produced 896 million square metres in, falling just short of the regional record set the year before. This minor setback occurred because of similar downturns in Argentine and Venezuelan production. In Colombia, manufacturers sustained their level of output, making 50 million square metres of tile. Tile production in Brazil finally slowed after three years of unremitting growth. Nevertheless, the nation s manufacturers succeeded in improving on their performance, producing 715 million square metres of tile, an amount bettered only by China. The greatest progress was made in Africa, specifically the north of the continent, where production increased most notably in Egypt and Morocco. Egypt has doubled its manufacturing output in the last five years, reaching 200 million square metres in. The tile industry has almost certainly benefited from a series of economic reforms that have encouraged the development of a more diversified and liberalised economy. Egyptians produce, consume and export more tiles than any other African people. Morocco and Algeria have unfailing tile industries that advanced steadily in. Another year of growth saw Moroccan tile production climb to 54 million square metres, whilst Algeria finally surpassed the 28 million square metres it had produced in the preceding five years. From a local perspective, Oceania produced seven million square metres of tile. CONSUMPTION The last two years have seen a remarkable convergence between tile production and. In 2004, the gap between the two was as high as 370 million square metres. By, this figure had fallen to only 55 million square metres, with manufacturers and suppliers mindful of adding to existing warehouse stocks. Domestic Sales 79.5% As production slumped by the smallest of margins, wide rose by 1.3 per cent to an all-time high of 8.46 billion square metres. The geographical breakdown of production and highlights several recurrent themes, such as the growing dominance of Asia, the increasing significance of Central and South America, and the inexorable decline of Europe, chiefly those nations in the European Union, where fell by 18.8 per cent. Tile in the EU amounted to 991 million square metres, with every sizeable market reporting a downturn in sales. Europe s three representatives in the top ten of the list were ousted unceremoniously by nations in Africa, North America and the Middle East. The biggest slump was recorded in Spain where tile sales dropped by 34.9 per cent. In, the Spanish public purchased 314 million square metre of tile, a quantity which has since halved. Italian has abated as well, but to a far lesser degree, falling by 16.8 per cent to 146 million square metres. The popularity of tile has diminished in Britain, where a previously settled consumer market has shrunk by a third in only two years. Further losses were reported in France and Germany with dwindling in those larger markets by 11.5 and 4.8 per cent. Germans used less ceramic tile for the fifth consecutive year 106 million square metres while sales in France declined after a recovery had taken in and. Polish tile dropped below 100 million square metres for the first time since the nation joined the European Union in May The downturn in sales in non-eu Europe, which measured 11.1 per cent, was largely confined to Russia and Ukraine. Russian buyers purchased 139 million square metres as sales decreased by 27.3 per cent. Ukrainian fell by 18.8 per cent, bringing to an end a three year period of massive market expansion. Turkish sales rebounded impressively after two years of decline. Unsurprisingly, the continent that produces the most ceramic tile is also the industry s leading consumer market. In total, the 46 TILEToDAY #69

4 nations of Asia consumed billion square metres of tile, a truly staggering amount that equates to 62.3 per cent of the s ceramic tile purchases. The continent almost monopolises the top consumers list, claiming five of the highest six positions. China inevitably sits atop the rankings having used 3.03 billion square metres of product last year. The nation increased its tile by 7.1 per cent and currently accounts for more than a third of global tile sales. Demand for ceramic tile soared in India where local buyers purchased 494 million square metres of product. Malaysia enjoyed the greatest market growth as local tile jumped by 38 per cent. Tile in the Middle East was centred in Iran and Saudi Arabia, rising by over 11 per cent in the former and 22.1 per cent in the latter. In the United Arab Emirates, tile sales plummeted by 19.8 per cent, eventually stalling at 77 million square metres. Indonesia climbed to fourth spot on the table after three years of rampant expansion. The Vietnamese market improved as well with sales totalling 240 million square metres. Other changes in were less remarkable, such as the negligible improvement in South Korea and the slight regression in Thailand. The burgeoning Filipino market also continues to grow. In North America, the decline in tile continued at a marginally slower rate as sales figures dropped by 10.9 per cent. Tile buyers in the United States purchased 169 million square metres of product, six million square metres more than consumers in Mexico. The slump in America was more precipitous, measuring 14.2 per cent as opposed to the 7.2 per cent downturn in Mexican. Including Canada, the region used 360 million square metres of tile. Tile in Central and South America rose by 1 per cent which was mainly due to the rapid expansion of the Brazilian TOP CONSUMPTION COUNTRIES 2005 % on 1. CHINA 2,050 2,450 2,700 2,830 3, BRAZIL INDIA INDONESIA IRAN VIETNAM EGYPT USA SAUDI ARABIA MEXICO SPAIN ITALY RUSSIA TURKEY THAILAND FRANCE GERMANY SOUTH KOREA POLAND UAE MALAYSIA MOROCCO ARGENTINA COLOMBIA GREAT BRITAIN PORTUGAL UKRAINE SOUTH AFRICA ALGERIA PHILIPPINES TOTAL 5,762 6,456 6,914 7,150 7, WORLD TOTAL 6,750 7,420 8,060 8,350 8, In, the 30 major consuming countries covered 87.2% of 48 TILEToDAY #69

5 market. In, the people of Brazil consumed 645 million square metres or 7.6 per cent of the s ceramic tile. This outstanding performance was tempered by disappointing sales in the Argentine and Colombian markets. Both countries returned to levels of with sales in Argentina falling from 59 to 55 million square metres. Consumer demand in Colombia dropped from 54 to 53 million square metres. Use of tile in Africa is concentrated in four countries; Egypt, Morocco, South Africa and Algeria. Egypt, alone, is responsible for 38 per cent of Africa s tile with 180 million square metres of product purchased there in. Moroccans consumed 66 million square metres of tile as sales increased by 9.2 per cent. In South Africa, consumer demand fell by 14 per cent as sales of ceramic tile dipped below their 2005 level. Conversely, the Algerian market continued to grow with tile sales rising to 40 million square metres. In Oceania, fell by 14 per cent, totalling 37 million square metres. EXPORTS In, the hardest hit area of the ceramic tile industry was the imports and exports sector. In stark contrast to the year s production and statistics, which altered only marginally, there was a considerable drop in the quantity of tile that was made in one country and purchased in another. As each year passes, imports/ exports are falling as a percentage of global, a trend ITALY: TOP EXPORT MARKETS 1 FRANCE GERMANY USA GREECE AUSTRIA BELGIUM+LUX CANADA SWITZERLAND UK NETHERLANDS CROATIA SAUDI ARABIA ROMANIA SWEDEN HUNGARY POLAND RUSSIA SLOVENIA DENMARK ISRAEL CZECH REP FINLAND SPAIN BULGARIA NA AUSTRALIA Source: Confindustria Ceramica which suggests most nations are becoming increasingly self-reliant in producing and consuming their own ceramic tile. This is evidenced by the fact that four-fifths of the s ceramic tile is now consumed in its country of origin. Exports declined in every region, except Asia, with the biggest downturns recorded in non-eu Europe and Central and South America. Of the 27 EU member states, Italy and Spain were the worst affected with their exports tumbling by 23 and 20.9 per cent, respectively. In spite of these difficulties, the two nations remain second and third on the list of exporters; Italy exported 281 million square metres of tile, whilst 235 million square metres left the shores of Spain. German exports fell after three years of growth (from 28 to 23 million square metres) and Portugal suffered an uncustomary setback after a lengthy period of stability. The continued expansion of Poland s export sector is the EU s biggest triumph as demand for Polish tiles increased for the fifth consecutive year, reaching 35 million square metres. Exports from the European Union totalled 660 million square metres, an amount surpassed only by Asia. The hardships endured in the export sector were most apparent in non-eu Europe, particularly Turkey, where exports slumped by 26.8 per cent. Central and South America saw their combined exports decrease by 20.7 per cent, a significant relapse that amplified difficulties from the previous year. In keeping with regional statistics regarding TOP EXPORTING COUNTRIES 2005 % on % on exports 1 CHINA ITALY SPAIN TURKEY BRAZIL MEXICO IRAN THAILAND POLAND PORTUGAL UAE VIETNAM EGYPT MALAYSIA GERMANY TOTAL 1,514 1,657 1,712 1,722 1, WORLD TOTAL 1,715 1,865 1,910 1,919 1, In the 15 major exporting countries represented 89.9% of total exports and 18.3% of total. % var 50 TILEToDAY #69

6 production and, the Brazilian industry, which accounts for two-thirds of Central and South American exports, has the greatest influence. Unfortunately, exports from Brazil declined for the third year in a row from 81 to 61 million square metres. The only nation in North America to export a sizeable quantity of tile is Mexico. After four remarkable years, in which the country s exports nearly doubled, overseas interest in Mexican tile dropped by 18.3 per cent. This unwelcome regression was made all the more damaging by the negligible presence of U.S. exports, which failed to exceed five million square metres. Tile exports from Asia rose by 5.8 per cent to a record 797 million square metres. China s export growth slowed considerably but the nation still managed to ship 73.7 per cent (584 million square metres) of the continent s annual exports. The absence of any substantial growth in China was counterbalanced by a dramatic escalation in Iranian and Thai exports. International sales of Iranian tiles have risen fourfold in the last five years with exports increasing to 40 million square metres after an upsurge of 48.9 per cent in. Thailand exported more than a quarter of the tiles it manufactured (36 of 128 million square metres) as foreign demand for the country s products soared by 44 per cent. Malaysia exported the same amount of tiles as in whilst Vietnam increased it overseas share by a further 12 per cent. The region s worst performer was the United Arab Emirates where exports slumped for the second year running. Egypt, Africa s major tile exporter, replicated its performance from the previous year but was unable to prevent a continent-wide downturn of 8.3 per cent. Elsewhere, Oceania exported only one million square metres of tile. Imports Despite a significant decline in, the United States remains the s biggest ceramic tile importer. In, the country consumed 124 million square metres of foreign made product, which mostly arrived from China, Mexico and Italy. Although this figure appears impressive in isolation, it unfortunately points to a severe contraction of the U.S. import market which began in. America s northern neighbour, Canada, imported 27 million square metres of tile last year. In certain parts of Europe, imported tile sales declined rapidly. Huge downturns were recorded in Romania and Greece where imports plummeted by 33 and 36.4 per cent. The worst affected market was Russia where imports decreased by 44.8 per cent. Other nations that acquired much smaller quantities of tile from overseas were Italy, France and Great Britain, where imports have slumped by 36 per cent since. Germany has steadily reduced its imports over a number of years, from 106 million square metres in 2004 to just 78 million square metres last year. In Belgium and Luxembourg, consumer demand for foreign made tiles differed only slightly, falling from 26 to 25 million square metres. Tile imports in the Middle East varied greatly from one nation to the next. Rising sales in Iraq and Saudi Arabia were countered by diminishing returns in Kuwait and the United Arab Emirates. Israeli imports were unchanged from, totalling 30 million square metres. Asia s second most receptive market shrank by 15.4 per cent as sales to South Korea slumped to 55 million square metres. Promising growth was observed in the Filipino and Thai markets with the countries importing a combined total of 49 million square metres. Nigeria purchases more tiles from overseas than any other African nation. In, imports to the West African country totalled 29 million square metres. Australia remains the most lucrative market in Oceania despite a 15.9 per cent drop in imports last year. The people of Australia consumed 28 million square metres of imported tile, the majority of which was manufactured in China. TOP IMPORTING COUNTRIES 2005 % on national %o n imports 1 USA SAUDI ARABIA FRANCE GERMANY SOUTH KOREA UAE GREAT BRITAIN IRAQ ISRAEL RUSSIA GREECE NIGERIA THAILAND AUSTRALIA CANADA BELGIUM + LUX ROMANIA PHILIPPINES KUWAIT ITALY TOTAL 985 1,043 1,020 1, WORLD TOTAL 1,715 1,855 1,910 1,919 1, In Imports of the 20 major importing countries represented 52.4% of total imports and 10.8% of total. 52 TILEToDAY #69

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