2013 Catalina Report: Stone on the Rebound

SAN DIEGO – A recovery in U.S. residential projects is sparking growth in natural- and manufactured-stone countertop sales volume, although prices remain competitive, according to the latest Catalina Report on the industry.

Stone products represent a $7.3 billion product U.S. industry on the mend in the past two years, according to the report released today by Catalina Research and Ceramic Tile and Stone Consultants Inc. (CTaSC).

The surge in new home construction has led the recovery, as seen by the 28.2% increase in housing starts in 2012 and an estimated 31.6% gain during 2013, according to the report. The residential remodeling market is also benefiting from the increase in existing home sales and the rise in home prices.

The increase in existing home sales stimulates homeowner remodeling projects and the rise in home prices is an incentive for non-movers to invest in their homes and upgrade to stone countertops and flooring.

Residential sales are expected to lead sales growth over the next five years, as builders construct new housing units to meet the pent-up demand created by the household formations during the recession.

However, the important non-residential market is lagging compared to the overall recovery due to the decline in public building construction activity.

Countertop sales are outpacing overall sales in the natural and manufactured stone sectors; quartz surfaces are also taking share in the countertop market.

Granite and marble are the most important natural stone product materials and are also growing at the sharpest rate.  Manufactured stone (concrete tiles) and quartz products are also outpacing overall industry growth.

Stone prices remain sluggish, which has improved the competitive position of stone products. , despite some consolidation during the recession.  Competitive pressures are currently increasing from imports, as foreign-sourced products regain ground during the recovery.

As the residential market grows in importance, stone product suppliers have increased their reliance on home centers for sales. A CTaSC survey, included in the report, notes that the home-center sales channel sources directly, while independent importers and distributors primarily sell to other retailers and installers.

The study, the fifth since 2003, provides an in-depth analysis of the U.S. and Canadian stone industry based on U.S. government statistics and market resources.  Some of the topics that are covered include Trends and Forecasts for the stone industry and the current state of the economy, Sales by Type of Stone, Engineered/Quartz Stone, Manufactured Stone (made of concrete), End-use Markets Trends and Demographics, Economic Factors Effecting Demand for Stone, Imports and Exports, Installers, Retailers, Home Centers, Floor Covering Channels, and Internet Sales Channels.

“In-depth information about the stone industry is very hard to come by,”  said Donato Pompo, CTaSC president. “It’s vital for all of us to know what’s going on in the market and understand how the current state of the economy will affect our business and our future opportunities.”

For more information and pricing on the report, call 866-669-1550 or visit the CTaSC website.

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