Friday, February 19, 2016

Recovery in the UK Contract Floorcoverings market in 2014/15

In 2014 and 2015, the contract floorcoverings market began to recover from a relatively flat period experienced in 2012-13, and growth in 2015 was estimated to have been around 4%, according to a report recently released by AMA Research. This performance was underpinned by strong growth of 7% in the floor tiles sector and by returning confidence in the commercial construction sector. The contract flooring market tends to be less volatile than the domestic market with more steady market conditions and overall demand within the contract sector is dependent on levels of business confidence, investment and growth of commercial new build and refurbishment work.
The contract floorcovering market has changed significantly over the last decade in terms of both products used and specification levels. Key to this change has been the move away from carpet to ‘smooth’ floorcoverings with more integrated use of different types of flooring materials within a single installation. Design and aesthetics have also become increasingly important features in recent years, with contrasting colours and textures also used to provide differentiation between locations.
“There has been little change to the contract floorcoverings product mix over the last 2-3 years, with carpet retaining the largest single share followed by vinyl, wood and floor tiles” said Andrew Hartley, Director of AMA Research. “Modular floorcoverings have become more prominent in recent years. Initially associated with carpet tiles, floor tiles and laminates, this trend has expanded to include vinyl tiles - particularly luxury vinyl tiles - and more recently, linoleum tiles.”
Contract carpets have faced significant competition from smooth floorcoverings but enjoyed estimated growth of around 3% in 2015, underpinned by higher refurbishment and new build work in the private retail and offices sectors. The contract vinyl market has performed better than both the overall vinyl market as well as other contract floorcoverings materials in recent years. Contract vinyl has been at the forefront of product innovation with the development of a wide range of sector specific products, and the market has also benefited from greater specification of slip resistance and safety flooring in key end-use sectors, including health, education, entertainment & leisure.
Demand for wood flooring in the contract sector reached a low point in 2011 but the recent trend has been upwards with growth of 12% to 2015. The sector continues to be affected by strong competition from other smooths, but wood floorcoverings have benefited from the trend for the mixing of flooring types.
The contract floor tiles sector was affected by the recession but experienced less severe decline than the domestic floor tiles sector, and good growth in 2014 and 2015 has been due to higher demand from sectors such as hotels, retail, leisure and offices. The trend for larger format floor tiles and increasing adoption of higher value porcelain tiles, particularly stone effect designs, have all helped to underpin value growth.
Prospects for the contract floorcoverings market remain positive into the medium-term, with annual value increases of around 3% currently forecast to 2020. The forecast is based on the strengthening of the recovery for new build and refurbishment work in key private commercial construction sectors, but tempered by forecasts of flat or lower demand from some public sector end-users.
The product mix for contract floorcoverings is unlikely to change significantly due to the number of end-use sectors, the range of sector specific products and the propensity for the replacement of ‘like with like’, with carpet set to retain its leading share.   

The ‘Contract Floorcoverings Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

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