FOCUS ON THE
CONTRACT MARKET FOR CARPETS
In their latest report, AMA RESEARCH present the ever-changing market for contract carpet and share their predictions for its future.
INTRODUCTION
Traditionally, the contract floorcoverings market tends to be less volatile than the domestic market, as the contract sector benefits from a wide range of end-use applications and type of floorcovering used, which helps offset volatility in specific sectors. For example, offices represent a major contract sector but demand fell substantially in 2009-12 but has since recovered strongly, while the healthcare sector has experienced a more difficult period in recent years due to spending cutbacks.
MARKET OVERVIEW Contract floorcovering sales reached a low point in 2011 and was followed by a relatively flat period. In 2014, however, the market began to recover and has since grown by around 7%.
Carpets are the largest product sector in both domestic and contract applications, reflecting a long history
22 | FEATURE
in the UK, and offer a combination of a ‘warm’ feel and good sound insulation. However, competition from other flooring materials has seen carpet’s share of the overall floorcoverings market reduce significantly over the last 15 years. This has also been the case in the contract market where carpet has faced strong competition from alternative flooring materials such as vinyl, wood and tiles.
However, the contract carpet market has performed better than the overall carpet market in recent years. In 2013- 14, the market saw modest growth of around 1%, with higher growth of 3% estimated for 2015. This improved growth has stemmed from a recovery in the new build commercial sector (offices, leisure etc.) and a positive performance in the refurbishment sector for both retail and office space.
In 2014-15, the contract carpet sector has seen some stabilisation in
demand for broadloom carpet, though it remains significantly below levels of a decade ago.
There is also currently a trend towards wider use of colour and texture for all carpet types, with ‘random-lay’ textures and complementary colours in carpet tiles providing zoning opportunities in offices, schools and libraries etc.
In addition, greater focus on slip and trip prevention in the care sector has seen increased demand for specialist carpet products. Product innovations, such as loose-lay carpet tiles and stain resistance, antibacterial coatings and carpets that can be cleaned with bleach, have all assisted in underpinning volume growth.
On the negative side, however, the contract carpet sector continues to experience significant pressure on prices and is also vulnerable to import- penetration, particularly in the tufted sector.
www.tomorrowscontractfloors.com
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