Signs of Improvement in The Wall and Floor Tile Industry Will Not Appear Until 2012

In its latest report MBD "The UK's Ceramic Tile Market" indicates that signs of improvement in the wall and floor tile industry will not appear until 2012. In 2010, the UK market for ceramic tiles is believed to have declined by 8% in volume terms, to 51.7 million m². This is expected to consolidate strong declines of 21% and 23% recorded in 2008 and 2009 respectively. Demand for ceramic tiles is strongly linked to the construction market, in particular in the private and public residential sectors. However, as new housing construction has declined since 2008 due to deteriorating economic conditions this has resulted in reduced demand for ceramic tiles. Increased pressures on household finances, and the tighter lending criteria imposed by banks, has also exerted a downward pressure on the DIY market during the latter three years of the review period, thus negatively affecting demand for ceramic tiles. In 2011, the UK market for ceramic tiles is projected to decline by a 3% to 50.1 million sqm. This is anticipated to be followed by annual increases in the subsequent four years of the forecast period, with annual growth levels expected to increase from 1% to 9%. The anticipated decline during 2011 is a reflection of the continued economic uncertainties along with the increase in VAT, although conditions are expected to improve. The stronger growth predicted from 2012 onwards is dependent on a stronger economic development and an upturn in new house building activity. Overall, MBD forecast the UK market for ceramic tiles to increase by 19% between 2010 and 2015. In 2011, the glazed sector of the UK ceramic tiles market is expected to demonstrate a decline of 5%. However between 2012 and 2015 sales are expected to increase year-on-year, culminating in an overall increase of 16% compared with 2010. This represents a recovery period, following the economic downturn that negatively affected the UK ceramic tile market in recent years. Contract sales of ceramic tiles are forecast to increase throughout the forecast period, reflecting the slow apparent recovery of the house building. Indeed, sales are expected to reach 19.6 million m² in 2015, equivalent to an overall increase of 34% compared with 2010. With the exception of a projected 3% decline in 2011, the volume of imports of ceramic tiles is expected to increase throughout the forecast period to a peak of £55 million (at 2010 prices) in 2015. This is equivalent to a cumulative increase of 18% compared with 2010. Source: tilezine.co.uk