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[December 2009]
Welcome Year-End For Italian Tile Industry
Confindustria Ceramica (Modena) has reported that the worst year in the history of the Italian ceramic tile industry comes to an end with total sales of 406 million square metres, down by more than 19%. The year has seen major cost cutting and significant investments in technology to improve international competitiveness. The 2010 forecasts point to steady volumes (+0.3%) and stable exports to the USA. Opportunities in new markets centre on Asia and North Africa
In 2009, the Italian ceramic tile industry’s annus horribilis, the global financial crisis and the downturn in the real estate sector in many countries led to a slump in economic activity and a consequently a fall in consumption of ceramic tiles at a world level. The crisis prompted ceramic companies to adopt various forms of social shock-absorbers in order to decrease output and cut back on warehouse stock. These are just a few of the factors that emerged during a conference held at Confindustria Ceramica’s headquarters entitled ‘Prospects for the building sector and the ceramic industry in 2010’. The conference saw the presentation of a survey of ceramic companies’ production costs conducted by the association’s Studies Centre, an analysis of the sector’s economic and financial situation conducted by Banca Popolare dell’Emilia Romagna, and the Confindustria Ceramica – Prometeia forecasting report on world ceramic tile consumption.
Sales in the current year totalled 406 million square metres (-19.4%), while production has been cut back proportionately allowing for a significant reduction in stock of finished product, equivalent to 19% of the stock registered at the end of 2008. A total of 122 million square metres of tiles were sold in Italy (-19.1%) and 286 million square metres were exported (-19.6%). The loss in turnover amounts to around €1 billion compared to the €5.5 billion of 2008, whereas significant investments have been made in new technologies (€304 million).
According to the forecasting report, volumes will remain essentially stable next year. Production will remain steady (+0.3%) and total sales are expected to amount to 394 million square metres, consisting of 106 million square metres of sales to the domestic market and 275 million square metres of exports. The situation is expected to vary according to the markets, with a fall in Europe of between 4% and 5% offset by stability in North America (+0.4%), the Middle East and North Africa.
Further growth may be achieved by exploiting the quality of Italian products, the strength of the ceramic district and a stronger presence in more buoyant markets such as Asia, the Middle East and North Africa where ceramic tile consumption is expected to grow.
ENDS