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[June 2006]
2005 Figures Released on Italian Ceramic Tile Industry
The Italian ceramic tile industry has reported a fall in output and sales in 2005. The higher average prices in both the domestic and international markets are being eroded by the rising costs of production factors, especially energy and transport. Internationalisation of production has been measured for the first time, revealing an output of 101.2 million sq.m and a turnover of 698.6 million euro. These are just a few of the figures that emerge from the 26th National Statistical Survey of the Italian ceramic tile industry, unveiled during the Assopiastrelle Members' Meeting.The structure of the sector
On 31 December 2005 there were 225 ceramic tile companies operating in Italy, 3 fewer than the previous year, and a total workforce of 29,084 people, down by 773 (-2.46%). A total of 317 factories were in operation (stable relative to 2004) with 697 kilns (24 fewer than the previous year). During 2005, investments totalled 279.5 million euro, 15.89% up on the previous year and corresponding to 5.2% of turnover. The emerging profile is that of a sector which, through gradual rationalisation of its production system, is aiming to eliminate unprofitable activities, to incorporate companies into larger groups and to improve the productivity of individual factories.Production
Production last year totalled 570 million sq.m, 19.2 million sq.m less than in 2004 (-3.26%) as a result of a small reduction in foreign sales, a finer balance between production and sales and strong growth in ceramic production in foreign factories. As regards product types, porcelain tile confirmed its leadership position with 360 million sq.m, equivalent to 64.7% of total production, followed by single fired tile (22.6%) and double fired tile (8.8%). In structural terms, the trade-off continues between white body single fired tile and glazed porcelain tile, while the other product types confirm their role and importance, albeit with lower values.The provinces of Modena and Reggio Emilia accounted for 80% of production and the remaining provinces of the Emilia Romagna region 10%. Other interesting aspects include the steady levels of direct activity (tiles manufactured and sold under the producers' own brand names) and an 18% fall in outsourcing activities, particularly by sales companies.
Turnover and sales
Quantities sold in 2005 dropped to 560.3 million sq.m (-4.01%). Direct sales remained stable at 85.2% of the total, while sales by ceramic producers outsourced to other companies increased to 8.2% (+14.4%). Sales companies handled 6.6% of the total, 38% less than the previous year. As regards destination markets, the 170 million sq.m sold in Italy (-0.72%) corresponds to 30% of the total, while the 390.3 million sq.m exported
(-5.37%) accounts for 70% of sales.At the end of 2005, the Italian ceramic tile industry reported a total turnover of 5.3724 billion euro, up by 0.53%. In absolute value terms, domestic sales amounted to 1.5085 billion euro (+1.40%) and exports 3.8639 billion euro (+0.20%). As regards foreign outlet markets in 2005, the difficulties faced by sales in the German-speaking area (particularly Germany with sales down by 15.5%) were offset by strong expansion in Scandinavian countries and fair growth in France, Italy's second largest export market. As for non-European markets, there has been a sharp downturn in the United States (-9.5%), as well as in Asia and Australia, largely due to fierce competition from producers from the Far East.
The 4.73% increase in average price (+2.14% in Italy and +5.89% abroad) reflects an improvement in the mix of offerings, but it is also a response to rising costs, particularly of natural gas and transport. As a result, not all companies will be able to improve their profit margins and those that do will only do so partially.
Internationalisation
As of 31 December 2005, a total of 18 foreign companies employing 4,133 people were entirely or partially owned by 9 Italian ceramic groups. Italian production abroad totalled 101.2 million sq.m. In detail, 40.5 million sq.m of single fired tile were produced, accounting for 40.04% of the total; glazed porcelain tile amounted to 30.1 million sq.m (29.74%); double fired tile 12.1 million sq.m (12.01%); and unglazed porcelain tile 10.7 million sq.m (10.53% of total production). 77% of production took place in European countries, the rest in the United States. Sales amounted to 99 million sq.m and generated a total turnover of 698.6 million euro.www.assopiastrelle.it
ENDS