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© Copyright 2002, Trade International, Inc.
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Hot Stones Today & New Trends for 1995
By: Jeffrey Matthews
In surveying numerous distributors, contractors, and sales
representatives throughout the United States we have concluded that
the market is definitely changing and trends, whether short or long
term, are taking place. Rather than approach an issue of this type by
area, we will state general results that may vary from region to region.
Trends are normally established in key strong stone areas initially
such as Florida, New York, California where the high use of stone and
number of stone companies is most evident. Eventually trends move to
the outlying regions.
COLORS IN DEMAND
When speaking of stones in demand one can either think of them as
names of specific stones or as generally what colors are selling the
most. It is evident from this survey that the most popular colors in
demand today are beige neutral colors, black, green, yellow beige,
wavy granites or mahogany granites with movement (especially for kitchen
countertops).
This general color demand can relate to all dimensional stones.
Specifically if we are to look the most popular stones we would see
consistency in sales in the following types:
Granites
Blacks: Black Absolute, Zimbabwe, Cambrium, Indian Absolute
Greens: Ubatuba types, Verde Lavras, Verde Fonteine
Yellow/Beige: Amarello's, Juparana's
Mahogany: Lilla Gerais, Dakota Mahogany
Or Wavy Granites from Brazil or India
Marble
Blacks: Negro Monterrey, Negro Marquina, Chinese Black
Greens: Taiwan types, Indian Green, Guatemalan
Yellow/Beige: Crema Marfil, Botticino's, German Jura stone
Limestone
Yellow/beige: Spain, France, and Portugal are among the strongest
sellers. Some of the domestic limestones are starting to become
popular such as Weber, Mankato-Kasota, Halquist, Vetter, Beisanz,
and even Indiana to name a few. However, thin tile and affordable
pricing are factors in the growth of these domestic stones.
Slate
In slate it is the black and green slates in the U.S. and from Brazil,
India, Italy, and Spain that are most important. The green stone from
England is also popular. The U.S. slates are starting to increase but
require more promotional efforts.
The Rustic Look
In looking at the trend in stone it appears that rustic is in demand.
This can mean taking sawn stone and putting acid wash on it or perhaps
just going to a honed marble or limestone. For example, the so called
Saturnia or cross cut travertine from the Rome area of Italy is now very
popular and is now in demand from any country producing travertine. It
is being used in tiles of 18" x 18" x 1/2" size up to 24" x 24" x 3/4"
size for all commercial and residential purpose flooring in either sawn
rustic finish or honed and filled. Now it is being demanded in vanity
tops. For the past several years the furniture industry has reflected
this design trend in the need for rustic bases and tabletops in all
products not just stone.
Rustic marble is in demand by designers and architects for commercial
and residential flooring. To this end it allows more products which do
not polish to enter the market place as long as the color is sellable.
Granite is now being specified honed or for exteriors flamed finish.
This trend shows why in many cases limestone is hot and many countries
have expanded to sell this natural product. France, of course, leads the
way but due to their higher end niche other countries such as Portugal,
Spain, Bulgaria, Italy and so forth are all fighting to introduce their
limestone. Other countries will follow suit and during the next few years
we shall see many new limestone's enter the market.
Granite is hot but not so much for commercial as it is for residential
use both in tiles and now in kitchen countertops. The wave for
residential use of stone from medium end price units to especially the
high end residential is what is keeping many stone companies in business.
Wavy granites for countertops are especially in demand. Marble is coming
back for the countertops and we shall see an increased demand for this.
Residentially buyers are mixing stone with ceramic and wood which allows
generally more sales for stone, which would have been predominantly
ceramic. The problem may be, however, as buyers will find out, how do
they maintain this mixed product?
Rustic stones can be seen on the increase and will continue to increase
which is why more and more buyers are looking at slate, quartzite,
sandstone, shellstone or anything that will give that natural look. A
good example of use of rustic is the guillotined travertine being used
on the J. Paul Getty Museum, a mega project in Los Angeles, for about 1
million square feet. Some suppliers are even pushing the rustic tumbled
marble, which can be seen on the Verona Fair exhibition floors.
Some specialty areas are seeing increased demand for patterned floors in
lobbies and homes with logos. Many times this is water jet cutting. Some
special patterns in borders of different colored stones are also being
designed versus the traditional floor in just 12" x 12" tiles.
THE GENERAL 1995 OUTLOOK
The main market in sales for stone presently and foreseen for 1995 is
still residential with a steady smaller use in office buildings and
space, remodeling of offices-banks-hospital renovations, shopping mall
and store floors, and minor governmental type commercial projects.
As far as country trends it appears that countries such as India,
Malaysia, Indonesia, Brazil, Mexico and especially China are becoming
much stronger in their presence of stone in the market and it is
foreseen that their shares shall continue to grow. This only reflects
the declining sales of Italian products to the U.S. market as these
other underdeveloped countries technology expands thus increasing
competition with Italy. Further, the price of stone products from
these countries is very favorable. We should also look forward to
seeing other countries enter the market place such as Russia, Romania,
Bulgaria, the former Yugoslavia, Vietnam, Chile, and Uruguay.
The market still seems to be very price conscious. We should see prices
further reduced in the U.S. market even though generally we will see
European stone costs increase this next year. The U.S. market is
overloaded with suppliers, importers and distributors which increased
tremendously during the 1980s and early 1990s and this has caused so
much competition that we question how profitable it is for many
companies to stay in business. We shall see many companies therefore
close during the next several years and some old line companies get
sold or unite with ceramic or other hard surface (conglomerated stone,
wood flooring, terrazzo, foreign investment) companies. We shall also
see more movement by foreign companies to set up warehouses, offices
and sales representatives in order to do business more directly in
the market place. There is still a cash flow problem in the market,
which affects all companies with slow payments. Many buyers are
shopping stone more and more, which also reflects the market education
on stone. Even for the typical small jobs suppliers are going to get
shopped for lower prices, which in the past was not so advanced or
serious as it is today. It will become more so in the future.
THE CONSTANT NEED FOR MARKETING
Generally across the United States we have found stone buyers who say
that they foresee in 1995 an increase in stone sales from 10 to 25%.
Normally these are serious and good companies who keep up with the market
demand and adjust to its needs. We have also found some of the more
questionable companies who do not foresee increases when asked what
is new in stone they say "nothing". This reflects the situation that
if a company does not survey its customers and change its product mix
to reflect the market demand or does not adjust pricing to compete in
the market place or does no promotion of its company, than we do
understand why it will not foresee an increase in business. The
recession by far is not gone. It lingers with us and the market will
be slow in its recovery. The world dimension stone forecast for this
decade is a steady yearly increase of 5% to 6 % (as reported by Societa
Editrice Apuana 1993, p. 84.)
Obviously, there are segments of the market which legitimately will
not see a marked increase in stone and are still heavy hit by the
recession but they appear to be holding their own. Let us hope that
they too will see the light at the end of the tunnel.
SURVEY USAGE RESULTS
In general, the usage of dimensional stone can be foreseen as:
36.4% flooring
21.2% cladding or walls
15.2% monumental
12.2% kitchen and bathroom vanities & tiles
4.0% furniture (commercial & residential)
The balance 11% is a mix of interior and exterior uses such as
patios, columns, fireplaces, signs etc. These percentages are our
conclusions also supported by the Italian Society Editrice Apuana,
1993 survey. We do not foresee any major changes in 1995 with these
uses or percentages. We are seeing a shift in the market with more and
more ceramic type distributors, retailers, and mass merchandisers ie.
Home Depot adding stone tile to there sales and this will increase the
demand for stone in the coming years.
ANOTHER TREND
The one disturbing trend that we do see is that as prices are being
lowered on the retail or wholesale market so is the so called quality
or selection of stone. We are going to see a lot more commercial select
stone being sold due to its lower pricing than ever before. Many buyers
are not willing to pay the high price for first or select stone. However,
the cliché of "you pay for what you get" will hold true and begin to
haunt a lot of people in the coming years.
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Last Modified on: February, 2002
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