Flooring Replacement Still Dominated in 2015; New Construction Share is Rebounding
In 2015, flooring demand reached $23 billion at the dealer level according to DemandBuilder℠, Principia’s online market share analysis tool. Remodeling and replacement continues to dominate and accounted for 83% of the total but new construction is coming back strong which bodes well for all suppliers and distributors.
Carpet, Hardwoods and Laminates Accounted for 70% of Overall Residential Flooring Demand in 2015
New Construction Mix Has Changed in Recent Years
In new construction, the mix of flooring products is different than replacement. Specifically, carpet has just over one-quarter of total revenues, whereas hardwood & laminate and tile & stone account for 41% and 22% of the total respectively. This mix shift has occurred for several reasons:
- In new construction, when the entire floor plan is covered,there is a broader range of products used, most typically carpet for bedrooms, tile or vinyl for bathrooms, hardwood & laminate or tile & stone for entry and living areas and a variety of products for kitchens.
- The trend for common areas of living rooms, dining rooms and kitchens has been to go bigger often eliminating the dining room entirely and combining the kitchen and family room/living room into an open floorplan. These areas have increasingly used either vinyl or hardwood & laminate as these products are easier to clean, lower maintenance than carpet.
- Vinyl has made a strong resurgence as digital printing has enabled development of realistic wood- and stone-like luxury vinyl tile products that are mar resistant, stain resistant and resilient as well as affording excellent appearance.
In remodeling, carpet still has a dominant share as it is still the floor covering that is most likely to be replaced by current owners to upgrade, refresh the look of a room, improve styling or when readying the home for resale. It is a relatively low cost way to upgrade living quarters and the variety of colors, stain resistance and more recently the continued penetration of softer polyester fibers has renewed interest in this product segment. Hardwood & laminate penetration into carpet replacement application continues but the response by the carpet industry has been strong and carpet will maintain a strong position based on its warmth and feel.