Ceramic Category Poised for Opportunity, Says Zwicker

Boston, MA, November 1, 2024-Speaking to Total Solutions Plus attendees at this week's tile industry conference in Boston, consultant Bruce Zwicker said ceramic professionals have a huge opportunity in the market.

He noted that ceramic and LVT are the only two categories that have grown in marketshare over the last 15 years, adding that ceramic's pricing has held up much better than other floorcoverings' amid the current slowdown. LVT's pricing is down around 35% off its peak, he said.

Residential replacement accounts for roughly 57% of U.S. tile sales, with new residential adding another 18%, Zwicker reported. While he forecasts tile consumption will be down by around 8% this year, he expects residential demand to improve in 2025 and continue on an upward trend for several years.

Homeowners have amassed $27.8 trillion in home equity, according to Zwicker. While it's still unclear how much demand the pandemic pulled forward or when interest rates will fall enough to stir more activity, he noted that unlocking that equity will be key.

With imports accounting for around 65% of ceramic tile sold in the U.S.-and with Europe's economy in much worse financial straits-he said those in the business need to have their head "on a swivel" so they can quickly react to market changes, while also "running the playbook."

"If growth is coming in the market, what are you going to do?" Zwicker asked, highlighting buy/sell preparations, new formats and staff retention and training.

Next year's Total Solutions Plus conference will be held October 26 to 18 in Phoenix, Arizona.

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