Tariffs Don’t Impact Prices for U.S. Granite Tile Market
Retail Tile Outlets Project Growth For 2019
Despite recent implementations of new tariffs and increased import duties, market research studies that the retail tile industry is expected to expand further in 2019 and many years after.
To support this, the demands for home renovations keep soaring and so are the costs for many imported goods from China and other global suppliers. A new round of tariffs was implemented last year, but the impact on natural stone materials like granite and quartz seemed barely noticed.
According to the prevailing estimates of National Association of Home Builders, the new round of tariffs has garnered about $10 billion worth of imported products from China particular to renovation and home building. They indicated that 463 items out of 6,000 imported Chinese products were scattered everywhere in home construction. The tariffs began from 10%, but the increase could go up as high as 25% by December. This anticipated projection would be translated to a $2.5 billion worth of taxes on the construction industry alone as pointed out by David Logan, director of tax and trade policy analysis for various organizations of home builders.
However, market prices for marble and granite stones have not changed for the year 2018 and are expected to remain steady in 2019. Even large-scale tile distributors believe that prices may drop a bit for Q3 and Q4 this year due to expected rise on home remodeling needs. Moreover, this price drop may also be associated with decelerating real estate industry across the United States.
Despite this projection, building contractors and clients still have to establish contracts with escalation clauses for projects that are being planned for six to eight months from now. According to contractors, tariffs have already increased the prices of some basic hardware materials such as aluminum, steel, and lumber. The tax increase has added the cost for floor boards, wall boards, lighting fixtures, and even heating equipment.
David Benson, vice president of sales at Maryland-based Architectural Ceramics, expresses concerns over the recent changes on tariffs and import taxes. His prices for mosaic, patterned tiles and glass tiles will increase as these surface finishes are made outside of the United States. The recent tariffs would also create an impact on the costs of natural stone and ceramic, coming from at least 15% to 20% increase on import taxes.
But still, market research analysts look this matter in a contrasting view. If the performance of the real estate market in the country continues to slow down or remains constant, prices for many hardware materials including tiles will not move.
Granite tiles in the U.S. market
In the modern-day construction, granite tiles have become a popular choice of finishing material for many homeowners and building designers. These natural stone materials are becoming available in a broad range of tile patterns and finishes.
In the Asia Pacific, continuous growth of the building industry serves as the key driver for the retail tile market expansion. While in the United States, on the other hand, inconsistent disposable income and fluctuating real estate market are factors affecting the growth of the tile industry. This will eventually drive the demands for granite tiles and other finishing materials in the succeeding months or even years. Homeowners are eager to take advantage of the current economic situation to build new structures and undertake home remodeling.
Both wall and floor tiles are the most after-sought commodities of the global market for natural stone tiles. Other useful applications are countertop tiles, outdoor tiles, and vanity tops. With regard to demands, granite tiles are accounted for more than 30% of the market share in the construction industry in the last 3 years. Also, this trend is expected to demonstrate a rapid growth rate over the next ten-year forecast, resulting from the influx of natural stone tile applications in new residential buildings.
Home remodeling established a dominant share of the retail stone tile market in 2017 and 2018, attributing to the recovery of the construction industry across various regions in the U.S. In terms of actual usage, the growing market for natural stones has been classified into industrial, newly-built homes, commercial building and remodeling purposes. The change towards the use of highly durable granite tiles and other stones is anticipated to push the tile market industry in global scale for the coming years.
Aside from residential use, there is also a rising demand for granite tiles for commercial applications, particularly in the construction of hotels, airports, and office buildings. Granite tiles are absolutely durable and easy to maintain, which makes it a better cost-effective option than ceramic or wood floorings.
A research report entitled "Granite Market 2019 Revenue Analysis, Challenges Ahead, Industry Insights, Supply, Growth Drivers, Trends, and Forecasts 2019-2028" was recently released to provide vital information for individuals and enterprises interested in the granite industry. The research report presents the current scenario and projected growth of the granite tile industry in the global and regional levels from 2019 to 2028.
This valuable report also indicates several factors which strengthen the market analysis and distribution strategies of different manufacturers around the world. The granite market analysis has been projected in terms of revenue (in U.S. dollars) and volume production (total square meters to be produced) for the next ten years. The report will also show the anticipated impact on these market restraints and drivers pertaining to the demands of granite tiles during the ten-year forecast.
The granite market report will likely benefit potential investors and tile manufacturing companies, especially top officials like regional managers, CEO and company researchers. This provides relevant market data, economic drivers and restraints affecting the granite tile market both international and domestic distributions. Also, you can find valuable inputs related to competitive scenarios and growth opportunities for sales and investment returns.
The report is classified in various segments according to end market users, material application and region where each segment is examined in full details, resenting forecast and market estimates in different regions. The recent study circles the granite market attractiveness, where the analysis can provide useful details like growth rate and market trends of the granite tiles.
This report represents the projected granite market size in highly developed regions such as Japan, China, Europe, and North America. At the company level, you can find statistics about production capacity, trending prices and projected revenues for each supplier covered. The report covers Levantina, SMG, Gem Granites, Cosentino, Rock of Ages, Williams Stone, Antolini, Swenson Granite and Amso International among other popular manufacturers.
The United States imports granite tiles from China, and the ongoing tariff wars may contribute to the present price escalation of various construction materials. Despite the presence of new tariffs, local tile manufacturers in the U.S. are able to compete as the tariffs help level the playing field. Granite tile domestic production is minimal, and the large portion of the U.S. retail tile inventory comes from other suppliers like India and South America. Moreover, a gradual increase of tile manufacturers has been observed over the past three years, helping the American market cope up with inflation and shortage.
TilesforMyHome.com is working hard to provide the lowest prices to consumers regardless of customs duties.
- Tyler W