Flooring Industry News April 2022

Flooring inflation at 20%

Consumer price inflation in non-carpet flooring is running at 20%, much ahead of the overall inflation rate of 6.2%.

According to the Office for National Statistics (ONS), the furnishing industry saw record inflation of 14.7 % in February, following a pattern that has seen prices climb every month since July.

Carpets and rugs are almost in line with average inflation at 6.6 percent, while non-textile categories are at 20.1 percent, up from 14.3 percent in January, indicating a growing reliance on import costs

Read the report in The Stocklists.

Chilly summer for costs and confidence

According to industry experts, home furnishing shops are facing a difficult summer of rising expenses and waning customer confidence as a result of a variety of variables affecting the sector’s economy.

Manufacturers are sending out a new wave of price hikes to flooring shops as the pressure from increasing raw material costs, electricity prices, and persistent logistical challenges continues to mount. Supplier price increases ranging from 3% to 19% have been observed across the industry.

Order books in the flooring industry are still busy, but many are still dealing with a backlog of work. However, the future is less certain. Increased energy and labour expenses are pinching all manufacturers, and they’re passing it on after absorbing as much as they can.

Read the report in The Stocklists.

Recofloor reaches major milestone

Recofloor has gathered a total of 6,000 tonnes of discarded vinyl flooring since its inception in 2009 by prominent flooring producers Polyflor and Altro.

The material is recycled into new flooring and traffic calming items once a sustainable pickup service for commercial waste vinyl flooring is provided. Recofloor is an excellent illustration of the circular economy in construction when it comes to post-consumer trash.

Recofloor has collected 6,000 tonnes of unwanted vinyl flooring, reducing 7,038 tonnes of CO2 – the equivalent of removing 1,837 cars off the road for a year.

Read the report in Tomorrow’s Contract Floors.

Flooring sales still surging

Flooring sales continue to rise to new highs, despite more pessimistic predictions for the economy and consumer spending.

According to the latest figures from the Office for National Statistics (ONS), sales in March were up 26.8% from February, 155 percent from March 2021, 160 percent from March 2020, and 105 percent from March 2019.

The statistics indicate a 14-year high for flooring sales, and March marks only the second time that monthly sales have exceeded £280 million.

According to anecdotal evidence, demand flattened off in April, but the intensity of this performance demonstrates the pandemic’s “pent-up demand” order book.

Read the report in The Stocklists.

Consumer confidence “in freefall” says GfK

According to top retail researchers GfK, consumer confidence in buying big ticket products like furniture and flooring has plummeted, with the Major Purchase Index for April falling to minus 32.

“The cost crisis is certainly affecting the purses of UK consumers, and the headline confidence score has plunged to a near record low,” says Joe Staton, Client Strategy Director at GfK. Our personal finances, which have a score of -26, and the broader economy, which has a score of -55, are both worse than they were during the financial crisis of 2008.

“The next year’s personal finance score is similarly lower than the initial Covid shock in 2020. When poor growth and decreasing earnings combine with rising inflation and borrowing rates, consumers will naturally be wary about spending. As seen by the sinking Major Purchase Index — today is not perceived to be a favourable time to buy – Brits are thinking twice about purchasing ” he added.

Read the report in The Stocklists.

FURTHER READING

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