The ceramic tile market struggled through another 11 months as several key issues limited sales growth. The housing market continued to stagnate, for example, which remains one of the most important factors affecting the health of the flooring market—ceramic tile included. The residential market, in particular, took a hard hit as consumers chose to stay put rather than buy homes at elevated interest rates. Those looking to renovate also dwindled as the cost to borrow money continued to remain high.
Industry experts agreed, this lag in the housing market drained demand for tile. “The decline is due in part to the struggling residential market,” Eric Astrachan, executive director, Tile Council of North America (TCNA) told FCNews. “According to the National Association of Home Builders (NAHB), new home starts, which are closely linked with tile consumption, will be at 1.34 million units for the year, down 5.5% from 2023. This decrease is due largely to affordability concerns caused by high interest rates, inflation, labor issues and material shortages and high costs.”
Indeed, labor is another major struggle the industry is currently facing, and tile has been hit hard by rising costs and a lack of qualified laborers for the task. With easier-to-install options—namely LVP and laminate—available at their fingertips, both consumers and retailers are finding it difficult to swing a tile sale. “Alternatives like luxury vinyl tile and wood-look products are gaining popularity among consumers who appreciate their aesthetic versatility and easier installation,” Bart Bettiga, executive director, National Tile Contractors Association (NTCA), told FCNews.
It’s also hard not to point to consequences of a U.S. election year. Most consumers have held onto their purse strings—as did some suppliers—in order to see how the dust would settle.
In the end, category experts agree the U.S. ceramic market will be down mid-to-high single digits in sales—slightly less in volume—when the calendar finally reads 2025.
Housing has its impact
When it comes to housing, several hurdles have kept tile sales down. However, suppliers agree the lag in new residential and residential remodel due to high interest rates are at the crux of the issue. “High interest rates have compromised both new residential and residential remodel projects in 2024,” explained Raj Shah, co-CEO, MSI. “Homeowners have elected to stay in place due to their mortgage rates in the 3% range, while home buyers decided to postpone purchasing their dream homes due to historically high home prices.”
Scott Maslowski, senior vice president of sales, Dal-Tile, agreed, also noting the impact of high interest rates. “With interest rates being high, tile’s been impacted—probably no different than any other surface in the business, but the market’s been contracted because of this. The residential remodel side of the business has been significantly impacted as consumers have stayed on the sidelines as rates have been very high, so people are not taking equity out of their house to remodel. Right now we’re optimistic with the first rate cut, but as of today, it’s been very, very slow as people are waiting for the rates to drop further.”
However, not all hope is lost. Rich Rose, corporate chief operating officer at Emser Tile, noted that the 2024 housing market has brought both challenges and opportunities. “With rising interest rates affecting budgets, homeowners and developers are seeking materials that offer strong returns, allowing us to highlight the durability and longevity of tile.”
Organizations like the TCNA and NTCA agreed, also noting the importance of promoting the benefits of tile for its success. “Organizations like TCNA and NTCA are promoting awareness of ceramic’s long-term durability, quality and design flexibility to help set it apart from competing materials,” Bettiga said. “By educating consumers on these benefits, we aim to highlight ceramic’s lasting value compared to short-term alternatives.”
Tackling the labor crisis
It’s no secret that the industry is dealing with a shortage in labor that has been so ongoing and so impactful that it’s been labeled a crisis. Tile, of all the flooring materials, has perhaps been the most heavily hit as most tile installations—and all successful ones—require a highly skilled and trained workforce.
“While ceramic and tile are long-term, durable solutions, the industry’s persistent shortage of skilled installers can affect both the quality of installations and the accessibility of ceramic tile for consumers,” NTCA’s Bettiga said. “While ceramic tile remains a favored choice, ensuring quality installations is paramount. That’s where training and recruitment come into play. The NTCA and its partners are working to provide training and education to increase the number of qualified installers in the marketplace, as well as to raise awareness on the importance of selecting qualified tile installers.”
TCNA’s Astrachan agreed, adding, “The installer shortage is exacerbated as the industry grows in manufacturing capacity, particularly in the state of Tennessee.”
To that end, both organizations have been trying to tackle the crisis by investing in training and education across the country—particularly in Tennessee. “TCNA and the NTCA are assisting with an initiative to potentially develop TCAT programs that incorporate tile installation curricula,” Astrachan explained. “Furthermore, the University of Tennessee-Martin has expressed interest in working with TCNA and tile manufacturers to identify collaboration opportunities between industry and academia to support science and engineering vocational needs in factories. Also, the Tennessee Dept. of Economic and Community Development has expressed interest in promoting tile manufacturing in general, raising awareness around well-paying and technologically advanced career opportunities, and high- lighting the significance of tile to the Tennessee Valley region and its influence on overall tile industry growth.”
Innovation incentivizes the sale
Suppliers and industry experts agree that in order to bring the value proposition of tile into focus frequent innovation needs to remain a priority.
“Innovation is at the forefront of strengthening ceramic’s appeal in the U.S. market,” NTCA’s Bettiga said. “From advancements in design capabilities, such as larger formats and digital printing for lifelike textures, to technological improvements in durability and ease of maintenance, ceramic tile is evolving in ways that align well with consumer preferences. New anti-slip and antibacterial technologies, for example, are adding value to ceramic products by making them even more suitable for modern lifestyles. These innovations provide practical, functional advantages that are increasingly in demand.”
In the last year suppliers have tackled this need for innovation head on. Providing consumers and their retail partners with a variety of design-forward and tech-driven products aimed at luring the consumer back to truly sustainable and durable products like tile.
“Innovation is indeed a crucial factor in enhancing the value proposition of porcelain/ ceramic tile for U.S. consumers,” MSI’s Shah said. “At MSI, we see innovation as essential, not only to keep up with trends but to lead the flooring market in the U.S. Through continuous advancements, we’re able to offer products that excite both sales reps and customers. Without innovation, it would be challenging to maintain interest and enthusiasm, so we focus on constantly introducing new features and designs that elevate the market.”
MSI’s latest innovation in the porcelain and ceramic category is the introduction of its 3D collections: Cordova and Malahari. These collections leverage advanced 3D Ink technology, a breakthrough designed to bring superior realism to tile surfaces, replicating the intricate details and textures of natural materials.
“That’s the great thing about tile—it’s a fashion forward product,” noted Daltile’s Maslowski. “It’s always been a market leader in regard to size, design, innovation—whether it be something like StepWise or adding Microban. So there are always innovative things happening, and that’s going to continue, I believe, to differentiate us from other choices that someone may have.”
Daltile’s latest innovation is what Maslowski calls a reveal 3D synchronized structured. “What that does is it allowed us to put 3D visuals and structured visuals onto tile with a 3D feel,” he explained. “It’s been an eye pleaser and a game changer. We’re very excited about that.”
For Emser, several emerging technologies are set to drive future tile innovation, providing consumers with more options and enhanced functionality, including smart tiles, digital printing for customization and advanced coatings, according to Rose.
“For instance, smart tiles may incorporate features like integrated heating systems, temperature sensors or embedded lighting as seen in Emser’s Radiant collection for floors and walls. These advancements have the potential to redefine the role of tiles in both residential and commercial spaces, offering new possibilities in design and utility. Several innovative tile options are gaining popularity, including extruded porcelain, R11 anti-slip finishes and antimicrobial treatments. Emser Tile offers products in each of these categories, particularly through our high-end Enhance by Emser Tile collection.”
Sustainable design is another space in which innovation in tile can thrive and manufacturers like Crossville are taking that route when bringing value to its customer base. Take its new Argent 2.0 line, which is made in Tennessee through Crossville’s EcoCycle Tile Process. It contains a minimum of 4% third-party recycled content and is Green Squared Certified. What’s more, as with all Crossville manufactured products, this collection is carefully and responsibly manufactured in the USA and is the company’s latest carbon neutral product line.
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