This study analyzes global supply and demand for flooring and carpets. The following types of products are covered: nonresilient flooring (bamboo, ceramic tile, laminate, stone, wood, etc.), resilient flooring (such as cork, linoleum, rubber and vinyl), and carpets and rugs (textile floor coverings that include braided, hooked, needle-punched and woven carpets and rugs, as well as tufted products like broadloom carpeting, scatter rugs and bath mats, vehicular carpet and artificial grass). End uses for flooring and carpets include residential and nonresidential buildings (both new construction, and improvement and repair), transportation equipment (aircraft, automobiles, buses, train passenger cars, trucks, vans, etc.) and other miscellaneous applications (such as industrial equipment operator compartments and power plant control rooms).

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
World Economic Overview 5
Recent Economic Performance 5
World Economic Outlook 7
World Demographic Overview 10
Population 11
Households 12
Personal Income Trends 14
World Building Construction Outlook 16
Residential 21
Nonresidential 23
World Motor Vehicle Outlook 24
Pricing Patterns 27
Technology Trends 29
Legal & Regulatory Environment 31

III. WORLD SUPPLY & DEMAND 34
General 34
World Flooring & Carpet Markets 35
Regional Demand 35
Demand by Product 41
Nonresilient Flooring 42
Ceramic 45
Wood 46
Laminate 48
Other 49
Resilient Flooring 51
Vinyl 52
Other 53
Carpets & Rugs 55
Tufted 57
Other 59
Demand by Market 60
Residential Buildings 62
Nonresidential Buildings 64
Transportation Equipment & Other 65
World Flooring & Carpet Production 67
International Trade Flows 70

IV. NORTH AMERICA 73
General 73
Supply & Demand 75
United States 79
Canada 85
Mexico 89

V. WESTERN EUROPE 95
General 95
Supply & Demand 97
Germany 102
United Kingdom 107
France 111
Spain 114
Italy 119
Netherlands 123
Belgium 128
Other Western Europe 132
Austria 138
Switzerland 138
All Other 139

VI. ASIA/PACIFIC 140
General 140
Supply & Demand 142
China 147
Japan 153
India 158
South Korea 162
Australia 167
Other Asia/Pacific 171
Indonesia 176
Thailand 176
Taiwan 177
All Other 178

VII. OTHER REGIONS 179
Latin America 179
Brazil 185
Other Latin America 189
Argentina 194
Colombia 195
All Other 195
Eastern Europe 196
Russia 202
Poland 206
Other Eastern Europe 211
Ukraine 216
Czech Republic 216
All Other 217
Africa/Mideast 218
Iran 224
Turkey 228
Other Africa/Mideast 233
Saudi Arabia 239
South Africa 240
All Other 240

VIII. INDUSTRY STRUCTURE 242
General 242
Industry Composition 243
Market Share 246
Nonresilient Flooring 250
Resilient Flooring 251
Carpets & Rugs 252
Product Development & Manufacturing 253
Marketing & Distribution 256
Cooperative Agreements 258
Mergers & Acquisitions 263
Financial Requirements 267
Company Profiles 268
AB Canada, see American Biltrite
Alloc, see Berry Group
American Biltrite Incorporated 269
Armstrong World Industries Incorporated 272
Balta Industries NV 277
Balterio, see Balta Industries
Barrett Carpet Mills, see Kraus Carpet Mills
Beaulieu Group LLC 280
Berkshire Hathaway Incorporated 283
Berry Group 287
Cambridge Weavers, see Oriental Weavers Group
Candlewick Yarns, see Dixie Group
Capella Engineered Wood, see Armstrong World Industries
Carpet Technology, see Oriental Weavers
Ceramica San Lorenzo, see Etex Group
Ceramicas Cordillera, see Etex Group
Ceramiche Refin, see Gruppo Concorde
Collins & Aikman Corporation 291
Congoleum, see American Biltrite
Cooperativa Ceramica d’Imola arl 292
Corporacion Empresarial Roca SA 294
Dal-Tile, see Mohawk Industries
DareGlobal Group Enterprises 296
Desso DLW Sports Systems, see Armstrong World Industries
Deutsche Steinzeug Cremer & Breuer, see Gruppo Concorde
Dixie Group Incorporated 298
Domo NV 300
Ecoloc NV/Lock-Tile Belgium, see RPM International
Eliane Revestimentos Ceramicos 303
Empresas Pizarreno, see Etex Group
Enia Carpet Group AG 304
Etex Group SA 306
Evergreen Nylon Recycling, see Berkshire Hathaway
Fabrica International, see Dixie Group
Fademac, see Etex Group
Fibergrate Composite Structures, see RPM International
Floor Gres Ceramiche, see Florim Ceramiche
Florim Ceramiche SpA 308
Forbo Holding AG 310
Foshan Diamond Ceramics, see Guangdong Fotao Group
Fritz Egger GmbH & Company 314
Gerflor 316
Gruppo Concorde SpA 319
Guangdong Dongpeng Ceramic Company Limited 323
Guangdong Fotao Group Corporation Limited 324
Haima Group Corporation 325
HomerWood Hardwood Flooring, see Armstrong World Industries
IDEAL Group NV 327
Incepa Revestimentos Ceramicos, see Corporacion Empresarial Roca
Interface Incorporated 330
Internacional de Ceramica SA de CV 333
ITC, see Balta Industries
Jiangsu DareGlobal Panel, see DareGlobal Group
Johnsonite, see Tarkett
Keramic Holding AG Laufen, see Corporacion Empresarial Roca
Kraus Carpet Mills Limited 335
Krono Holding AG 339
Kronotex Fussboden, see Krono Holding
Laufen, see Corporacion Empresarial Roca
Lear Corporation 342
Lees Carpet, see Mohawk Industries
MAC Carpet, see Oriental Weavers Group
Mannington Mills Incorporated 344
Marazzi Gruppo Ceramiche SpA 348
Masland Carpets, see Dixie Group
META, see Gruppo Concorde
Milliken & Company 352
MIRAGE Granito Ceramico, see Gruppo Concorde
Mohawk Industries Incorporated 355
Northstate Carpet Mills, see Kraus Carpet Mills
Orders Distributing, see Kraus Carpet Mills
Oriental Weavers Group 362
Pandel, see Interface
Pergo AB 365
Power Dekor Group, see DareGlobal Group
Rieter Holding Limited 368
RPM International Incorporated 371
Shaw Industries, see Berkshire Hathaway
Stonhard, see RPM International
Strudex Fibres, see Kraus Carpet Mills
Suminoe Textile Company Limited 374
Supergres Ceramiche, see Gruppo Concorde
Tangshan Huida Ceramic Group Company Limited 375
Tarkett AG 376
Tescom, see Enia Carpet Group
Texas Tile Manufacturing, see Mannington Mills and Tarkett
TOLI Corporation 381
Unilin Holding, see Mohawk Industries
United States Ceramic Tile, see Corporacion Empresarial Roca
Villeroy & Boch AG 383
WG McMahon Canada, see Kraus Carpet Mills
Other Companies Mentioned in Study 385

LIST OF TABLES

TABLE NUMBER PAGE

SECTION I - EXECUTIVE SUMMARY
Summary Table 3

SECTION II - MARKET ENVIRONMENT
1 World Gross Domestic Product by Region 10
2 World Population by Region 12
3 World Households by Region 14
4 World Per Capita GDP by Region 16
5 World Building Construction Expenditures by Region 18
6 World Residential Building Construction Expenditures by Region 22
7 World Nonresidential Building Construction Expenditures by Region 24
8 World Motor Vehicle Production by Region 27
9 World Flooring & Carpet Pricing 29

SECTION III - WORLD SUPPLY & DEMAND
1 World Flooring & Carpet Demand by Region 38
2 World Flooring & Carpet Demand by Product 42
3 World Nonresilient Flooring Demand by Product & by Region 44
4 World Resilient Flooring Demand by Product & by Region 52
5 World Carpet & Rug Demand by Product & by Region 57
6 World Flooring & Carpet Demand by Market 61
7 World Residential Building Market for Flooring & Carpets by Region 63
8 World Nonresidential Building Market for Flooring & Carpets by Region 65
9 World Transportation Equipment & Other Markets for Flooring & Carpets by Region 67
10 World Flooring & Carpet Shipments by Region 69
11 World Flooring & Carpet Net Exports by Region 72

SECTION IV - NORTH AMERICA
1 North America - Economic Indicators 74
2 North America - Flooring & Carpet Supply & Demand 78
3 United States - Economic Indicators 80
4 United States - Flooring & Carpet Supply & Demand 84
5 Canada - Economic Indicators 86
6 Canada - Flooring & Carpet Supply & Demand 89
7 Mexico - Economic Indicators 91
8 Mexico - Flooring & Carpet Supply & Demand 94

SECTION V - WESTERN EUROPE
1 Western Europe - Economic Indicators 97
2 Western Europe - Flooring & Carpet Supply & Demand 101
3 Germany - Economic Indicators 103
4 Germany - Flooring & Carpet Supply & Demand 106
5 United Kingdom - Economic Indicators 108
6 United Kingdom - Flooring & Carpet Supply & Demand 110
7 France - Economic Indicators 112
8 France - Flooring & Carpet Supply & Demand 114
9 Spain - Economic Indicators 116
10 Spain - Flooring & Carpet Supply & Demand 118
11 Italy - Economic Indicators 120
12 Italy - Flooring & Carpet Supply & Demand 123
13 Netherlands - Economic Indicators 125
14 Netherlands - Flooring & Carpet Supply & Demand 127
15 Belgium - Economic Indicators 129
16 Belgium - Flooring & Carpet Supply & Demand 132
17 Other Western Europe - Economic Indicators 134
18 Other Western Europe - Flooring & Carpet Supply
& Demand 137

SECTION VI - ASIA/PACIFIC
1 Asia/Pacific - Economic Indicators 142
2 Asia/Pacific - Flooring & Carpet Supply & Demand 146
3 China - Economic Indicators 148
4 China - Flooring & Carpet Supply & Demand 152
5 Japan - Economic Indicators 154
6 Japan - Flooring & Carpet Supply & Demand 157
7 India - Economic Indicators 159
8 India - Flooring & Carpet Supply & Demand 162
9 South Korea - Economic Indicators 164
10 South Korea - Flooring & Carpet Supply & Demand 166
11 Australia - Economic Indicators 168
12 Australia - Flooring & Carpet Supply & Demand 170
13 Other Asia/Pacific - Economic Indicators 172
14 Other Asia/Pacific - Flooring & Carpet Supply & Demand 175
(continued on next page)

SECTION VII - OTHER REGIONS
1 Latin America - Economic Indicators 181
2 Latin America - Flooring & Carpet Supply & Demand 184
3 Brazil - Economic Indicators 186
4 Brazil - Flooring & Carpet Supply & Demand 189
5 Other Latin America - Economic Indicators 191
6 Other Latin America - Flooring & Carpet Supply
& Demand 193
7 Eastern Europe - Economic Indicators 198
8 Eastern Europe - Flooring & Carpet Supply & Demand 201
9 Russia - Economic Indicators 203
10 Russia - Flooring & Carpet Supply & Demand 206
11 Poland - Economic Indicators 208
12 Poland - Flooring & Carpet Supply & Demand 210
13 Other Eastern Europe - Economic Indicators 212
14 Other Eastern Europe - Flooring & Carpet Supply
& Demand 215
15 Africa/Mideast - Economic Indicators 220
16 Africa/Mideast - Flooring & Carpet Supply & Demand 223
17 Iran - Economic Indicators 225
18 Iran - Flooring & Carpet Supply & Demand 228
19 Turkey - Economic Indicators 230
20 Turkey - Flooring & Carpet Supply & Demand 233
21 Other Africa/Mideast - Economic Indicators 235
22 Other Africa/Mideast - Flooring & Carpet Supply
& Demand 238

SECTION VIII - INDUSTRY STRUCTURE
1 Flooring & Carpet Sales for Selected Manufacturers, 2005 245
2 Selected Cooperative Agreements 260
3 Selected Acquisitions & Divestitures 264


LIST OF CHARTS

CHART NUMBER PAGE

SECTION II - MARKET ENVIRONMENT
1 World Building Construction Expenditures by Region, 2005 19
2 Relationship Between Per Capita Flooring & Carpet Demand
& Per Capita Building Construction Expenditures 20
3 World Flooring & Carpet Pricing, 1995-2015 29

SECTION III - WORLD SUPPLY & DEMAND
1 World Flooring & Carpet Demand by Region, 2005 39
2 World Flooring & Carpet Demand - Projected 2005-2010
Annual Rate of Growth 40
3 World Flooring & Carpet Demand by Type, 2005 42
4 World Flooring & Carpet Demand by Market, 2005 62
5 World Carpet & Flooring Shipments by Region, 2005 70

SECTION VIII - INDUSTRY STRUCTURE
1 World Flooring & Carpet Market Share by Company, 2005 246
2 World Nonresilient Flooring Market Share by
Company, 2005 251
3 World Resilient Flooring Market Share by Company, 2005 252
4 World Carpet & Rug Market Share by Company, 2005 253