Terrazzo, Tile, Marble Industry 2004 Review, 2005-2006 Preview By Jeffrey Reed

Terrazzo, Tile, Marble Industry
2004 Review, 2005-2006 Preview
By Jeffrey Reed

You need not look any further than the Terrazzo, Tile and Marble Association of Canada to realize, these are good times for our industry. Home building and renovations right across the country continue to hover around record numbers. In fact, every sector - industrial, commercial and institutional  "remains hot from coast to coast. It's a sign of a strong economy, and at the same time it helps fuel a strong economic climate "good news for terrazzo, tile and marble.

The TTMAC, as well as the entire industry, remains proactive, too. Innovative machinery, fresh material designs, new installation techniques, and positive marketing initiatives all contribute to the progress of the terrazzo, tile and marble industry - a growing member of the Canadian construction and renovation industries.

In many communities from Victoria , B.C. to St. John's , Nfld., homebuilding drives the local building permit totals, and acts as an indicator of strength for all sectors of construction. At the same time, strong resale numbers and concurrent renovation trends boost local economies with unparalleled activity. TTMAC members are playing a large role in these active markets.

Canada Mortgage and Housing Corporation (CMHC) forecasts, residential construction will drop to 216,300 starts in 2005, but there's no cause for alarm. In fact, 2004 saw a 17-year high of 233,431 units started. CMHC also predicts, residential construction will continue to be strong in 2006, with 201,100 units forecast.

Both Statistics Canada and CMHC predict, renovation spending will hit $38 billion in 2005, and will thus outpace new home construction totals. This would mark an all-time record for residential renovation spending in Canada , which will see $30.1 billion in home construction in 2005, according to forecasts from StatsCan and the federal housing agency.

Across the board, Canadian municipalities issued a record value of building permits in 2004, with $55.4 billion topping 2003's $50.8 billion by 9.1 per cent. The annual level of permits has now risen for nine consecutive years. While the value of non-residential buildings was $18.7 billion, down just 0.4 per cent from 2003, the commercial, industrial and institutional sectors remain strong from the Atlantic to the Pacific.

What does all of this mean for terrazzo, tile and marble? Combined with the industry's proactive measures, it all adds up to good news for manufacturers, contractors and retailers. And, it's good news for building owners, occupants and residents who are enjoying modern, high-performance, aesthetically pleasing products in their homes and workplaces.

According to CMHC, British Columbia residential resale activity and home prices are the highest in the country, making B.C. the hottest renovation market in Canada . As well, B.C. is expected to lead the country in housing starts, with a 2.1-per-cent increase forecast for 2005. In Vancouver , condominium apartments, townhomes and row-houses are expected to take market share from single-family detached homes. In particular, luxury condominiums are expected to see a construction boost, thanks to an increased number of older move-up buyers and those seeking a maintenance-free lifestyle.

Vancouver-based Bridgewater Tile Ltd., and sister company Eurocan Marble & Granite Ltd., recognize the strong B.C. market. Specializing in high-end residential, high-end multi-family residential, and commercial projects, Bridgewater and Eurocan are enjoying an extremely active west-coast industry, according to company president John Vani.

Also active as TTMAC vice president, Vani says, "I suspect a lot of companies are stating that business is great." He says, “2005 is shaping up as a great year."

"We are full-steam ahead,"explains Vani."We have what we call our call-to-tender. Every morning, when I arrive at the office, traditionally there are three or four faxes from people asking us to tender jobs."

An interesting trend noted by Vani is an increase in popularity of glass tile, making a comeback in a variety of applications.

Vani says the residential market in B.C's lower mainland is "jumping. There are constantly multiple offers when property becomes available for sale." In fact, he sees the area's commercial sector "shaping up as a banner period right through 2008, with the onslaught of the 2010 Olympics (slated for Vancouver )."

From Canada's west coast, to the Atlantic province of New Brunswick , Saint John Tile & Terrazzo Company Ltd. is also enjoying strong business activity, according to co-owner Sam Mercuri.

"Last year was a very solid year,"says Mercuri,"and 2005 is looking strong as well. The economy turns around every four or five years, and right now things are fantastic. There is a lot of competition, mind you, and we need to do everything under the umbrella to be able to survive“ terrazzo, epoxy, protective coatings, carpet, vinyl, some ceramic tile. Our population is small, so we must do a bit of everything.

With luxury homes on the uprise, Mercuri says it appears all homeowners are looking for something "classy and unique “ something different. We see a lot of patterns, and larger ceramic tiles."

With plants in Burnaby , B.C. and Toronto , Ont., Flextile Ltd. remains the largest industry wholesaler in Canada . Mike Boldt, general manager for Flextile's western division, says there are some definite trends to track in terrazzo, tile and marble.

"Overall, the biggest trend in the industry is the size of the tile and stone," explains Boldt. "We've seen sizes go from 12 in. x 12 in. and 16 in. x 16 in. porcelain tile, now up to 24 in. x 12 in. and 24 in. x 48 in. And with many renovations taking place, tile and stone are the ultimate finishes. Old 4 in. x 8 in. quarry tile is being replaced with 16-inch, 18-inch and even larger tiles. The new look is definitely larger."

"Fifteen or 20 years ago, 10 per cent of the typical residences would include tile or stone," says Boldt,"but now its anywhere from 25- to 40-per cent of the homes with surfaces tiled or stoned."

Boldt adds, along with larger tile comes "a different demand for surface preparation, different installation techniques, and different installation products. The bigger marble, granite, limestone tiles are heavier, so the structures have to be able to support those products."

As always, trends are consumer-driven, Boldt says. What's hot? "Designing for a natural look of stone. Even manufactured tile now is manufactured to look like slate or marble."

A fourth-generation stone industry professional, Bill Wright, sales manager at Stone Tile International Inc. in Toronto concurs with Boldt and Mercuri regarding larger, more intricate tiles commanding attention in today's marketplace.

We are seeing larger porcelain tiles, says Wright, and tile that looks like real stone. We are bringing in 12 in. x 36 in., 24 in. x 24 in., 16 in. x 24 in. pieces "there are even pieces 16 in. x 48 in. now. There's a demand chasing the realistic look of custom-cut stone flooring, reproduced as a porcelain tile."

Like Mercuri, Wright acknowledges a very competitive market, here in Toronto . We stay ahead by trying to offer the coolest, newest products. As a result, we enjoy loyalty from designers and architects. It was a good year last year, and it's another busy and exciting year in 2005."

It's important to think outside the box when assessing industry strength" in this case, exploring the industry beyond the 49^th Parallel. In the U.S. , all signs point to a strong terrazzo, tile and marble industry.

For example, attendance and participation at the Coverings trade show, which showcases ceramic tile and natural stone coverings, is stronger than ever, with more than 26,000 industry professionals from world-wide destinations converging at the annual event. The Marble Institute of America (MIA) is holding road show seminars this year in five U.S. cities. In focus: helping attendees grab a greater share of the residential market for natural stone" a strong market, according to the MIA.

These are just two success stories south of the border. Here in Canada , The TTMAC has a lot about which to be excited, according to president Dennis Edissi.

"Our new facility located at 163 Buttermill Avenue in Concord is now complete and we are very proud of the final results," says Edissi. "The Universal floor tester has celebrated its first year at our new location. In that short period of time, its value in assessing a floor assembly suitability for a specific application has been demonstrated over and over again." Edissi is also excited about the soon-to-be published TTMAC Stone Manual, which will be "the most comprehensive stone manual of its kind to be published in Canada ."

As for the terrazzo, tile and marble industry, Edissi says it has "grown tremendously over the years. As a result, the need for a national association such as the TTMAC has never been more important."

When the TTMAC meets for its 62^nd Annual Convention June 15-18 in Halifax , there will be plenty of good news about which to celebrate. A strong industry and strong association are teaming for terrazzo, tile and marble" solid products in a solid construction sector. Any way you cut it, the future looks bright for the entire industry.