Carpet & Rug Manufacturing
Companies in this industry manufacture woven, tufted, and other types of rugs and carpet using natural and synthetic fibers. Major companies include Engineered Floors, Interface, Mohawk Industries, and Shaw Industries (all based in the US), along with Balta (Belgium), Oriental Weavers (Egypt), and Suminoe Textile (Japan).
Global demand for carpet is increasing due to industrialization and the rapid expansion of middle-class consumer markets in China, India, and other developing countries. Revenue for the global carpet and rug industry will reach about $45 billion by 2021, according to Freedonia.
The US carpet and rug manufacturing industry includes about 270 establishments (single-location companies and units of multi-location companies) with annual revenue of about $9 billion.
Demand for carpeting depends on residential and commercial real estate construction and home sales, which can be cyclical. With many costs fixed, profitability of individual companies depends on their volume of business. Large companies enjoy significant economies of scale in manufacturing and distribution. The US industry is concentrated: the four largest companies account for about 55% of revenue.
Competition comes from providers of other types of floor coverings, including hardwood and ceramic tile. Many carpet manufacturers have expanded into noncarpet flooring products.
Products, Operations & Technology
Most carpeting is made on large tufting machines that use rows of needles to sew loops of nylon thread into a latex backing. The loops are cut to produce
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms