U.S. consumption

Annual U.S. consumption of floor and wall tile increased irregularly from 228 million square feet in 1955 to 396 million square feet in 1964, an annual average increase of 6.3 percent. During this period consumption of mosaic tile increased from 41 million square feet to 104 million square feet, an annual average increase of 10.9 percent; consumption of wall tile increased from 187 million square feet to 292 million square feet, an annual average increase of 4.5 percent. In 1964 consumption of mosaic tile accounted for 26 percent of total consumption of floor and wall tile compared with 18 percent

in 1955.

U.S. consumption of floor and wall tile was slightly higher in 1965 than in 1964, then declined in 1966 and 1967, amounting to 341 million square feet in the latter year. Such consumption increased in 1968 and 1969, amounting to 413 million square feet in 1969 (table 3). Annual consumption of unglazed mosaic tile declined from 50 million square feet in 1965 to 43 million square feet in 1968, then increased to 46 million square feet in 1969. Consumption of glazed mosaic tile fluctuated between 39 million and 52 million square feet between 1965 and 1968, then increased to 65 million square feet in 1969 (table 4). Consumption of wall tile declined from 297 million square feet in 1965 to 258 million square feet in

(table 5). Wall tile accounted for about 75 percent of total consumption in each year (table 6).

The overall upward trend in annual consumption from 1955 to date resulted from several factors: (1) extensive promotional efforts by domestic tile producers; (2) increase in the number of bathrooms per housing unit; (3) increased use of tile as an architectural medium on both interior and exterior walls; (4) development of simpler installation methods in the mid-1950's; and (5) increased availability of imported tile, principally from Japan. The declines in consumption in 1957, 1960-61, and 1966-67 were accounted for partly by the declines in housing starts and new residential construction in those years (table 7).

U.S. imports

Since the middle 1950's, annual U.S. imports of floor and wall tile have increased greatly. Such imports totaled 16 million square feet in 1955, 63 million feet in 1960, 135 million feet in 1965, and 159 million feet in 1969. As a percent of apparent consumption, imports rose from an annual average of 11 percent during 1955-59 to 35 percent during 1965-69 (table 3).

As noted earlier, the floor and wall tile market in the United States may be divided into two broad sectors--wall tile and mosaic tile. The impact of imports upon the two sectors of the U.S. tile market has been different. Imports of wall tile have supplied a

smaller share of the U.S. wall tile market than that supplied by imported mosaic tile to the U.S. mosaic tile market. During the 5-year period 1965-69, imports of wall tile, expressed as a percent of U.S. wall tile consumption, ranged from a low of 21 percent in 1967 to a high of 29 percent in 1968 (table 5). On the other hand, in the same 5-year period, imports of mosaic tile, as a percent of domestic mosaic tile consumption, increased from 63 to 68 percent. When distinction is made between unglazed and glazed mosaics, additional trade patterns emerge. During the same 5-year period, imported unglazed mosaic tile decreased from 34 to 26 percent in 1967 and 1968 and increased in 1969 to 28 percent of apparent U.S. consumption, while imported glazed mosaic tile rose from 93 to 97 percent of consumption (table 4). Imports of glazed mosaic tile have virtually dominated a growing separate and distinct market and also compete with other types of tile and with nonceramic floor and wall coverings.

Although Japan is overwhelmingly the most important supplier of floor and wall tile to the U.S. market, its share of the quantity of U.S. wall tile imports during 1965-69 decreased--from 71 percent in 1965 to 49 percent in 1969 (table 9). During this period, the United Kingdom increased its quantity share of U.S. imports of wall tile from 10 percent in 1965 to 24 percent in 1969; Italy, correspondingly, from 5 percent to 6 percent. Japan supplies virtually all U.S.

Although imported floor and wall tile are sold widely throughout the United States, a large share is marketed in large metropolitan areas. While such areas are estimated to have received nearly 40 percent of domestic tile shipments in 1966, they are also estimated to have been the market for about 80 percent of imported tile shipments. An examination of the weighted average prices received by domestic producers and importers indicates that imported tile was lower priced than domestic tile in the U.S. market. In 1966 the weighted average price of domestic unglazed mosaic tile was 45 cents per square foot compared with 29 cents per square foot for imported Japanese tile; the price for standard grade domestic wall tile was 40 cents per square foot compared with 30 cents per square foot for Japanese wall tile. However, in the large metropolitan areas where the bulk of the imported tile has been sold, the price-spread has not been so pronounced. (See the later section on prices of domestic and imported tile.)

In past years, importers have had to cope with several problems. Most importers have had to anticipate their demands several months in advance. Generally the Japanese producers manufacture tile only against firm orders. Also, Japanese producers generally accept

Prices charged U.S. importers by Japanese manufacturers and exporters were not available because Japanese suppliers resorted to rebates, allowances, and other discount pricing practices. The effect of these practices was not reflected in official import statistics.

orders only when accompanied by letters of credit, inhibiting opera

tions by small importers.

More recently, to increase availability, the larger importers have established warehouse facilities in which standard items are

stocked. In recent years several companies have made arrangements with Japanese trading companies to buy tile on a credit basis.

Annual U.S. shipments of domestically-produced mosaic tile fluctuated within narrow limits between years 1955 and 1964; annual shipments of wall tile, however, increased irregularly during this period. Since 1964, as indicated in the following tabulation, annual shipments of mosaic tile have been static while those for wall tile declined from 1965 to 1967, but then increased in 1968 and 1969 (in millions of square feet):

Yearend inventories of mosaic tile held by U.S. producers, as a percent of annual sales, increased from 31 percent in 1963 to