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::: Parquet in Europe SURVAY of Federica Fiorellini
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2008 was
a challenging year
for European
producers: wood
floor consumption
levels dropped
even lower than
expected. But the
Federation’s latest
convention held
in Cracow reminds
us that the good
positioning in the
consumer’s eyes
has not been lost
entirely.
Here are
the statistics
and comments
in regard.
Far be it from us to explain the
effects and repercussions of a
crisis that has struck both the
strongest economic systems on
the planet, economies in the developing
world and even the poorest
nations as well. The world economy
is suffering, and that’s it. But
from Cracow, the venue for the
53rd Fep -Federation of European
Parquet Producers - Convention
held last June 12, a voice of caution
but one with the faintest undertone
of optimism was heard.
The idea was voiced by Dieter Betz,
the federation’s outgoing President
in his welcoming address to his colleague
parquet producers and the
journalists present when he announced
that not all was lost. “Parquet
consumption levels fell more
than expected last year - Betz began
- but our good positioning with the final
consumer is holding firm, and
we’re going to make it”.
Optimism apart, it is evident that
for the next two years European
parquet producers will have to deal with sales volumes clearly
lower than those to which they’ve
become accustomed (and this is
common opinion), and the key to
survival (which is every company
owner’s duty, President Betz reminded)
in everyone’s opinion is
adapting to this situation as soon
as possible.
How? “By cutting prices only when
strictly necessary - the FEP President
urged - because lowering prices does
not increase demand, let’s keep this
firmly in mind. And by making our
companies perform better, capitalizing
on this moment to re-organize
ourselves at both productive and
management levels alike”.
These considerations were also
shared by the new FEP President,
Lars Gunnar Andersen (a Bonakemi
consultant), elected on the occasion.
In the new president’s own words
to its members: “I’ll do everything I
can to defend our interest and help
our companies grow in Europe and
abroad. We’re passing through a difficult
moment, and for this reason
we’ve all got to pull together and
search the horizon for new stimulation
that guarantees a better future”.
::: The woodden floor
market in 2008
With these comments in mind, we
can now take a look at the European
parquet industry’s 2008 figures
presented in Cracow in advance
by FEP.
The data currently available
shows that parquet accounts for slightly
more than 5% of the total
European flooring market.
In line with the estimates made by
the Federation in January 2009,
the figures provided by its members
- who cannot therefore be entirely
surprised - evidence overall
market decline linked to the weaker
performance of the traditionally
stronger markets, the unprecedented
tumult in the financial sectors,
and the sudden drop in local
construction industries.
Production and consumption both
declined in 2008 for the first time
in many years.
Total production in FEP territory
dropped by 15.56% (for 84,725 m2)
to just above the level reached in
2003. The most sudden declines
occurred in Sweden, France, Spain,
and in the rest of Scandinavia
(Denmark, Finland, Norway), the
downswing made its greatest impact
on Germany.
Poland clearly led the way in overall
national production (18.03%),
followed by Sweden
(14.16%) and
Germany (13.03%).
Parquet by type
production remained
virtually the
same as in 2007,
with multilayer increasing
by 1% at
the expense of solid
block (-1%).
Consumption levels
also obviously
dropped, even if
the numbers provided
by FEP members
are less dramatic than the decrease shown by
production figures.
Consumption fell by 9.51% to a level
of 101.547 m2. Significant fall-offs
were recorded above all in Spain,
France, Germany, and Scandinavia;
in countertrend, consumption levels
rose in a number of oriental nations,
and Switzerland as well.
Despite its contraction, the European
nation with the highest consumption
of parquet flooring is
Germany, which absorbs 17.61% of
the product; Spain is evidently experiencing
a moment of decline
(13.85%) even if it continues holding
onto second place, while Italy
is firmly entrenched in third place
and improved its percentage if
market control (12.61%).
Austria is the nation with the highest
pro-capita consumption of parquet
(0.81 m2), followed by Sweden
(0.73 m2) and Switzerland (0.70
m2). In 2008, in the entire FEP area,
also consumption per inhabitant
dropped slightly to 0.25 m2.
Imports remained overall stable
(even if multilayer imports rose by
21.8%), while exports rose from a
total 1,800,000 m2 in 2007 to
2,200,000 m2 in 2008.

::: Estimates for 2009
On the basis of reports from its
member companies, the economic
indicators currently available and
the consultations in course with
European Commission services in
Brussels, FEP believes 2009 will
continue to be a difficult year for
parquet producers. The EU is hoping
for an improvement in the
overall economic during 2010 (recent
developments in the USA already
provide reasons for encouragement), and even if the light at
the end of the tunnel is in sight,
the road ahead is still long and
filled with obstacles.
The Cracow FEP Convention permitted
the following conclusions
to be drawn:
• confidence must be rebuilt (especially
in the industrial context);
• terms of credit must be improved;
• expected growth for 2009: probably
-4% (EU);
• increase in unemployment rate
to around 11% in 2010;
• pronounced increase in the public
debt until 2010;
• inflation temporarily very low
(2nd and 3rd quarters of 2009)
but will begin rising gradually as
the economy improves.

“Although it’s hard to say just when
this fervently desired economic recovery
will begin, the good times
are coming back again” - outgoing
FEP president Betz concludes at
the Convention’s end. “Exactly
when depends on various factors, among
which the speed with which
the European national banks put
their business back in order. Another
is the promptness with which we
all continue proactively to undertake
every measure necessary to
meet the multiple challenges being
posed by the market”.
Parquet is and will remain a highquality
alternative in the flooring sector.
People will always like it because
it’s natural, warm, and authentic. Because
it is perceived as having class -
as conformed in the survey conducted
by o InSites Consulting. Tomorrow’s
challenge can be met by placing
these characteristics to greatest
advantage in stimulating growing
consumer passion towards increased
consumption while also nibbling at
the market shares now held by ceramic
and other types of flooring.
The next occasion to really see if it
will be possible to buck the current
trend and when, will be offered
by the next and 54th FEP
Convention to be held next year in
Rome… In Italy preparations are
already underway.

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