The state of affair of the US Flooring Market

The U.S. floor coverings industry had a mixed year in 2020 but it was able to survive the COVID-19 pandemic and end the year on a healthy note. The first half of the year was plagued by the deep pandemic recession, while demand surged in the second half as home renovation spending and new home construction increased sharply. 

Demand initially benefited from a turnaround in new home construction as the Federal Reserve cut interest rates to historic lows. Low interest rates also resulted in a sharp increase in existing home sales. 

In addition, flooring sales benefited from the increased preference for single-family homes as households searched for increased space for at home work, meals and entertainment. 

At the same time, government stimulus checks caused a surge in personal incomes with few places to spend the money outside of one’s home. As a result, residential improvement construction spending hit record highs. 

Resilient Flooring In 2020 made double digit gains. These sharp gains reflect rising demand for rigid core LVT flooring products. LVT’s share of total floor coverings sales rose to 19.8 percent in dollars and 21.2 percent in square feet in 2020. This is up from 13.6 percent and 13.5 percent, respectively, two years earlier. 

In 2020, LVT sales were driven by the 39.3 percent increase in rigid core LVT sales in dollars, and a 50 percent gain in square feet sales. 

Square foot sales benefited from a 7.7 percent drop in average selling prices. Prices weakened as average import prices declined. Foreign-made products have made significant inroads in the LVT sector since manufacturers in China and South Korea led the development of rigid core, waterproof, and click-installed LVT. 

Chinese manufacturers accounted for about 59 percent of total U.S. resilient flooring sales in 2020.