The evolution of the Spanish industry

Economy & markets
The evolution of the
Spanish industry
At Cevisama less than a year
ago, Spain was celebrating
its ceramic industry's return to
growth, as Isidro Zarzoso,
Chairman of ASCER (the
Spanish tile manufacturers'
association),
announced
that total revenues for the industry had grown by about
6%, to 3,075 million euros in
2015.
Tile production rose by 3.5%
in 2015 compared with the
previous year, to a total of 440
million sq.m (table 1), making
Spain the world's fourth largest tile manufacturer, equal
with Vietnam and behind
only China, Brazil and India
(table 2). Although still a long
way from pre-crisis levels
(Spain's tile output in 2006
was 608 million sq.m), this is
the country's best result in the
past six years.
On the export market, which
is the source of fully 80% of
Spanish tile manufacturers'
total revenues, 2015 saw an
increase of 124 million euros
(+5.3%) on the previous year,
to a total of 2,452 million (table 3). Export volumes, meanwhile, rose by 40 million sq.m
to 378 million (table 1), marking a double-digit increase
of 11.5%. This beats even precrisis levels, as Spanish tile exports in 2006 reached 336
million sq.m.
Imports are now rising again
too: having remained stable
at 6 million sq.m for several
years, they have now seen a
16.7% increase, to 7 million
sq.m.
Lastly, 2015 has confirmed the
upturn in domestic sales
TABLE 1 - MAIN INDICATORS (in millions of sq.m)
2011 2012 2013 2014 2015
Var %
14/13
Production
392
404
420
425
440
3.5%
1.2%
Exports
263
296
318
339
378
11.5%
6.6%
Imports
9
6
6
6
7
16.7%
0.0%
129
109
108
111
121
9.0%
2.8%
Consumption
Source: ASCER data processed by ACIMAC Research Department
that got under way last year,
by showing growth of 9% (as
against 2.8% in 2014) to 121
million sq.m. By value, domestic demand rose by 10% to
630 million euros. According
to ASCER's initial estimates for
2016, this positive trend on the
GRAPH 1 - TREND IN KEY INDICATORS 2010-2015 (millions of sq.m)
Source: ASCER data processed by ACIMAC Research Department
Note: Values for exports and imports are on the right axis
Tile International 3/2016
Var %
15/14
58
domestic market continued
in the first six months of this
year.
Exports: the first nine
months of 2016
Early figures released by ASCER show that ceramic industry exports are flourishing. In
the first nine months of this
year, export sales to a total of
189 countries grew by 4.8%
year-on-year, to almost 2 billion euros (table 4).
Europe remains the largest
market for Spanish tiles, with
market share of 46.4% and a
value of 910 million euros, representing a rise of 66 million
euros or almost 8% compared with the previous year.
This is attributable to growth
on markets within the European Union, which spent an extra 76.4 million euros on Spanish tiles than in 2015 (+ 11%),
for a total of 766 million euros.
The East European market,
by contrast, is still shrinking,
Economy & markets
and saw sales fall by over 12
million euros, representing a
downturn of 10%. At individual
level, four European countries
make it into the top 10 markets for Spanish tiles (table 5).
France heads the league table, with almost 200 million euros worth of imports from
Spain, up 10% on the previous
year. The United Kingdom
stays in third place, with the
value of its tile imports from
Spain rising by 10 million eu-
ros (8.2%) on the same period in 2015. Germany and Italy, meanwhile, are both up
one place, to 7th and 8th respectively: Germany's imports
rose by 9.3%, from 66.1 to 72.3
million euros, while Italy's were
up by almost 13%, from 61 to
69 million euros.
Russia, however, which held
7th place until last year, has
dropped out of the league table completely, in the wake of
a decline in sales of over 20%.
As table 4 shows, the Americas reported the biggest
sales increase by value, with
Spanish tile exports to the region rising by 47.7 million euros to 280 million, representing
a year-on-year increase of
20.5%.
On the strength of this growth,
America has overtaken Africa
in terms of market share, and
now accounts for 14.3% of total Spanish tile exports. The
United States is the main driv-
er of this growth (table 5), accounting for almost 50% of
Spanish tile exports to the
continent as a whole.
Valued at almost 140 million
euros, US imports grew by 29%
compared with the previous
year (up 31.4 million euros).
The USA is also the only country in the Americas to appear
in the top 10 markets for
Spanish tiles, and on the
strength of performance in
the first nine months of the
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TABLE 2 - WORLD’S TOP 10 TILE PRODUCERS (million sq.m)
Country
2010
2011
2012
2013
2014
% of 2015
world
production
2015
Var %
15/14
1
China
4,200
4,800
5,200
5,700
6,000
5,970
48.3%
-0.5%
2
Brazil
754
844
866
871
903
899
7.3%
-0.4%
3
India
550
617
691
750
825
850
6.9%
3.0%
4
Vietnam
375
380
290
300
360
440
3.6%
22.2%
5
Spain
366
392
404
420
425
440
3.6%
3.5%
6
Italy
387
400
367
363
382
395
3.2%
3.4%
7
Indonesia
287
320
360
390
420
370
3.0%
-11.9%
8
Turkey
245
260
280
340
315
320
2.6%
1.6%
9
Iran
400
475
500
500
410
300
2.4%
-26.8%
10 Mexico
210
221
231
230
230
242
2.0%
5.2%
Source: "World production and consumption of ceramic tiles", ACIMAC Research Department - [email protected]
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4 th EDITION
year 2016
WORLD PRO
CONSUMPTION DUCTION AND
OF CERAMIC
TILES
ACIMAC/MECS
TABLE 5 - TOP 10 EXPORT MARKETS
FOR SPANISH TILES (millions of €)
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mic Studies
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TABLE 3 - SPANISH EXPORTS 2014-2015
(millions of €) BY GEOGRAPHICAL AREA
Area
Var %
2015/2014
Jan-Sept
2015
Jan-Sept
2016
Var %
Jan-Sept
2016/2015
1
France
181.4
199.5
10.0%
2
USA
108.4
139.8
28.9%
3
UK
120.4
130.2
8.2%
4
Saudi Arabia
134.5
117.0
-13.0%
2014
2015
1,078.38
1,092.06
1.3%
5
Algeria
95.2
91.5
-3.8%
Asia
565.55
621.23
9.8%
6
Israel
74.0
75.7
2.3%
Africa
420.99
402.14
-4.5%
7
Germany
66.1
72.3
9.3%
America
246.04
312.86
27.2%
8
Italy
61.0
68.8
12.9%
9
Morocco
51.0
60.4
18.3%
10 Lebanon
47.6
56.4
18.4%
Europe
Oceania
TOTAL
17.45
23.88
36.9%
2,328.41
2,452.17
5.3%
Source: ASCER data
Source: ASCER data
Tile International 3/2016
60
Economy & markets
TABLE 4 - SPANISH EXPORTS JANUARY-SEPTEMBER 2015 /
JANUARY-SEPTEMBER 2016 (millions of €) BY GEOGRAPHICAL AREA
Jan-Sept
2015
Jan-Sept
2016
Var %
Jan-Sept 2016 /
Jan-Sept 2015
Europe
844.1
910.0
7.8%
45.1%
46.4%
- EU-28
690.1
766.5
11.1%
36.9%
39.1%
- EU-15
569.0
634.2
11.5%
30.4%
32.4%
- Eurozone
464.3
521.4
12.3%
24.8%
26.6%
- EU new members
121.2
132.3
9.2%
6.5%
6.8%
- Eastern Europe
129.7
117.3
-9.6%
6.9%
6.0%
Asia
476.6
473.8
-0.6%
25.5%
24.2%
- Middle East
Area
% of Total
Jan-Sept 2015
% of Total
Jan-Sept 2016
412.4
406.0
-1.6%
22.1%
20.7%
- Far East
41.0
43.2
5.4%
2.2%
2.2%
- South East Asia
19.9
19.3
-3.0%
1.1%
1.0%
America
232.3
280.0
20.5%
12.4%
14.3%
- NAFTA
145.8
188.5
29.3%
7.8%
9.6%
- USA
108.4
139.8
28.9%
5.8%
7.1%
- Central America
45.5
56.2
23.5%
2.4%
2.9%
- South America
41.0
35.2
-14.0%
2.2%
1.8%
Africa
299.1
277.2
-7.3%
16.0%
14.1%
- North Africa
196.0
184.4
-5.9%
10.5%
9.4%
17.8
18.7
5.1%
1.0%
1.0%
1,869.9
1,959.6
4.8%
100.0%
100.0%
Oceania
TOTAL
Source: ASCER data
year, has become the world's
second largest market for
Spanish exports, up from
fourth place, having leapfrogged the United Kingdom
and Saudi Arabia. Exports to
Central America have also
risen (+23.5%), while those to
South America have fallen
from 41 to 35.2 million euros
(-14.0%), mainly due to downturns in Brazil and Colombia.
Although overall volumes re-
main low, exports to Oceania
have also increased, from
17.8 to 18.7 million euros
(+5.1%).
Sales to all other geographical areas, however, are down.
Asia, the second-largest market for Spanish tiles (24.2%),
saw a downturn of 0.6% in the
first nine months of 2016,
equating to a fall in value of
2.8 million euros.
At regional level, only the Far
East reported an increase in
sales (5.4%), from 41 to 43.2
million euros, whereas exports
fell slightly in South-East Asia
(-3%, from 19.9 to 19.3 million
euros).
Exports to the Middle East
also dipped, from 412.4 to 406
million euros (-1.6%). In this
area, the value of imports to
Saudi Arabia alone fell by
17.5 million euros (-13%),
causing the country to drop
61
two places to 4th in the top 10
export markets (table 5).
There was good news from Israel, however, which held
onto 5th place thanks to an
increase of 1.7 million euros
(2.3%). And exports to Lebanon rose from 47.5 to 56.4 million euros, bringing the country into the league table at
number 10.
Africa, however, saw a large
fall in exports in the first nine
months of the year, amounting to a loss in value of 22 million euros (-7.3%). Part of this
downturn is clearly attributable to the contraction of major North African markets
such as Algeria, Libya, Egypt
and Nigeria.
The Maghreb as a whole saw
a drop of 11.5 million euros,
equating to 5.9%. At individual level, sales fell by almost 4
million euros (-3.8%) in Algeria, although the country still
holds onto 5th place in the
top 10 export destinations for
Spanish
tiles.
Morocco
bucked the trend and reported an 18.4% (9 million euro)
increase in imports year-onyear, from 51 to 60.4 million
euros, moving the country up
one place in the top 10.
5
Next page: Mr. Zarzoso, Ascer's Chairman, talks about
the Spanish ceramic tile industry
»»
Tile International 3/2016
Economy & markets
Isidro Zarzoso
We asked Ascer’s Chairman, Isidro Zarzoso, what he thinks of the performance
of the ceramic industry in 2016
Isidro Zarzoso: The figures for the first nine months of
the year show growth in exports of almost 5% compared to the same period of 2015. Following strong
performance in the first quarter of the year, we saw a
slowdown in the second quarter, followed by a new
upturn. Exports to the European Union, our main foreign market, have remained basically stable (+11%),
while negative performance in areas such as the
Middle East (-1.5%) and the Maghreb (-6%) have reduced the average of total exports, as has also been
the case for several years in Eastern European markets (-9.6%). As well as keeping an eye on these
countries, we need to pay careful attention to the figures for the next few months to get an idea of how
our industry might be affected by the slowdown in
the European Union and the consequences of Brexit. On the plus side, direct sales to the United States
are still growing at a good pace (+29%), and major
markets like France (+10%), the United Kingdom
(+8%), Germany (+9%), Italy (+9%) and Morocco
and Lebanon (both +18%) have also reported strong
performance.
Tile International: What were the main problems
faced by Spain’s ceramic industry?
I. Zarzoso: The main difficulties for our manufacturers
derive from the fiercely competitive climate in the
market and an increase in world production, both of
Tile International 3/2016
which put up high barriers to
trade and make it difficult to operate on an even playing field.
Other European manufacturers,
like Italy, face similar difficulties, so
we need to work together, even if
that means applying customs duties to non-EU imports, so as to reestablish a situation of fair competition.
Our domestic market is still struggling to shake off its stagnation,
with annual growth limited to a
few percentage points, although
it's worth bearing in mind that
we're starting from a very low
baseline as a result of the crisis. To
boost this recovery, consumers
need direct aid, and other steps
should be taken to encourage
the renovation of homes. However, although the domestic market
is still a long way from its pre-crisis
values, it remains our main market and accounts for 20% of total
revenues.
Tile International: Which areas
62
have seen most growth?
I. Zarzoso: As I mentioned earlier,
the strongest growth has come
from the United States in 2016, putting the US in second place in the
league table of biggest importers
of Spanish ceramics. But Europe is
still our natural market, and accounts for 46% of exports. That's
why we are urging the Spanish
Government to improve rail links
with all countries around the Mediterranean, in order to reduce the
time and cost of getting our products to European markets.
Tile International: What are your
forecasts for the end of 2016?
I. Zarzoso: On the basis of the
data I have at the moment, 2016
should close with growth in exports of 5%. Sales on the domestic
market are still rising, even though
they still have a long way to go
before they get back to pre-crisis
levels.
As for production, lastly, we're expecting growth of about 10%. 5
Economy & markets
Winners of ASCER’s 15th
Tile of Spain Awards
The panel of judges for the Tile of Spain
Awards of Architecture and Interior Design, chaired by architect Gonçalo Byrne, met on 24th November in Castellón
to decide the winners of the 15th edition.
The important recognition organised annually by ASCER, comes this year to its fifteenth edition, confirming itself as the
major event on the Spanish and international architecture scene.
Winner of the Architecture category is
‘Two Homes in Oropesa (Toledo) by
Paredes Pedrosa Arquitectos. The use
of ceramic tiles was not limited to a mere
covering or finish, but instead, as a material capable of enveloping the project,
adding a unique appearance.
In this category, the panel also decided
to give a Special Mention to ‘MM House,
Palma de Mallorca’ by Ohlab, a home
designed in accordance with the Passivhaus standard in order to guarantee
optimum energy efficiency.
First prize in the Interior Design cate-
gory went to ‘TABA espazioa’ by Ibon
Salaberria, a space that includes a coffee shop, pizza restaurant and wine bar
situated on the ground floor of
Tabakalera, San Sebastian’s new International Centre for Contemporary Culture. The jury decided to give a Mention
to ‘Casa#77’ by Raúl Montero Martínez
and Emilio Pardo Rivacoba, a project
to renovate an apartment measuring
just 51 m2 situated in the loft of a housing block in Pamplona’s historic quarter.
Ibon Salaberria
Paredes Pedrosa Arquitectos
63
Tile International 3/2016