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United States Dimensional Stone Statistics Interpreted by Jeffrey
Matthews of Trade International, Inc. From Data Supplied by the
U.S. Department of Interiors Bureau of Mines Feb. 22, 1995
By: Jeffrey Matthews
The Dimension Stone Imports Into the United States
Granite
To simplify matters we can look at the totals of imports in the granite
industry as that which is rough, stone articles, and worked granite.
The statistics sheet attached (Table 7) shows in more detail the statistics
in thousands. The attempt here is to be general and to show trends.
Brazil in 1990 represented only 2.6% of the granite imports whereas
in 1993 it represented about 11.9%. This is a marked increase in
demand for Brazilian granite. The main reason for this is the shift
from commercial to residential granite usage in the United States.
Residential demand has increased especially for kitchen countertops.
The wavy or movement in the granites from Brazil are well known.
The increase in production, new quarries, improved manufacturing,
promotional efforts of Brazilian companies and the reasonable pricing
for granites from Brazil have all helped the sales of Brazilian
granites. Further, the introduction of Brazilian producers having
their own warehouses specializing in Brazilian stones has helped
to educate buyers, make goods more readily available and priced
such that the consumer can purchase the granite. If Brazilian producers
keep on introducing more granite and opening more warehouses in
the areas demanding granite they shall continue to see growth in
the U.S. market.
Canada, which is a country of tremendous potential of quarried
granites, and well known for its production of tile, slabs, and
cut to size work has been able to maintain its share of the declining
granite market. New granites have been introduced as well as new
producers. Presently as in 1990 they still have a 13.3% share of
the market. In general pricing from Canada has not increased in
5 years thus making what granites they produce still affordable
to the U.S. buyers.
China, a relatively new country in the U.S. granite market, has
increased its share from 1990 of 1% to about 2.6%. With the introduction
of many granites similar to Spanish granites in color, they have
been able to enter the market with very low pricing making purchases
most affordable to buyers. They are still somewhat restricted by
the lack of available slabs and cut to size work but the tile business
for China has increased a lot. Many Chinese companies have entered
the market and as expansion into other areas of the U.S. continue
and quality controls improve it is predicted that the Chinese share
of the market shall also increase.
India, a world of its own granites, similar to Brazil in that
it has granites which show movement and thus are very interesting
to buyers of kitchen countertops, they also have the much demanded
greens, blacks, as well as the increasing demand for red granite.
Many Indian producers or reps have established warehouses across
the U.S. market and are promoting heavily the Indian granites which
number in the 75 to 100 type category. From 1990 when Indian granite
was still relatively new at 5.9% they have grown to a level of 16.5
% in 1993. This is a tremendous growth for India considering they
surpassed Spain in this period of time, which was the third largest,
and Canada, the second largest exporter to the U.S. market. The
number of Indian companies promoting stone in the U.S. market has
increased 500 fold. In even the smallest of cities one can find
a Indian person selling Indian stone. It is foreseen that the growth
of Indian stone and demand shall continue to increase in the 1990's.
This market share can be greatly increased if Indian producers can
show the market they can supply quality cut to size work for large
commercial building. At present they are still more limited to tiles,
slabs, and blocks.
Italy, the number one exporter of granite to the United States
is still number one. However, their decline from the level of 61.5%
in 1990 to 42.8% in 1993 was foreseen. Since Italy has limited deposits
of granite and depends on other countries for its granite, they
are restricted to increasing its share as buyers tend to buy more
directly from the developing countries. These developing countries,
China, Spain, Brazil, South Africa have increased its purchases
of machinery, especially Italian machinery, to compete in the world
market of stone against the Italians. Still, the Italians are the
number one producer of commercial granite and will continue to be
so. They have more production, more gang saws, more specialty companies
making granite than any other country in the world. When it comes
to very large commercial jobs the purchases of granite shall continue
to flow to Italy as the main source. They have reduced their costs
to such a level that they are still highly competitive in granite
production. The Italians in general have made great advances in
investments in new quarries all over the world. It is through this
investment and tremendous buying power that they will still be able
to maintain their market share. It is foreseen however, that their
market share shall continue to decline at a slower percentage rate
in the balance of the 1990's. The demand for commercial granite
is still not increasing in the U.S. market and it is this demand
or increase that will help Italy to maintain or increase its market
share. When the demand increases so will Italy's exports.
Spain, the only other major factor of imports into the U.S. is
still in a downturn. In 1990 they were number three in import demand
with a market share of 8.7% and in 1993 they dropped to 5.5% with
a ranking as fifth largest exporter. The reason is that the main
granites of Spain are very commercial. Further, the Spanish producers
have made their marketing efforts in other countries to expand their
sales. Since commercial markets in Singapore, Japan, Indonesia,
Hong Kong have all been on the increase so has demand for Spanish
granite. The shame of it is that Spanish producers and especially
the multitude of associations in Spain have not formulated a worldwide
marketing program to increase their sales. The associations all
work independently and none really work with any of the Spanish
Trade associations in other countries that their government affords
them. Many U.S. buyers are unaware of all the stones available from
Spain. Spanish producers have not jumped on bandwagon of opening
up their own warehouses, making national sales programs, advertising,
and other promotional tools required to sell such a market at the
U.S. It is foreseen, assuming the Spanish producers maintain their
present direction, when the U.S. market does increase its demand
especially for commercial building, Spain will continue to lose
its market share in the 1990's. Whereas prices have generally increased
from Spain versus Italy which has generally reduced its prices,
it is foreseen that Spanish producers may price themselves out of
the U.S. market should the present trends remain unchanged.
General:
The total of granite imports in 1990 amounted to about 175 million
dollars versus the final numbers in 1993 of 101 million dollars.
This is total decline of about 42% in 4 years. This again is due
mainly to the lack of demand for commercial building which was foreseen
in 1990. The U.S. market had over built in office buildings and
government projects enough to last them about 5 years or so. The
additional decline in the economy and the political problems of
balancing a budget have all fueled the lack of demand for stone.
The recent problems of Mexico have also affected the economy of
the U.S. market as it will other countries as Mexico was one of
the largest trading partners of the U.S. It is interesting to note
from the statistics that in general the pricing of granite per ton
or per cubic meter has reduced in the last 4 years. This relates
to a show of the supply and demand philosophy. With the advent of
so many new companies and countries entering the stone market it
is only natural that this trend will continue. It is foreseen that
small increases in commercial building will continue until about
1997 when more increased demand should start to occur. The U.S.
market is still changing and revamping. Companies are consolidating
or cutting back making themselves more trim to compete in the global
market. Building should start to increase in the later half of this
decade. It is not foreseen the growth demand will be like that of
the 1980's decade. It was easy in the 1980's to sell stone as the
demand was greater than the availability. This is history and now
the reality of the stone market is here. Suppliers will have to
work hard for their market share but the potential is still great
since the U.S. market still remains one the largest potential markets
in the world.
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Last Modified
on: February, 2002 |