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By Design: Economical Product Trends in the Global Market
by Lori Hagen-Hulitt
Interior Design
Architectural Concepts, Inc.
It’s no secret that the global industry is exploding! To get the best for your properties, don’t be afraid to being open to some new vendors in the States or abroad. Among the many world industries, the Natural Stone Market as well as various Custom Furniture & Casework Manufacturing is growing by leaps and bounds. Growing competition is bringing quality products close to home for an economical price.
The stone and manufacturing industries are growing at the rate of over 15% in the global market in general. This is taking into account granite, marble and other natural stones with China taking a strong lead in the growth rate. China and Italy are still in the lead for stone products, followed by Taiwan, Spain, India, Portugal, Brazil, USA, Japan and Europe. With availability, affordability, durability, and refined look, stone has become a more popular worldwide. China, Italy and India stand #1 in terms of quantity and quality export of Blocks to Italy and China.
Ten years ago Chinese had very little skills or technique for polishing stone and granite and were unable to facilitate the importing of much needed modern machinery. In addition, they previously never had access to consumables like diamond blades, polishing abrasives, etc. Now, within the last 10 years, China has moved on to master this stone & manufacturing field. Their processing cost is much cheaper than even India. Their electricity, handling and container freight are all much cheaper. Productivity in China factories is much higher, while the labor costs much lower. There are no labor unions or strikes, no lawsuits or the governmental regulations that in most countries costs up. This does not begin to address the semantics of the “free allowances” given to exporters or the “tax savings” that are often bundled into the freight (varies per US State & is also dependant on the country of export).
As a result the Chinese, even above the other countries, are able to offer the materials & product at cheaper cost in the international market. However, despite the growth in exporters, the profitability margin has slowly been dropping. With diesel & electricity prices increasing, the operational charges for running a quarry or factory are much higher. Similar circumstances exist in finishing and production work of various furnishings and casework. While American manufacturers were failing to develop new strategies for competing in the global marketplace, many foreign countries have found paths that are working for them. As property, labor, insurances, and equipment costs increase and environmental conditions continue to grow more sensitive, American markets have started to broaden their ideas of the company tree formula by following the footsteps of their counterparts who are aggressively and successfully expanding into China, Indonesia, South Korea Brazil and Mexico.
By increasing exposure worldwide, customers can achieve exclusive quality and custom design at costs competitively better than would have been found in the past. Many companies that reside in the States now own manufacturing plants in other countries as well as in the United States to help with additional production and overall costs. They can better serve national customers as well as international clients by competing globally for products. These companies are identifying the importance of sourcing products appropriately from low-cost countries to complement and supplement their capabilities.
In addition to US companies going overseas to manufacture, more and more overseas companies are coming to the US to newly market their products for the first time. The great protagonist has no doubt been China. Although China is clearly no longer a new entry in the stone & manufacturing sector, it has taken its competitors by surprise by creating this key role for itself in the international stone & manufacturing industry. China astonished everyone with an increase in its quarrying capacity, which has remained the most important and most impressive phenomenon of the last decade. China has come out as a leader in the new millennium and as thus gained ground in the new markets.
Stone, tile and custom casework have become incredibly popular choices for surfacing finishes in every venue due to availability and accessibility. The extensive variety of colors, textures and sizes available allow property owners to feel confident in specifying and benefiting from the durability and low maintenance that these finishes provide. Stone and tile are attractive workhorses, offering exquisite looks plus rugged performance. When properly installed and maintained, stone and tile will keep their good looks for many years of service, even under the most trying, heavy-traffic conditions.
Grab a hold of today’s market choices and take advantage to make the most of today’s world market in creating an exceptional quality in the surroundings of your resort. Get custom, quality casegoods (furnishings, cabinets and ironwork) your property is in need of while accentuating the floor, countertops and walls in natural stone. Assist your budgets while including upgraded finishes. Your guests will reap the benefits during their stay, while making your property something to rave about.
Note: Examples of a few companies that sell and produce custom goods as described in article are Bryan Ashley International Inc., CF Kent Co., and Decca Furniture.
LOOK FOR THE IMPORTANCE OF A PROFESSIONAL DESIGN TEAM FOR PROPERTY REFURBISHMENT IN THE NEXT ISSUE OF “By Design”