Threadbare: Increasing imports and substitute competition have led to declines in revenue

Operators in the Carpet and Textile Floor Covering Manufacturing industry have faced falling revenue over most of the past five-year period, along with declining enterprise numbers, lower employment, and greater competition from imports and substitute products. Industry revenue has been negatively affected by strong import growth and increasing competition from substitute flooring products, such as tiles and wooden floorboards. However, higher demand from the residential housing market, particularly from multi-unit apartment and townhouse construction, has limited revenue falls over the period. New carpet designs and colours have provided the industry with new products to supply to clients, which has also helped to limit revenue declines...read more.

Industry Statistics & Market Size
Revenue
$794m
Annual Growth 14-19
-1.3%
Forecast Growth 19-24
Profit
Employment
1,500
Businesses
83

Industry Threats & Opportunities

  • Import competition and demand for substitute products have contributed to the industry's decline
  • High product substitution and import penetration have negatively affected profit margins
  • Demand for higher quality, lower priced carpeting will force firms to differentiate their products
  • Industry Report - Industry Investment Chapter

    The Carpet and Textile Floor Covering Manufacturing industry displays moderate capital intensity. Industry firms make capital expenditures for new manufacturing equipment and for the replacement and improvement of existing machinery and equipment. Industry firms are also increasingly using leasing arrangements to finance capital expenditures. For each dollar required for wages, $0.23 is expected to be invested in plant, equipment and vehicles during 2018-19. Capital intensity has decreased slightly over the past five years due to higher wage costs as a portion of revenue and higher capital investment rates.Over the past five years, most firms spent less on machinery and equipment to cut costs. How...purchase to read more.

    Additional Insights for the Carpet and Textile Floor Covering Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Carpet and Textile Floor Covering Manufacturing are:

  • Production of goods currently favoured by the market
  • Having marketing expertise
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Dwelling commencements and Trade-weighted index in the Carpet and Textile Floor Covering Manufacturing industry impact industry performance..

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    What's in this report

    What is the Carpet and Textile Floor Covering Manufacturing Industry?

    Industry operators manufacture carpets, rugs or other textile floor coverings. The industry also includes companies that manufacture felt or felt products (except clothing), mats or matting of jute or twisted rags.

    Industry Products
  • Other carpet and related products
  • Heavy-duty tufted carpet
  • Light- and medium-duty tufted carpet
  • Modular carpet
  • Industry Activities
  • Carpet
  • Carpet tile
  • Textile floor covering
  • Textile floor rug
  • Synthetic grass
  • Hard fibre matting (sisal, coir and grass mats)
  • Jute matting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Dwelling commencements
  • Trade-weighted index
  • Demand from multi-unit apartment and townhouse construction
  • Domestic price of wool
  • Demand from commercial and industrial building construction
  • Demand from institutional building construction

  • Current Performance
  • Falling revenue

    and profit

  • Restructuring trends
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue declines
  • Forecast growth

    and trends

  • Additional

    industry threats

  • Table: Carpet and Textile Floor Covering Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Carpet and Textile Floor Covering Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Furniture and Floor Covering Wholesaling
  • Department Stores
  • Furniture Retailing
  • Floor Coverings Retailing

  • Key Selling Industries
  • Mining and Industrial Machinery Wholesaling
  • Synthetic and Natural Textile Manufacturing

  • Products & Services
  • Heavy-duty tufted carpet
  • Light- and medium-duty tufted carpet
  • Modular carpet
  • Other carpet and related products
  • Chart: Carpet and Textile Floor Covering Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential housing market
  • Non-residential building market
  • Export markets
  • Manufacturing and other industries
  • Chart: Major Market Segmentation for the Carpet and Textile Floor Covering Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Carpet and Textile Floor Covering Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Carpet and Textile Floor Covering Manufacturing Industry

  • Industry Globalization
    Godfrey Hirst Australia Pty Ltd, Victoria Carpet Company Pty Ltd, Quest Carpet Manufacturers Pty Ltd, Beaulieu of Australia Pty Ltd,
  • Table: Godfrey Hirst Australia Pty Ltd - financial performance
  • Table: Victoria Carpet Company Pty Ltd - financial performance
  • Table: Quest Carpet Manufacturers Pty Ltd - financial performance
  • Table: Beaulieu of Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Carpet and Textile Floor Covering Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Carpet and Textile Floor Covering Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Broadloom
  • Standard carpet widths manufactured in continuous rolls. These are usually 3.66 or 4.0 metres wide but can be 2.0 metres wide for the healthcare sector, or other widths for special purposes.
  • Coir Mats
  • Extracted from coconut husks and used to manufacture mats, doormats and brushes.
  • Cut Pile Carpet
  • Tufted carpet with the loops cut.
  • Jute Matting
  • Organic geotextile used for weed and erosion control.
  • Tufted Carpet
  • Carpet produced by a tufting machine that sews or punches yarn through a backing material to make a loop. Most carpet manufactured in Australia is broadloom.
  • What Our Customers Say

    Why buy this report?

    The Carpet and Textile Floor Covering Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Carpet and Textile Floor Covering Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Carpet and Textile Floor Covering Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Carpet and Textile Floor Covering Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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