|Last Quarterly Update:||11/7/2016|
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Companies in this industry manufacture woven, tufted, and other types of rugs and carpet using natural and synthetic fibers. Major companies include Interface, Mohawk Industries, and Shaw Industries (all based in the US), along with Balta (Belgium), Cavalier (New Zealand), Haima Carpet (China), Oriental Weavers (Egypt), Suminoe Textile (Japan), and Victoria Carpets (UK).
Global demand for carpet is increasing due to industrialization and the rapid expansion of middle-class consumer markets in China, India, and other developing countries. Revenue for the global carpet and rug industry will reach $40 billion by 2020, according to Global Industry Analysts.
The US carpet and rug manufacturing industry includes about 220 companies with annual revenue of about $9 billion.
Demand for carpeting depends on residential and commercial real estate construction and home sales, which can be cyclical. With many costs fixed, profitability of individual companies depends on their volume of business. There are large economies of scale in manufacturing and distribution. The US industry is concentrated: the four largest companies account for about 55% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Most carpeting is made on large tufting machines that use rows of needles to sew loops of nylon thread into a latex "backing." The loops are cut to produce tufts and additional backing is glued on to the bottom to hold the tufts in place; polypropylene and polyester thread are also used. Rugs and woven carpeting are made on looms ...
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