Prime proof that UK demand for timber and laminate flooring is still rising comes from the carpet retailers angling for a slice of the action. Allied Carpets broadcasts that it sells both with banners nearly as big as its main store logo, while Carpetright claims to be “Europe’s biggest laminate retailer”, each store boasting a “Woodright” department (something which may rankle purists given that they don’t sell any real wood flooring).

“We’re also seeing carpet styled to complement wood and laminate,” said Julian Osborne, general manager of British Wood Floors. “They’re going for plains, natural shades and textures that mimic other natural floorings, like coir.” The clear aim, he said, was to get the consumer and specifier to mix and match.

“Many people will never go back to carpet throughout the house, so they’re persuading them to have carpet and wood working together.”

Not a fad

“All the indicators are that the growth of timber and laminate is not a short-term fad,” said Jim Hay, commercial director at Sonae, which ships in laminate from its French factory. “Once consumers have put laminate or wood down, it’s there for years, so there won’t be a sudden reversion to carpet or other floor types. It also continues to be driven heavily in the media and promotion from the sheds. In 2003 our laminate sales rose 70% by volume and I see another 15 years of growth – at least.”

Widely accepted statistics on the size of the timber and laminate flooring markets are hard to find, with manufacturers picking holes in most market reports. But while those in the latest ERC Statistics’ Non-Textile Floorcoverings report are felt to be an underestimate (Kronospan puts the volume of laminate sales in 2002 at around 35 million m2, compared with ERC’s 24 million m2, rising to 40-44 million m2 in 2003), it is agreed that they accurately represent the rate of market growth.

The report estimates that sales of engineered and solid wood/parquet rose from 1.9 million m2 in 1996 to 3.8 million m2 in 2002. By value, sales went up from £37.8m to £76m. ERC maintains that average prices per m2 rose until 2000 then fell off slightly due to “cheaper competition from eastern European”. But the sector still achieved a value increase in constant prices of 83.6%.

In the same period, growth in laminate sales outstripped any other type of floorcovering. While vinyl grew in volume by under 3% and textile floorcoverings around 8.6%, laminates put on 768%. According to ERC, sales rose from just 3.2 million m2 in 1996 to 24.6 million m2 in 2002 and in value from £51m to £398m. Despite increasingly intense competition, the sector also achieved a sevenfold growth in value at constant prices.

By contrast, from 1991 to 2001 UK carpet sales fell from 212 million m2 to 197 million m2.

Sales chain

Predictably, as the timber and laminate flooring markets have grown, the sales chain has developed. Specialist retailers and contractors are still among timber floor suppliers’ key customers, but most share the views of Terhürne that the expertise of the independent timber and builders merchant also makes them a valued route to market.

“They’re probably the biggest part of our distribution chain,” said John Woolmore, managing director of solid wood specialist Junckers Ltd. “They are very proactive with the product and loyal customers.”

“There is room for timber merchants and specialists to be more involved because they come from a position of knowledge,” said Tony Miles, commercial manager at International Timber, which distributes Bruce Hardwood floors plus its own range. “Consumers will look to be properly advised on what is an expensive product.”

David Hillier, managing director of engineered flooring supplier Kährs, agreed: “There is significant opportunity for independent retailers and timber merchants if they choose to utilise the opportunities.”

Laminates might seem a less likely option for merchants, given the market muscle of the DIY and carpet sheds. But according to Kronospan, which last year opened a third flooring line at Chirk, taking capacity to 17 million m2, there are opportunities here too.

“Laminates could be a valuable addition to a merchant’s business,” said Kronospan’s John Gomersall. “These days they don’t need a huge stock as the distribution is so good from companies like Burbidge, IDS and Spectrum. They can set up a display and get the product in 24-48 hours.”

&#8220There is room for timber merchants and specialists to be more involved because they come from a position of knowledge”

Tony Miles, commercial director, International Timber

Complementary products

As to whether a merchant stocking timber flooring should worry that their local B&Q has a massive laminate section, suppliers say probably not. They see timber and laminate as complementary, both taking sales from vinyl and carpet.

“There may be an element of overlap, but the products really serve two different parts of the market,” said Julian Osborne. “There is evidence that consumers who start with laminate upgrade to engineered wood or solid.”

“Laminate has opened up the consumer’s mind to the benefits of ‘wood’,” said Andy Sutton, national flooring manager at International Timber sister business IDS. “And they understand the difference between cheap and branded, higher specification premium products.”

As for the way ahead, most companies seem to share the view that there’s plenty of growth left to chase. “Some reports say wood flooring sales continue to rise 10-15% a year,” said Mr Woolmore. “We don’t think it’s as strong as that, but it’s still probably 5-10%.”

Like other companies, Junckers stresses that success won’t come easy, with rising sales stoking up already stiff competition in the market. Business is being made even fiercer fought by product being diverted from the rest of Europe where economies are less buoyant and timber flooring markets more mature. And, some feel that timber floor producers in eastern Europe and South-east Asia are really only beginning to flex their muscles on the export front.

But while the going may be tough, the consensus is that companies with quality products and strong brands will hold their own, with the cut-throat trading going on at the bottom end.

“I think the future is in our hands,” said Mr Woolmore. “It’s about having the right products and the right support for customers.”

“Market development has been fuelled by more competitors and lower prices,” said Mr Hillier. “But we’re not seeing the erratic growth of the last five years. Conditions are steadier.”

Mr Gomersall also felt that the laminate market was finding its equilibrium. “Sure, retailers continue to offer really cheap products, but they’re increasingly used to pull consumers into the store so they can be persuaded to trade up.”

Growing diversity

Also giving suppliers hope is the fact that, as the UK market matures, it is becoming more diverse.

“We’ve already seen consumers developing a taste for different colours and species,” said Mr Osborne. “Not long ago sales were 70% oak, but now we’re seeing interest in black walnut and cherry and also species like wenge, jatoba, zebrano and ovangkol.”

According to UPM, which sells unfinished and pre-lacquered or varnished redwood in the UK, there’s also growing opportunity for softwood floors.

“People going for pine staircases and pine kitchen furniture are more willing to choose pine floors,” said Patrick Towner of the company’s London office.

Kronospan also sees the laminate market becoming more varied. “The product is becoming increasingly sophisticated, with latest developments including synchronisation of grain and texture effect, bevelled edge and full plank designs,” said Mr Gomersall.

Timber and laminate supplies see opportunities in new house build too, with companies like Barratt and Berkeley Homes offering their products as an option. “The rate of housebuilding opens up major opportunities for these products,” said Mr Miles.

Small wonder then that last year the Carpet Foundation launched a £1m advertising campaign with the plaintive slogan “Come back to carpet”.