Linoleum, Asphalted-Felt-Base, and Other Hard Surface Floor Coverings, NEC

Companies in the multi-billion-dollar hard surface floor coverings industry supply flooring primarily for residential homes, which accounted for most of the market. Coverings used in apartment buildings represented a small percentage of industry sales. Other major consumers of hard surface flooring, in order of industry purchases, include office buildings, mobile homes, hospitals, industrial facilities, hotels and motels, stores, and restaurants.

This small industry of fewer than 60 establishments shipped $1.7 billion in 2008 products. Companies in this industry tended to be either smaller in size, with about 60 percent employing less than 20 workers, and only 25 percent employing more than 500 workers. Industry-wide employment totaled approximately 4,620 workers receiving a payroll of nearly $228 million.

The industry leader in 2008 was Mohawk Industries Inc. of Calhoun, Georgia, with nearly $6.83 billion in sales and 31,200 employees, followed by Armstrong World Industries Inc. of Lancaster, Pennsylvania, with nearly $3.4 billion in sales and 12,200 employees in 2008. Rounding out the top three was Wilsonart International Inc. of Temple, Texas, with 2005 sales of nearly $743 million and about 3,400 employees.

In the 2000s, linoleum had the lion's share of the market, with about 85 percent. Linoleum, a traditionally popular industry offering, is made in sheets by pressing a mixture of heated linseed oil, rosin, powdered cork, and pigments onto a textile backing, such as burlap or canvas. Synthetic coverings similar to linoleum are created with mixtures of resins, elastomers, and plasticizers. Typically, these newer types of flooring are more moisture resistant, durable, and workable than linoleum. In 2003, another important company in the industry, Mannington Mills, began manufacturing floor coverings with DuPont's branded Teflon to increase quality and durability.

Englishman Frederick Walton invented the linoleum production process in 1860. The use of linoleum and similar floor coverings expanded greatly during the 1920s. Asphalt tiles were developed in 1930, and vinyl floor was invented in 1945. But it was not until the 1960s, when flat concrete subsurfaces became standard in U.S. homes, that hard surface coverings exploded in popularity. A profusion of synthetic flooring products during the 1960s and 1970s sharply increased industry sales. By the early 1980s, manufacturers were shipping about $600 million worth of flooring each year and employing about 3,000 workers.

Steady market growth and the development of new and better floor coverings more than doubled industry revenues during the 1980s. Advanced polymer technology and new plasticizers allowed the introduction of less expensive materials with higher performance. By 1989 industry participants were enjoying sales of $1.4 billion. The industry exhibited mixed performance in the 1990s. Showing only modest gains in the early 1990s, industry sales hit $1.73 billion in 1994, but then drew back to $1.67 billion in 1995, when manufacturers reported sluggish retail sales. By 1997, sales were up to $1.80 billion. Continued strength in new housing starts in 1999, as well as general U.S. economic strength, had been expected to contribute to growth in hard surface flooring.

The year 2000 was an unusual one for the industry, with many companies consolidating, filing for bankruptcy, and preparing for lawsuits related to new standards on asbestos. Shipment values fell by 11 percent, from $1.73 billion in 1998 to $1.54 billion in 2000. However, the industry rebounded and by 2004, shipment values had increased to $1.83 billion, though a poor economy contributed to a decrease of approximately 13 percent in 2005.

Increased manufacturing efficiencies, achieved through automation and restructuring, will inhibit employment growth in this industry in the long term. Although the number of employees remained relatively stable throughout the late 1990s and early 2000s, by 2007 the workforce had shrunk to 4,620 workers, down from 5,941 workers in 2002. Projections of more position eliminations through 2014 offered little hope of revitalization. Increased demand for new synthetic coverings, however, will create opportunities for some types of occupations. The number of sales positions, for example, was expected to rise.