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00:21
Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.
00:31
A verdict in a high-profile case in Los Angeles earlier this month is likely to send chills through the hard surfaces industry. A jury assessed more than $52 million in damages for a former fabrication worker who was diagnosed with silicosis-related illnesses before undergoing a double lung transplant.
The decision sided with 34-year-old Gustavo Reyes-Gonzales in a trial involving two surface manufacturers, Caesarstone Ltd. and Cambria Company LLC, as well as Color Marble Inc., a Diamond Bar, Calif-based distributor.
The case was originally filed in September 2022 with more than 130 defendants. A lawyer for Reyes-Gonzales said that other companies in the suit made confidential settlements before the trial.
The civil lawsuit centered on the use of quartz surfaces – also known as engineered stone – which have a high content of silica. Fabrication without suppressing dust from the material can cause lung diseases related to silicosis if workers are improperly protected.
The Los Angeles Times reported that the three defendants argued the fabrication shops were at fault for unsafe working conditions. Reyes-Gonzales and fellow workers testified they were unaware of safety concerns and didn’t receive proper instruction or protective gear.
The jury decisions weren’t unanimous, although they passed the 9 to 3 vote needed in California civil cases. However, the jury did vote unanimously on the damages in the case, which it set at more than $8 million for Reyes-Gonzales’ economic loss and more than $44 million for past-future non-economic loss. It’s expected he will need another lung transplant in the near future.
The three defendants in the case won’t bear anywhere near the total amount of the award. The jury assigned 15 percent of the damage’s liability to Caesarstone, 10 percent to Cambria, 2.5 percent to both Color Marble and Reyes-Gonzales, and 79 percent to unspecified “All others.”
Cambria’s attorneys told the Los Angeles Daily Journal that they’re considering an appeal. However, James Nevin, one of Reyes-Gonzales’ attorneys called any appeal “a delay kind of thing.” The two law firms handling the case of Reyes-Gonzales say they arecurrently representing approximately 150 workers diagnosed with silicosis.
03:08
The jury ruling against Caesarstone is just one of the challenges the Israel-based surface manufacturer will face in the months ahead. The company’s second-quarter financial results reveal several other issues to be dealt with, despite improving finances due to a restructuring that began last year.
Second quarter worldwide revenues were $119.4 million, down 16.3 percent from the same time last year. Revenues from the United States – Caesarstone’s largest market – totaled $59.8 million, or 13.8 percent behind second quarter 2023.
However, the company’s gross margin came in at 22.9 percent for the second quarter, compared with 8.3 percent for the same period last year. Caesarstone’s net cash position at the end of the first half of the year was up $14.2 million from the end of 2023.
Yos Shiran, Caesarstone CEO, attributed the improved numbers on the positive impact of the company’s strategic restructuring actions. Much of that came with the closing of a plant in Israel in 2023 and Caesarstone’s U.S. factory in Richmond Hill, Ga., early this year. Output is being replaced with more third-party manufacturers.
Shiran said closing that plant and one in Israel will save the company approximately $20 million this year, and another $30 million in 2025. Shiran noted that currently 60 percent of the company’s output is outsourced, allowing Caesarstone to better align production with demand.
Caesarstone also has a sale pending of 69 undeveloped acres at the Richmond Hill site, but is still looking for a buyer for the factory buliding.
Both Shiran and company CFO Nahum Trost noted the company is facing challenges from the global economy, particularly a slowdown in residential and renovation construction. Additionally, Trost said sea-freight costs will add up to $4 million per quarter to expenses through the end of the year.
Caesarstone faced a more company-specific shipping problem earlier this year when Turkey stopped exporting goods to Israel due to the conflict in Gaza. Trost said the action increased costs at the company’s remaining Israeli production facilities, specifically for quartz and polyester. The company has acquired alternative sources of the materials, but on less-favorable terms.
However, the company did increase its ownership stake in Lioli Ceramica, an India-based manufacturer of branded porcelain products, and Shiran said, “Porcelain is a very important part of our growth plans.” He expects Caesarstone to begin seeing profits from the investment next year.
06:50
In industry news from South America, the “It’s Natural – Brazilian Natural Stone” exhibit is expected to serve as the meeting place at this year’s Cachoeiro Stone Fair, scheduled for later this month in the Brazilian state of Espirito Santo.
Developed by the Brazilian Center of Natural Stone Exporters (Centrorochas) in partnership with the Brazilian Trade and Investment Agency (ApexBrazil) the organization’s goal is to connect companies in the segment with international buyers.
Scheduled to attend are at least 15 companies supported by “It’s Natural – Brazilian Natural Stone,” and five international buyers from the United States, Mexico, the United Kingdom and India as members of the Buyer Project. Last year, a similar program generated approximately $15 million in business.
Also attending will be four international opinion leaders from the United States, Turkey and Lebanon, including Stone Update Publisher and Editor Emerson Schwartzkopf, who will join buyers in an immersive experience in the stone sector.
They will all take part in an extensive schedule that includes visits to quarries, as well as trips to industries where they will be able to see the manufacturing process, the technology used and the developments in the sector in terms of sustainability. They will also visit showrooms to experience the application of natural materials, as well as the Cachoeiro Stone Fair, the largest business showcase in the stone industry in Brazil.
“It’s Natural – Brazilian Natural Stone” currently supports 208 companies and aims to stimulate and increase exports of Brazilian ornamental stone through a set of strategic internationalization activities. Over the past two years, the project has impacted more than 600 architects and designers across three continents: North America, Asia and Europe.
08:43
Registration is now open for fabricators and other surfacing industry professionals wanting to attend the International Surface Fabricators Association’s — ISFA — 2024 annual conference, which is scheduled for Nov. 6-8 at the Palms Hotel & Spa in Miami Beach, Fla.
This year’s theme is “Crafting Success: Innovate, Fabricate, Dominate,” and Topics include:
• Fostering data-driven decisions and streamlining workflows;
• Best practices for human resources policies and procedures;
• Employee recruiting and retention strategies;
• Creating accountability among teams with an Entrepreneurial Operating System, and;
• Marketing strategies that lead to growth.
The programming is structured to benefit companies of all sizes and scopes. The event includes an expo to showcase the latest in materials, tools, services and technology innovation, as well as a luncheon to honor the 2024 ISFA Award recipients.
Marissa Bankert, chief executive officer of ISFA, calls the annual conference the premier event for members and says, “It’s a must-attend event designed to empower attendees with the knowledge and the relationships they need to drive their businesses forward.”
Registration is open to members and nonmembers. For more details, go to www.ISFAnow.org/annual-conference. Those who register before Sept. 20 can take advantage of early bird pricing.
10:20
The ISFA also announces an upcomingtraining session focused on the fabrication of porcelain for countertops and other applications. The hands-on session will be held Sept. 26-27 at Alpha Granite & Tile’s state-of-the-art facility in Austin, Texas.
Thanks to the durability, versatility and aesthetic appeal of porcelain, the demand for these surfaces is growing, stressing the need for skilled fabricators who can expertly handle porcelain. Upon completing the training, participants will receive a certificate of completion from ISFA.
The training includes:
• A comprehensive curriculum that will cover the properties and benefits of porcelain slabs, as well as material handling and slab inspection;
• Practical exercises that will cover all facets of porcelain fabrication, including cutting techniques, sink cutouts, miters, overhangs, seaming, polishing and finishing, and chip and scratch repair, and;
• The session will also provide training on the latest tools and techniques used in slab fabrication; with an emphasis placed on safety protocols and best practices.
Sponsored by BB Industries, Daltile and Integra Adhesives, the training session on porcelain fabrication is designed for both novice and experienced fabricators. Space is limited. To register or for more information, go to www.ISFAnow.org/porcelain-fabrication-training.
In other news around the industry….
11:59
UMI Stone, a stone slab distribution company, is now the exclusive supplier of Vicostone engineered quartz on the East Coast from South Caroline to Maine. Vicostone is recognized as a global manufacturer of quartz products.
Under terms of the partnership, UMI Stone will stock a selection of 96 of Vicostone’s most popular designs. An in-house sampling program will make samples consistently available and easy to order. All Vicostone designs will be available in 130” by 65” jumbo slabs in both 2 and 3 cm thicknesses.
“Our partnership with Vicostone is a great opportunity for East Coast designers and fabricators to secure a reliable source for premium quartz,” says Donnie DiNorcia, UMI president.
12:51
Tile Council of North America – TCNA — has been selected by the U.S. Environmental Protection Agency – the EPA — to receive a $2.2 million grant. The money is aimed at reducing embodied carbon emissions in construction materials and products. TCNA was recognized as a selectee for the funding at the inaugural Floring Sustainability Summit held in Washington, D.C., last month.
The program assists manufacturers of construction materials and products to produce Environmental Product Declarations or EPDs. Funds are directed to businesses, universities and nonprofit organizations that facilitate these efforts.
The EPA program seeks to improve transparency and disclosure of embodied carbon emissions data associated with construction materials and products to enable the finding of lower embodied carbon construction supplies throughout the U.S. TCNA is one of 38 organizations receiving a total of $160 million in grants.
13:57
Getting back to the matter of respirable silica,the Natural Stone Institute – NSI — and the International Surface Fabricators Association – ISFA — are now offering two guidance documents for workplace silica exposure assessments. The materials have been assembled by the Yale School of Medicine and are available in both English and Spanish.
The Fabricator Guidance Document provides resources on workplace air monitoring for respirable dust and crystalline silica, as well as including best practices such as sample scheduling, what information to provide, and how long to retain reports.
The Sampling Firm/Consultant Guidance Document shares general requirements, sample strategies, essential documentation, and laboratory results. It also includes details on what to include in a final consultant report.
NSI Accreditation and Technical Manager Mark Meriaux says, “These documents should help our members, and the industry at large, better understand the process of air monitoring for respirable crystalline silica.” These documents can be downloaded online at www.naturalstoneinstitute.org/silica.
15:15
And, Meagan Hegland, Park Industries’ national sales manager since 2021, has been promoted to vice president of sales and marketing. Hegland will continue to lead Park Industries’ sales team, remaining focused on the development and execution of sales strategy while adding oversight of the marketing department.
Park CEO Joan Schatz praised Hegland for developing and maintaining strong relationships with customers while building connections in the industry. In her new role, Hegland will focus on deepening customer connections, ensuring that the company’s sales and marketing efforts are closely aligned with the needs of its clients and the broader market.
15:57
Remember, the July-August issue of Stone Update Magazine is now available online at www.stonemag.com. For a transcript of this broadcast, to go www.radiostoneupdate.com. For Radio Stone Update, I’m K. Schipper and we’ll see you here again soon.
