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TRANSCRIPT
Hi, I’m K. Schipper with the latest hard surfaces industry news from Radio Stone update.
0:31
While Coverings 2022 wrapped up a successful run last week in Las Vegas, not all show organizers have been quite that lucky. The Xiamen International Stone Fair has been rescheduled from March to May because of an upsurge of COVID-19 in China. And now, Feria Valencia has moved to postpone Cevisama until early next year.
Cevisama, an international ceramic and bathroom event, had been scheduled from June 13-17. However, what organizers call “the critical situation in the ceramics sector” makes such dates unfeasible and they opted to move the show to February 27 through March 3, 2023. The show had already been rescheduled from its traditional February dates this year because of a wave of COVID-19.
The delay is being blamed on the uncertainty caused by Russia’s invasion of Ukraine. The ceramic industry, which is the mainstay of the fair, has been dealing with an energy crisis that began in the middle of last year. With the outbreak of war, the prices of gas have spiked to levels that have already caused stoppages in production and furloughs of the workforce.
Much of the clay used in the production of Spanish tile also comes from Ukraine, which has raised costs of raw materials and scrambled logistics. In addition, Russia is a large market for Spanish-made ceramic tile. Organizers report that while registration was up 25 percent from the previous show, exhibitors have been pulling out in sufficient numbers to make it unattractive to hold a 2022 event.
In the meantime, organizers of the Xiamen International Stone Fair –the largest in the world before the pandemic – are keeping their fingers crossed that the event won’t have to be postponed again due to COVID. In any case, the online Cloud Xiamen Stone Fair will continue, and organizers plan to be ready to open their doors on May 5. At its 2019 show, Xiamen drew more than 150,000 stone professionals from 148 countries.
2:40
In other tradeshow news – this time from Italy – Marmomac officials have announced they’re moving ahead with preparations for the international stone show set for Sept. 27-30 in Verona. This year’s event is on a Tuesday through Friday schedule which is expected to significantly grow numbers from last year’s event.
Also, an improvement: Italy ended its COVID-19 state of emergency April 1, reopening travel to the stone industry worldwide. The 2021 show suffered because of limited participation from several major stone-producing countries, including India and Brazil, due to entrance bans. Already, the show is seeing registrations from India, South Korea and Japan, as well as from Egypt and Europe.
The online Marmomac Plus portal remains strong, with more than 800 companies from 35 countries renewing subscriptions. Digital attendees can consult company profiles and discover new products and trends in the stone market.
For those electing to attend in person, however, Marmomac will also present several experimental projects focusing on technologies and innovation. Four cultural projects will welcome exhibitors and visitors to the Verona Exhibition Centre, and the event continues close collaboration with the Industrial Design Association.
4:05
EMERSON SCHWARTZKOPF: This is Emerson Schwartzkopf. The fate of the 25% tariffs imposed on most goods from China – including all hard surfaces – will remain unsettled until this summer, as a federal court opinion led to a kind of split decision between the U.S. government and a large group of U.S.-based importers.
The Section 301 tariffs, originally ordered on some Chinese goods by former President Donald Trump in 2017 over unfair trade issues, expanded into a near-blanket action against most imports from China in 2019. A single appeal to the U.S. Court of International Trade to that expansion in September 2020 snowballed into more than 3,600 complaints by U.S. importers, leading to a review by a three-judge panel.
The judges ruled on April 1 that the office of the U.S. Trade Representative, or USTR, had the authority to impose the expanded tariffs and turned down the requests of the importers to vacate the USTR’s actions, so the tariffs remain in place.
However, the ruling also found that the USTR failed to fully follow federal procedures in responding to issues raised by importers before the decision to expand the tariffs. The judges directed the USTR, by the end of June, to further explain the 2019 tariff expansion in light of the objections raised by importers.
It’s highly unlikely that the court-ordered explanations will lead to any significant reversals of the tariffs by the USTR. However, the agency could make changes in the types of products affected and the rates.
Any legal action on the Section 301 tariffs will have no effect on the 300-percent-plus unfair-trade duties imposed on Chinese quartz surfaces in 2019 and Chinese ceramic products, including porcelain, in 2020.
7:19
K. SCHIPPER: Surface manufacturer Lapitec S.p.a., has announced the creation of a distinct U.S. presence. The maker of sintered stone officially launched Lapitec USA during last week’s Coverings show, announcing the operation of a proprietary warehouse in the United States, and an office in Sarasota, Fla.
Francesco Giannini, Lapitec USA board member, explains the move by saying that the North American market has grown to about a quarter of the company’s sales. With the move, Lapitec will also emphasize its new silica-free manufacturing process. After years of research, the company has completely eliminated the use of crystalline silica from its products, making them more sustainable, ethical and safer.
8:10
Cutting Edge Countertops of Perrysburg, Ohio, is acquiring Easyfit Products, Inc., in a move to serve the Ohio markets of Columbus and Dayton. The acquisition brings the overall size of Cutting Edge Countertops to nearly 235 employees as it operates five showrooms and three service centers in Ohio, Michigan and Indiana.
Easyfit, which is located in Delaware, Ohio, opened in 1989. The company fabricates and installs primarily natural stone and quartz, along with solid-surface and laminate countertops from its 35,000-square-foot facility. Cutting Edge Countertops’ co-owner and founding partner Brian Burns says his company is excited to finalize the acquisition. Burns says, “Easyfit appealed to cutting Edge Countertops as part of our strategic growth plan, similar company values, service offerings and more.”
Debra and Rodney Owens, the former owners of Easyfit Products, called the sale bittersweet but added they know their customers and employees are in very capable hands. Cutting Edge Countertops opened its doors in 2006, and has expanded through acquisitions into Noblesville and South Indianapolis, Ind., and Wixom, Mich. It opened a new showroom in Troy, Mich., in 2019, and currently produces approximately 12,000 projects a year.
9:39
Polycor, Inc., has announced it has reached an agreement to acquire Bedford, Ind.-based Evans Limestone, which has been quarrying and supplying Indiana limestone for architectural applications for three generations.
Patrick Perus, CEO of Polycor, says the acquisition will expand Polycor’s access to the highest quality natural stone products, while also expanding the company’s geographic footprint. Stephen Evans, president of Evans Limestone, says he’s very pleased to be joining the Polycor family.
Quebec City, Canada-based Polycor is the world’s leading natural stone quarrier. The company employs more than 1,300 people and owns more than 50 quarries and 20 manufacturing plants in North America and Europe. Evans Limestone employs approximately 30 people and is a member of the Building Stone Institute and the Indiana Limestone Institute. Among other projects, the company supplied stone for the United States Holocaust Memorial.
In other news from around the industry….
10:48
Mosaic Companies, the parent company of Walker Zanger and Opustone, announces it is heavily investing in new product lines and deep inventory levels during the early months of this year. The company has already secured more than 2.5 million square feet, or 45,000 premium slabs coming to the United States and its showrooms.
The aggressive decision to advance its initial purchase forecast – in some cases by more than double – doesn’t come without its challenges. Finding adequate storage for all the material is one of the puzzles Mosaic Companies’ logistics team is solving. Keith Denny, Mosaic Companies president says, “We want to ensure that we’re prepared for whatever the future brings.”
11:35
Pacific Shore Stones has opened a new surfaces showroom and warehouse in Reno, Nev. The new facility is the 16th for the company nationwide. The new location will serve the Reno-Sparks area, Carson Valley, Tahoe, Fernley-Fallon, Dayton and the greater Cal-Neva area. Established in 2004, the North Hollywood, Calif., Pacific Shore Stones has distribution centers in that state, as well as Arkansas, Oklahoma and Texas.
The new location will feature kitchen vignettes using natural stone and quartz, while offering a large selection of natural stone slabs including marble, granite, onyx, quartzite, soapstone and travertine. Additionally, the company offers several major quartz brands including Caesarstone, Cambria, LX Hausys, Compac and Silestone, as well as Dekton® ultracompact surfaces.
12:33
And, the Natural Stone Institute has again provided natural stone and fabrication services for its 42nd home with the Gary Sinise Foundation through its R.I.S.E. – or Restoring Independence Supporting Empowerment – program. R.I.S.E. builds 100 percent mortgage-free and specially adapted smart homes for severely wounded veterans and first responders.
Natural stone and fabrication for U.S. Army Sergeant Christopher Kurtz were provided by Triton Stone Group, Exodus Stone Surfaces and Northern Stone Supply. Kurtz enlisted in the U.S. Army in February 2009 and was deployed to Afghanistan in the following year. A remote improvised explosive device, or IED, later detonated while Kurtz was on patrol, severely injuring his legs and his left hand. He subsequently lost two fingers and both his legs were amputated above the knee. Companies interested in getting involved with future R.I.S.E. projects are encouraged to email the institute at rise@naturalstoneinstitute.org
Remember, the March/April issue of Stone Update Magazine is now available at www.magazine.stonemag.com. Our online newsletter, Slab and Sheet, appears on alternate Wednesdays. For notes and a transcript of this podcast, go to www.radiostoneupdate.com
For Radio Stone Update, I’m K. Schipper, and we’ll see you here again soon.
