Study Group: Building Materials Industry Experts

GLG News^SM Analyses by this Study Group's Leading Experts(?)

China’s Economy and Construction Boom Creates Huge Floor Covering Potential

November 6, 2009

Analysis by:James Gould, President,

Analysis of:World Bank Raises Forecast for China's Economy | www.nytimes.com

A new, 40 billion square meter floor covering market is expected to emerge in China between now and 2025. The urbanization of China continues and is expected to increase its cities’ population by another 350 million people, creating demand for as many as five million new buildings. Every square meter of new construction will require floor covering. Ultimately China may be the world's largest floor covering market; Mohawk Industries, Shaw, Armstrong World Industries and Tarkett should take heed.

Quality from low cost countries - review of implications of recovery

October 27, 2009

Analysis by:Jeremy Waller, Principal,

Analysis of:Toy Recall Shows Challenge China Poses to Partners | online.wsj.com

Quality has been the greatest challenge to buyers in China since the process began its stellar growth in the 80's. The consumer now 'reads the carton' and is better informed than ever before. There is mistrust of imports from developing countries, exacerbated by recalls such as experienced by Mattel, which attract disproportionate attention, in terms of levels of global trade. Buyers need to have extra vigilance as volumes start to recover and cost cutting measures that may have been implemented.

Chinese Log Shortage

August 13, 2009

Analysis by:James Gould, President,

Analysis of:China facing the brunt of a pending log supply shortage | www.theotherrussia.org

Having stripped its own country of a considerable amount of its natural forests, China has run into roadblocks to the continued growth of their importing needs. Surprisingly, the slowdown in the world economy has had little impact on the growing global demand for China to continue supplying finished products. Chinese exports are down considerably but demand is still very strong leading to the shortage. It is real and will become much worse as the economy improves.

Forecast for Construction in GB - Output Down by 20% to 2011

July 30, 2009

Analysis by:Mel Budd, Managing Director,

Analysis of:GB Construction Forecast 2009 -13 | www.lead-edge.co.uk

The GB construction industry forecast recently issued by Leading Edge predicts a fall in total construction industry output of 15.0% in 2009, compared to 2008, giving a figure of £93.3bn (at 2005 prices). The following two years, 2010-2011, are forecast to see a further combined fall of 5.2% in total construction output before returning to growth in 2012. However, there are marked differences in the relative performance of individual sectors over the next four years.

uk building materials outlook

July 30, 2009

Analysis by:Allan Durning, Executive Chairman,

Analysis of:uk building materials outlook through to 2013 | www.apdltd.biz

Despite the recent comments about recovery and "green shoots" the evidence would still indicate that we have some distance to travel before the building material industry returns to the levels of volumes enjoyed in the period circa 2004-2007 pre the market crash.Strong performance in the RMI  and Infrastructure markets will help offset weak demand in the other sectors.

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