Turkish hard surfaces are caught in the crossfire of an international tax dispute; registration for June TISE is now open; Cosentino finances good in 2020; and more.
This edition of Radio Stone Update is sponsored by Quantra, manufacturers of the world’s toughest, most beautiful quartz surfaces made with up-to-the-minute Italian technology… in yet another brand new state-of-the-art factory. http://www.quantra.in.
Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.
Turkish hard surfaces are caught in the crossfire of an international tax dispute; registration for June TISE is now open; Cosentino finances good in 2020; and more.
This edition of Radio Stone Update is sponsored by Quantra, manufacturers of the world’s toughest, most beautiful quartz surfaces made with up-to-the-minute Italian technology… in yet another brand new state-of-the-art factory. http://www.quantra.in.
Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.
K. SCHIPPER: Hi, I’m K. Schipper with the latest from Radio Stone Update
00:28
What do the digital economy and hard surfaces have in common? They’re the latest battleground over tariffs. In this case, the international dispute is over foreign governments enacting a digital service tax – or DST – on companies doing business online. Specifically, it would apply to businesses doing e-commerce without having a physical office or assets in a country.
Currently under the gun is Turkey, a supplier of several hard surfaces to the United States – surfaces that have drawn the attention of the office of the U.S. Trade Representative. The USTR will hold a virtual hearing May 7 to consider a 25 percent tariff on certain goods imported from Turkey, including some natural stone and porcelain tile.
The USTR has also announced similar actions against several other countries, including Austria, India, Italy, Spain and the United Kingdom. While products from those countries vary, Turkey’s list is the only one to include hard surfaces. Our sister publication, Hard Surfaces Report, shows that the selected categories of marble, travertine and calcareous stone on the list were only about 8.2 percent of the total stone imports from Turkey last year. However, the proposed tariff would be imposed against virtually all Turkish porcelain tiles imported from that country, or more than $100 million in value last year.
In each case the proposed tariff would equal approximately the amount of the DST tax collected, which the USTR estimates at $160 million in Turkey. Based on 2020 import data, the additional tariffs on Turkish hard surfaces would be $30.7 million per year.
The USTR will consider written comments on the action that are submitted by April 30 and will accept rebuttal comments for a week after the May 7 virtual hearing. The USTR will also hold a preliminary hearing on May 3 on its overall actions concerning DSTs.
02:34
If you’re thinking about taking a trip or two this summer, keep in mind that online registration for the International Surface Event – TISE—is now open. The show, which combines SURFACES, StonExpo/Marmomac and TileExpo will be held June 16-18 at the Mandalay Bay Convention Center in Las Vegas. The show is not only among the first to be held in-person in 2021, but it’s also going to be among the first large shows to return to Las Vegas.
Having received approval by the Department of Business and Industry, event organizer Informa Markets says the approval certifies that it will follow health and safety requirements and protocols and adhered to the prevention principles that have remained consistent through the COVID pandemic, including maintaining safe physical distancing, wearing face coverings and practicing good hygiene.
New inside TISE registration for 2021, the TISE exhibits pass offers complete access to the full education program occurring on the TISE Live Main Stage on the exhibit hall floor. Also available is the 2021 + 2022 Frequent Buyers Pass which automatically registers attendees for both events and provides additional event perks. A survey sponsored by Informa Markets shows that 98 percent of those responding believe the decision to go to an in-person show is favorable to the industry.
To register online for TISE 2021, you can go through its web portal at www.intlsurfaceeent.com
04:13
If Las Vegas in June isn’t your cup of tea, you can trade the desert for Disney World a few weeks later. Coverings -- the international tile and stone exhibition and conference -- has announced an expanded list of programs for that in-person event, which will take place July 7-9 at the Orange County Convention Center in Orlando, Fla. Regular show features include international pavilions, tile and stone exhibits from around the globe, and live installation demonstrations. Other popular returning features include the Coverings Installation and Design -- or CID – Awards and Rock Stars.
This year will also feature a number of complimentary educational opportunities, including Continuing Education Units – CEUs – and feature sessions, demonstrations, roundtables, live interviews with industry thought leaders and industry forums. The Society of American Mosaic Artists will also be exhibiting and conducting demonstrations. That organization is in Orlando as part of the National Wood Flooring Association, which is running concurrently in the same hall with Coverings this year.
Also new for this year are expanded show hours, from 9:30 to 6 on Wednesday, July 7 and Thursday, July 8. The show floor will be open on Friday, July 9, from 9:30 to 2:30. Coverings’ organizers are actively considering and planning health, cleaning and safety measures for the event. A webpage on the Coverings website has been dedicated to that issue. For that information, and to register, go to www.coverings.com.
07:03
Spanish-based Cosentino Group reports its 2020 revenues barely fell short of its 2019 performance – no small feat given the overall business climate generated by the ongoing pandemic. The surfacing company reports income of almost $1.3 billion for 2020 from its worldwide operations in natural stone, quartz surfaces and ultracompact surfaces. That’s an overall decline of less than three percent from 2019.
The company’s 2020 earnings before interest, taxes, depreciation, and amortization came to $244 million after adjustments for international financial reporting standards. That’s a record annual earning amount for the company. Cosentino showed a net profit for 2020 of $74.5 million.
Helping to keep numbers high were a decision to promote home working whenever possible, and the benefits of an ongoing digitalization program. Last year more than 80 percent of its orders were processed through the digital platform. The company also used automation and digitization to increase production of its Silestone® quartz surfaces by 30 percent.
Despite the business climate, Cosentino was quite active on a number of fronts in 2020. The company opened new Cosentino Centers in Ottawa and Winnipeg in Canada as well as Rio de Janeiro, and upgraded customer operations in Strasbourg, France, Lazio, Italy, Berlin and Sydney. It also opened new digital-geared showrooms in Barcelona, Tel Aviv and Amsterdam, and expanded its logistic network with a new Hub on the U.S. West Coast. Cosentino has 12 U.S. production facilities and three distribution hubs. The company employs more than 4,700 people, with more than half based in Spain.
08:55
The Natural Stone Institute made a donation to the Gary Sinise Foundation in Support of its R.I.S.E. program. R.I.S.E. is the acronym for Restoring Independence Supporting Empowerment program that builds 100 percent mortgage free and specially adapted smart homes for severely wounded veterans and first responders.
The donation was made possible by Salado, and funds were raised via an online survey for the design community with each response increasing the donation amount. Byron Davis, chief marketing officer for Salado, says the company has deep respect and appreciation for those who serve our country, and it’s honored to be able to recognize their service and sacrifices by providing monetary contributions and natural stone for two homes through its membership in the Natural Stone Institute.
Jane Bennett, executive vice president for the trade association says its grateful to Salado for helping make the donation possible while gathering survey information that will further the Natural Stone Institute’s education efforts to the design community. To learn how your stone company can get involved with future Gary Sinise Foundation R.I.S.E. projects, go to www.naturalstoneinstitute.org/RISE
In other news from around the industry ....
10:20
Majestic Kitchen & Bath Creations Inc., has a new look and a new emphasis for its brand. The company’s new logo and “Delivering Certainty” tagline emphasize the company’s core values, standard of assurance, investment in automation and modern technologies, and commitment to sustainability. Scott Byers, Majestic’s president and CEO says, “Our new logo reflects a modern look-and-feel and our “Delivering Certainty” tagline conveys the standard of assurance we promise our clients.” The new branding will be integrated into the company’s marketing assets during 2021.
11:01
The Natural Stone Institute has provided natural stone and fabrication services for another home through the Gary Sinise Foundation R.I.S.E. program. The services were provided by Quality Marble & Granite and Inland Counter Tops for a home for Marine Corps Corporal Josue Barron. Barron was deployed to Afghanistan in 2010 when a member of his team stepped on an IED during a foot patrol, leaving both men with amputations. Companies interested in getting involved with future projects should email pam@naturalstoneinstitute.org.
11:39
Italian manufacturer Laminam is one of the first makers of ceramic surfaces worldwide to obtain the NSF-ANSI “Solid Surfacing for Food Zone” certification. The certification allows the use of Laminam finishes as surfaces intended for direct contact with foodstuffs and any associated liquid condensate they produce. Tests carried out by accredited external labs on Laminam surfaces have shown the elimination of up to 93 percent of microbes, bacteria and mold. The company also offers additional Ambience bio-active treatments to further reduce the growth of bacteria, mold and mildew on its surfaces.
For the latest in industry news, visit our online newsletter, Slab & Sheet. The March/April issue of Stone Update, is now available at magazine.stonemag.com. And, for notes on this episode and a transcript, go to www.radiostoneupdate.com.
I’m K. Schipper for Radio Stone Update, and we’ll see you here again soon.