Carpets & Rugs to 2009

TABLE OF CONTENTS

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT

General

Macroeconomic Overview

Consumer Income & Spending

Personal Income & Expenditures

Consumer Financing

Demographic Trends

Population

Households

Building Construction Trends

Residential Construction

Housing Outlook

Single-Family Home Sales

Residential Floor Space

Improvements & Repairs

Nonresidential Construction

Nonresidential Building Space

Repair & Improvements

Transportation Equipment Trends

Motor Vehicle Outlook

Other Transportation Equipment

Pricing Patterns

Market Trends

Environmental Issues

Recycling

Indoor Air Quality

Other Issues

World Carpet & Rug Overview

US Foreign Trade

Imports

Exports

Competitive Floor Coverings Outlook

III. MATERIALS

General

Face Fibers

Nylon

Polypropylene

Polyester

Wool & Other Fibers

Primary Backing

Secondary Backing

Adhesives

Styrene-Butadiene Latex

Other Adhesives

IV. PRODUCTS

General

Tufted Carpets & Rugs

Broadloom

Scatter Rugs & Bath Mats

Carpet Tile

Vehicular Carpets & Rugs

Artificial Grass

Woven Carpets & Rugs

Product Characteristics

Product Innovation

Other Carpets & Rugs

Needle-Punched

All Other

V. MARKETS

General

Residential Building

New

Replacement

Residence Type

Single-Family Housing

Multifamily Housing

Manufactured Housing

Nonresidential Building

New

Replacement

Building Type

Office & Commercial

Institutional

Industrial

Other Nonresidential Buildings

Transportation Equipment

Motor Vehicles

Other Transportation Equipment

VI. INDUSTRY STRUCTURE

General

Industry Composition

Market Share

Mohawk

Shaw

Beaulieu

Interface

C&A Floorcoverings

Dixie

Collins & Aikman

Other Leading Companies

Competitive Strategies

Product Development

Manufacturing

Marketing

Distribution

Mergers & Acquisitions

Cooperative Agreements

COMPANY PROFILES

Abbey Carpet Company Incorporated

Amoco Fabrics & Fibers Company, see Propex Fabrics

Atlas Carpet Mills Incorporated

Bacova Guild Limited

Barrett Carpet Mills Incorporated, see Kraus Carpet Mills

BASF AG

Beaulieu Group LLC

Bentley Prince Street Incorporated, see Interface

Berkshire Hathaway Incorporated

Blue Ridge Commercial Carpet

BP plc

Camelot Carpet Mills, see Royalty Carpet Mills

Candlewick Yarns, see Dixie Group

Capel Incorporated

Cargill Incorporated

Collins & Aikman Corporation

Collins & Aikman Floorcoverings Incorporated

Crossley Carpet Mills Limited, see Collins & Aikman

Floorcoverings

Designweave Commercial Carpet Incorporated, see

Berkshire Hathaway

Dixie Group Incorporated

Dow Chemical Company

DuPont (EI) de Nemours

Fabrica International, see Dixie Group

Feizy Import and Export Company

Flagship Carpets, see Blue Ridge Commercial Carpet

Gulistan Carpet Incorporated

Honeywell International Incorporated

Interface Incorporated

International Textile Group

Invision Carpet Systems, see J&J Industries

INVISTA, see Koch Industries

J&J Industries Incorporated

Koch Industries Incorporated

Kraus Carpet Mills Limited

Lear Corporation

Lees Carpets, see Mohawk Industries

Legato Carpet System, see Milliken & Company

Magee Rieter Automotive Systems, see Rieter Holding

Mannington Mills Incorporated

Maples Industries Incorporated

Masland Carpets, see Dixie Group

McMahon (WG) Canada Limited, see Kraus Carpet Mills

Milliken & Company

Mohawk Industries Incorporated

Monterey Carpets, see Collins & Aikman Floorcoverings

NatureWorks LLC, see Cargill

Nourison Rug Corporation

Official Pillowtex LLC

Oriental Weavers Group

Pacificrest Mills Incorporated, see Royalty Carpet Mills

Pandel Incorporated, see Interface

Patcraft Commercial Carpet, see Berkshire Hathaway

Pillowtex Corporation, see Official Pillowtex

Propex Fabrics Incorporated

Rieter Holding Limited

Royalty Carpet Mills Incorporated

Shaw Industries Incorporated, see Berkshire Hathaway

SI Corporation

Solutia Incorporated

Sound Floor Coverings Incorporated, see Kraus Carpet Mills

Sphinx, see Oriental Weavers

Springs Industries Incorporated

Strudex Fibres Limited, see Kraus Carpet Mills

Tesserae Carpet System, see Milliken & Company

Textile Rubber & Chemical Company Incorporated

3M Company

Other Companies Mentioned in Study

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators

2 Personal Income & Expenditures

3 Consumer Financing Environment

4 Population Trends

5 Building Construction Expenditures

6 Residential Building Construction Expenditures

7 Housing Indicators

8 Single-Family Home Sales

9 Residential Floor Space

10 Residential Repair & Improvement Expenditures

11 Nonresidential Construction Expenditures

12 Nonresidential Floor Space

13 Nonresidential Repair & Improvement Expenditures

14 Motor Vehicle Outlook

15 Other Transportation Equipment Indicators

16 Carpet & Rug Shipment Pricing Trends

17 Carpet & Rug Historical Market Trends

18 US Carpet & Rug Foreign Trade

19 Floor Covering Demand

SECTION III -- MATERIALS

1 Carpet & Rug Material Consumption

2 Face Fiber Consumption

3 Nylon Face Fiber Consumption

4 Polypropylene Face Fiber Consumption

5 Polyester Face Fiber Consumption

6 Wool & Other Face Fiber Consumption

7 Primary Backing Consumption

8 Secondary Backing Consumption

9 Adhesives Consumption

SECTION IV -- PRODUCTS

1 Carpet & Rug Supply & Demand

2 Tufted Carpet & Rug Supply & Demand

3 Broadloom Carpet & Rug Shipments

4 Scatter Rug & Bath Mat Shipments

5 Carpet Tile Shipments

6 Vehicular Carpet & Rug Shipments

7 Artificial Grass Shipments

8 Woven Carpet & Rug Supply & Demand

9 Other Carpet & Rug Supply & Demand

SECTION V -- MARKETS

1 Carpet & Rug Demand by Market

2 Residential Carpet & Rug Demand

3 New Residential Carpet & Rug Demand

4 Residential Replacement Carpet & Rug Demand

5 Single-Family Housing Carpet & Rug Demand

6 Multifamily Housing Carpet & Rug Demand

7 Manufactured Housing Carpet & Rug Demand

8 Nonresidential Building Carpet & Rug Demand

9 New Nonresidential Carpet & Rug Demand

10 Nonresidential Replacement Carpet & Rug Demand

11 Nonresidential Carpet & Rug Demand by Building Type

12 Office & Commercial Building Carpet & Rug Demand

13 Institutional Building Carpet & Rug Demand

14 Industrial Building Carpet & Rug Demand

15 Other Nonresidential Building Carpet & Rug Demand

16 Transportation Equipment Carpet & Rug Demand

17 Motor Vehicle Carpet & Rug Demand

18 Other Transportation Equipment Carpet & Rug Demand

SECTION VI -- INDUSTRY STRUCTURE

1 Sales for Selected Carpet & Rug Producers, 2004

2 Selected Acquisitions & Divestitures

3 Selected Cooperative Agreements

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Carpet & Rug Historical Market Trends, 1995-2004

2 US Carpet & Rug Imports by Country & Product, 2004

3 US Carpet & Rug Exports by Country & Product, 2004

SECTION III -- MATERIALS

1 US Carpet & Rug Material Consumption, 2004

2 Face Fiber Consumption by Type, 2004

SECTION IV -- PRODUCTS

1 Carpet & Rug Shipments by Type, 2004

2 Tufted Carpet & Rug Shipments by Unit & Value, 2004

SECTION V -- MARKETS

1 Carpet & Rug Demand by Market, 2004

2 Residential Carpet & Rug Demand by Housing Type, 2004

SECTION VI -- INDUSTRY STRUCTURE

1 US Carpet & Rug Market Share, 2004

2 Carpet & Rug Distribution by Channel, 2004