NEW YORK – In the early part of the past five years, as new home construction was stagnant, the wood flooring manufacturing industry’s demand shifted to home improvement rather than new construction, according to IBISWorld’s Wood Flooring Manufacturing in the US industry report.

IBISWorld anticipates revenue to increase 4.7 percent in 2014. Because the wood flooring manufacturing industry declined prior to the current five-year period, its performance realized strong gains during the five years to 2014, growing an annualized 7.5 percent to $1.7 billion.

“Buyers have since turned to higher-value solid flooring products for their long-term investment value and increased overall purchase volumes, and both of these factors have contributed to healthier profit margins,” says IBISWorld Industry Analyst Antal Neville.

The wood flooring manufacturing industry is projected to have moderate growth in revenue during the next five years, IBISWorld. As the economy improves and home construction increases, home builders will generate demand for wood flooring. In addition, per capita disposable income is forecast to grow, which also will increase the use for flooring in home improvement products.

IBISWorld projects competition from imports and alternative flooring options will cause consolidation in the industry. Regulatory challenges also will mount as consumers and construction standards become more environmentally aware.