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Understanding the Cost of Laminate Flooring From a Manufacturing Point of View

Before we can understand the cost or how the cost of laminate flooring is made up, we first need to re-cap how laminate flooring is made. Laminate flooring is made up of a high-density fiberboard (HDF) core, a melamine-impregnated decor layer which is a photographic reproduction of a real wood or tile floor, and on top of that, a highly resistant protective overlay to give the floor the protection and durability required.

laminate flooring266 Understanding the Cost of Laminate Flooring From a Manufacturing Point of View

Underneath is what’s called a balancing laminate which not only ensures the stability of the board during the production process but also because of its non-porosity, helps to prevent moisture from getting into the HDF core once the floor has been laid.

Under immense pressure and heat this ‘sandwich’ is bonded together to form a huge sheet of flooring which is then cut into smaller boards, the edges of which are profiled so that the boards can be ‘clicked’ together without the need for any adhesive. It is during the production process that the surface finishes such as embossing and texturing are applied.

The actual pattern or wood look is the décor paper. The décor paper is a melamine-impregnated photographic reproduction of a wood or tile floor.

The top surface of the laminate floor is a very strong, highly resistant, protective, transparent overlay which uses corundum (Al²O³) impregnated with melamine resins. It is non-porous so it is impossible for any form of moisture to get into the HDF core-board from the top and it is for this reason that floor polish should not used on a laminated floor as it cannot be absorbed by the floor.

The core-board thickness of laminate flooring is important as this determines the thickness and standard of laminate flooring that will be sold. Laminate flooring can be sold in any thickness but is commonly sold in 6mm, 7mm, 8mm, 10mm and 12mm thickness.

6mm Laminate Flooring is mainly made in the largest European Factories, where they can produce the laminate quick enough to create some value

7mm & 8mm Laminate flooring is mainly made in Europe and USA

10mm & 12mm is again generally made in Europe where they can have up to 10 laminate lines and use some for slower production of the 10mm & 12mm which with the higher thickness is usually, embossed & beveled.

8.3mm, 10.3mm & 12.3mm laminate comes from China and is usually unlicensed – so beware, it has the 0.3 because it is their argument against the patent system and they believe the is slightly better. So you can quickly tell a country’s origin, just by that 0.3mm – it is 99.9% of the time made in China.

Now you have an understanding of where the product comes from let’s look at what makes up the cost of laminate flooring:

1. The core-board, this makes the product 6mm, 7mm, 8mm, etc, etc. The thicker the core the slight cost difference in product.

2. The melamine backer – this gives the laminate it’s structure

3. The Décor Paper – a melamine-impregnated photographic reproduction of a wood or tile floor.

4. Transparent Melamine overlay. The top surface of the floor is a very strong, highly resistant, protective, transparent overlay which uses corundum (Al²O³) impregnated with melamine resins.

5. Finish – Micro-Bevel, Registered & Embossed, Wood Grain, Slight grain, etc.

6. Fully Vertically Integrated, if a factory is completely integrated, this is IMPORTANT it is set next to the managed forest – its raw materials, it collects and manages that forest and creates its own core board.

7. Transportation costs – if a factory is not fully integrated it must ship the core board in and this is expensive – it must also purchase the core board from another company (example Georgia Pacific) – they will add their margin to the product. Essentially non-vertically integrated factories cannot control their costs as they are subject to core board costs and market fluctuations.

8. Marketing costs, brand, advertising, etc, etc.

9. Packaging materials, boxes that the product comes in.

10. Inserts that display installation instructions.

11. Staff – employees

12. Speed of production – the faster you create the laminate the cheaper it gets, as the unit cost is basically a calculation of all costs above divided by output

Cost of Laminate = All costs above ÷ number of square footage produced

All of these items above create the cost of laminate flooring, if you take a non-vertically integrated laminate factory (90% of factories – even if they won’t admit it) can produce 7mm laminate flooring from $0.50SF to $0.55SF.

laminate flooring57 Understanding the Cost of Laminate Flooring From a Manufacturing Point of View

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One Comment

  1. Jo says:

    I definitely learned about nearly all of this, but having said that, I still considered it had been practical. Nice blog!

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