AUTOSTONEUSA'S MESSAGE

Supply Chain Response

AutoStoneUSA focuses directly on the global economic and environmental impacts across the world in the tile material industry. Our response below includes major implications to avoid and why our domestic American-Made products help complete your project faster.

War In the Middle East Means:
- Disruptive Shipping
- Risky Supply Chain
- Expensive Imports

Geopolitcs and War Affecting Trade
Routes Threatening Global GDP

Maritime traffic zones and other intense trade canals are becoming chokepoints globally.

The Red Sea and Suez Canal which helps contribute to over $1 trillion in global trade has been experiencing missile damage from Houthis on commercial vessels in the area causing delays in that can cost any installation project weeks if not months.

Tile materials ordered from other countries that require a intercontinental oceanic expedition are and could continue to be targets by bad actors and missile strikes.

AutoStoneUSA views these unfortunate circumstances and major blows to trade as avoidable when you purchase directly from AutoStoneUSA utilizing our domestic and American-Made inventory of tile materials thus preventing any international shipping days. To learn more about the on-going chokepoint issues in the global supply chain read this article written by industry experts.

Russia Terminated Norm Stream 1 Pipeline Supply of Natural Gas

Monday, September 5th (22'), Russia Terminated Nord Stream 1 Supply of Natural Gas.
EU Energy Prices Rose + 500%.

Tuesday, October 18th (22'), Nord Stream 1 pipelines were blown-up, destroying ability for the supply of natural gas.
eU energy prices Rose + 1000%.

This Impacts tile Pricing, Production capacity and manufacturing lead-time's For Tile Materials that Supply Your Automotive Project.

AutoStoneUSA “Made In America” Tile is The Answer.

AutoStoneUSA Keeps Your Builds On Schedule And On Budget.

What Do Geopolitical Experts and Manufacturing and Distribution Industry Leaders Say?

Peter Zeihan, GeoPolitical expert & Founder of zeihan on geopolitics

One of the top consulting resources AutoStoneUSA references is Peter Zeihan, a geopolitical expert and founder of Zeihan on Geopolitics. He is one of the USA’s top geopolitical experts on these matters and his viewpoints, books, and outlook have heavily influenced AutoStone USA to relocate production to the USA. To summarize “the shorter the supply chain and closer to your customer, the better you will be”.  

Watch the video to the right to understand Zeihan’s view on European manufacturers struggling to adapt to the new evolving markets.

Europe's Natural Gas Challenge

Published September 8th, 2022

Nord Stream 1 Pipelines Blown-Up

Published September 8th, 2022

Russia-Germany pipelines damaged by 'deliberate actions'

The immediate and long-term ability for European produced porcelain tile products, which are heavily dependent upon inexpensive and readily available natural gas has suffered another blow.  With 40% to 70% of EU natural gas previously being supplied from Russia, this changes the entire supply chain supporting automotive retail and service industry product options and suppliers. 

Price increases of 40% or more are being forecast with more increases to come.  Additionally, lead-times, shipping costs and product availability will be dramatically impacted. 

AutoStoneUSA “Made in America” materials do more than reduce risk, costs, and  lead-times.  We reduce fossil fuel use and our carbon footprint.  When you measure the entire “supply chain” from sourcing raw materials to delivery of product to your facility, AutoStoneUSA significantly reduces our carbon footprint.

AutoStoneUSA quarries regionally to our manufacturing and AutoStoneUSA warehouses are near our manufacturing facilities.  Our supply chain is short, efficient, and effective.  In summary, the AutoStoneUSA Quarry to Kiln method significantly reduces carbon emissions, costs, and supply chain risk.

Current News Stories (08/31 thru 9/06) Russia-EU Natural Gas

Below are a few stories you can refernce on the termination of natural gas supplies from Russia to the EU.  This singular event will have a consequential and significant impact on EU industry and specifically tile industrial production for years to come.  The immediate effect is tile prices have risen over 60% (with more hikes coming), extended production times, higher transport and shipping costs.  This is a fundamental shift that impacts your automotive brand program and dealership facility project.  

Article Link

European natural gas prices have soared over 500% compared to a year earlier.

What is AutoStoneUSA's Response?

AutoStone USA Tiles
Made In America

Q2K Model Reduces Carbon Emissions

Domestic Production
Efficient Distribution

Updated ANSI A326.3 DCOF Requirements

The biggest risk your automotive project and related construction schedule faces is reliance on EU produced tile Germany (clinker tile), Italy and Spain.  AutoStoneUSA builds in the USA, which eliminates supply chain risk.  Why are EU manufactured products at risk?  On Monday, September 5th, 2022, Russia permanently stopped supplying natural gas to Europe until the EU sanctions over invasion of Ukraine are ended have caused them to rise more than 500% this year and more since this announcement.  In short – natural gas sent through the Nord Stream 1 Pipeline, has now been permanently turned off 9/5/2022 and manufacturing in Europe will require at least 3-5 years to restructure at soonest.

Automotive programs and projects will see increases in material pricing, shipping & transport costs as well as delays in deliveries on EU supplied tile materials.  The energy issues have been masked due to the war starting in the spring when domestic use of natural gas has been at lowest demand level.  However, with winter of 2022 approaching, EU tile producers will be facing significant energy shortage issues that will impact US automotive construction projects using EU manufactured tile.

AutoStone USA domestic production evolution

AutoStoneUSA repositioning our global supply chain in 2015. Today, AutoStoneUSA produces 75% of our products in the USA and 90% by the end of 2023. AutoStoneUSA can build your automotive image program or supply our USA-manufactured tile to support your automotive brand. If your program uses imported tile materials, it makes sense for your program or project to include American Made tile products so construction budgets and schedules can be maintained. AutoStoneUSA is the best vendor to make this seamless process happen.

American Production Reduces Wasteful Fossil Fuel Use

AutoStoneUSA “Made in America” materials do more than reduce costs.  We reduce carbon emissions by eliminating trans-ocean shipping.  We source raw materials regionally and near our production facilities.  We eliminate the import of raw materials from other countries which repeat the dependency and use of fossil fuels, and additional trans-ocean shipping.

Trans-ocean shipping is heavily dependent on over-stressed ports which include over-land trucking and transport.  This further expands use of fossil-fuels.  Additionally, AutoStoneUSA warehouses near our production and we eliminate shipping through distribution systems and instead ship directly to your project site.

Quarry to Kiln (Q2K) Distribution Model Reduces Carbon Emissions

Our “Made in America” materials do more than reduce costs. We reduce carbon emissions by eliminating trans-ocean shipping. We source raw materials regionally and near our production facilities. We eliminate the import of raw materials from other countries which repeat the dependency of fossil fuels and trans-ocean shipping. AutoStone USA manufactures in state-of-the-art, energy and environmentally efficient facilities. 

Porcelain Tile, Kilns and Natural Gas

All porcelain tile is produced in a kiln with natural gas, there is no alternative power source that can generate fire in a kiln.  It takes 10-days to slowly “power-down” a kiln and another 10-days to “power-up” a kiln.  This is why EU tile manufacturers use the month of August to perform maintenance on their kilns, because it aligns with traditional EU vacation periods.  If there is a natural gas shortage, kilns cannot shut down fast enough to avoid the damage that will happen to the production equipment.

With rolling brown/blackouts anticipated, no EU countries have enough natural gas reserves to allow kilns to shut down in anticipation of shortages.  This complicates things greatly.

Natural Gas Interruptions Place Greater Risk on Kiln Production Equipment

All porcelain tile is produced in a kiln with natural gas, there is no alternative power source that can generate fire in a kiln.  It takes 10-days to slowly “power-down” a kiln and another 10-days to “power-up” a kiln.  This is why EU tile manufacturers use the month of August to perform maintenance on their kilns, because it aligns with traditional EU vacation periods.  If there is a natural gas shortage, kilns cannot shut down fast enough to avoid the damage that will happen to the production equipment.

With rolling brown/blackouts anticipated, no EU countries have enough natural gas reserves to allow kilns to shut down in anticipation of shortages.  This complicates things greatly.

Domestic Production, Efficient Distribution

The former J-I-T, just-in-time production model is no longer sustainable after pandemic and with AutoStone USA’s shift toward domestic production this simple adjustment creates a seismic impact by creating American jobs, by supporting local communities, and by increasing domestic investment. No other tile company has committed to domestic (USA) production in support of the automotive retail facility like AutoStone USA. If you like US manufacturing, local raw material sourcing, American workers, and continued US investment, please consider AutoStone USA for all of your automotive facility builds. 

 

AutoStoneUSA reduces tile production carbon footprint

AutoStoneUSA “Made in America” materials do more than reduce costs.  We reduce carbon emissions by eliminating trans-ocean shipping.  We source raw materials regionally and near our production facilities.  We eliminate the import of raw materials from other countries which repeat the dependency and use of fossil fuels, and additional trans-ocean shipping.

Trans-ocean shipping is heavily dependent on over-stressed ports which include over-land trucking and transport.  This further expands use of fossil-fuels.  Additionally, AutoStoneUSA warehouses near our production and we eliminate shipping through distribution systems and instead ship directly to your project site.

Updated ANSI A326.3 DCOF Requirements

ANSI A326.3 Tile Standard is a requirement for tile manufacturers to provide declared use. Our Enviroshop floor system compiles with the new ANSI A326.3 product use category of 4.1.3 Interior Wet Plus (IW+). This new standard is important and AutoStone USA encourages every general contractor and architect to review our product distinction and class. Specifying any product used in an automotive service drive or workshop where the manufacturer does not declare it meets the use category faces higher litigation exposure.  We believe this standard provides a more trustworthy product. AutoStone USA has not seen tile manufacturers in Germany or Italy adhere to this new ANSI or DCOF standard requirements. Currently, these manufacturers are defaulting the old >.42 DCOF minimum standard and no declared use category. Due to war-torn environments in Europe, it is possible they do not have the bandwidth to address this new standard as energy shortages and a changing production environment is at their forefront. AutoStone USA declares Enviroshop to meet the 4.1.3 Interior Wet Plus (IW+), which comes with a higher DCOF rating of >.50 rating. To learn more about what other AutoStone USA floor systems adhere to the new ANSI standard, visit our Best Shop Floor page to see the product use classification for our Driveseries and Enviroshop floor systems.

Quarry to Kiln (Q2K)
Distribution Model

AutoStone USA’s Quarry to Kiln Distribution Model demonstrates how our products are locally sourced and domestically warehoused which means consolidated shipping direct to your dealership which saves you money in your overall project.
AutoStone President Barry Portrait
Barry Wells
President - AutoStoneUSA