USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 144

of total COGS, while direct labor costs ranged from *** percent (in 2017) to *** percent (in 2019) of total COGS (see table VI-3). As shown in table VI-7, the average unit OFC irregularly declined from $*** in 2017 to $*** in 2019 while the average unit direct labor costs irregularly declined from $*** in 2017 to $*** in 2019 for U.S. producers. With respect to independent fabricators, the average unit OFC declined from $*** in 2017 to $*** in 2019 while the average unit direct labor costs irregularly increased from $*** in 2017 to $*** in 2019. 15 Gross profit or loss With respect to U.S. producers, gross profits increased from 2017 to 2019 because the increase in total net sales value was greater than the increase in COGS driven by increased raw material costs. Gross profit margin (gross profit as a ratio to net sales) irregularly increased from *** percent in 2017 to *** percent in 2018 and *** percent in 2019 (see table VI-1). 16 With respect to independent fabricators, gross profits irregularly declined due to the decline in net sales values and the increase in COGS. Gross profit margin irregularly declined from *** percent in 2017 to *** in 2018 and *** percent in 2019 (see table VI-3). SG&A expenses and operating income As shown in table VI-7, the SG&A expense ratio (i.e., total SG&A expenses divided by total net sales value) for U.S. producers and independent fabricators ranged from *** percent (in 2018) to *** percent (in 2017), and from *** percent (in 2017) to *** percent (in 2019), respectively. The average unit SG&A expenses for U.S. producers irregularly declined from 2017 to 2019 while the average unit SG&A expenses for independent fabricators increased. *** 15 Estimated value added (total conversion costs (direct labor and other factory costs) as a share of total COGS) for U.S. producers ranged from a low of *** percent in 2018 to a high of *** percent in 2017 (based on data in table VI-1). Estimated value added for independent fabricators ranged from a low of *** percent in 2018 to a high of *** percent in 2019 (based on data in table VI-3). Estimated value added for ***’s fabrication ranged from a low of *** percent in 2018 to a high of *** percent in 2019. Email from ***, February 24, 2020. 16 Gross profit and gross profit margin excluding *** for U.S. producers in 2018 are $*** and *** percent, respectively. VI-18