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Executive forecast: Resilient segment anticipating a successful year

By Jenna Lippin

Volume 27/number 15; December 3/10, 2012

In 2012, industry leaders in the resilient category anticipated favorable economic conditions and widespread growth. Now that the year is coming to a close, many companies report things were quiet over the last 12 months. However, the final numbers did not disappoint.

Once again, despite unpredictable economic conditions, executives look forward to a successful year in 2013. New products, the commercial market, multi-family structures and property management are all expected to help the success of resilient companies across the board.

The upcoming Surfaces event in early 2013 has a number of top players feeling positive, as well, as the event will showcase the latest innovations that will facilitate increases in sales.

Jeff Collum

Vice president, flooring, CBC America

CBC is projecting an increase in retail, education and healthcare volume in 2013. We forecast our company growth at a 5% to 6% clip. This is largely due to our new products for the PVC- free markets and the Halo LVT line. I predict the market overall will experience less of a change at 2% to 3% actual growth.

The green product design and the LVT niche still offer the best opportunities for growth and we will continue to address this with significant introductions in 2013. We will also introduce a new brand under our CBC umbrella, and are excited about bringing new products to the U.S. market that have a long successful history in Japan.

We are also expanding our focus in geography with key changes in several large markets like New York and Chicago. We will execute a direct agency approach to market our brands such as TOLI, Halo, Salto, Unic, and Indelval.

Don Evans

Vice president of sales and marketing, EarthWerks

We feel 2013 will be a very good year for EarthWerks. We will have a double-digit increase in 2012 and expect it to continue into next year.

The flooring industry has taken a beating over the past few years, but it seems to be making a comeback. I think floor covering business nationwide will improve overall in 2013.

It appears that hard surface continues to be the big opportunity for manufacturers and retailers. New home construction is increasing along with multi-housing.

EarthWerks is very fortunate to be located in an area of the country that has not seen the drastic downturn in business. Sure business has been soft at times, but generally ours has been good, and we expect business to grow in 2013. LVT continues to be the hot product line and EarthWerks LVT continues to expand each and every year.

EarthWerks is also very excited about the products we will be introducing at Surfaces. We’ll be showing great colors and exciting designs for both the retail and commercial markets.

Dennis Jarosz

Vice president of sales and marketing, Congoleum

We anticipate growing faster in 2013 because of new programs and product. We’ve been quiet for years, but with new offerings and updated displays, we won’t be so quiet anymore. We will also be more active with trade advertising and sending out our message.

At Surfaces, Congoleum will exhibit a new commercial LVT line that will be ready for delivery in March. We will also release an additional size of DuraCeramic, 12 x 24 rectangles, along with a completely new category for floor covering retailers that will be ready in May.

We see continued strengths in property management for multi-family and we plan to take a stronger position in the commercial market as it will be a new opportunity for us.

There are some potential challenges when it comes to reaching our projected goals. With all the things we plan to do, getting them done within the timeframe we’ve scheduled may prove to be difficult; Congoleum has a very aggressive plan. Also, we don’t know what will happen when it comes to the economy and the fiscal cliff.

We’re forecasting about 2% to 3% of organic growth based simply on generating business from new display programs at Surfaces. Between this new display placement and new product types we’re introducing, we expect overall growth to be at 10% for 2013. No one can estimate pie in the sky growth figures anymore; there’s not enough basis for that.

Paul Murfin

President, IVC

IVC is in the sheet business, exclusively glass fiber and LVT. Two things will drive IVC’s growth in 2013: The market shift from felt- to glass-back and executing our sales initiatives thanks to our LVT capacity. These make us optimistic for substantial growth next year.

As IVC enters the LVT market, the important difference is we won’t be sourcing product anymore, but making it ourselves. Our Belgium-based facility has come online for the U.S., plus our business will grow as we become more involved in the category.

IVC is also very optimistic about the commercial market as we venture into that arena. We started our initiative this year and will launch the second part in the latter part of 2013.

Last year, IVC benefitted from the growth in property management, and we anticipate continued success there. Everybody expects new housing to turnaround and we will benefit from that, as well.

We will exhibit at Surfaces ’13 and are excited about what we’re planning to show.