May 11/18, 2015; Volume 29/Number 3
Piet Dossche
president and CEO
USFLOORS
USFloors’ COREtec engineered luxury vinyl flooring is leading the way in hard surface, rising above the tide of the flooded LVT market that seemingly has a new company joining every day. The innovative product was developed after market research in an effort to create a vinyl offering like nothing else available, with a construction that includes an extruded core made from recycled wood and bamboo dust, limestone and virgin PVC. Guiding the company in its innovation and success is Piet Dossche, USFloors’ president and CEO.
Philippe Erramuzpe, USFloors’ COO, has worked closely with Dossche since the early 2000s. “When we saw the explosion of LVT and the vinyl category about four or five years ago we saw we had the opportunity to play in the segment as well, but we always come up with something a little different,” he reflected. “Putting the product together has been a team effort, but the one leading the orchestra was Piet. He had a very good feeling about the product and we knew we had something that could be a game changer.”
Sam Ruble, vice president, sales, added, “[Dossche] has a wide array of skill sets as he has worked in and run all facets of the flooring industry. He is a visionary as reflected in our COREtec line of products. He is always thinking about giving birth to something new and unique in a category.”
The patent-pending product recently went global, with the launch of COREtec Plus and COREtec One in the United Kingdom.
Tom Lape
president
MOHAWK RESIDENTIAL
With a rich history of over 135 years as a flooring innovator, Mohawk Industries has built and maintained a solid, talented team to remain the leader in industry technology, regularly releasing revolutionary products to help transform both product and consumer shopping habits.
Its most recent carpet innovation, SmartStrand Forever Clean, was launched in late 2014, building upon the line of successful SmartStrand franchise unveiled in 2005. The next-generation fiber builds upon the success of SmartStrand products by combining the carpet with Nanoloc technology, an added layer of protection that locks out spills and makes the surface even easier to clean.
According to Brian Carson, president of Mohawk Flooring, the company has Tom Lape, president of Mohawk Residential, to thank as the brains behind the Forever Clean revolution. “In 2014, Tom presented a challenge to Mohawk’s research and development [team]: How do you make the best carpet in the world even better? Out of that, SmartStrand Forever Clean was born. Tom is the leader who saw the customer and market benefit in that fiber. We started on the SmartStrand journey under Tom’s leadership a decade ago, and in 10 short years SmartStrand has gone from a new fiber with great potential to a carpet solution that has been named the most innovative flooring product in the entire industry.”
Under Lape’s leadership, SmartStrand now lives in over 10 million homes across the globe. “At Mohawk there’s a saying, ‘No matter how much progress you make, you’re only halfway there,’” Carson said. “On the innovation of SmartStrand Forever Clean, I would say Tom made it way more than halfway there.”
Bob Shaw
chairman
ENGINEERED FLOORS
James Lesslie, assistant to the chairman at Engineered Floors, said he is often asked how working for Bob Shaw now compares with 20 years ago, when Shaw was in his 60s. The answer won’t surprise too many people who have seen the body of work from the industry icon.
“I can tell you that his passion for building successful organizations is as strong as it has ever been,” Lesslie said. “He creates a culture in which we constantly ask ourselves how we can make products to better fill customers’ needs. That is the basic element of a successful business—making products that customers want to buy. You do that by bringing together a successful team of people and giving them the tools to make that happen.”
Bob Shaw, the founder and longtime CEO of Shaw Industries who retired from the company in 2005, started Engineered Floors in 2009. At the time, the former quarterback said, “Obviously if you’re going into business and business is a game, you play to win the game.”
The game is not over for Engineered Floors; the company is on a serious winning streak, having invested $450 million in building two new factories that will eventually hire 2,400 people in the Dalton area. It is currently one of the fastest growing soft surface companies in the flooring industry.
“We have demonstrated a commitment to the community by investing capital in northwest Georgia, but you can’t have the capital to invest if you don’t have a successful company,” Lesslie said.
Melissa Minihan
vice president, marketing surfaces
INVISTA
Stainmaster PetProtect is a favorite among pet owners across the nation thanks to Melissa Minihan, vice president of marketing surfaces for Invista, and her team, who turned what was formerly known as SolarMax into the best seller it is today. After about six months of extensive consumer research, Minihan struck upon a basic need of the modern consumer and found that 61% of households in the U.S. have at least one pet (Simmons Fall 2014). By rebranding SolarMax to appeal to pet owners—changing its name to PetProtect and touting its ability to resist stains, reduce odors and release hair—Minihan created a product that changed the game for soft surfaces.
As a general rule, Minihan won’t market anything she doesn’t believe in—one reason behind her passion and dedication to the product. Although she joined Invista with no prior knowledge or experience in the floor covering industry, Pami Bhullar, Invista’s director of retail development in North America, explained that a fresh perspective was exactly what the company needed.
“For those of us who have been here for 20, 30 or 40 years, we think we know everything so we tend to lean in one direction. [Minihan] may not have known much about the flooring industry, but she knew the inner workings of the consumer brain and how she shops. She took her team on a journey to find out the consumer’s No. 1 need, and that’s how PetProtect came to life.”
Paul Murfin
co-CEO
IVC US
As the fastest-growing resilient company in the industry, IVC US has accomplished much in recent years, including its expansion into laminate and the development of three new facilities under the leadership of Paul Murfin, co-CEO. And with its new LVT plant in Georgia expected to be up and running next month, there is no doubt the company has a lot more in store.
Bart Rich, senior director of marketing for IVC US, attributes part of the company’s success to Murfin’s direction. “Paul is a true leader in every sense of the word. He knows the industry, he knows how to go after business and has led us through multiple ventures over the past three years (during which the company has doubled in size). He is also someone you can talk to, express your opinions to and give feedback—he’s really good at listening and taking what you say into consideration. He has a knack for knowing where the market is headed and he’s usually one of the first movers in the marketplace.”
Murfin said IVC US is unique in its ability to make decisions quickly and its willingness to invest in growth strategies, which has allowed the company to move at a much faster pace than competitors in the market. The secret, he said, is concentrating on four key points: investing in the latest technology, focusing on color and design, emphasizing product quality and operational excellence, and “last but not least, finding a way to say yes to the customer.”
Randy Merritt
president
SHAW INDUSTRIES
Role model. Relationship builder. Leader. Team player. Friend.
Those are some of the words used to describe Randy Merritt, president of Shaw Industries. They come from two people with whom he has worked for all 39 years of his Shaw career—Vance Bell, CEO, and David Wilkerson, corporate director, sustainability and product stewardship.
As per his colleagues, Merritt embodies the core values that define Shaw: honesty, integrity and passion. “Randy has been a role model for much of our sales organization,” Bell said.
Merritt was Shaw’s first trainee, starting May 10, 1976. As he worked his way through the ranks, he maintained a strong presence in the flooring industry—attending trade shows, markets and customer events. “Randy is a relationship builder,” Bell said. “He reaches out, creates friendships and relationships, knows the families, and stays in touch with hundreds of customers and associates. He has developed business relationships with customers from just being transactional to personal relationships with the company.”
Wilkerson, who roomed with Merritt in Dalton when they first joined Shaw, said among his many positive attributes is “Randy’s amazing ability to understand complex problems or situations and then provide effective direction and wise counsel.”
As much as Merritt has done for Shaw Industries, his devotion to family—he and his wife Sharon have three children—and charitable organizations is equally as impressive, according to his peers.
Wilkerson added, “I feel blessed to have had such a long-term friendship with Randy; the company is very fortunate to have him as our president.”
Scott Humphrey
president/CEO
WORLD FLOOR COVERING ASSOCIATION
Scott Humphrey was a vocal performance major at Belmont University in Nashville, Tenn., and contemplated a career as a professional singer. He, more than most, understands the power of multiple voices singing from the same songbook.
As president and CEO of the World Floor Covering Association (WFCA), Humphrey represents 2,600 flooring retailers, a powerful constituency that can exact positive change.
“The WFCA exists for one purpose and that is to help independent flooring retailers—to simplify their lives, to help them make more money,” Humphrey said. “Our goal is to be the voice of retailers. The reason we focus on retailers is they are the hub of the industry. Good installers need good retailers; carpet cleaners need good retailers; distributors need good retailers; across the board it all connects through the flooring retailer.”
Humphrey travels over 100 days a year on behalf of flooring dealers. Whether it is lobbying Congress on the Marketplace Fairness Act, working with the industry to push through the S600 Carpet Installation Standard or collaborating with the Certified Floorcovering Installers on training, Humphrey covers the market to solve the industry’s “pain points.”
Michael Martin, president and CEO of the National Wood Flooring Association (NWFA), who works closely with Humphrey, said, “I think the WFCA spent a tremendous amount of time identifying the right leader to follow a flooring industry legend like Chris Davis, and they found the right leader in Scott. Not only has he taken the organization into its next chapter, but he has done so with integrity, fairness and concern for what’s best for the industry overall. It has been very rewarding to work with him as we put our individual needs aside several times a year to focus on making the industry better.”
John McGrath
director
INSTALL
John McGrath has been the director of the International Standards & Training Alliance (INSTALL) for nine years, guiding the group through a period of unprecedented growth and expansion throughout the South and West.
“The thing I love the best is the generosity,” McGrath said. “People treat me way better than I deserve.”
McGrath is not an executive with an M.B.A. overseeing a large entity who came in knowing little about the craft. He is an installer by trade (he uses the term “flooring layer”), and graduated No. 1 in his apprentice class. “I am a floor layer and I never forgot that,” he said. “I still install. I’m proud to be a floor layer. We are artists with muscles. Ours is an uncertain canvas but we have to be exact to the most minute of details.”
A biology major at Drexel University, McGrath found himself more drawn to physical labor. He tried roofing first but lost too many days to wet weather. “Floor layers” don’t have rainouts. “We are inside so there is much more opportunity to make money,” he said.
McGrath is most proud of the advancements INSTALL has made in engaging with other groups, such as the National Wood Flooring Association (NWFA) on standards, and in persuading its contractors to commit to the group’s installation training and Warranty on Labor program.
“We believe in these contractors so much that we guarantee their installations,” McGrath said. “We have not had one claim against any of this work.”
Xuhua Zhou
investor/blogger
‘WHISTLEBLOWER’
Nearly two years before the “60 Minutes” report exposed the case, Xuhua Zhou first blogged about Lumber Liquidators selling Chinese laminate containing high levels of formaldehyde. It was Zhou’s reports that set in motion a chain of events leading both Lumber Liquidators and Lowe’s to halt sales of Chinese-made laminate flooring. As well, it prompted U.S.-based hard surface manufacturers, distributors and retailers alike to declare their compliance with CARB standards.
“I have no regrets raising the issue on Lumber Liquidators,” Zhou told FCNews.
Zhou said he grew inquisitive about Lumber Liquidators in June 2013, after seeing a surge in the company’s gross profit margin. Zhou, who grew up in China, learned that Lumber Liquidators sourced some products from China; this raised his suspicions that safety might have been compromised in pursuit of lower costs.
“Plenty of consumers had complained about the formaldehyde issue yet the management did not care,” Zhou said. “Upon the publication of my article, I knew for a fact that the top management at Lumber Liquidators understood it could be an issue that may affect their stock price. I felt more vindication after Lumber Liquidators released the health and safety page after the ‘60 Minutes’ episode.”
Zhou, a private investor who advocated shorting the Lumber Liquidators stock, recently wrote that Lowe’s was selling laminate floors with similar formaldehyde issues. Zhou obtained a sample of laminate FH/L 3603 Chocolate Cherry Hickory flooring from a Lowe’s in Texas and sent it to one of the independent labs used by “60 Minutes” in its recent investigative report on Lumber Liquidators. This particular flooring claims to be compliant with CARB 2, but, according to Zhou, the lab detected around 10 times the allowed amount of formaldehyde. Lowe’s has since pulled that brand from its stores. “The publicity on this issue is encouraging,” Zhou said. “It will eventually result in regulations that can balance industry economic interest with consumer health and safety.”
Bob Weiss
ceo
ALL TILE
What’s it like to replace an industry legend who also happens to be your father-in-law?
That was the scenario facing Bob Weiss after Don Rado appointed him president and CEO of All Tile in 2000, just before Rado’s retirement. “It was a little intimidating, like a new coach coming in to replace Mike Ditka,” Weiss said, referring to the former Chicago Bears legend who led the team to a 1985 Super Bowl championship.
Weiss said one of the marks of a great leader is being able to position the company for future success. “Don made for a smooth transition. He allowed me to make mistakes before they got too big. Before the training wheels came off he taught me how to ride the bike.”
Under Weiss’ direction, All Tile has grown into a Midwest power, covering 13 states in the North Central region. Following its 2014 acquisition of Carpet Cushions & Supplies (CCS), All Tile is now the No. 4 flooring distributor in revenue with 2014 sales estimated at $170 million. The purchase will allow All Tile to better service its existing customers given CCS’ many locations throughout the Midwest while also creating new ones.
Weiss said the CCS acquisition was seamless because it fit naturally within All Tile’s structure. “We do everything above the floor, CCS does everything below the floor. It has given All Tile a great platform for the future.”
When asked to describe the success of his son-and-law, Rado did not hesitate. “In a word, ‘phenomenal,’ he said. “I could run out of adjectives to describe the terrific job he has done. He’s a visionary; he sees not just today but what is down the road.”
Rado said he can’t remember giving Weiss any salient advice, but quipped, “I remember telling him I thought he was a little too nice, but he has proven himself to be a great leader.”