Dec. 9/16, 2019: Volume 35, Issue 12
By Ken Ryan
Carpet mill executives expect another soft year for residential carpet in 2020, with both sales and unit volume down, as the category continues its uphill fight against LVT-led hard surface. The encouraging news for carpet suppliers is the higher-end segment is gaining traction among consumers who are willing to pay more for better-end goods that complement the hard surface offerings in their homes.
Mark ClaytonCEO
Phenix Flooring
What is your projection for category growth for the industry in 2020?
Forecasts would indicate another soft year for carpet in 2020. Industry indicators point to the fact that the overall residential carpet segment was down mid-single digits in terms of dollars and slightly worse in terms of units [in 2019] vs. the same time period last year. What segments/ products will fuel industry growth?
Better-styled residential products—specifically those which are within the mid- to better- end price ranges—will provide opportunity for growth. Patterned products and those that offer differentiated design aesthetics while complementing other surfaces will continue to see increased popularity. Where do you see opportunities for next year? Challenges?
While it has lost some position in wall-to-wall installations, carpet plays an integral role in the overall design platform in the home while addressing consumer needs. We expect lower interest rates to create opportunities in new construction and residential replacement; however, concerns over another election cycle will also create uncertainties. What are some of your company’s biggest initiatives for 2020?
In 2020, we will include Microban antimicrobial protection on virtually all our PET offerings, including new and previously introduced items. We will also be launching a new internally extruded SD nylon platform, which also features Microban and is backed by an extensive warranty package. We will continue to build on the success of our Modern Contours collection with three beautiful new pattern products as well as new all loop constructions.
Chet GrahamPresident
Marquis Industries
What is your projection for category growth for the industry in 2020?
The carpet industry should be flat to slightly down in 2020. Continued pressure from click vinyl will hold this sector in check. What segments/ products will fuel industry growth?
Soft carpet as well as cut pile and graphics styles will have several new and complementary introductions to fuel growth for 2020. Where do you see opportunities for next year? Challenges?
Consumers are putting carpet in smaller areas in the home. As a result, they are upgrading their carpet to higher-end looks and feel. Challenges will be the continued influx of imported hard surfaces competing for the same floor space. Rigid core flooring has made and continues to make the most negative effect on the residential carpet sector. What are some of your company’s biggest initiatives for 2020?
We are expanding our carpet extrusion and tufting capacities and are looking at some other capital growth in the last half of 2020. We will have new categories in nylon that will provide high styling and value to the dealer base, which will bring Marquis back to our roots of providing great nylon looks with competitive pricing.
T.M. NuckolsPresident, residential
The Dixie Group
What is your projection for category growth for the industry in 2020?
I expect residential carpet to be down again in 2020, with builder and multi-family being flat and residential replacement carpet being down 9%-12% as it continues to yield share to hard surfaces. What segments/ products will fuel industry growth?
Focusing on bedrooms, stair runners, custom rugs; blending colors and tonal effects into well styled loops and patterns—these are the opportunities for residential soft surface flooring. Where do you see opportunities for next year? Challenges?
Residential carpet will continue to see challenges in 2020, driven by continued consumer preference for hard surfaces. And, typically, election years are not the strongest for the flooring industry. But in today’s political scene, who knows? The opportunity for TDG continues to be in finding ways to innovate and create new and differentiated styles. What are some of your company’s biggest initiatives for 2020?
In 2020, TDG will celebrate 100 years in business. In terms of new products, we will expand our EnVision66 nylon program across all three divisions and cover a broad range of visuals and price points. We expect to launch 15-20 new styles using EnVision66 nylon in 2020. It has gained tremendous traction in the past year, and it is an in-house product brand where we can deliver a meaningful and consistent product and brand message to consumers.
Melvin SilversEVP, residential sales and marketing
Engineered Floors
What is your projection for category growth for the industry in 2020?
We have a very optimistic outlook on 2020 and beyond. We see conservative yet steady growth within the soft surface, hard surface, residential and commercial categories. All of which hinges on our ability as an industry to invest in both innovation and technology. What segments/ products will fuel industry growth?
We expect specified and Main Street commercial to grow. This, we believe, is consistent with the current trajectory of the market and industry. Where do you see opportunities for next year? Challenges?
The industry recognizes opportunity and continues to invest heavily in commercial modular carpet manufacturing, soft surface fiber innovation and domestic production. The industry also often shares the same challenge, which is its ability to anticipate change—whether it’s the latest innovation, preference of a consumer or the evolution of the market. What are some of your company’s biggest initiatives for 2020?
Our biggest initiative remains to be the flooring provider of choice to our customers—by cultivating the relationships we have while exploring new ones. To simply provide a product of quality that will instill confidence, whether it’s residential or commercial, soft surface or hard surfaces—we want our customers to be successful.