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Wood: State of the industry—Key sectors fuel greater buying activity

April 15/22, 2019: Volume 34, Issue 23

By Reginald Tucker

 

Like other hard surface sectors facing intense competition from the likes of LVT/WPC/SPC, hardwood flooring also felt pressure in terms of both market share and profit margins. But thanks to strong end-use activity in 2018, the category continued to post respectable numbers despite the onslaught of so many wood look-alike products.

It’s not just the widely held belief that real hardwood remains the most aspirational product category today— although some ultra-high-end offerings are admittedly out of reach for many consumers. What’s also working in wood’s favor is the health of several key end-use market sectors.

“Hardwood flooring consumption is being driven primarily by a combination of single- family new construction and residential replacement,” said Michael Bell, COO of AHF Products, the former wood division of Armstrong Flooring that was purchased by American Industrial Partners (AIP) last year. “We have enjoyed steady overall growth for the past 10 years, but housing starts slowed a bit during the winter months, especially with the extreme weather conditions this year.”

AHF Products is not alone in its assessment of the market. Key bellwether sectors also drove hardwood sales at Mannington. “Residential replacement continues to be the primary driver of hardwood consumption,” said Dan Natkin, vice president of hardwood and laminate. “New construction would be the next biggest sector—primarily single family. At the core, consumers still have a desire for hardwood flooring. It is the only flooring type that has been proven to add value to the home.”

But within these end-use sectors, observers cite some product stratification. “In single family you’re still seeing less expensive wood,” said Adam Ward, senior director of wood and laminate, Mohawk. “At the same time, you’re definitely seeing more products such as rigid and LVT and even products like RevWood doing well in single family. But when you get into multifamily it’s a different story; carpet continues to do well there, although we have seen the desire of end users to switch to hard surface in that environment as well. When you look at the upper-end multifamily market, particularly in the major metro areas like New York, Chicago and San Francisco, we still see wood as a desirable option at that price point.”

Let’s not forget about non-residential applications. For some suppliers, this sector accounted for the greatest sales growth in terms of a percentage increase. “We have experienced growth across several major sectors, but I would say we’re much more involved in the commercial arena, especially with our engineered lines,” said Paul Rezuke, vice president, U.S. sales, Wickham Hardwood Flooring. “It’s still a predominantly solid market for us, but clearly engineered is gaining more market share every month.”

The commercial contract market is also driving sales at Boa-Franc, maker of the Mirage brand. In fact, according to Mario St-Pierre, the company’s director of marketing, it’s the second strongest sector behind single-family construction.

Another upside for those companies that do a healthy commercial business is the type of products generally specified for those segments often hit higher price points—and, thus, provide much better margins. “Entry-level products in the 3⁄8- to 1⁄2-inch thickness with a 2mm wear layer are driven, as always, by the new construction sector,” noted Mitch Tagle, founder and CEO of DuChâteau. “But as we move to higher-end specifications, we are seeing more style-driven projects hit the market, especially in the hospitality sector.”

Fierce competition

One of the factors that has put increasing pressure on the hardwood category and stolen market share in some end-use sectors is the competition from LVT/WPC products—many of which are designed to mimic not only the visual depth of genuine hardwood, but also the texture.

“There is no question that wood flooring—along with most floor covering categories—has been significantly impacted by the rise of waterproof products in the marketplace,” said Don Finkell, CEO and founder, American OEM.

Mannington’s Natkin agreed. “Without a doubt, these categories are exerting tremendous pressure on the lower end of the wood category. We have seen significant cannibalization within the category as vinyl- based products continue to take share. However, the mid to upper ends of the segment remain stronger and less prone to impact from the look-alike products.”

Companies like Wickham, which specializes in wood, are really feeling the heat. “There’s no doubt about it—WPC/LVT has gained market share, and some of our customers have looked at investing in some of those products,” Rezuke stated. “But we have been able to offset that impact with our growth in other areas where we haven’t had a presence—namely engineered.”

The onslaught of LVT/WPC reminds Rezuke of a time when laminate flooring was in its hey- day. “Everyone was predicting that category was going to replace hardwood,” he recalled. “Well, that hasn’t happened.”

Other major hardwood flooring suppliers are responding to the threat of LVT/WPC by coming out with their own rigid core products. American OEM is one of them. “For this reason we are introducing our Raintree product line, which is a real wood veneer on a waterproof SPC core,” Finkell explained. “We are also planning to introduce a water-resistant, six-surface coating system on our premium products at the NWFA convention in May. This enhancement will allow our traditional veneer core wood floors to be warranted for certain wet mopping maintenance systems. We think this is a significant improvement to most wood floor warranties offered today which disclaim any type of wet maintenance. This real wood floor will be warranted to withstand being totally submerged in water for up to 24 hours.”

Other suppliers, including Shaw Floors, are stepping into the hybrid arena as well. At Surfaces earlier this year, the company took the wraps off a water-resistant wood line, Repel Hardwood, as well as Floorté Hardwood, which is billed as waterproof. In addition, there’s COREtec Wood from its USFloors division. As Herb Upton, vice president of hard surfaces, explained, “On the Floorté hardwood side, it’s a traditional SPC core with a real wood veneer; on the COREtec side, we’re coming out with a mineral-based board core attached to a wood veneer top. We see this as the best of both worlds. You have the authenticity and beauty of real wood in these products, because it is real wood veneer available in multiple species and different finishing applications and other textures, but it’s on a core that is high performance that makes it waterproof and reliable.”

Those flooring companies that participate in multiple product categories believe the advent of LVT/WPC/SPC as well as so-called hybrid offerings has forced real hardwood to emphasize what makes it special and unique to the customers. “Hardwood at the upper end—I’m talking about the better, best and premium category—still remains a viable option because there’s less com- petition there,” Mohawk’s Ward said. “There’s a lot of new products in the hardwood category as well as others that are making it a dynamic market. At the end of the day we welcome the competition; it ultimately forces the stronger players to adapt and innovate, and it gives consumers more choices as well.”

Traditional hardwood flooring enthusiasts, however, are not budging. “Surely the LVT category has taken its toll on the wood market, but it doesn’t seem to be affecting our products as much as it is at the lower-end type products,” said Wade Bondrowski, director of U.S. sales, Mercier. “We are finding the real wood buyer is considering better goods and they understand the added value to their homes.”

Boa-Franc’s St-Pierre concurred, adding that it’s mostly lower-end, entry-level hardwood that’s feeling the pinch. And that’s not an area where Mirage plays. “For consumers who want to add value to their home, hardwood floor remains their preferred choice. It’s our responsibility to promote the benefits of hardwood over look-alike products.”

AHF Product’s Bell embraces a similar philosophy as a strictly hardwood flooring manufacturer. He believes hardwood consumption will remain strong due to the authenticity of natural products. “Hardwood flooring continues to be desired by homeowners as the ultimate complement to any design, style and taste, and is the flooring of choice because of its natural beauty, enduring quality, warmth and natural durability,” he explained. “This is an investment that lasts for years and offers timeless style.”

The benefits of real wood don’t end there, proponents say.

While a challenge comes from faux wood-look products, many argue there is nothing that can truly compete with genuine hardwood from either a visual, prestige or value equation. “It’s organic, natural and renewable,” Bell added. “What’s more, hardwood flooring comes from a natural resource that can be maintained and regrown—which is perfect for people who are sensitive to allergens. These sustainable factors cannot be overlooked and play a particularly important role with buyers.

“Simply put, at the end of the day, consumers really don’t want imposters; they want the real thing and we are innovating to bring them real hardwood that also addresses performance needs, such as resistance to moisture, dents, scratches and stains.”

Impact of hybrid products

As the hardwood flooring sector has evolved, the industry certainly is seeing more “hybrid” products emerge. For example, more suppliers are using real hardwood veneers (albeit much thinner ones) over traditional rigid cores, HDF cores and, now, magnesium-oxide based core boards. The jury remains mixed on whether these hybrid products negatively impact the viability of the hardwood flooring category with respect to traditional 3⁄4-inch solid and 3⁄8-inch (and thicker) engineered hardwood products.

For some it’s nothing new. “These types of products have been around for years,” Mannington’s Natkin said. “Originally on HDF cores and now evolving to vinyl or stone based. The latest twist is the marketing of products as waterproof—that claim is somewhat dubious and its impact has yet to be determined.”

Others don’t see hybrids as an immediate threat. “It hasn’t had an impact on our business,” Wickham’s Rezuke said “First of all, as a Canadian supplier, we have to manufacture to certain specifications so we can ship our real hardwood products into the U.S. What we are finding is more and more customers are interested in our 3⁄4-inch platforms with 4mm, 5.5mm and 6mm veneers.”

Others are taking a more cautious approach when it comes to hybrid products. As Mohawk’s Ward explained, “Products like this have the potential to be good; we’re obviously monitoring the products that are coming out and looking at how can we offer a superior option. While we don’t have one of those cores out yet, we want to make sure what we believe customers want in a hardwood is real, authentic product. And the visual of a real wood product is vastly superior to others and is valuable to the consumer who’s buying it. If we can marry that with some of the benefits—such as a water-resistant or waterproof option—that makes it all the more valuable to a certain subset of customers.”

Shaw Floors’ Upton expects to see greater acceptance of these types of products as the platforms commercialize and become more mainstream. “We’ve seen that in builder where they may have been initially hesitant or slow at some point to adopt WPC and SPC products, but now they are currently specifying those products. nationally.”

By and large, suppliers welcome the competition. “We think it is awesome that companies have been innovating with wood products, and we hope that we never stop trying to find the next great opportunity in wood flooring,” Mercier’s Bondrowski stated. But he offered this caveat: “I would ask, isn’t wood supposed to be a sustainable environmentally friendly floor that has the least adverse health effects with a true green footprint?”

Like Bondrowski, AHF Products’ Bell embraces the development and evolution of core structures. He believes this will ensure the hardwood customer has relevant options based on their particular needs. “It is our job to innovate and lead in the development of such products so we are considered as a dependable solution provider for our channel partners.”

DuChâteau’s Tagle follows that same logic—to a point. “There is certainly a market for new hybrid products; some consumers do get excited about advances in technology, and the idea of a low-cost, low-maintenance floor with real wood is appealing,” he explained. “However, at the higher end of the market, we believe there will continue to be a growing demand for engineered hardwood floors, since consumers love the depth, richness, durability and variation they provide.”

Raw materials pricing

Another factor that impacted the hardwood flooring sector last year—and briefly at the start of 2019—is the availability of popular wood species. “Definitely in 2018 we saw fluctuations especially in white oak,” Mohawk’s Ward said. “There continues to be a trend toward wider widths in natural white washed colors, and white oak works best for that. So, naturally, there’s a lot of competition for that species. The fluctuations that we saw in 2018 have moderated so far in 2019. We haven’t really seen prices come down a lot, but at the same time you’re not seeing a lot of variation in price. We’re just now starting to get into the logging season so we’ll see how that goes. But so far we’re seeing pretty steady pricing.”

Some suppliers are still feeling the sting from last year’s fluctuations. In 2018 Shaw announced an increase on solid hardwoods. While lumber prices have modestly fallen since then, it’s all relative compared to the fluctuations experienced during the first half of 2018, according to Upton. “Prices have leveled off somewhat, but you have to remember we’re coming off a pretty high peak. Then you have the usual supply and demand issue when you have bad weather and you can’t pull trees out of the forest.”

Another issue impacting pricing is the capacity generated by the major sawmills, Upton added. Combined with demand from the other users of wood—such as mat timbers and other businesses that use lumber for industrial purposes—this can cause major disruptions in the supply chain.

For now, though, things seem to have normalized. “We can take a half of breath now compared to what it was this time last year,” Upton stated. “But it’s certainly not what it was 24 months ago.”

So much depends of where manufacturers source their lumber. For example, Mercier has seen prices on red oak and maple stabilize in recent months. But that’s not the case for AHF Products. “We have seen increases in all species, with red oak being the most volatile,” Bell explained. “We have also experienced significant inflation in freight and packaging costs.”

Tariffs take a toll

Beyond raw material price fluctuations, suppliers had to con- tend with the fallout from another issue: newly imposed tariffs on hardwood flooring imports from China. “The tariffs/duties are creating a lot of uncertainty for many manufacturers’ forecasts for 2019,” AHF Products’ Bell said. “The political and economic tensions between the U.S. and China have heightened the need to diversify the supply chain and reduce dependence on hard- wood products from China.”

Even those companies that don’t import directly from China were nonetheless impacted by the repercussions. “For us the imposition of tariffs has been a negative because all of our customers import competitive products affected by duties and tariffs,” American OEM’s Finkell said. “As a result, there has been significant hoarding to beat the imposition of tariffs, which has squeezed available cash supply to buy our products.”

DuChâteau’s Tagle is seeing the same. “We have noticed an increase in prices to the trade, even on products not finished or sourced from regions affected by the tariffs. Many U.S. suppliers have also ramped up their inventory to beat tariff deadlines in an effort to insulate their dealers as much as possible. The good news for the industry is the trade issue seems to be moving toward a resolution.”

 

 

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NWFA 2019 preview: Stage is set for hardwood’s premiere event

April 1/8, 2019: Volume 34, Issue 22

By Reginald Tucker

 

The National Wood Flooring Association (NWFA) is looking to corral wood flooring professionals from all segments of the industry to attend the group’s annual conference and expo, which is set to take place May 1–3 at the Fort Worth Convention Center. Visitors are encouraged to participate in a host of educational sessions, networking events and group activities while perusing the scores of exhibitor booths slated to occupy the trade show floor.

“We are looking forward to bringing our industry together for another tremendous show,” said Michael Martin, NWFA president and CEO. “We have more to offer than ever, and we know that will make this year’s show even better.”

Martin has reason to be optimistic. The NWFA expo continues to rank high amongst professional business conferences and conventions. In fact, the show was named a 2018 Trade Show Executive “Fastest 50 Awards” winner in three categories: total attendance; net square feet of exhibition space; and exhibiting companies.

“We’ve managed to grow attendance each year by reaching out to new audiences—including remodelers, builders and designers—and by offering premier programming in new, rotating locations,” Martin explained. “This offers both a unique location each year but also ensures we’re meeting the needs of our membership, which is spread throughout the U.S.”

Following is a sneak peek of the 2019 NWFA Expo:

Opening Stampede
NWFA 2019 kicks things off at 4:30 p.m. on May 1 via the “Opening Stampede,” which entails a welcome reception and keynote presentation by Matthew Luhn, noted motivational speaker and storyteller. Luhn—a writer and story consultant with more than 25 years' experience creating stories and characters at Pixar Animation Studios and “The Simpsons,” among others—plans to share his process for creating new ideas, great stories, memorable characters and how to make stronger connections with customers to build better brand and business communication.

“The intent is to couple our own ‘wood is good’ story with the power of storytelling to learn how to influence customer buying decisions, establish meaningful relationships and have a positive impact on future business,” Martin stated.

On the show floor
The 2019 NWFA Expo will feature more than 270 exhibitors showcasing the latest in wood flooring products, adhesives, tools, accessories and services. The exhibition area will be open May 2, from 11:30 a.m. to 5:30 p.m., and then again on May 3, from 11 a.m. to 4 p.m., for a total of 11 hours. In addition to the booths, attendees will be able to watch hands-on demonstrations taking place at designated areas on the show floor.

School’s open
Expo education sessions that take place on May 2 and May 3 are included in the registration fee. Attendees are encouraged to participate in quality programming that will focus on marketing, management, health, inspectors and technical skills. Sessions will include a mix of traditional speakers lecturing on a topic as well as roundtable discussions facilitated by an industry expert. The roundtable sessions are designed to allow attendees to have a more meaningful and impactful experience through peer-to-peer interaction and reflective discussions. What’s more, each participant will receive one CCU.

“We have restructured our education sessions to be less of a teacher/student format, which is a complete departure from traditional presentations,” Martin explained. “This is based on the success we’ve had with NWFA University as a learning format (60,000-plus micro-learning courses completed in a little more than two years). Today’s student wants relevant information in quick, targeted bursts. Students also want to collaborate with others to learn from their experience as well.”

Pre-expo symposium
Additional educational opportunities are available May 1, during the pre-expo symposium, which is open to all NWFA members (fee is $225 in advance or $275 on site). The pre-expo symposium will consist of a morning session—Understanding Moisture Management and Building Science—taught by Steve Easley, a building science consultant specializing in construction quality, sustainability, performance and problem avoidance.

Easley’s primary focus is helping industry professionals build and remodel structures that are durable, energy efficient, healthy and comfortable. He brings more than 30 years of industry experience, performing thousands of jobsite quality surveys and presenting building science seminars around the world.

An afternoon session round-table discussion, led by NWFA’s Brett Miller, vice president of education and certification, along with instructors Jon Namba and Kjell Nymark, is also on tap. “The pre-expo symposium and expo education is an opportunity for industry professionals to collaborate and discuss advanced topics that can have a tremendous impact on their businesses,” Miller stated. “Industry experts will be on hand to lead discussions and provide industry-specific insights that can yield immediate results.”

Upon completion of expo education, attendees will earn one continuing certification unit. Those who attend the pre-expo symposium and expo education sessions will earn a total of three CCUs, which meets the two-year requirement of CCUs needed from NWFA live/hands-on training.

Concrete certification
NWFA is working with the International Concrete Repair Institute (ICRI) to offer its Certified Concrete Slab Moisture Testing Technician (CCSMTT) Certification Program. The purpose of this program—scheduled to take place on May 2 and May 3—is to help improve the performance of concrete slab moisture testing to result in more consistent, accurate and reliable results designed to help flooring manufacturers, architects, engineers and contractors make better decisions as to when a concrete floor is ready for a floor covering installation. (Note: fees range from $200–$875 depending on which certification you choose.) Attendees are encouraged to contact ICRI at 651.366.6095 or email info@icri.org with questions.

Floor of the Year awards
The NWFA’s highly anticipated Wood Floor of the Year awards program was developed to encourage and recognize innovative craftsmanship and design in wood flooring installations. The categories are: Best Restoration/Makeover; Best Color & Finish Application; Best Circular Curved Application; Best Parquetry/Inlay Application; Best Textured Wood Application; Members’ Choice; and Best Use of Technology Application, a new category for 2019.

The winners of the 2019 Wood Floor of the Year contest will be announced during a special ceremony on May 2 from 10 a.m. to 11:30 a.m. 
Carmen Ciricillo, licensed contractor, continuing education teacher and stand-up comedian, will provide a few laughs to conclude the awards program.

Tee time
NWFA has announced the Hardwood Forest Foundation Golf Tournament, scheduled to take place May 1, 7:30 a.m. – 2 p.m. All proceeds from this golf tournament benefit the Hardwood Forest Foundation and the Truth About Trees educational program. The cost for the tournament is $175 before April 1 and $200 after that date. Club rental is available at an additional cost of $25. For more information, contact the Hardwood Forest Foundation by sending an email to info@hardwoodforest.org or calling 901.507.0312. Companies or individuals interested in sponsoring the tournament may also contact Deonn DeFord via email at deonndeford@ganahl.com.

Special events
Attendees are invited to mix it up during a Honky Tonk Happy Hour on May 2, 4:30 p.m. – 5:30 p.m., right on the trade show floor.

Grab a drink and network on the trade show floor. There’s also a special distributor & manufacturer reception scheduled to take place 5:30 p.m. – 6:30 p.m. at a designated area. The expo wraps up on May 3 with a “Last Call Saloon,” slated for 4 p.m. – 5:30 p.m. Entertainment will be provided by the Big City Outlaws, a Texas-based band specializing in Top 40 hits as well as popular country music tunes.

 

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Wood Surfaces coverage: Introductions reflect imagination, design creativity

February 4/11, 2019: Volume 34, Issue 18

By Reginald Tucker

 

A subtle shift in the color palette from cool grays to warmer gray/brown tones. Creative surface texture treatments and applications of different stains and finishes. An influx of wood/SPC “hybrid-type” products entailing a thin-sliced or peeled real wood veneer over a non-wood rigid core structure. These were among the most visible trends that emerged from the hardwood flooring category at TISE 2019.

Case in point were some of the new introductions from American OEM, maker of the Hearthwood brand. The company rolled out nearly a dozen new SKUs spanning the spectrum from ½-thick engineered offerings to a brand new a 3⁄8-inch product that Allie Finkell, vice president, affectionately called the “tariff buster.” This price-sensitive item (with a suggested retail price point of roughly $4.99 per square foot) represents a slight departure from some of the company’s higher-end, step-up products.

“It’s an alternative, entry-level product compared to some of the imported product we’re seeing out there,” Finkell told FCNews. “It’s great for builder work or smaller areas—it’s not 8 feet long like the rest of our products. It’s 5 feet long by 60 inches and comes in four oak looks and four hickory colors.”

American OEM also extended offerings in its high-end Appalachian Spring line, which features a combination of texturing techniques. As Finkell explained: “One-third of the boards in the box are going to have circular band saw marks, some a little heavier, some a little lighter. Another third of the boards are going to have skip-sawn texture—again, some lighter, some darker. Then we have boards that don’t have anything except for nail holes. The idea is to create the look of floors that came out of the old manufacturing mills.”

While gray tones dominated in recent years, Finkell said consumers are gravitating back toward a more natural palette. “We’re seeing the grays lightening up,” she explained. “It’s a little bit warmer, more tan than the cool gray we’ve seen for so long. With the new introductions we wanted to make sure we accommodated for that.”

At the other end of the same booth Emily Finkell, founder of the Emily Morrow Home collection, displayed her own brand of high-end, exquisitely styled hardwood looks. Inspired by a cross section of regions spanning from African deserts to other exotic locales, the expanded offerings aim to address consumer tastes for unique species, color tones and textures that make a statement. “I’m a designer, so I need to strike the right balance between something that’s both beautiful and saleable,” she explained. For example, she cited travel-inspired names such as Great Migration, which was inspired by a wildebeest herd she witnessed on a safari trip to Kenya; the Heritage collection, whose colors hearken back to America’s historical roots; and Lewis & Clark, which conjures images of the prairie and exploration. “None of these colors will never be dated,” she said.

Another company focusing on unique visuals is Provenza. A past Surfaces innovation award winner, the company sought to give its customers more of that unique style for which it is known in both specified commercial and high-end residential circles. While the company has been turning heads of late with its realistic LVP looks, wood is still its forte.

“In our genuine wood products we are featuring European oak with a shrunken face, which gives a very uneven veneer,” said Ron Sadri, principal owner. “It gives you a little bit of movement in the veneer to the point that you have some overwood and cracks, but it looks very natural.”

Provenza also put the spotlight on its herringbone pattern available in its custom line of ¾-inch engineered product. It’s also seeing continued interest in its Lighthouse Cove, which won a Best of Surfaces award in 2017. “It’s still moving fairly well, although it’s mostly going on the walls,” Sadri told FCNews.

Creative wall/flooring applications as well as a bevy of fresh new colors were also on display across the showroom floor at the DuChâteau booth. There, the company unveiled 12 new visuals across three collections: Grande Savoy, Herringbone and Varació.

The Grande Savoy collection is inspired by the expansive floors in European chateaus and castles, while Herringbone offers the visual interest and sophisticated wire-brushed textures. Varació, which comes in random width planks, aims to add sophistication to any space. All feature DuChâteau’s signature hard-wax oil finish, which provides an elegant matte finish and develops individual patinas as the floor ages. “Today’s customer is looking for elegance and individuality in their homes, and our new styles add that special touch,” said Mitch Tagle, CEO and co-founder of DuChâteau. “The pattern and width variations of our new collections create a truly distinctive look.”

Mixing it up
While some companies focused primarily on new colors, others experimented with mixed species and various-sized boards. That was the case at the Mannington booth, which turned heads with products like Triumph as well as a unique species called Bengali Bay. “We took a bit of a risk coming out with some leading-edge colors where we’re blending multiple colors in a carton along with a traditional brown and coffee,” said Dan Natkin, vice president of hardwood and laminate. “But the dealer reaction has been amazing.”

Jason Stafford, general manager, Stafford’s Discount Carpet, Redlands, Calif., was genuinely impressed. “What Mannington was able to do is in one box you get a maple, hickory and oak that are all stained the same color. So you get varying grains, visuals and slightly different colors due to the different species.”

This trend was evident in other spaces, including the Pinnacle/EarthWerks booth. All eyes were on the Calico collection, which features vividly contrasting colors, multiple species, varied textures and alternating widths. “It’s a calculated formula in terms of how it’s packaged in every box so when the installer takes it out of the box they don’t have to worry about it,” said Brenda Cashion, vice president of marketing, “It blends as well with one box as it does out of 60.”

Meanwhile, EarthWerks gets the Costa Brava collection, which features the natural grain and beauty of French white oak. The line boasts slightly beveled edges and ends that accentuate the width and length of individual planks, and incorporates burls, knots and mineral streaks for added character.

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Anderson Tuftex continues forward momentum

January 21/28, 2019: Volume 34, Issue 17

By Lindsay Baillie

 

It was one year ago that Anderson Tuftex made its Surfaces debut as a combined brand, showcasing hardwood and carpet products in an elaborately decorated, two-story booth. Throughout 2018 the brand has had the opportunity to show flooring dealers exactly what Anderson Tuftex is about and truly home in on what the brand’s consumer really looks like.

“Being at Surfaces in 2018 was a big moment of success,” said Katie Ford, director of brand strategy, Anderson Tuftex. “We had a lot of big wind there and FCNewsrecognized us for a few different achievements. I think just bringing these two great brands together and letting everyone see our whole message (‘Designed with Intention, Crafted with Care’) was a big win for us that started the year off right.”

Another win for the brand was the number of retailers who signed on as partners during the show. “They really just embraced the newness of the brand and the way we wanted to show up in store; we were really surprised by it and happy to see we had more partners than anticipated,” said Carrie Edwards Isaac, vice president of residential marketing, Shaw Industries. “We had more retailers take on our feature display for wood, and as a result many added or even updated their signature merchandising unit for carpet.”

For dealers such as David Chambers, director of flooring of Nebraska Furniture Mart, the combination of Anderson and Tuftex into one brand was a logical move. “Other manufacturers have tried blending a couple of different brand names and making them into one. I thought this made a little bit more sense for Anderson Tuftex. They both have more of a premium value for the consumer, and they do a really good job tying those two pieces together.”

One of the features about Anderson Tuftex that really stands out to Chambers is its service. “They’ve done a great job servicing the dealers that have partnered with them. We’ve seen a nice increase with the brand. I think part of that are their efforts in driving that new brand forward.”

Other dealers, including Anthony Yates, vice president of sales, Yates Flooring Center in Lubbock, Texas, agree. “Two categories of flooring that we are selling less volume of is carpet and wood. But within both of those categories we are selling higher quality and higher end. Anderson Tuftex provides that now in both categories.”

Yates said he sees the combination of the brands as the creation of a single stop for total-home, higher-end products. “Our sales associates see the transition from just being a segment of flooring to a whole-home design selection area,” he added. “If the brand continues on its modern trend toward our millennials in designs and product types, it will continue to grow.”

Fast track to market
Throughout 2018 and into 2019, Anderson Tuftex has been working on executing in store and drawing consumers in to experience the brand alongside its retailer partners. One piece to this puzzle has been increasing the brand’s speed to market.

Anderson Tuftex admits that getting its mostly hand-crafted wood and meticulously designed soft surfaces in store required a bit of a learning curve early on in 2018. “The speed to market in terms of getting everything in store took a little longer than we hoped for,” Edwards Isaac explained. “We learned a lot from that and have made pretty significant changes to our processes so we can be at Surfaces, Domotex USA and our Shaw Flooring Network convention, and still be ready to roll and market much faster.”

The brand is also refining its messaging and photography to enhance the in-store experience and target a wider consumer audience. “We had initially started really focused on one type of consumer persona called the ‘Pursuer,’” Ford explained. “We added another called the ‘Achiever’ into the mix this year who is still very confident in his approach to shopping for flooring, but he’s male and a little bit more about performance and function.”

To develop this new persona type, Anderson Tuftex conducted extensive research. “We looked at everyone who was buying floor covering in the market and what their motivations were and why they were coming in store,” Ford explained. “We definitely feel we’ve captured the right consumers for this brand.”

New initiatives in 2019 are also geared toward enhancing consumer and retailer in-store experiences with the brand. Some of Anderson Tuftex’s brand new initiatives include a revamped merchandising display, innovative products, updated brand and marketing strategies as well as unique social media and advertising plans—to name a few.

As part of Anderson Tuftex’s continued effort to connect its hardwood and carpet in the marketplace, the brand will be combining its product and marketing strategies. “We’re going to market under the lens of ‘Art of Play,’ and that will really reach both our consumers and our retailers,” Edwards Isaac said. “What better way to enjoy your home and/or help someone with his or her home than to really talk about what’s driving the project and what’s driving the consumer’s need for new flooring?”

In addition to being more intentional with its soft and hard connections, the brand is looking to turn heads with its latest introductions. “Our product lineup is probably the most well edited and, to some degree, unique in the marketplace,” Edwards Isaac explained. “It will range from a PetProtect product line all the way up to really beautiful, ColorPoint carpet. You’ll also see the thickest and most unique hardwood we have ever launched.”

On the soft surface side, Anderson Tuftex is launching six new products in the middle range as well as new flooring in its PetProtect line. To house these new products, the company is also introducing Studio, a new 34-pin display that boasts simplicity and ease of use.

“When we were doing an evaluation of our lineup of carpet products last year, we realized we had a pretty significant gap in the $13 to $23 [wholesale] price range,” Ford explained. “They needed a home so we’ve created this great fixture called Studio, which is very simple and easy to use. It will be at all the shows this season.”

Tying the new products and marketing together is Anderson Tuftex’s updated advertising strategy. As Edwards Isaac explained: “We’re really excited about our social media and traditional advertising plan for 2019 and look forward to partnering with our retailers who are already doing some advertising of their own and providing them with additional assets.”

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Cali Brands grows, evolves, disrupts

January 7/14, 2019: Volume 34, Issue 16

By Steven Feldman

 

San Diego—Cali Brands, the company formerly known as Cali Bamboo, is growing faster than a weed after a rain shower on a sunny day. The company continues to evolve its product portfolio, adding vinyl, rigid core wood and engineered European hardwood to the mix while staying true to its sustainability mission and “green to the core’’ roots.

Bamboo is still an important part of the business, according to Doug Jackson, president and CEO. “We grew 40% last year with Cali Bamboo and Cali Vinyl. We have no interest in losing that business. We’re the largest importer of bamboo in the country, more than Home Depot, Lumber Liquidators, Floor & Décor, etc. People don’t realize that about us because we’ve got a wide reach across an omnichannel platform.”

Constantly appearing on Inc. magazine’s “5000 Fastest Growing Private Companies” listing (2018 was its 10th consecutive year as it checked in at No. 2370), Cali now boasts sales well north of $100 million and in 2018 increased its sales into the specialty retail channel sevenfold—quite impressive given its selective distribution strategy.

“We have about 1,100 actively purchasing dealers,” Jackson said. “In a perfect world we’ll have around 1,000 in the right 1,000 marketplaces that have the ability to make money with our products and allow us to drive those end users into their stores. We’re looking for the cream of the crop—close partners who want and are able to grow with us.”

With 30 years in the business under his belt, Jackson knows the “right people,” many of whom are in the National Floorcovering Alliance, to which Cali became a core vendor in 2018. “We gave them a handful of exclusives, and they will have a year to see if that works for them,” he said.

As the company evolves, it seems more retailers are interested in taking on Cali than Cali is in taking on retailers. In fact, it doesn’t seek too much exposure. “We’re not going to be on the show floor at Surfaces,” he said. “We’re going to call people up, go see them, catch up with them, find out if we’re a good fit, and if we are we’ll move forward. So far everybody we’ve talked to has gladly taken us on.”

In illustration, at the last NFA meeting in Napa, Calif., Cali was showing its brand spanking new Meritage collection, its first foray into the long and wide French oak hardwood arena pioneered by companies like DuChâteau. The line is aggressively priced at a price point where the retailer can make a healthy margin.

“Companies like DuChâteau, Provenza and Urbanfloor are doing a good job here offering a similar product where the consumer may pay $20,” Jackson said. “But a dealer might make 20% or 30% if they’re lucky because everybody in town can get it. We’re going to sell our 800 to 1,000 dealers and be happy about it.” The line debuts in the first quarter in eight SKUs that are 9½ inches wide, 72 inches long on a sustainable acacia core.

 

A fresh approach
Jackson uses the word “disruptive” to describe Cali’s approach. “We’re going to come in and say we only sell [Retailer X] in a particular area. They can make a great margin and a consumer can’t shop it. If they want to call us direct, fine, but we’re going to sell it for the same price. It’s much like that Apple phone. It doesn’t matter where you buy it, it’s just what level of service you want. Most folks would not know how to put this floor down. Ultimately, they are going to say, ‘Who is going to move my furniture? Who is going to measure? Who is going to install it?’ Buy from us and we will put it on your doorstep but we’re not going to lay it down. That’s where we get a chance to refer that consumer to our dealer partners. And for a product like this, nine out of 10 times she is going to say she needs someone local to measure, move the furniture, put it down, all those things.”

Another new product for Cali Hardwood this year is Odyssey, an engineered hardwood collection in European oak, American maple and American hickory. The line launches in 5½- and 7½-inch widths and 11 colors on an engineered, plantation birch foundation, illustrating Cali’s commitment to remaining “green to the core.” Plantation birch is grown with the intention of being cut. It’s a fast-growing, renewable, sustainable tree. The birch comprises more than 80% of the product, topped by a 2mm veneer that’s sourced from responsibly managed forests.

Cali Hardwood is also launching the second generation of GeoWood, its revolutionary engineered hardwood layering real timber over GeoCore, a flexible and waterproof limestone composite. The first generation, launched last year, was a 3-foot plank in bamboo, “which was really who we were as a company,” said Alex Brodkin, Cali’s new product introduction manager. “But we wanted to make sure the next generation really matched where we’re going.”

GeoWood 2.0 is a 6-foot-long, 5-inch-wide plank with a 1.2mm real oak veneer and comes with an attached 2mm pad. The pad helps with noise mitigation, one of the issues surrounding some SPCs. “For a DIY consumer who has done a vinyl install this is only marginally more challenging,” said Mike Belprez, director of innovation/product management. As an added advantage, the core of the product is coordinated to the wood. “So if you ever dent, ding, or scratch the surface and expose a bit of the SPC core, it will not stand out.”

Last but not least, Cali is taking its sustainability story to area rugs. “We all know when someone buys a wood floor, within a month on goes a rug,” Jackson said. “We’ve got that covered, too, with 100% sustainable rugs shipped directly to your house.” The rugs are handwoven from natural jute fiber, wool and upcycled denim and cotton.

“If you look at what we are doing and where we are going, it is all about options,” Jackson stated. “We talk to consumers every day to determine the best floor for their lifestyle. Where do we fit into their world? You can go vinyl, waterproof wood flooring or take a step up and have the best-looking woods on the market. We ask how long they plan to keep the house, what their cost expectations are, etc. We are going to provide a range of options for her lifestyle and budget.”

Five years from now, Jackson admitted the product mix might be different, but wouldn’t venture a guess as to how. “As we evolve the consumer is going to determine our product mix. I’d love to say my perfect plan is to be 50% this or 60% that, but because we’re asset light, we’re going to deliver what the market wants. You see what’s happening with WPC and rigid core. That can continue to grow strong or it could take a shift. We saw what happened with laminate. What we do know is we want to be mid to high end, we want to be affordably elegant, and we want to find voids in the marketplace where other people won’t, or can’t, make the products we can deliver.”

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DuraMatt: Mirage’s silver bullet

January 7/14, 2019: Volume 34, Issue 16

By Reginald Tucker

When Karla Wischmeyer, an interior designer at Verhey Carpets in Grand Rapids, Mich., recently conducted a one-year follow-up visit on a residential hardwood flooring installation the company performed, she was absolutely confident she would be pleased with the result. After all, the job entailed several hundred square feet of Mirage hardwood flooring, which features the company’s signature DuraMatt, low-sheen, high-performance finish.

But what Wischmeyer and her team probably didn’t anticipate was the degree to which the finish withstood a full year of wear, tear and heavy pet foot traffic. “As we approached the house, we could hear a big dog barking from the driveway. I thought, ‘Oh my gosh, this is either going to be a nightmare, or it’s going to be beautiful.’ We opened the door and the floor still looked fantastic. The homeowners have this big dog but the floor held up great. I believe it’s due to the durability of DuraMatt and the matte finish, which really hides a lot of what can happen in the home.”

Verhey Carpets has a long track record of success with DuraMatt and the Mirage brand in general. Wischmeyer, who has been selling the brand for the past 10 years, attributes 95% of the company’s wood business to the Mirage brand.

“We have been very pleased with it, and I’m sure we haven’t had any claims,” she told FCNews. “The other thing I love about the product is the styling—today’s wood looks are a little more casual and urban looking, and that matte finish on DuraMatt really lends itself to that style. Homeowners aren’t really going for a formal look these days, so they don’t really use finishes with a high sheen or gloss anymore.”

Wischmeyer—who has personally visited the Boa-Franc manufacturing plant at least five times—isn’t the only one who cites the product’s exemplary track record. Neil Coughlin, regional vice president of sales, Belknap-White, is also a believer. “The DuraMatt finish from Mirage gives the homeowner the look of an oil finish without the maintenance issues; it wears like a urethane. But the scratch resistance is 20 times better than traditional urethane finishes.”

Another indicator of the product’s success is the rate of its adoption across other collections within the Mirage portfolio. At the launch of the finish, it was only offered in one collection; it’s now available in five collections.”

Point of differentiation
For Mirage, DuraMatt is much more than a high-tech finish; it’s also a point of distinction for the company. “The DuraMatt finish has the look of an oiled hardwood floor without the hassles of regular oil application and low wear resistance,” said Brad Williams, vice president of sales and marketing, Boa-Franc. “This urethane finish brings out wood’s natural beauty and offers many benefits. It is 20 times more wear resistant than a conventional oil finish and is easily washable, and the technology also provides superior resistance to stains and scratches.”

To demonstrate the product’s technological attributes, Boa-Franc has posted several videos on YouTube covering everything from scrub, Taber and marker tests to demos on how the finish resists staining from spilled wine. (Visit youtube.com/watch?v= OsY3Ohcccy0 for more information.)

“We have created videos comparing DuraMatt’s performance to other finishes available in the industry, and the results speak for themselves,” Williams stated. “Nothing can be compared to the quality of this finish.”

Beyond the bells and whistles, DuraMatt ultimately provides a means for retailers to boost their wood business. How? By simply offering consumers peace of mind. “This technology meets the needs and requirements of any consumer by offering the desired look and gloss level combined with high performance and resistance without the hassles of regular maintenance,” Williams explained.

While DuraMatt is primarily geared toward residential applications, Boa-Franc reports its acceptance has been extended to the architect and designer community. Some Mirage retailers have also installed the products within their stores to demonstrate the strength of the DuraMatt finish. “We have the product installed in our downtown showroom, and we also have a rug gallery with Mirage on the floor,” Wischmeyer said. “This serves as a demo regarding commercial and Main Street applications.”

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Wood: Mercier’s new Naked Series bares all

January 7/14, 2019: Volume 34, Issue 16

By Reginald Tucker

 

When the Mercier Wood Flooring marketing team brainstormed to come up with a name for its latest collection featuring state-of-the-art finishing technology, the goal was to not only define the line’s underlying capabilities but also turn heads and make retailers take a second look. So, after kicking around potential monikers like “Raw” and others, the company decided the “Naked Series” most accurately and effectively conveyed the gist of the new offering.

“With this new finishing technology, we are able to apply a coating to the wood and seal the wood and then apply our Generations coating on top of it without changing the look,” Wade Bondrowski, Mercier’s director of sales, U.S., explained. “With most other wood flooring finishes, once you put a urethane finish on it really does change the look of the graining of the natural wood species. What we have been able to do with the Naked Series is seal that visual with a finish without changing the natural sawn look of the wood.”

While the concept behind the Naked Series seems simple, the application process is quite complex. “It’s a very delicate process,” Bondrowski said. “If you don’t seal it correctly, then any part of the finish where you apply it is going to pop that graining, which would make it look undesirable.”

The good news for retailers—beyond having a product that can’t easily be replicated—is it offers them an opportunity to trade up customers from the bevy of entry-level engineered wood products available on the market. “This product is going to cost a little more than some of the other products in our lineup, but not as much as others might think,” Bondrowski explained. “It’s definitely going to be positioned as an upgrade, but it’s not going to be off-the-charts expensive.”

Some of Mercier’s customers had the opportunity to view the technology firsthand during an annual distributor/retailer meeting at the company’s headquarters back in November. One such individual was Tom Norris, Pittsburgh regional manager for ProSource, a Mercier partner for the past 20 years. “This is an extremely clean looking product,” he said. “With this process Mercier is using, it looks like a fresh-cut sawn plank. It’s better looking than any engineered product I’ve seen out there.”

The Naked Series, which launched in Canada back in November, will be available to retailers and distributors in the U.S. beginning this month.

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Wood: It’s high time for domestic species to shine

January 7/14, 2019: Volume 34, Issue 16

By Reginald Tucker

 

With interest in tropical exotic hardwood species waning among U.S. consumers in recent years, domestic wood flooring suppliers are capitalizing on the trend toward greater consumption of white oak, hickory, walnut and red oak, among others.

“Domestic wood species have become more popular over the last several years,” said John Hammel, hardwood and laminate category manager, Shaw Floors. In particular, he cited the company’s new Repel Hardwood line offered in Relic and Landmark styles. “Consumers are favoring American hardwood, but many still desire non-traditional visuals from their flooring. Domestic exotic species like hickory and walnut answer that need.”

This shift, experts say, is closely tied to overarching trends in residential design. “Today’s homes are becoming a reflection of the unique personality, style and trend preference of the homeowner,” said Sara Babinski, design manager, Armstrong Hardwood Products. “From industrial to transitional to eclectic, design options are virtually unlimited, and a floor can serve as the focal point of a room.”

With respect to specific species and colors, Babinski said red-toned woods are fading in popularity—along with tropical exotic species—and the trend has moved toward either dark or light color palettes. “Light colors are trending due to their clean look and ability to disguise imperfections and brighten interior spaces. This emerging light category would include natural tones, blonde woods and white-washed woods.”

As a prime example, Babinski cited AHF Products’ Appalachian Ridge collection. Made from 100% solid Appalachian hardwood, the line features Diamond 10 Technology for greater scratch protection that still allows the beauty of the natural species to shine through.

Shaw Floors and Armstrong are not alone. Mullican Flooring has also expanded its American-made engineered product offerings to satisfy growing consumer demand for domestic species. The company recently rolled out Wexford, a “EuroSawn” product line that combines three traditional North American sawing techniques to create a classic European look, and Nature, a 1⁄2-inch-thick hickory product featuring a character-rich sawn surface. Available in a 5-inch width, this collection offers random lengths up to 7 feet. Wexford, by comparison, is a 1⁄2-inch-thick product available in 7-inch widths and random lengths up to 7 feet.

“Our EuroSawn cutting technique produces a highly desirable look that is gaining prominence throughout the market,” said Pat Oakley, vice president of marketing, Mullican Flooring. “We are proud to integrate this process into our robust, made-in-the-USA portfolio, which offers customers superior materials, shorter wait times, sustainable manufacturing practices and premier beauty and quality.”

Industry experts primarily attribute the growing interest in domestic species to the combination of consumer trends away from tropical exotics along with the color/texture characteristics domestic species provide. As Brett Miller, vice president of education and training, NWFA, explained, “With hickory, for example, it’s the variation in color that generates interest and demand. Even when you look at some of the imported species that are popular, they have that variance in color like hickory.”

Right alongside hickory are domestic variations of walnut. Proponents cite the species’ unique look, which has a high-end connotation compared to more mainstream species. “It has that nice, deep brown chocolate/almost purple color along with that light, blond sapwood, which is a drastic variation,” Miller explained.

Given this rising popularity, it should come as no surprise that many of these domestic species are increasingly factoring into recent introductions and/or best-selling products from some of the industry’s major manufacturers. “Over the past few years, we have focused our introductions on these species with tremendous results,” said Dan Natkin, vice president, hardwood and laminate, Mannington. “There is something timeless about North American hardwoods. Smooth, elegant graining, great character, and the way they accept stain and other visual effects make them the prime choice for consumers.”

In particular, Natkin cited Mannington’s Carriage oak line, which he describes as “a runaway hit.” He also referenced the Cider Mill collection, which combines the elegant graining of North American white oak and hickory with a proprietary hand staining and distressing process to further enhance the visuals.

Trendy offerings from Mohawk also reflect the popularity of domestic species. In fact, the company has been using domestic white oak for many of its products combined with special proprietary manufacturing and finishing techniques to render different visuals. Mohawk said it has also witnessed growing interest in species such as hickory and walnut, and it is adding more collections to meet those needs. The company cited popular offerings such as Homestead Retreat—a 9⁄16-inch thick x 7-inch-wide sculpted hickory and walnut collection. And let’s not forget about the company’s newly launched domestic products such as Castlebriar, Hartwick, Hideaway Ridge, Sheridan and Windrose—all derived from oak species.

“Consumers who are looking to be more unique are trying the hickories, walnuts and some other visuals to give it  more flavor and variety in the mix,” said Adam Ward, senior director of wood and laminate.

Then there’s American OEM, which markets the Hearthwood-branded, Made-in-the-USA line. Allie Finkell, executive vice president, attests to the popularity of domestic species. “We are still seeing most of the business being driven by white oak, but there are still great selling SKUs in hickory as well. Walnut is gorgeous, but it’s still very niche.”

 

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Armstrong Flooring leverages domestic resilient capacity

January 7/14, 2019: Volume 34, Issue 16

By Reginald Tucker

 

Amidst all the uncertainty surrounding the impact of tariffs on imports from China, Armstrong Flooring is moving to boost the intrinsic benefits of domestic resilient flooring capacity. This move comes on the heels of its recent decision to sell its wood flooring operations (FCNews, Nov. 12/19, 2018).

“We’ve been ramping up volume in the Stillwater, Okla., plant, which we repurposed last fall, and we continue to increase the capacity and through-put here at Lancaster as well as in Kankakee, Ill., where we make Alterna,” Don Maier, president and CEO, Armstrong Flooring, told FCNews. “The other side of the equation is with the change in the tariffs, we’ve been demonstrating to the market the value of our legacy resilient sheet products.”

Similarly, with VCT and other resilient products, Armstrong said it believes it has the ability to provide both commercial and residential end users with alternatives to products that have been impacted by the tariffs. “The message to the market here is we have a broad portfolio of domestic products both in the LVT category as well as in others that create very high-value alternatives,” Maier added. “Second, we’re always working with our supply base and distributors to offset and be more efficient in how we do business. Basically, we have our partners’ backs in terms of products impacted by the tariffs as well as providing alternatives that give them options to avoid the impact of the tariffs.”

An added bonus, according to Maier, is the fact that many of the resilient products Armstrong Flooring manufactures in the U.S. feature the company’s proprietary and exclusive Diamond 10 technology. “While the technology was first offered on our LVT products made at our Lancaster plant, we have now taken it across nearly the entire portfolio,” he explained. “That not only gives the retailer a differentiating story, but it gives the end user/consumer a product that’s going to stand up to challenges and continue to look and wear extremely well.”

Armstrong Flooring’s distributor and retail customers are embracing the company’s strategy to build on its domestic production capabilities. “Businesses that concentrate too heavy a mix into imported goods—especially goods from a single-source nation—remain exposed to significant financial, operational and logistical risks,” said Scott Rozmus, president and CEO, FlorStar Sales. “Having options available from global suppliers such as Armstrong Flooring, who have retained a domestic manufacturing base, certainly helps mitigate such tariff and related political risks.”

The fact that Armstrong Flooring operates a variety of plants across the country affords both the manufacturer and its distributors the luxury not only of offering some pricing stability relative to tariffs, but also providing benefits in terms of a more reliable supply chain, Rozmus added. “It is never a bad thing to eliminate multiple ports as well as oceans in terms of providing greater shipping accuracy. Offering customers more predictability creates happier customers.”

Among those happy customers are dealers like Merv Breckbill, co-owner of Strasburg, Pa.-based Wall to Wall Coverings, an Armstrong dealer for nearly 18 years. For him, domestic production provides more stability with respect to pricing.

“With the stuff coming in from overseas, along with the uncertainty of the price increases, anything that’s produced here in the U.S. is a plus. The other thing is domestic products are readily available. Most of the Armstrong Flooring products we order are available the same week, sometimes even next day, which is a big plus for us and our customers.”

Future plans
Beyond bolstering capacity of existing product lines, Armstrong Flooring also hinted at plans to begin manufacturing WPC-type products here in the U.S. “We have a team dedicated to bringing rigid core capabilities domestically,” Maier told FCNews. “I won’t offer a lot of details here other than to say we continue to make strong progress, and our intention is to repurpose existing assets we have just as we did in Stillwater.”

In this respect, Armstrong said it believes it also has an advantage. “The difference between us and other companies looking to establish rigid core production is we’re not looking for a greenfield site,” Maier stated. “Plus, we don’t have as many of the start-up related things that come along with that. Another benefit is it does not require as much capital investment.”

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Executive forecast: Wood—Suppliers see the upside of opportunity for the coming year

December 10/17, 2018: Volume 34, Issue 14

By Reginald Tucker

 

Over the course of 2018, the industry saw several big announcements. Some domestic manufacturers shuttered their solid flooring plants, while an industry leader announced plans to sell its hardwood flooring operations altogether. The sector also witnessed greater strategic alliances among wholesalers and producers. Heading into 2019, the industry expects to see more seismic changes amidst modest growth projections.

 

Wade Bondrowski
Director of sales, USA
Mercier Wood Flooring

What is your projection for the growth of the category next year?We are anticipating another year of growth in the overall category of around 5%.

What are the growth projections for your company in particular in 2019?We are currently looking for high, single-digit/low double-digit growth.

What end-use segments and/or products will fuel this growth?It’s still housing, commercial with a little multi-family.

Cite a few major company initiatives for 2019.Having new products and technologies in finishing, along with our new display system should give a push in the right direction for 2019.

Identify the “X” factor that will impact business in 2018.The X factor is the housing market and interest rates, along with an uncertainty in the stock market and regulatory trade.

Where you see the greatest opportunities?We see opportunity all around us, but we need to stay focused and continue servicing our clients with the fashions that consumers are looking for.

 

Roger Farabee
president, wood & laminate
Mohawk Industries

What is your projection for the growth of the category next year?We’re predicting hardwood will be up about 2% in terms of dollars.

What are the growth projections for your company in particular in 2019?We anticipate we will exceed the growth rate of the overall category in 2019.

What end-use segments and/or products will fuel this growth?We expect engineered to continue growing while solid will decline. Within engineered, we still see the bulk of that being in residential remodel, less so in builder.

Cite a few major company initiatives for 2019.We will continue to focus on engineered, especially in our TecWood enhanced platform as well as all of our new products. We are also offering an alternative to solids without giving up the benefits of solid.

Identify the “X” factor that will impact business in 2018.LVT is still the wild card that will impact all categories. We will have to wait to see if that rate of growth continues.

Where you see the greatest opportunities?We still see the bulk of activity come from the residential remodel sector, but less so in builder.

 

Drew Hash
vice president, hard surface portfolio management
Shaw Floors

What is your projection for the growth of the category next year?We’re projecting growth in the mid- to single-digits next year.

What are the growth projections for your company in particular in 2019?We expect to be very much in line with the overall hardwood category growth.

What end-use segments and/or products will fuel this growth?A lot of our growth is geared toward that single-family part of the business, specifically in prefinished and engineered.

Cite a few major company initiatives for 2019.Extension of the Floorte resilient brand into hardwood; second, applying the topical surface-treatment technology utilized on our Repel laminate products on wood; and focusing on thicker, sawn-faced products.

Identify the “X” factor that will impact business in 2019.You’re going to see Shaw Floors delve into a wider spectrum of colors—something that we typically do in resilient but not in hardwood.

Where you see the greatest opportunities?We feel good about that in 2019. Our focus is definitely on the independent specialty retail channel.

 

Christopher King
Vice president of sales
Armstrong Hardwood Flooring

What is your projection for the growth of the category next year?

We are optimistic that demand for wood flooring will remain strong going into 2019 in both the new construction and remodeling markets.

What are the growth projections for your company in particular in 2019?We will enter 2019 with a singular focus on hardwood and supporting powerhouse brands such as Bruce. As an independent wood flooring company, we will enjoy greater flexibility to pursue strategic growth opportunities as we are 100% focused on hardwood.

What end-use segments and/or products will fuel this growth?We expect to see increased activity in the engineered sector, and we also see solid wood flooring remaining a go-to product in certain parts of the country. Wide-plank, long boards and low-gloss finishes will also continue to grow.

Cite a few major company initiatives for 2019.Innovation will continue with solid and engineered structures in all of our brands. Engineered offers opportunity for design innovation combined with its installation flexibility, and we will develop new, on-trend visuals in solid.
Identify the “X” factor that will impact business in 2019.Going into 2019, we will be closely watching the status of tariffs on wood flooring products imported from China and ongoing trade negotiations.

Where you see the greatest opportunities?Look for more in innovations in aesthetics and performance in 2019 with an increased emphasis on speed to market. We also see opportunities in commercial hardwood.

 

Dan Natkin
Vice president of hardwood and laminate
Mannington  

What is your projection for the growth of the category next year? Overall modest growth within the category given the headwinds from LVT. 

What are the growth projections for your company in particular in 2019?  Generally in line with the market.

What end-use segments and/or products will fuel this growth?Primarily upper-end wood products will see nice growth as consumer demand remains strong in that area. Lower-end hardwood will continue to cede share to printed products such as laminate and LVT.

Cite a few major company initiatives for 2019.We have just completed a major capital upgrade of our plant in High Point, N.C., and we will be launching several new products throughout the year that utilize state-of-the-art capabilities.

Identify the “X” factor that will impact business in 2019.The biggest X factor is the overall economy.  

Where you see the greatest opportunities? There is still very strong fundamental demand for hardwood. Capitalizing on the natural aspects of it presents some of the largest opportunity.

 

Paul Rezuke
Vice president, U.S. sales
Wickham Hardwood Flooring

What is your projection for the growth of the category next year?There are so many factors that can and will impact wood flooring positively and potentially negatively next year, namely the proposed implementation of future tariffs and anticipated interest rate hikes.

What are the growth projections for your company in particular in 2019?In spite of a high level of volatility, we are targeting 8% to 10% year-over-year growth. Assuming the landscape does not experience severe changes, this level is attainable.

What end-use segments and/or products will fuel this growth?In 2018, we experienced increased opportunities within the architectural and design segments of our industry. Our expanding engineered products will serve as the impetus for this continued growth.

Cite a few major company initiatives for 2019.We will be expanding our engineered products. You will also see wider planks, more diversity in our product look along with the resurrection of some of the more traditional colors. An acquisition in 2018 also increased our raw materials.

Identify the “X” factor that will impact business in 2019.There is no question pending tariffs and projected interest rates will have a significant impact on the industry in its entirety.

Where you see the greatest opportunities? Our opportunities lie specifically in the expanding geographic areas targeted. Over the past two years our footprint has been expanding, and it will continue to grow in 2019.

 

Brad Williams
Vice president of sales and marketing
Boa-Franc (Mirage brand)

What is your projection for the growth of the category next year? We project the overall hardwood category to have a moderate growth of 3% for 2019.

What are the growth projections for your company in particular in 2019? We project the overall growth to be moderate as well, coming in at 2% to 4% in 2019.

What end-use segments and/or products will fuel this growth? Wider and longer hardwood planks are getting more traction among consumers. New construction will also be a driver within the markets that are experiencing an increased population coupled with a good economy.

Cite a few major company initiatives for 2019. We will continue investing in updating our customer experience via mill tours at our factory. Seeing what goes into making a Mirage product is key for our customers to be able to sell the difference.

Identify the “X” factor that will impact business in 2019. The X factor will be the different innovations that our competition will be launching along with our own product launches.

Where you see the greatest opportunities? We feel our greatest opportunity continues to be within our existing network. We will continue to listen and try to understand our customer needs and focus on creating opportunities for them.