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Contract: State of the industry—Key end-use sectors drive specifications

May 28/June 4, 2018: Volume 33, Issue 25

By K.J. Quinn

 

In many ways the commercial contractor flooring market is like an onion—as you delve into each sector, one layer at a time, you start uncovering macro issues impacting flooring choices that go beyond traditional metrics. Sustainability, wellness principles and environmental impacts are among the major factors affecting facility design across the board, experts say.

“Manufacturers have increased focus on the impacts of their products on occupant well-being and productivity, offering a wider range of aesthetic and functional solutions to deliver against the requests of designers’ clients,” said Matthew Miller, president, Interface Americas.

Industry projections indicate the commercial market is on pace to experience similar growth as last year, with some segments faring much better than others. To put it in perspective, soft surfaces generated an estimated $3.6 to $4 billion in sales and upwards of 300 million square yards last year, according to industry estimates. Carpet tile claimed approximately 50% of volume and 60% of the value over broadloom—increases of 9% and 10%, respectively, over 2016.

Many trends that impacted commercial segments last year are carrying over into 2018. “I think the market for carpet will continue to lose share to hard surfaces,” said Brenda Knowles, vice president of marketing for Shaw Industries’ commercial business. “We’ll continue to see an emphasis on product design across all segments and more offerings that combine soft and hard surfaces.”

Nonetheless, there is still a good amount of broadloom being sold into commercial spaces, especially in sectors that demand a luxurious look and feel underfoot. “We still see some higher-end broadloom sold to the hospitality, legal and financial services sectors,” observed Richard French, vice president of sales, Bentley Mills. “At the high end of the spectrum, carpet tile is still not able to meet aesthetic needs.”

Hard surface seizes share

The market size for hard surfaces is nearly as much as carpet, estimated at $3.7 billion in sales. But that’s where the similarities end. Sales and volume grew by double digits, led by ceramic tile and stone ($1.45 million in 2017 sales), rubber ($650 million) and luxury vinyl tile ($600 million), according to industry estimates.

LVT is the fastest growing sector, with sales rising by double digits and usage expanding across all segments. “Hard surface growth in the commercial segment is being driven by LVT and ceramic,” Jeff Fenwick, president and COO, Tarkett North America, told FCNews. “LVT is showing up in more commercial spaces and design features of ceramic are taking it out of the ‘back of the house’ and letting it be utilized in other spaces.”

VCT, estimated at $250 million in 2017 sales, and sheet goods, which generated about $300 million, remain viable options. Healthcare and education, long strongholds of the sector, are reportedly losing market share. Hardwood, laminate flooring and linoleum are being specified for certain niches, although each category accounts for only a small percentage (less than 5% apiece) of the overall commercial market, statistics show. “For people who want that visual a little different and want to make more of a statement than a neutral gray floor, then linoleum is your answer,” said Denis Darragh, vice president, North America, Forbo Flooring.

While LVT dominates the headlines, one category maintaining steady growth is ceramic. While it’s difficult to determine sales and volume due to fragmented distribution channels, anecdotal research indicates tile commands approximately 15% of total commercial flooring sales and volume, with specified contract accounting for about 70% of the business. Growth rates are projected to mirror last year, when the category grew an estimated 6% in sales and 5% in square footage.

End-use activity

There are diverse applications for flooring within the five major sectors of the commercial business, the majority of which (an estimated 70% to 75%) is specified contract and the remainder Main Street commercial applications. Each has its own set of issues, trends and requirements which, in some cases, are unique to specific areas. As such, flooring choices and volume are expected to vary this year in some segments while remaining constant in others, industry watchers say.

“Traditional hard surface markets like retail and healthcare still are very strong, and non-traditional markets such as offices and hospitality are shifting toward hard surfaces in many areas they did not consider before,” said Robert Brockman, segment marketing manager, commercial, Armstrong Flooring.

The largest sector remains corporate/offices, representing roughly 40% of commercial flooring sales. Design strategies have traditionally centered on integrating natural elements into work spaces that help energize employees, encourage collaboration and make them feel more at home. “The goal is to leave work at the end of the day feeling recharged,” said Sharon Steinberg, AIA, LEEP AP, a principal architect at Stantec’s Houston office. “The design of the space, including flooring materials, can contribute to these feelings.”

Carpet tile has emerged as the top flooring choice, representing an estimated 55% to 60% share of the segment. “Carpet tile reduces sound transmission and provides underfoot comfort,” Interface’s Miller stated. “Carpet tile is also easy to upkeep and maintain—and since it is modular, it can easily be replaced or redesigned, providing the flexibility to update or refresh flooring as needed.”

Industry observers report the use of hard surfaces such as LVT, hardwood, porcelain tile and polished concrete is expanding beyond coffee and bar/break areas and into more diverse office environments. “While tile usage is typically limited to areas such as lobbies, bathrooms and kitchenettes, we predict there will be more tile being used in traditionally unexpected spaces,” said Gianni Mattioli, executive vice president, product and marketing, Dal-Tile. He cited advancements in the tile printing technology space as one of the primary reasons.

Another sector to watch is healthcare, which some believe represent the greatest growth potential for LVT. “Slip/fall issues help LVT vs. other hard surface options as well as infection control,” said Paul Eanes, vice president of new business development, Metroflor. “The segment is now more receptive to LVT in most places except operating rooms.”

Ceramic, porcelain and terrazzo tile are commonly found in hallways, making it easier to maneuver rolling equipment and mobile aids. “The health benefits and low maintenance of tile makes it ideal for this space, and our advancements in manufacturing have allowed us to make tile slip resistant through our proprietary StepWise technology, catering to residents’ safety needs,” Dal-Tile’s Mattioli said.

Fashion and function are paramount in hospitality, an industry reportedly investing millions of dollars to remodel their properties. It is expected to remain a bedrock segment for broadloom in particular as high-end products are the norm for guest rooms and public areas. “People still want to feel a soft surface when they hit the floor,” Shaw’s Knowles pointed out. “So even though the trend is towards hard surface, we’re seeing a combination of the two—and we’re providing solutions for that.”

LVT is reportedly growing at a faster rate than broadloom as the product gains wider acceptance, especially in guest rooms. “Most of these hospitality end users are also looking to make a change to something more timeless in terms of pattern and color,” observed Al Boulogne, vice president, commercial resilient business, Mannington Commercial. “That, coupled with the easier maintenance requirements, make it an ideal product for these environments.”

Further fueling usage is hotel owners’ interest in switching to interior decorating products that blend with the latest design styles and last longer—a big reason why ceramic is making inroads. “Designers in the hospitality space demand unique designs, and we are taking style and design to the next level through our latest introductions,” Dal-Tile’s Mattioli said.

One segment at the forefront of design is retail as end users not only seek products that are trendy, but also address performance/functional issues.

“You can create a pattern in a hardwood or stone look that leads you into different departments of the retail store,” noted Milton Goodwin, vice president of commercial sales, Karndean Designflooring. “There’s a lot of mixing and matching of SKUs.”

Even the education sector is getting a little more sophisticated in terms of the design aesthetic, observers report. “It’s copying what we’ve seen in other public segments by trying to become a little more trendy with their looks,” Mannington’s Boulogne stated. “So that pushes more and more business to the LVT category, where there are more design opportunities.”

R&D efforts center on beefing up performance levels to ensure flooring meets the varying needs of each space. “Designers can take LVT into places that maybe they hadn’t considered before,” added Melissa Quick, product and marketing manager, AVA by Novalis Innovative Flooring. “All of this has contributed to more confidence in the use of LVT in Main Street and specified spaces.”

 

 

 

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Ferro named president of Tandus Centiva

Len Ferro
Len Ferro

Solon, Ohio—Effective immediately, Len Ferro has been named president of the Tandus Centiva business division of Tarkett North America, prorating to Glen Morrison. Ferro succeeds Glen Hussmann who announced his retirement in January. 

Glen Morrison, president and CEO of Tarkett North America, expressed his gratitude to Hussmann “for his leadership and many contributions to our Tandus Centiva organization. His commitment to the development of his team has made our organization stronger. We thank him and wish him all the best in his retirement.” 
Ferro brings significant expertise, knowledge and experience to this role, having served most recently as COO of the organization since 2013 and previously as CFO from 2004, when he joined Tandus Centiva. In his roles he has worked extensively with all aspects of the Tandus Centiva business. As COO, Ferro led the sales organization and during that time the team successfully expanded the business and achieved record sales. Prior to Tandus Centiva, he worked 17 years in various financial and controller positions with organizations such as Ernst & Young and Swift Galey.
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Tarkett introduces online chat program

Dec. 9/16 2013; Volume 27/number 16

Screen Shot 2013-12-17 at 12.44.14 PMChagrin Falls, Ohio—Homeowners can now get real-time answers to their color and design questions using Live Person Chat on tarkettna.com/home. Digital engagement is transforming customer service and elevating the expectations of online and cross-channel shoppers. “Consumers are overwhelmed with choices and need to have resources available to get their questions answered when they need it,” said Stephanie Galaska, digital marketing manager, Tarkett North America. “Live Chat is a great way for consumers to get immediate information from experts who they can trust.” Continue reading Tarkett introduces online chat program

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Greenbuild 2013: Transparency, LEED are universal topics of conversation

Health impacts take center stage

Dec. 9/16 2013; Volume 27/number 16

By Jenna Lippin

Screen Shot 2013-12-17 at 12.08.25 PMPhiladelphia—No matter where you looked, no matter to whom you spoke, the primary topic of conversation at Greenbuild 2013 was transparency. Much of that could be attributed to the official, long awaited unveiling of LEED v4, where changes and updates from previous versions centered on providing greater transparency as it relates to products and processes.  Continue reading Greenbuild 2013: Transparency, LEED are universal topics of conversation

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Tarkett introduces online chat program

Screen Shot 2013-12-05 at 2.03.17 PMChagrin Falls, Ohio—Homeowners can now get real-time answers to their color & design questions using LivePerson Chat on www.tarkettna.com/home.

Tarkett is working with five interior designers to provide an additional level of customer support with the interactive technology LivePerson Chat. This new offering creates meaningful, real time customer connections that help improve the consumer experience. Continue reading Tarkett introduces online chat program

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Tarkett webinar addresses design, air quality

tarkett

Chagrin Falls, Ohio—Tarkett will present a webinar, Designing People-Friendly Spaces: Keeping Occupants Healthy, Safe and Comfortable, Thursday, Nov. 7, at 2 p.m. ET.
 The complimentary webinar is open to all professionals in architecture, interior design and facility management. Continue reading Tarkett webinar addresses design, air quality

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Tandus and Centiva joining forces

Tarkett, the worldwide leader in innovative flooring and sports surface solutions, announced Tandus and Centiva are joining forces, leveraging their resources to jointly market and support soft surface and luxury vinyl tile (LVT) solutions in the commercial market.

“The 2012 acquisition of Tandus was completed with the vision of delivering a full portfolio of products and services across soft and hard surface to commercial specifiers and end-users,” said Jeff Buttitta, president of Tarkett North America. ”For several months, I have been working closely with Thomas Trissl, president of Centiva, and Glen Hussmann, president of Tandus, regarding how we capitalize on the substantial strengths of their respective companies. It is an exciting time where we see great opportunity to enhance the experience of all our commercial customers.” Continue reading Tandus and Centiva joining forces

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Jeff Fenwick appointed president and COO of Tarkett North America

Chagrin Falls, Ohio –Tarkett North America has named Jeff Fenwick president and COO with responsibility for all sales, marketing and support functions of Tarkett-branded hard surface business in the U.S. and Canada. This includes all business under the Tarkett Residential, Johnsonite and Azrock brands. Continue reading Jeff Fenwick appointed president and COO of Tarkett North America

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Tarkett to lower VOCs in all products

Chagrin Falls, Ohio—Recognizing the majority of the people in North America spend approximately 93% of their time indoors, Tarkett announced a worldwide initiative to lower the amount of total volatile organic compounds (TVOCs) in all its products. Continue reading Tarkett to lower VOCs in all products

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Tarkett announces price increase

Chagrill falls, Ohio — Tarkett announces a price increase of 3 to 8% across its residential and commercial brands.

“The persistent escalation in prices of raw materials has outpaced internal efficiency improvements that typically help offset cost volatility,” stated Jeff Buttitta, President and CEO of Tarkett North America. “Though cost-saving efforts remain a constant, these sustained increases necessitate price adjustments.”

Continue reading Tarkett announces price increase