Creative Flooring Solutions
Transcription
Creative Flooring Solutions
Vol. 62 No. 8 A Hearst Business Publication April 22, 2013 $4 NWFA experiences double digit growth 18 Creative Flooring Solutions Canada’s retail brand powerhouse By Janet Herlihy In less than ten years, Creative Flooring Solutions has grown into one of, if not the largest, privately owned flooring company in Canada, according to Scott Brookfield, chairman and CEO of the diverse, on-themove operation. Brookfield was a venture capitalist/ chartered accountant with a background in construction and insurance when Wacky Wheatley’s asked him to help find a buyer. He liked the business so much, Brookfield ended up acquiring the business. Creative Flooring Solutions is now the parent company of a trio of businesses that dominate the Halifax/Dartmouth area of Nova Scotia. Taylor Flooring, Wacky’s Floor Design Centre and Hallmark Carpet One Floor & Home were independent operations until each was acquired by Creative Flooring Solutions, resulting in a diversified flooring powerhouse. In 2013, Creative Flooring Solutions acquired a fourth company in Halifax — RCCL (Ralph Connor Company Limited), an all commercial flooring business — and Hallmark Carpet One has moved to a new location, which, at 10,000 square feet, is the largest of any of Creative’s showrooms. “It is located at the Atrium, a 200,000 square foot mall made up of furniture stores. Hallmark is the only flooring store. We designed it to have more space so it is not crowded and has a very modern look. Hallmark will be our major residential renovation brand, while Wacky’s and Taylor are more builder focused,” Brookfield said. Watch for Creative to continue to grow. “We will do more expansion outside Nova Scotia,” Brookfield predicted. “But, will stay in Atlantic Canada. We’ll continue to improve and finetune our businesses.” First, there was Wacky’s In 2007, Creative purchased Wacky Wheatley’s operation from partners Mike Wheatley and Larry Gumbley. “Wacky’s started in 1980 in Bedford, Nova Scotia, as a large discount retailer Continued on page 21 Canadian market focus Coverage continues on pages 16 & 19 NFA looks to future opportunities, branding Courts sends ITC China dumping determination for further review “Business is getting better,” Sam Roberts, owner, Roberts Carpet and Fine [Beavercreek, Colo] Floors, told FCW, during the The National Floorcovervendor round-robin, where ing Alliance (NFA) — 42 members visit each of the of North America’s largest group’s core vendors in one dealers — met here April 4 – 7 for the group’s spring NFM’s Dave Snedekar meets with day. Roberts’ business is up approximately 17 percent meeting — an opportunity Congoleum at NFA. versus a year ago, but margins to discuss challenges facing members such as tight margins and big box remain tight. “I’m hoping as business continues competition as well as to propose new pro- to improve things will A, get better for specialty grams like an NFA brand and a group effort to stores, and B, see margins improve,” he said. The first quarter was quiet in Montana, solve issues like an aging sales force. Business conditions overall have improved according to Jon Pierce, general manager, since last year. Most dealers are reporting busi- Pierce Flooring. “Then when the snow went ness up anywhere from single to double digits. away, something happened. We’ve had a nice Margins remain tight, even for these dealers — uptick in retail, in builder business, property most report flat margins. A few said they are up management business and contract,” he said, a little due to concerted efforts. Continued on page 7 By Amy Joyce Rush P e r i o d i c a l By Kimberly Gavin For breaking news updated each business day, visit us online at www.fcw1.com fcw42213-pages.indd 1 The Department of Commerce (DOC) case regarding the dumping and countervailing of imported engineered hardwood flooring from China was remanded to reconsider its findings by the International Trade Commission (ITC) on March 20, 2013. The Commission must file the remand results with the court on or before Sept. 30, 2013. The petition was initially filed with the ITC and DOC November 10, 2010 by the Coalition for American Hardwood Parity (CAHP), a group of American manufacturers including industry leaders Shaw/ Anderson and Mannington claiming material injury by reason of below market value multilayered wood flooring products being sold on U.S. soil. The case also claimed that the products were being subsidized by The People’s Republic of China. The hard-fought battle went to Washington in October of 2011 for a final hearing and in November, a final affirmative determination was made. Also in October 2011, the DOC determined separate rates, which applied to the majority of Chinese imported engineered hardwood, of 3.31 percent for antidumping and 1.51 for countervailing. The rates, which are currently being appealed by both sides, are also subject to annual reviews. To be clear, the court is only reviewing the record that exists and is limited to the specific issues that the Court of International Trade has directed the ITC to review, according to Jeff Levin, counsel for CAHP. “The commission conducts a ‘mini investigation.’ It’s a much different animal than what went on first go around in fall 2011. The ITC can’t just start over again. It is limited to the re-examination of the specific issues the court remanded on,” said Levin. “One is whether the ITC correctly identified all U.S. manufacturers of multilayered wood flooring and one is whether or not the Commission correctly and comprehensively evaluated other economic factors that may have contributed to the injury aside from cheaply sold products. They can’t collect new evidence.” Levin further clarified that the ITC can’t collect new evidence unless it finds that it did not correctly identify all of the relevant producers. In that case, he said, the ITC would ask for the missing companies’ operational and financial data. “I do not see that Continued on page 18 4/17/13 4:15 PM Untitled-2 2 4/12/13 10:52 AM Untitled-2 3 4/12/13 10:52 AM 4 News Acquisitions, new programs position J.J. Haines for future By Mallory Cruise [Alexandria, Va.] Acquisitions that expand the company’s regional reach and market depth, new lines added to its robust product assortment and an all new private label program and web service were some of the key initiatives that shaped J.J. Haines’ annual Loyalty Club Summit held here April 8-9. Technology was another important focus. Through its acquisitions and smart business plans, Haines continues to grow, allowing the company to expand during this initial stage of economic recovery. The acquisition of Allied happened in January 2013 and the company said it has more work to do. “With Allied Products we now have a supplies division; we will treat sundries and supplies as separate but complementary businesses, and we will continue to look to make more acquisitions in the mid-Atlantic and southeast regions. Haines is strong financially. We are carrying more inventory and can support the need for credit,” said Bruce Zwicker, president and CEO. Haines is also enthusiastic that economic indicators are pointing to recovery. “The forecast is bullish for the first time in six years. I believe we are in the second inning of the early stages of a multi-year recovery in the housing sector,” added Zwicker. New initiatives Haines introduced a web-based benefit for its customers called Web Service Lead Generation. Using zip codes and consumer locations, it can help drive traffic to a member’s website using the Haines Loyalty Club portal site. The company also enhanced its Haines Connect customer portal by expanding the tools it offers. Using the portal, members can file claims, issue credit for mistakes and pay bills online. The revamped portal also includes information on new product launches. “We are driving a big technology charge with all customers including our Loyalty Club members. One of the newest benefits to the Loyalty Club program is a designated web portal and SEO to drive traffic to a customer’s store,” explained Scott Roy, vice president of sales, marketing and customer service. Jeff Shipe, president of At Your Door Floor Store, Derwood, Md., said he benefits from the advanced The Haines executive team: John Coakley, Scott Roy, Bruce technology Haines pro- Zwicker, Rosana Chaidez and Fred Reitz vides. “Haines helps its members grow business because it likes to stay delivering the latest products, colors and styles ahead of advancements in technology. This new across all categories,” said Roy. J.J. Haines also named its Retailer of the portal is also a great way to gain product knowledge, and to reach the consumer and generate Year during its annual summit meeting. Gary Hurst, president, and Elmer Stoltzfus, prinsales,” said Shipe. Ranked No. 1 on FCW’s Top 25 Distribu- cipal, of Heritage Floor in Ronks, Pa., took tor List, Haines continues to be the leader the top honors this year. A young company, because of its product assortment, according Heritage Floors opened in 2010 during a down to Haines’ Roy. The company has an entirely economy and accredits the company’s success new private label collection in ceramic, hard- to its corporate culture and business strategies. “We’re the strongest in residential remodelwood and carpet called Chesapeake that the ing, and our installation sets us apart.We’re not company will continue to expand upon. “It’s about having the right product at the afraid to go the extra mile ,” offered Stotlzfus. Hurst added, “We take the extra steps to right time. Hardwood is currently experiencing a big supply shortage but we are working hard ensure our success. We have a designer on to have product available when needed. As we staff and a customer-friendly showroom, and continue to grow, we need to ensure that we are treat everyone with respect.” FCW China focuses on innovation, sustainability By Raymond Pina [Shanghai] China’s flooring industry is transitioning from a low-cost supply model to one of innovation, higher quality and sustainability, according to industry leaders at DomotexAsia/ ChinaFloor (DACF), held here March 26-28. “We have great prospects for our flooring industry but we know there’s no future success in continuing to pursue a low-cost supply model,” said Sun Jian, director of China’s timber industry management and state forestry administration. “Like the rest of China’s society, our flooring industry is moving towards developing better use of our raw materials as well as sustainable practices and products. We’re pushing innovation.” Last year, leading Chinese flooring suppliers began working in earnest with domestic universities and international partners to develop new technologies that would make floors quieter, easier to install, safer and more sustainable, according to Kelin Ye, vice chairman of the China National Forest Products Industry Association (CNFPIA). “Our industry is now seeing an outstanding level of collaborative research, particularly with leading brands in America, Canada and Europe,” he said. “We’re seeing Chinese manufacturers pursuing patents and other intellectual property for the first time. The quality is noticeably improving and we’re developing national standards that are in line with international standards.” Wood flooring has been a focal point following the International Trade Commission’s affirmative determination that imported engineered wood from China was being brought into the U.S. at below market value and subsidized by the Chinese government. “We shifted from commodity engineered wood to high-end products that are intricately cut by hand, where every piece is distressed to look like it’s 100 years old,” said Sidney Shaw, owner of Shenzhen, China-based Eton Flooring. “Instead of using Chinese labor to make the cheapest floor possible, we’re now using it to create unique product that only a handful of suppliers are capable of making.” A number of Chinese wood suppliers have also begun incorporating jade and other precious translucent stone inlays into their products to appeal to affluent consumers. “We source legally-documented wood from Indonesia, jade from the Middle East and use the latest machining equipment from Germany. We do export to the U.S., but most of our product is now geared towards the highend market here in China,” said Echo Liu, sales manager of China-based Steinbache Flooring. Similarly, Zhongshan City-based Prado Flooring has integrated radiating heating systems into their high-end wood floors. “To create a product like this, you need to know about flooring, structural engineering and electrical engineering. You didn’t see floors like this in China, or anywhere else, even a year ago,” said Crystal Chen, international sales manager, Prado. Transforming LVT Chinese suppliers of luxury vinyl tile (LVT) are exploring alternative chemistry to replace PVC with natural ingredients like corn, clay, wood flour and Green Tea. They’re also leading the charge in the production of mechanically locking, grip-strip, loose-lay and groutable LVT formats. “The LVT market that everyone knows today, the one that is exploding with sales — that is being made in China,” said Sid Lee, general manager of Shanghai-based Jinka, China’s leading OEM LVT supplier. Jinka introduced Post Tile, a next generation loose-lay LVT featuring a pre-adhered backer at this year’s DACF. The patented technology combines the reliability of glueddown planks and tiles with the ease of looselay installation techniques, said Lee. “You can pick Post Tile up and put it back down a million times and it will work the same,” he said. FCW • FLOOR COVERING WEEKLY • fcw42213-pages.indd 4 InterfaceSERVICES building earns LEED-CI Gold [Acworth, Ga.] An InterfaceSERVICES facility here recently earned LEED-CI Gold Certification. InterfaceSERVICES is the installation and maintenance business unit of Interface Inc. The interior includes 6,636 square feet of offices plus a 26,977 square foot warehouse operation. Randall-Paulson was the architectural firm of record for the corporate campus, with Morrison-Hershfield consulting on and overseeing the sustainability aspects for Interface. InterfaceSERVICES took occupancy in May 2011. “Interface founder Ray Anderson was an early proponent of LEED, and among the thought leaders who guided USGBC in the development of this sustainability standard,” said Pieter van der Toorn, president of InterfaceSERVICES. “So, we were compelled to ensure that the design of this facility would honor his memory, his legacy and his vision for leaving the world better than we found it.” FCW InterfaceSERVICES facility earns LEED-CI Gold. WWW.FCW1.COM April 22, 2013 4/17/13 4:50 PM Credit Series 5 Private label credit brings market advantage By Amy Joyce Rush Private label store credit programs are nothing new. Just about every major department store provides them and most specialty retailers in other categories promote them bringing a level of store brand loyalty, ease of purchase for the consumer and the opportunity to upgrade the customer. These opportunities hold true for flooring retailers as well. “A solid consumer credit program is vital simply,” said Kay Wiley, Shaw Flooring Network benefits coordinator. “When advertised effectively, a financing offer can encourage consumers to shop your store.” Both Shaw and Mohawk offer their aligned dealers programs from GE Capital. “It’s a win for the customer and a win for the retailer because if they are smart about it, they can up sell you a better product,” said Mike Zoellner, vice president, marketing services at Mohawk. While the consumer gains additional purchase power, dealers are able to offer flexible payment options as well as value and convenience, according to Shaw’s Wiley. “Customers tell us they appreciate the ability to purchase the flooring they need and want and spread the purchase into affordable monthly payments without having to tie up other lines of credit or use savings,” she said Store credit programs, in fact, help specialty dealers compete, said Mohawk’s Zoellner. “The independent business can offer extended financing at competitive rates that are usually only available from large chains and home centers. These rates level the playing field by allowing dealers to advertise and promote at the same level as the larger home centers.” Both Shaw and Mohawk have negotiated special terms for their aligned dealer networks and there are real financial benefits, they reported, to utilizing these programs. Explained Zoellner, “We have negotiated special low rates for MasterCard/Visa processing with Chase Paymentech,” explained Zoellner. “Most retailers just pay MasterCard/Visa processing through their local bank and consider it an operating expense. If we can save a retailer 1 percent, that goes straight to their bottom line as profit. All of these benefits include supporting in-store merchandising and POS like signage, special offers coordinated with Mohawk sales and kiosks through our partner Versatile. “The partnership with GE Capital and Chase goes well beyond discount and approval rates,” continued Zoellner. “Retailers and cardholders have access to a plethora of online information. Between GE and Mohawk University’s training program, there are many opportunities for dealers to learn how to sell with credit and successfully advertise their current incentives.” Yet often, these programs are underutilized in the flooring business. “Businesses think about private label financing as an additive cost of doing business,” noted Zoellner. “In these cases, retailers are forgetting that they are already paying MasterCard or Visa to process that card. If a customer uses their store card, then there is no MasterCard/Visa cost.” Both manufacturers keep credit programs at the forefront of conversations with aligned fcw42213-pages.indd 5 WWW.FCW1.COM of their marketing channels. “A consumer needs to be able to see signage, door decals and tent cards upon entering the store.” An economic recovery makes credit programs more desirable. “Banks are telling us people will begin using credit cards again — at a more responsible level than before. As retail sales go up, usage rates are going up,” offered Zoellner. FCW GE Capital WE’RE NOT JUST BANKERS, WE’RE BUILDERS. At GE Capital, we’re not just bankers, we’re builders. Not only do we provide homeowners with financing options, we bring you real expertise. For example, Brian Copps, Relationship Manager for the Shaw Financial Solutions Program at GE Capital, brings nearly two decades of retail sales and financial management experience to help flooring retailers drive sales, grow profits and take back market share. Jon Pierce of Pierce Flooring values partnering with GE Capital to sell higher end products at affordable payment plans that led to their double digit annual growth. At GE, you can be sure that Brian and others like him are dedicated to the flooring industry and ready to help build your business. Stop just banking. Start building.” gogecapital.com Jon Pierce Owner, Pierce Flooring Brian Copps Relationship Manager, GE Capital Credit is extended by GE Capital Retail Bank © 2013 General Electric Company. All Rights Reserved. FCNEWS Peirce Flooring 7.735x9.125 0912.indd 1 April 22, 2013 dealers. “Convention is our big face-to-face push but we do something every other month or so — outreach programs and campaigns to sign up additional dealers plus every deal we run, whether it’s a spiff of some kind or consumer advertising, we tie it to it,” said Zoellner. Wiley added that for financing programs to be successful, retailers need to make customers aware of the options through all • 3/4/13 12:45 PM FLOOR COVERING WEEKLY • 4/17/13 11:29 AM 6 Software Mobile programs offer business advantages stated. “They can immediately get information, make notes, look up products on the As the economic recovery brings some relief floor, generate a price, check samples out and to the flooring industry, most dealers and when they’re through, click a button to create contractors are still doing more with less. a file with all the customer’s information and Smart phones and tablets are enabling floor- the quote to keep for follow up,” he explained. People want to use mobile devices to ing professionals to serve customers faster from the showroom or any location with cell retrieve information and to update information. RFMS is working on two mobile apps to phone service or a WiFi signal. Software companies have been quick do just that, according to Wheat. Expected to to develop programs that are designed to be available in June, the InstallerProMobile app will allow installers to log answer the needs of flooring in from their mobile device and retailers and commercial condocument the number of hours tractors. This is a look at some of on a job. Wheat noted, “The what is available today. installer can view schedules, To serve the ever-increasing addresses and work order details. number of clients with smart We initially wanted to give the phones and mobile devices, dealer a productivity system but it RFMS has built SalesProMobile, will also allow them to meet state said Terry Wheat, of Wheat’s wage tracking requirements.” Carpet One Floor & Home, InHomeSolution will put the Tuscaloosa, Ala., and president Terry Wheat, RFMS dealers’ RFMS data in the palms of RFMS. It is a Cloud-based data storage program that can run on any of their hands, Wheat said. “It will run on any mobile device that is connected back to the mobile device and allow the user to create a diagram of a home, associate a product from a company’s server using web services. “It makes the salesperson mobile,” Wheat core data base for the layout, get a price for the By Janet Herlihy consumer, take a deposit by swiping a credit card and place the order,” he reported. InHomeSolution will com- Dancik focuses on mobile apps for tablets. pute sales tax and at the click of a button, the order will be sent Décor24 provides 24-hour online shopping to the home office. It is being pilot tested and capabilities for customers, including product will also be available in June. search and the ability to place orders online. “It Dancik International, Cary, N.C., predicts allows the customer to check pricing and availthat the mobile future will center on tablets ability,” Grady added. “And then they can view for accessing information, according to Greg a detailed status of all open orders.” Grady, Dancik director of sales. Dancik is DancikRADAR is a way for executives and focusing on programs for tablets to help its sales staff to access KPI (key performance clients get the job done wherever they are. indicators) while on the go, according to SelectionSheetManager allows the retailer Grady. It is compatible with leading mobile to work with a customer (consumer, home devices. “You can instantly analyze the profbuilder) and create an open-ended quote and itability of your products, customers, salesleave it open so the interaction can be tracked. people and locations,” he said. “The customer can access the project via the Pacific Solutions made the decision to focus website whether it’s a kitchen remodel, or a new its programs on Apple-based systems in the floor,” Grady explained. 1990s. Considering the popularity of iPhones The program enables the RSA to create, and iPads, that was a wise decision, according print, store and analyze customer selections to Don Kilbourne, vice president for the San and includes a personalized appointment cal- Diego, Calif.-based software provider. endar and pop-up reminders. FloorManager, developed for residential retailers, and JobRunner, designed for commercial flooring contractors, are both “native and optimized for iPad and iPhone use,” said Kilbourne. FloorManager allows the dealer or RSA to create and/or change orders, check job progress, material status, product costs and access his/her entire management system anywhere there is cell phone or WiFi service. JobRunner features dual-path accounting and project management for the most complex commercial and high-end residential projects all within one system. It allows the contractor to manage business details with a portable showroom touchscreen, make job site quotes, change orders and take signatures, Kilbourne explained. FloorRight is estimating software to link with SiteDraw mobile software, which creates a CAD file of the building to be measured and is especially accurate charting irregular spaces. SiteDraw’s measurements electronically flow into FloorRight estimating software for material layout and optimization. FloorRight information then links to FloorManager or JobRunner to streamline sales, operations and accounting. FCW Pacific Solutions’ JobRunner program features commercial project management. • FLOOR COVERING WEEKLY • fcw42213-pages.indd 6 WWW.FCW1.COM April 22, 2013 4/17/13 1:11 PM Software 7 FCW GUEST COLUMNIST Technology’s new frontier will work for you By Pam Bowe, Executive director, Floor Covering Business to Business Association S cientists predict that by mid-century we will all be living in a world made possible by technology — mixing traditional reality with virtually enhanced new frontiers. Virtual reality has been in existence since the late 90s and the Internet is barely out of infancy having been born in the early 90s. From mobile applications to the most innovative operational and inventory management products, there are effective ways for retailers to use new technology as a key strategic resource to build stronger brands, extend store reach and better understand customer demographics. Today, the purchase of flooring is driven by multiple desires. There is a desire to replace long worn surfaces in the family home and upgrade to materials more in tune with our environment — empty nest transitions, retire- NFA Continued from page 1 attributing better business conditions in the region to the oil and gas boom in Western North Dakota, which has hit Billings, Montana “like a tsunami.” Pierce added, “It’s been a grueling four or five years. We do see light and we are geared up.” NFA convention format includes a TwoMinute-Drill when members share best practice or some operational information. But this year NFA president, Phil Koufidakis, also president of Phoenix-based Baker Brothers, asked each member to cover how much business was up or down, how margins were holding up, best promotion of the last six months, and biggest challenge. Darren Braunstein, vice president for Worldwide Wholesale, based in Edison, N.J., reported that business slowed following last fall’s Category 4 Hurricane. But, since December, business has been up double digits. “It’s the benefit of pent-up demand,” he said. Margins for the store remain “consistent” though Branstein reported they have been trying to get margins up. “The challenge is that customers are shopping more. They have more time,” he noted. One of the tricks in Worldwide’s box — as with many NFA members — is private labeling. Braunstein said they have done so with carpet for many years. Now they are moving in that direction for hard surface. Although the consumer is back in the market, she has changed her buying habits, said the group. “Lack of loyalty is compounded by technology at her fingertips,” Pierce said. “She’s more savvy and value conscious.” April 22, 2013 fcw42213-pages.indd 7 WWW.FCW1.COM ment/new family, aging in place, the desire to put your home on the market and realizing you are competing with newer properties. It is a pent up desire for change. Competition has heated up for each and every client dollar. New furniture styles are modeled by celebrities on TV, design magazines are filled with gorgeous fabrics, finishes, lighting, kitchens and more. Oh and then there is the Internet. Today’s customer is under attack — a slick, sexy, strategic and targeted attack designed to bring more than a mere object into the home. Today’s customer expects an experience. Is your store giving them an experience? You should be, and technology will enable you to do that. Imagine you are showing the latest tile product to Carmen Electra in your showroom. Carmen is planning an event in the near future and needs her flooring project completed before then. It’s best we find product readily available. You scan her selections from the showroom floor into your smart phone, tablet or other hand-held device. Using the Internet, you are connected to your supplier and receive an instant status of availability. Enter the amount of material, select the shade, select the FOB point, place on hold, confirm pricing and place the order. That is the experience technology can bring to your customer and that is the efficiency technology can add to your sales staff, and that is the ROI technology can contribute to your bottom line. Facebook, Twitter, Pinterest — social media is a powerful tool and at the heart of that technology is the smart device. Imagine Carmen Electra tweeting her flooring experience. Technology is no longer an afterthought but a driving factor in our culture woven through the daily fabric of our lives and now poised to impact our business. In today’s sophisticated multichannel retail environment, the question is no longer if new technology is necessary to create and maintain consumer relationships but how far technology can propel brands that stay one Business is up double digits in 2013 for Nebraska Furniture Mart as well, reported Dave Snedekar, director of flooring. Margins are up slightly over the past six months. Snedekar said his biggest challenge remains the perception by consumers that big box stores have the lowest prices. Nebraska’s marketing department has started an advertising campaign to show that’s not so, he said. Many dealers report that the private sale is alive and well. Jim Mudd, president, Sam Kinnaird’s Flooring, Louisville, Ky., said, “They give us big dollars and profits.” Jeff Macco, president Macco’s Flooring in Wis., and Fla., concurred. “We have phenomenal success every time we run one.” Macco said his business is up in the 20 percent range for the past six months. One of the biggest challenges mentioned around the room is the hiring of competent sales people. More than one NFA member focused on the fact that the sales staff is aging, and that replacing them is becoming increasingly difficult. “Personnel is my biggest challenge,” said Ian Newton with Flooring 101 based in Oxnard, Calif. “There is not a big pool of qualified people to draw from.” Newton’s conclusion? “One solution is technology. It’s the key to training new sales people.” Jerry Jones, owner, Cassity Jones Inc., Longview, Texas, said his employee challenge is exacerbated by his location in an oil and gas community. The boom in that industry is attracting employees who might otherwise be sales staff. “No younger people want to come into sales,” he said. Jim Winn, president, Carpet Distributors, and Roberts said specifically that their sales teams are aging and are hard to replace. Koufidakis said that the sales personnel issue • step ahead of their competitors. These new Internet-driven technologies are Web Services developed by members of the Floor Covering Business to Business Association, and are being implemented throughout the flooring supply chain. Mills, manufacturers, suppliers, distributors, multi-channel networks, software developers and leading retailers are now using this technology. Web Services include real time services that fcb2b-compliant suppliers offer to their customers. At first, basic inquiries are supported and soon, transactions like holds, orders and item catalog downloads will be accomplished in real time. Today we can communicate through computers, cell phones, tablets and other devices using the Internet. Soon we will be able to access and use the Internet through contact lenses or glasses. Be ready! __________________________________ Pamela Bowe MBA is recognized as an authority on Emerging Technology. She combines real world experience in the flooring industry with a thorough understanding of technology. Bowe serves as executive director of fcB2B, the Floor Covering Business to Business Association, www.fcb2b.org was nearly unanimous and he proposed the group put some resources toward looking at what might be done as a group to find solutions. Marketing ahead Over the years, the NFA has developed group buys that benefit the membership and provide significant volume for partner mills. The first major effort was a very successful roll buy from Shaw Industries. Next came a coordinated effort with Armstrong. Those programs continue to evolve as the group works on advantageous buys with a variety of product categories and vendors. A group brand may be next, according to Koufidakis. “It just makes sense,” he said. The exact name is under consideration pending approval by the membership, but the group voted unanimously to proceed with the concept. FCW FLOOR COVERING WEEKLY • 4/17/13 4:13 PM 8 The Essentials of Stone Marketing your new stone business So you’ve decided to add natural stone to your product mix. But how do you let the world know about your new category expansion? FCW sat down to get some marketing tactics from Irene Williams, a digital marketing and PR expert with more than 20 years experience. Her firm, Msg2Mkt, helps companies grow their brands in the digital marketplace. Williams has plenty of ideas on how retailers can launch their new segment successfully. What is the first step to launching a new stone segment? Williams: When I first engage a potential new client, I ask them two questions out of the gate: “Who are your competitors?” and “How are you different?” It’s imperative that you have a solid awareness of the competitive landscape and a detailed strategy for standing out from the pack. Gain market intelligence. Discover what your competitors are doing right and wrong, and determine specific ways you can outshine them. Be keenly aware of both price points and customer support found in your market observations. Because stone is widely available from many sources, customers may shop on price yet be won over based on expertise, service, ease and imme- media profiles, to displaying installed stone. This goes beyond providing product samples, slabs and swatches — as the goal is to “outshow” your competitors, including big box retailers. The best approach for “show-andsell” is to display stone products in application, through in-store vignettes and high quality photography and alongside other Irene Williams materials you offer to cross-sell. Capture installation stories and testimonials. Make diacy of delivery and other factors that aren’t it a priority to get photography of real-life installations, as well as testimonials of cussolely tied to dollar signs. tomers’ experiences. How can you prepare your employees to How do you get the word out about your provide excellent customer service? Williams: Your team is on the frontline, new segment to the community? influencing shopping decisions on the show- Williams: The fastest way to increase sales room floor. Provide the product knowledge, is to grow your business with existing ideas and inspiration they need to become customers. Reach out to people who have subject matter experts. Collaborate with your already purchased from you, letting them team to create a comprehensive list of Fre- know the good news and inviting them to be among the first to take advantage of quently Asked Questions and Answers. your expanded offerings. Email or direct How do you prepare your merchandising? mail messaging can be effective for this Williams: If your customers see it, you can purpose. Customers love to feel like they’ve sell it. Dedicate adequate showroom space, got the inside scoop and may be motivated as well as room on your website and social to take action as a result. Are there other digital tactics retailers can use? Williams: Use online tools and forums to help make your store — and specifically, your stone collections — findable through Internet searches. You must create content that is rich with the key words and phrases your potential buyers might type in while searching. Here are a few tactics to get started: Google Places page: Updating or creating your Google Places page with proper key words, latest information and images and getting customers to post reviews will be very helpful in boosting your store’s ranking in Google search results. Keep social media profiles/content fresh: By populating Facebook pages, Pinterest boards, Twitter news feeds and business blogs with current content on a regular basis, you propel your brand to be more easily found. Update your website: Make sure your website is updated with complete information about your new stone offerings. Be very specific; use terms related to product offerings and directly mention all areas served — including zip codes and town/neighborhood names, as people often search with this level of specificity. FCW At last, the timeless grace of marble can be used on floors, walls and countertops. Presenting Virtue, Crossville’s stunning new line of porcelain tile. Virtue captures the sumptuous qualities of the world’s purest white marbles—Carrara, Calacatta and Statuario—in two finishes, unpolished and a soft satin that mirrors marble’s classic luster. Virtue’s exceptional range of sizes beckons creation of custom patterns that complement the line’s singular white hue. And unlike real marble, Virtue’s porcelain surface resists staining and scratching— in fact, apart from occasional cleaning, it’s virtually maintanence free. Made in the U.S.A., Green Squared Certified and containing at least 4% recycled content, Virtue is a beautifully responsible selection for your next design project. Visit us at Coverings. Booth #7259 Questions: 931-456-3136 CrossvilleInc.com • FLOOR COVERING WEEKLY • fcw42213-pages.indd 8 WWW.FCW1.COM April 22, 2013 4/17/13 4:10 PM fcw42213-pages.indd 24 4/10/13 3:56 PM 10 The Essentials of Stone Arming your team with the tools they need Getting into a new stone business and acquir- resource for quality foundational information, ing product knowledge can be a challenge. such as stone fact sheets, installation info resEducation and training is key to helping your toration tips. www.buildingstoneinstitute.org employees grow sales and products Marble Institute of America: The Building Stone Institute: Since 1919, the industry association provides stone busiBuilding Stone Institute has worked on behalf ness knowledge. A web-based educational of the quarries, fabricators, retailers, import- series offers skills and strategies training ers, exporters, carvers, sculptors, restorers, on profit planning, marketing, insurance, designers and installers. The organization is a product diversification and fabrication. The Displaying stone for top sales Mary Elizabeth Oropeza may call Mission Stone & Tile, a “small company,” but the Nashville showroom is big on style. From hiring team members and building displays to helping customers with the selection process, each detail is designed to help her clients create beautiful spaces while helping her maximize sales. After graduating with degrees in interior design and business, Oropeza’s career began with Architectural Granite in Austin, Texas, where she learned the ins and outs of the stone import business. “It ended up being the best thing I ever did,” Oropeza said. “They gave me such freedom to travel and to meet people in the industry on a worldwide level. I was in Italy, Spain and Peru. They gave me the freedom to University of Ceramic Tile and Stone: association also provides myriad continuing education courses, such as introduction to Donato Pompo founded the University of stone design, trends, product selection and Ceramic Tile and Stone (U of CTS) to arm industry sales people with the tools they need maintenance. www.marble-institute.com to grow sales in stone and ceramic products. Natural Stone Council: The not- Expert trainers, who have years of hands-on for-profit organization was formed to experience in the field, provide online, selfunite natural stone producers to actively paced courses. The Understanding the Basics promote the attributes of natural stone of Natural Stone course includes industry stanin commercial, residential, government, dards and sales techniques, and is designed to institutional, educational and all types give salespeople the tools they need in order to of applications interior and exterior, and increase sales; give stone installers and fabricato proactively position natural stone as tors the knowledge of industry standards and the premier construction material. The how to assist clients with selecting natural oganization provides a lot of information, stone; and, give professional designers the including material fact sheets of popular knowledge on how to select and specify natural stone. www.uofcts.org www.uofcts.org. FCW stones. www.genuinestone.com expand my horizons.” In 2006, Oropeza’s background in interior design, her eye for sourcing new and unique products, and her stone import experience, prepared her to open her own store. She plans to open a second location in Chattanooga Mission Stone & Tile uses slat walls to display samples. on June 1. She built a niche by keeping items in stock available and also a little more affordable due to that people were used to special ordering. “I the volume we were purchasing,” Oropeza said. She hires only interior designers as sales purchased things in bulk so that they were people, who help to provide a high level of customer service, including drawings, when needed. “Many of our clients work with interior designers, so it’s easier for a designer to talk with a designer,” Oropeza explained. Her store merchandising also helps her business shine. “The most important thing we are doing is creating an experience when you come to the store,” she explained. “When people are shopping for tile and stone and they are unfamiliar with how the process works, it can be really overwhelming. One of our interior designers will come in and introduce themselves and find out what they are looking for,” Oropeza explained. “Sometimes people want to browse, but we found that if they have some attention right at the ALWAYS ensure your beginning, they can be directed to the areas of installers are the showroom, if they are looking for floors, CTEF Certified Tile Installers! walls or showers, for example, and instruct them on what they will see in each area.” She created distinction between product The ONLY styles and types by using partitions and sheer Tile Installer Certification drapes between spaces. The strategy helps the recognized by the tile industry customer absorb color, style and materials in one area before moving on to another. “Here in Tennessee, I like to consider our showroom more cutting edge and a little more contemporary, but we have clientele that are 864/222-2131 • www.tilecareer.com also more traditional and timeless,” she said. For her new Chattanooga showroom, OroSignature Level Sponsors: peza said she plans to use more flexible displays • ASCER • Ceramics of Italy • Coverings and moveable walls in increase versatility. “All • Crossville • CTDA • Daltile • Florida Tile of our partition walls will be on wheels so that • James Hardie • MAPEI • NTCA • Schluter Systems • StonePeak • TCNA they can be moved and spread out on angles so Platinum Level Sponsors: that every three to six months people can come • Marazzi USA • Porcelanite/Lamosa • USG in and have a different experience.” FCW HigH ExpEctations? FCW_HighExpect_Buildings.indd 1 PM • FLOOR COVERING WEEKLY10/9/12 • 3:24WWW.FCW1.COM fcw42213-pages.indd 10 April 22, 2013 4/17/13 4:09 PM Tile & Stone 11 Installers gain new certifications at Coverings [Atlanta] Advanced Certifications for Tile Installers (ACT), the new advanced certification program coordinated by five leading tile organizations, will certify its first installers at Coverings, April 29 to May 2. The new program certifies installers embarking on some of the industry’s most challenging installations: large format tile installation and substrate preparation, mud work, shower pans and membranes. Certifications will demonstrate the installer’s skill in each of these four segments. ACT will take industry training to a new level, focusing on unique installation skills required by architects, design professionals, specifiers, project owners, builders and consumers to complete a successful project. Leaders of the respective organizations will present a seminar explaining the ACT program and its requirements on Wednesday, May 1. For room and time information, go to coverings.com and click on the “Free” conference program. Following Coverings, ACT partners will embark on several initiatives to launch the program, including building of test modules, material and curriculum development, logistics planning, marketing and recruitment strategies and more. Partners in the development initiative are Ceramic Tile Education Foundation (CTEF), providing training and certification for any installer; Tile Contractors Association of America (TCAA), representing IUBAC signatory tile contractors; International Union of Bricklayers and Allied Craftworkers (IUBAC), whose members are skilled tilesetters who have completed multi-year apprenticeships as well as other trained masonry craftworkers; International Masonry Institute, which provides professional and technical training for union masonry contractors; and, National Tile Contractors Association, with membership open to all tile contracting companies. Tile Council of North America (TCNA) manufacturer members companies are contributing to development of the modules and tests. Installers who wish to be certified in these four programs must meet one of two criteria demonstrating prior training and commitment to professional development. Eligibility is conferred by completion of a Department of Labor- approved apprenticeship program, as offered by the union, or certification through the CTEF Certified Tile Installer program. Each ACT certification will be a stand-alone unit, allowing the installer to tailor training to meet individual or company needs. Completion of all four units is not necessary to attain a higher level of certification. FCW Certifications will cover installation skills. Silk Marazzi’s luxurious Silk reveals the true beauty of ancient, vein-cut travertine in a modern-day glazed porcelain tile. Reproducing the striations and mineral deposits found in natural travertine, Silk is a multisized, intricately colored line that is complemented with mosaic and decorative trim options. fcw42213-pages.indd 11 WWW.FCW1.COM Booth #2807 www.marazzitile.com Scott Carothers, executive director of the Ceramic Tile Educational Foundation discusses certification at Surfaces 2013. April 22, 2013 Visit us at Coverings 2013 • FLOOR COVERING WEEKLY • 4/17/13 4:42 PM 12 Tile & Stone Setting the scene By Tanja Kern Merchandising tile is a careful dance within the retail environment that balances the beauty of a product with the education needed to communicate a product’s key selling points. Tile manufacturers provide solutions designed especially for their customers. Daltile took merchandising to a new level with the opening of a Dallas design studio, designed by Gensler, a global architecture, design, planning and consulting firm. “The purpose of our new studio is to meet the growing needs of designers, architects and our other customers,” said Lori KirkRolley, senior marketing director for Daltile. “We’re making our full range of product options more accessible.” The 6,400-square-foot studio presents tile in five vignettes: two bathrooms, a shower, a kitchen and a fireplace, and features a mural in the entranceway that demonstrates various visual aesthetic options for using tile. The studio features four 42 inch LCD touch screens with visualization tools such as an inspiration gallery of room scenes, an electronic product catalog and a backsplash designer. At the dealer level, Marazzi USA has had success with its Premier Retailer Display, said Judy Mevius, marketing communications manager for Marazzi. Designed to fit in a very slim footprint, it measures just 67 inches wide by 78 inches high by 38 inches deep. The display is designed to hold a minimum of eight Marazzi product lines. One oversize product board gives a glimpse of the entire offering for each series, plus multiple room scenes. A second oversized product board shows a “real life” grouted installation, utilizing field tile, decorative accents and trim pieces. Emser Tile’s new merchandising concept called Design Made Easy simplifies the selection process in the showroom and online through web tools. For stone, MSI International has a readymade solution. “Setup couldn’t be easier,” said Manny Llerena, director of sales and marketing. “All boards are shipped shrink-wrapped in their individual columns.” FCW Crossville’s new merchandising [Crossville, Tenn.] Crossville Tile will roll out a new three-tiered marketing and merchandising program at Coverings that simplifies the product selection for consumers and helps dealers increase sales. The result of eight months of market research, in-field studies and focus groups, it incorporates displays, promotional plans and dealer education. “We are building this for people who want to be truly invested in the brand,” said Lindsey Waldrep, vice president of marketing for Crossville. The first tier is a 4’ X 2’ wing display. “It’s the most efficient way to showcase a new line for someone who is not familiar with it or for those who do not know what they want,” explained Waldrep. A 4’ X 4’ footprint provides a wing display and concept panels. “We discovered that a lot of people think that Crossville only does field tile, and they didn’t realize we offer all the bling, or jewelry or accessories,” Waldrep said. A large display system takes inspiration from department store makeup counters. “You go there and talk about your problem areas, and you think about the different tools, the colors and what outfit you may buy,” Waldrep explained. “We have a great team of strong women at Crossville who have had a huge impact on how we designed this display, from a function and from an aesthetic perspective.” The displays focus more on higher end, hybrid products that are right for residential and Main Street commercial. It works well for kitchen and bath design showrooms. FCW Crossville’s new large-format display system • FLOOR COVERING WEEKLY • fcw42213-pages.indd 12 WWW.FCW1.COM April 22, 2013 4/17/13 4:06 PM 13 I take the floor BY C JONATHAN If it’s free, you paid too much arpet One president Eric Demaree once told me that one of his father’s favorite phrases after looking at the “free” ads in newspapers was, “If it’s free, you paid too much.” Amen to that. And the corollary to that is from the mouth of a former American Airlines CEO, “An industry is only as smart as its dumbest competitor.” Yikes, that hurts. So let’s take a look at the corollary. Actually I think our retail industry is pretty smart. Except for the Home Depot/Lowe’s labor giveaway and Empire’s recent “pay for one room of carpet and get two more rooms free” our industry tries very hard to value installation and get a fair price for our products. Just thank your lucky stars that Joseph A. Banks (men’s clothier) is not in the flooring business. They have a full diet of outrageous savings, to wit, “buy one suit get three suits free.” If anyone came into the store and just bought something at regular price, the sales person would probably pass out. Back to Eric’s father and his charge that, “if it’s free you paid too much.” Home Depot is into its third year of free whole house installation for $39 or $79. It doesn’t really matter. It’s basically free. So the dialogue progresses like this, you would hope, “Wow, you mean you will install my 1,500 square feet of carpet for free? But what is the quality of the installation?” “Oh, well, it sucks; I mean, it’s free. Well actually we still pay the installer regardless of the promotion, so it won’t be all that bad; but you are going to pay so much more for the cushion, the carpet, moving the furniture, taking out the old flooring and other things I haven’t thought of but someone will when you get the final bill.” Regardless of how Home Depot and Lowe’s pitch this silliness, every sales person in a floor covering store needs to have an easy to understand response. It seems to me that it should always include: “We don’t do cheap; we don’t do second rate because we are in a hurry to get to the next job, nor will we nickel and dime you to death.” “We are floor consultants. That’s all we do and we know our business; we spend hundreds of hours on product training so we can find the best floor for your needs.” “We will happily bring samples to your house for free. We will measure your floor needs for free. We will review our installation layout with our installation department to be sure all aspects are done to our demanding level. And, of course that is free.” “Just so you know, we are going to use April 22, 2013 fcw42213-pages.indd 13 TRIVERS WWW.FCW1.COM better installation products because that is what this job requires. In the years to come, you will be so happy we did.” “We have yet to meet a customer who took the bait and got ‘free’ installation and then had a problem but didn’t complain • because she got it free. No, we know smart flooring customers want a beautiful worry free floor that her family will love. That kind of free is priceless.” “Lastly, we will give you one single price and guarantee our installation and product. The installation will be worry free; and use of your beautiful new flooring will be worry free for many years. That’s our commitment to you.” OK, now you know why I’m not a sales trainer but you must have a great rejoinder to the insufferable silly “free.” ____________________________________ Jonathan Trivers, a regular contributor to Floor Covering Weekly, is also the author of the marketWise section of FCW’s Statistical Report. When he’s not writing he’s talking — to flooring groups throughout the country and Canada. FLOOR COVERING WEEKLY • 4/17/13 11:31 AM 14 Resilient DomotexAsia launches LVT programs for US By Raymond Pina [Shanghai] DomotexAsia/ChinaFloor, established 15 years ago as an exhibition to highlight Chinese wood and laminate flooring, has become the world’s largest luxury vinyl tile (LVT) convention with more than 100 vinyl floor exhibitors. What’s more, leading Asian exhibitors told FCW they continue to gain U.S. market share despite companies like Amtico, Armstrong, Centiva, Congoleum, Mannington and Tarkett increasing U.S. LVT production. “The U.S. is a very big market for us; the absolute biggest and it continues to grow,” said Betty Shen, sales manager for Taiwan-based Winton Tile. “Asian suppliers have a strong position because of our advantage in labor. The Europeans are strong competitors because of their high level of automation, but we have a lot of human and technical resources.” As examples of their significant role in the U.S. supply chain, leading Asian OEM suppliers said they are responsible for much of the floating and groutable LVT making its way into the U.S. market. “Asians don’t get the credit for being innovative, but it was Chinese factories that made high-gloss laminate possible. Now we are making all of the most popular LVT. If you saw all of the LVT in Las Vegas during Surfaces — only a small handful of those exhibitors have factories in the U.S. China and Korea are making the rest,” said Walter Chan, export manager of Guangshan, Chinabased Huizhou Plastics. Leading Chinese laminate floor suppliers are also converting or adding production lines for LVT. They said the U.S. LVT market offers great opportunity and margins. “Most countries have not seen the advantages of LVT as readily as the U.S. has,” said Thomas Baert, president and CEO of Shanghai-based ChinaFloor, which added LVT to its laminate and wood offering in 2011. “Americans truly understand that LVT can go into more places than laminate, wet places. It’s a thinner profile so it easily fits under doors and cabinets. And for landlords that don’t want to replace the carpet every time they get a new tenant, they realize they can pay a little extra, put down LVT, and maintain it for more generations of tenants. LVT is bigger than we ever thought it would be. We had to double our capacity two weeks ago.” Power Dekor and Nature Flooring, two of China’s largest laminate, wood Swiff-Train’s Carine Czohara and Jonathan Train flank and bamboo flooring manufacture, also Winton-Tile’s Betty Shen at DomotexAsia. expressed an interest in entering the LVT category during DomotexAsia/ChinaFloors. are now emphasizing products that are sus“Two to three years ago these halls were filled tainable, innovative and of the highest quality. “We’re now utilizing PVC without toxins with wood and laminate and now everything is LVT,” said Alloc general manager Bengt Rasin or heavy metals. You don’t see the difference at this year’s show. “Companies that used to but you’ll feel the difference in the material make laminate floors have exited the market when you touch it. That’s why we’re not openly displaying it here at the show. But we only to return as LVT suppliers.” are showing it to our partners in the U.S. and Europe because this is what they’re looking Quality, sustainability drive LVT Despite the large volume of LVT being for,” said Winton Tile’s Shen. Americans who have been coming to Asia exported to the U.S., Asian suppliers said they don’t want to compete on price and to source product for decades substantiate this move to better quality. commoditize the category. “I go to the same factory year after year “The real competition hasn’t started yet and nobody wants it to start. If we lower prices and each time I go there’s more automation,” no one wins,” said Sid Lee, general manager said Jonathan Train, vice president of corpoof Shanghai-based Jinka. “We focus on being rate development, Swiff-Train. “Everything is a good quality OEM manufacturer for brand improving over here. The better suppliers understand what its takes to compete globnames. We want to maintain a low profile.” Chinese suppliers in all categories said they ally and for the long run.” FCW • FLOOR COVERING WEEKLY • fcw42213-pages.indd 14 WWW.FCW1.COM April 22, 2013 4/17/13 1:13 PM Laminate 15 Selling laminate at a profit By Raymond Pina Specialty dealers embracing the latest in highly characterized laminate flooring said they’re reaping sizable profits from the category because of its inherent durability and visuals that closely mimic upscale wood products. These new features include handscraping, traditional saw marks, nail holes and knots, occasionally in combination with beveled or irregular edges and, most recently, multiplesized planks. “Today’s upscale laminates bear no resemblance to the laminates I carried even three years ago,” said Deb DeGraaf, owner of Grand Rapids, Mich.-based DeGraaf Interiors. “I have some sophisticated new laminates from Armstrong, Mannington and Shaw that are on a completely different level. People say laminate is dead but it’s my No. 1 category. It’s cut into my real wood and tile business.” Laminate floor sales have been heating up as the housing market turns more positive. Homeowners and property managers look to laminate as a better overall investment than real wood — even in upscale neighborhoods, noted Sam Roberts, president of Houston, Texas-based Roberts Carpet and Fine Floors. “We’re not putting laminate into a lot of million-dollar homes but certainly into $400,000 homes,” he said. “There’s some nice looking laminate going into beautiful homes these days, especially if there are pets or children involved. It’s going into a lot of game rooms.” The challenge for dealers and consumers is separating today’s high-end laminate flooring from earlier commoditized versions readily available at home centers, online and even bulk retailers such as Costco. “The biggest challenge laminate faces isn’t luxury vinyl tile (LVT), it’s this belief that laminate is an inexpensive replacement for real wood. It’s not easy to overcome that sometimes,” said Sean O’Rourke, vice president of hard surfaces for Avalon Carpet Tile, which has locations throughout New Jersey, Pennsylvania and Delaware. Dealers have taken a number of different approaches to overcome this obstacle. Carrying an entry level product as part of the assortment helps to compete on price while demonstrating quality differences. Carrying name brands helps as well. Do more with less Successful laminate floor dealers are reducing the total number of suppliers they carry down to three. “We were that store that carried everybody; from Wilsonart to Mannington and everybody in-between,” said Jerry Butler, owner of Fred’s Carpet Plus in Torrance, Calif. “Now we carry Quick-Step and Mannington for our upscale business and Tarkett rounds it out with some serious pricing on the mid- to lower end. With those three, we cover the entire spectrum.” Dealers said, though, that it is critical to offer a broad range of product that can appeal to the new generations of homeowners. “We have a huge laminate Quick-Step’s upscale Dominion in Rustic Hickory business and learned you can’t show one or two styles; you have to have at compares what they get for a $3 laminate versus least 10,” Butler said. “Our biggest classification a $1 laminate or a $3 piece of wood, the differwas piano-finished laminate but that tapered ence becomes obvious. “You’re getting the best off. Now what are strong are rustic looks, acacia looking and highest performing floor from a and handscraped visuals — the weathered look laminate at $3 a square foot,” he said. is important here at the beach, too. You can’t stay with what used to sell and complain about Brand power Recognizable brands with a strong Internet laminate. You can’t provide just 7mm and 8mm product. You need to have the 12mm step up.” and social media presence bolster consumer Your small selection of entry-level laminate confidence and justify a healthy markup. “I do think popular brand names that does more than provide a price point, it also helps demonstrate the contrast in quality, style people trust do make a difference,” said Hoy and design between these floors and better Lanning, CEO of distributor CMH Space product, according to Jeff Card, manager of Flooring Products. “Names change. For a while Pergo was an important name and now Ontario-based Patti-Lynn Interiors. “On cheaper products, you can push a Quick-Step has become a serious brand in bobby pin right into the coreboard,” he said. laminate. When you have good brands price “That catches people’s attention. And people is less of an issue; they can be a little higher.” Mike Carr, owner of Sebring, Fla.-based who walk into my store aren’t the Lumber Liquidators type. Customers come into my Floors Direct, said his customer will pay more store because they want something different, for Made in the U.S.A. “More people are interested in supporting American products and it something nice and of high quality.” O’Rourke noted that when the customer only costs an extra $10 or $15 to do it.” FCW Mannington’s Restoration changes the game [High Point, N.C.] Mannington’s Restoration Collection is being lauded for raising the bar on laminate floor design. The company is also credited with shining a light on protecting the collection’s unique designs through copyrights, a move that is spreading throughout the industry, according to insiders. Manufactured here and initially launched in two oak visuals at Surfaces 2010, Mannington’s Restoration Collection features embossedin-registered (EIR) nail holes, cross-floor saw marks and other surface character traits above and beyond cathedrals. Today, the comprehensive line contains rustic variations — occasionally with smooth gloss finishes — of oak, hickory, walnut, chestnut and elm. “So many of my customers are telling me that Mannington’s Restoration laminate is the best looking laminate they have ever seen,” said Pat Theis, vice president of sales and marketing for Minnesota-based Herregan Distributors. “Carpet Weavers’ owners just told me Restoration’s new Saw Mill Hickory is the best hickory they have ever seen. We’ve never had a response to laminate like this.” Dan Natkin, director of Mannington’s hardwood and laminate business, said that Restoration’s level of realism is due to a combination of recent advancements in printing technology and the award-winning experience of Mannington’s in-house design team Mannington’s new Elmhurt combines rustic visuals with subtle gloss levels. April 22, 2013 fcw42213-pages.indd 15 WWW.FCW1.COM • led by 30 year industry veteran Joe Amato. “The new intros expand our Restoration Collection in ways we didn’t think were possible a few years ago,” said Natkin. “The texture, the clarity, the color-play — it’s all there. That’s why we manufacture our laminate in the U.S.A. Between our style team and manufacturing experience, the capabilities are wide open. Though it’s getting harder to out do ourselves.” In an effort to legally protect these designs from being quickly copied, Mannington has begun issuing “cease and desist” orders to Chinese manufacturers and importers trying to knock off Restoration’s unique designs. Leading exhibitors at DomotexAsia/China- Floor last month took note. “Copyright infringement is absolutely a problem. It’s so bad we have guards at the entrance to our booth,” explained Thomas Baert, president and CEO of Shanghai-based ChinaFloors. “Mannington is doing the right thing by protecting their designs and we and a lot of others are doing the same now.” Distributors appreciate both Mannington’s culture of creating leading designs and its history of taking the necessary steps to do what is right. “When you go to Mannington’s website it says it’s been doing business since 1915 and that it’s conscious of the green aspect,” said Jeff Striegel, president and CEO of Elias Wilf. “Mannington is a company that gives a damn. It’s not just a brand. There’s a philosophy behind that name.” FCW The new face of laminate, like Mannington’s Historic Oak, bears no resemblance to its predecessors. FLOOR COVERING WEEKLY • 4/17/13 11:28 AM 16 Wood Canadian suppliers specialize in quality By Mallory Cruise Known for manufacturing high quality product, Canadian hardwood suppliers are delivering more design and style oriented hardwood products to the market this year. A consumercentric focus on more textured surfaces and oil-finished floors, industry executives said, are just a few of the latest style, design and market trends coming on strong. Like in the U.S. market, the commercial sector has been a growth segment for the Canadian makers. “We see growth in the commercial high rise. There is an increase in the number of commercial specs that involve wood flooring rather than other floor coverings,” said Luc Robitaille, vice president of marketing for Boa Franc, maker of the Mirage brand. For Canadian hardwood companies like Mercier, their supply chain differs from market to market. “Our business model is different as we are selling directly to retailer for the East Canadian market. We are selling through distribution for the USA and Western Canada,” explained Michel Collin, director of marketing at Mercier. But he said, 25 stories. 45,000 sq.ft. of hardwood flooring. The same outstanding quality in every box. That’s Mirage. similar to the U.S. market today, Canadian consumers are looking for the most valueoriented product. Suppliers like Lauzon reported that a key difference between the two North American countries is consumption of hardwood. According to Yves Myrand, vice president of sales and marketing at Lauzon, the consumption of hardwood is higher in Canada than in the U.S. at the expense of carpet. “This is especially true in Quebec, the province where Lauzon is based along with several other hardwood manufacturers. It makes sense to situate the manufacturing close to the raw material supply. From a macro-economic perspective, there are different mortgage lending practices in Canada versus the U.S. so we did not experience the housing bubble to the same extent,” offered Myrand. Canadian trends In Canada, like the U.S., the big trends in style in the hardwood market include wide planks, color variations and texture, noted Collin of Mercier. There is also a growing demand among consumers for character floors and color variations, said Robitaille of Boa Franc. “Hickory and white oak are certainly among the ‘hot’ species which fit this trend. So are our handcrafted oak and aged maple products from the Sweet Memories Collection. Products with a textured surface like our Imagine Collection are all the rage among consumers,” he said. Textured surfaces continue to be popular because they are sought after by builders as an upgrade product, said Myrand of Lauzon, with more homes featuring handscraped and wire-brushed floors. He added, however, that while handscraped and vintage looks are still popular, they have hit the peak of distressing, and the company has decided to focus on producing softer scraped products. Handcrafted Red Oak, Carousel “With over 45,000 sq. ft. of flooring to install, we needed a flawless product and a partner we could count on — from the lobby to the 25th floor. With Mirage we went straight to the top.” Made in North America Chad Durbin, LEED GA, Total Flooring LLC - Northern Virginia. Mirage’s Inspiration Collection in red oak species and color nordic • FLOOR COVERING WEEKLY • fcw42213-pages.indd 16 WWW.FCW1.COM April 22, 2013 4/17/13 4:04 PM Wood 17 “Wire brushed is hotter and more sophisticated for urban markets and designers love the matte (softer) look. Red oak is still a popular choice among consumers and home builders alike. However, white oak is incredibly trendy right now. It has a distinct grain that when wire-brushed, offers a sublime two-tone effect. We are also seeing a resurgence of Canadian maple — it is a very hard species that can essentially be stained to any color,” said Myrand. New products There is no shortage of new product coming from Canadian suppliers this year. For example, Mercier is offering a brushed option in its Design+ program on red oak and white ash species. “We’ve added some new color options to our Exotic Collection. We’ve launched 7 new wood series in our Nature Collection. The vibe among our customers for the new products in the Nature Collection is awesome,” Collin said. Lauzon recently launched two new flooring collections to its Designer Collection: Urban Loft and Homestead. Urban Loft features lightly textured, wire brushed white oak in wider, longer planks with a low matte finish and smoky color palette. The Homestead collection features a compilation of character woods including hickory, red oak and walnut with wide, beveled-edge planks and soft scraped. “We also introduced some new colors to Line Art — a unique hardwood series that takes traditional maple flooring to a whole new level. In addition to its distinctive linear pattern, Line Art is made of FSC certified maple from Lauzon’s own sustainably managed forests,” Myrand added. With one of the most impressive new product offerings on both sides of the border, Mirage launched 61 SKUs in January of this year, said Robitaille of Boa Franc. The offering includes a collection of textured floors called the Imagine collection which contributes to hiding the marks and scuffs of daily use. The Imagine collection is available in three colors and in old maple and old red oak. The company has also introduced a new comprehensive merchandising display system this year. “We want to make sure we are providing our customers with the latest and most fashionable products. This is why it resulted in quite a substantial amount of products in a conservative time,” said Robitaille. Mirage is also offering a variety of new colors this year. “We have also introduced a new whiter white, named Nordic, and a new grey called Platinum, and several additions to the Alive and Sweet Memories Collections,” added Robitaille. Preverco recently launched a number of new products. According to the company, with its new launches, it wanted to create an ambiance that would draw the customer in, making the product more fashionable and less technical. Preverco recently introduced a new series of oil-based floors in seven new visuals available in white oak with varying lengths up Station 54 is part of Lauzon’s new Urban Loft series. to 7 feet long. FCW Introducing the first soy-based, eco and health-friendly factory-finished flooring! 1st to develop and promote a full line of nature’s offering, bringing rustic and chalet looks to the front of Canadian manufacturing 1st to implement a comprehensible sample program for the Architect and Design community with the Inspiration Box 1st soy-based factory-finished flooring to be awarded the GREENGUARD Children and Schools certification 1st to introduce soy-based eco and health-friendly factory finish 1st to implement the industry’s most comprehensive grade guidelines 1st to implement a real customer choice with the Design+ Program 1st to offer a 5-year light commercial warranty on a urethane finish 1st to combine enhanced durability with non-yellowing and antimicrobial coating 1st to control all aspects of production with our dedicated sawmill 1st to apply u.v.-cured urethane 1st to factory finish hardwood flooring Board by board, we continue to set the standard. Be the wood flooring leader in your market. Call 1.866.448.1785 today. mercierwoodflooring.com Mercier’s Ski Cabin Pine series in Chalet Rustique April 22, 2013 fcw42213-pages.indd 17 WWW.FCW1.COM • FLOOR COVERING WEEKLY • 4/17/13 4:05 PM 18 Wood Optimism spurs NWFA growth By Mallory Cruise [Dallas] This year’s National Wood Flooring Association’s (NWFA) annual Flooring Expo, held here April 2 to 5, was the biggest in five years thanks to a recovering economy. “We have grown 30 percent from 2011 to 2012, and 20 percent between 2012 and 2013. We added 45 new exhibitors and sold out the show floor. We hope the darkest days are behind us,” said Michael Martin, CEO and executive director, NWFA. The association has a number of goals to be accomplished within the next two years according to Rick Holden, chairman of the board of NWFA. “We want to grow the wood market as well as define the size and responsibility of our board and committee. We also want to reevaluate all member pro- as NAFCD, WFCA, CFI, CRI grams and series, and ensure and NALFA — will allow memthe financial success of NWFA bers to evolve by learning about for generations to come,” each other’s market. Holden said. Martin said that the associaAn emphasis is being placed tion works hard to give memon collaborative efforts like bers a reason to attend Expo those forged with NAFCD and every year.,“We focus on educaWFCA that offer members of all associations new benefits tion and relevant industry topics. and educational opportunities. We ask our members, ‘What do “The most import thing you want to know?’ ” he said. NWFA can do is partner with Michael Martin Under the theme Think other groups and associations Big, the NWFA challenged its within both the flooring industry and the members to think of three big ideas to keep hardwood industry. We’re more powerfully in mind during the show and to take back to represented in Washington because of com- their businesses. bined efforts,” said Martin. Juan Farfan of Northwestern Hardwood Joining forces and strengthening relation- Floors, Chicago Ill., who has won Floor of the ships with other industry associations — such Year four times, noted, “We come to see new products and designs, such as stained floors. We also come for training, such as different types of finishes and how to apply them.” Training is another area of importance to the NWFA. “What it comes down to is we have to matter. On the technical side, we are offering a vocational school to help provide installers a career path,” said Martin. Martin noted that the industry is facing new challenges — a bout of price increases, lumber shortages and new competition facing saw mills. One result is a recently revamped technical training program, Martin noted. “We made centralized training more localized in order to help our members save costs. We are offering one-day workshops that we will also take on the road. Between the first quarter of last year to the first quarter of this year, we doubled the amount of individuals participating in our training programs. We are also offering more craftsmanship-based training in a centralized location, with our headquarters in St. Louis being the hub,” explained Martin. FCW China’s wood industry faces challenges [Shanghai] China’s wood flooring industry is booming but undergoing dramatic change as leading suppliers consolidate their power, struggle with adopting sustainability standards and cope with rising labor and raw material costs, according to industry leaders participating in the third annual Wood Flooring Forum, held here, March 25. “It’s safe to say our wood floor industry grew 22 percent last year,” said Sun Jian, director of China’s timber industry management and state forestry administration. “We continue to benefit from broad American and European markets but our labor resources get ITC Continued from page 1 happening as there are no other producers out there that the ITC missed,” he added. This process is just beginning and neither side is clear about exactly where this review will take the case. It was also ordered that the parties must file a proposed scheduling order on or before Oct. 31, 2013 for the submission of comments on the remand results. Both sides will participate in the process — the ITC will likely ask for commentary from both parties. “What typically happens is that the Commission asks for additional briefing from the parties and puts together determination and sends it back to the court and the court will ask for briefings on remanded determination,” noted Levin. “I’m quite confident that the commission has more than enough on the record to support initial determination and reach the same conclusion.” ally and as leading OEM exporters,” he said. negatively impact domestic sales. “Society is paying a lot of attention to the “As for smaller companies, they can either adjust by producing more specialized prod- formaldehyde issue. It is forming a negative image of the industry and we need to more expensive and limited day by day. We ucts or they can exit.” solve this problem now. We have prepared now need to shift our focus to China’s key, national standards for hardwood which are China’s green growing pains large companies and building their brands.” An increasingly green global market is also in line with international standards.” China currently has 556 solid hardwood, Don Finkell, chairman of the board for the 502 engineered wood and 98 bamboo floor making an impact. “Flooring companies are manufacturers according to the latest figures experiencing more pressure importing tropi- Washington, D.C.-based Hardwood Federafrom the China National Forest Products cal wood because of the growing list of animals tion, noted, “We expect further action by U.S. Industry Association (CNFPIA). However, and trees facing extinction, especially from custom officials to check that products comply with environmental law,” said Finthose numbers are “declining dramatically” as Madagascar and Latin America,” said Ye. While the CNFPIA is currently reviewing kell. “It would be good for China to get ahead smaller factories find it increasingly difficult to compete for lumber and employees in the face potential Chinese environmental regulations of the game. Right now, hardwood from the of the nation’s growing mega mills, according of its own, hazardous levels of volatile organic U.S. is considered legal and at very low risk of compounds (VOCs) found in inferior Chi- having originated from illegal logging; as well to Kelin Ye, vice chairman, CNFPIA. “China’s larger producers are busy region- nese wood products have already begun to as wood from Australia and Europe.” FCW Legal counsel for the Alliance William Perry feels otherwise, stating, “We are confident that the Commission, which includes several new members, will see that when all the economic factors are considered, that imports are not a cause of injury to the domestic industry. The Commission will now have to use a higher causation standard and consider the greater economic condition in the United States, including the fall of the housing market, on the U.S. industry.” Root causes Following the 2011 proceedings, both sides began the appeal process. In addition, the Alliance for Free Choice and Jobs in Flooring took the whole case to the Court of International Trade in New York City in January 2013. While the CAHP appealed for rates to be calculated higher, the mandatories on the opposing side and members of the Alliance appealed for lower rates, the current remand is for injury only and does not affect rates. Key points to be argued include the exclu- sion of hardwood plywood from proceedings and whether or not it was imports that caused American suppliers material damage or if economic conditions were responsible. The Court documentation dated March 20 stated, “On remand the Commission shall reopen the record to identify domestic hardwood plywood manufactures and evaluate whether they make product that is used for flooring.” As a result, the Commission may issue questionnaires to domestic hardwood plywood manufacturers. The court also ordered that the Commission reconsider the impact of the subject imports on the domestic industry — whether the presence of imports was indeed the cause of injury or were the economic conditions of the time the overriding factor. “We appealed the case in its entirety. We still feel the determination is missing several points and they needed to be considered,” Jonathan Train of distributor Swiff-Train and president of the Alliance, told FCW. “This is fairly unprecedented. We are proud that our • FLOOR COVERING WEEKLY • fcw42213-pages.indd 18 Alliance has stuck together and we have a large support from the industry trying to ultimately end this case.” Since the initial filing and proceedings, two of the commissioners have changed — one on either side of the vote. And new mandatories have been identified during the annual review process: Armstrong Wood Products Kunshan Co., Ltd.; Fine Furniture; and, Nanjing Minglin Wooden Industry, according to DOC documents. Armstrong, which owns the Kunshan plant and is the largest U.S. supplier of hardwood, was not mentioned in the initial proceedings. Armstrong said it was notified about a month and a half ago that it was being named a mandatory. According to Armstrong World Industries’ vice president of hardwood products Milton Goodwin, “We are prepared whatever the outcome. We remain neutral. As a mandatory, we just provide answers to their questions. We will cooperate and we feel we will be treated fairly by the Commerce Department.” FCW WWW.FCW1.COM April 22, 2013 4/17/13 4:44 PM Carpet & Area Rugs 19 Canadian carpet mills evolve to meet challenges to Mike Wagner, COO of Kraus. “We have programs in place to ensure stock levels Whether it’s partnering with U.S. companies, remain strong and policies are in place to distributing hard surface flooring or offering guarantee the quality of our products.” unique carpet products, carpet mills in Canada have found ways to survive and prosper. Tandus Flooring Truro, Truro, Nova Scotia Tandus Flooring has had broadloom manufacturing in Truro since 2000 when it Beaulieu Canada, Acton Vale, Québec acquired a Crossley plant Part of the international there, according to Glen family of Beaulieu compaHussman, president and nies founded in Belgium CEO of Tandus Flooring, by Roger De Clerk in 1959, which became a Tarkett Beaulieu Canada employs company last year. about 600 people at two Tandus had also manufacturing plants and acquired Monterey Carpet processes its products in California in 2000 and through two distribution between 2002 and 2004, centers. Since 1981, when “We expanded capacity its first plant in Stratford, Your Home Style program designed Ontario began manufac- for Beaulieu Canada’s elite retailers. and consolidated production of both Crossley and turing polypropylene fiber and area rugs, Beaulieu Canada has grown to Monterey broadloom carpet in Truro. The Truro plant, located about 60 miles include three divisions — residential, commercial and rugs, according to Sophie Tanya northeast of Halifax, has both tufting and Lupien, vice president of marketing for the Axminster weaving capacity, producing highend broadloom for the commercial market. Residential Division. The company is closely aligned with its sister Some of the tufted production is shipped to organization, Beaulieu America. Karel Vercruyssen serves as CEO and president of Beaulieu Canada as well as president and COO of the Beaulieu America Group. Beaulieu America supplies fiber to Beaulieu Canada, which has its own twisting and heat setting capacity. In addition to manufacturing tufted broadloom, carpet tile and rugs, Beaulieu Canada is also a flooring distributor of solid hardwood, engineered hardwood, laminate, sheet vinyl as well as vinyl planks and tiles across Canada. By Janet Herlihy the 1960s when foreign Dalton to be made into competition made that carpet tile but all woven industry untenable. The broadloom is sold as carpet, company converted to the mostly to the high-end new carpet tufting techcorporate market. Today, nology and began manumore than 200 people work facturing broadloom in at the Truro operations. 1971. Groupe St. Georges While Truro producbecame backward intetion serves the North American and global mar- Tandus Flooring Truro manufactures grated to polypropylene production in the 1990s. kets, a majority of what tufted and woven broadloom. Established as a subis made there is sold in sidiary of Venture Carpets USA in 1972, Canada, according to Hussman. Venture had several owners until it was Venture Carpets, St. Georges de Beauce, Quebec acquired by Groupe St. Georges Inc. AlexVenture Carpets has a venerable history andre Lacroix, owner of Group St. Georges, that has adjusted to change in order to remain merged the two entities in 2004 under the successful. “Out of the several dozens of carpet name Venture Carpets Inc. St. Georges Carpets specialized in residenmills in the 70-80s, Venture Carpets is now the last Canadian owned carpet mill left in tial polypropylene carpet while Venture CarCanada,” said Mathieu Lacroix, Venture’s vice pets produced nylon and commercial carpets. president of marketing. The current company Venture added a carpet tile facility to its manwas created when Groupe St-Georges Inc. ufacturing capabilities in 2011. An Interface plant had closed in Belleville, Ontario in 2009, acquired Venture Carpet in 2003. Groupe St. Georges was founded in 1928 leaving an experienced workforce. Venture as St. Georges Woolen Mills by Édouard and partners invested in a new plant and new Lacroix. It manufactured woolen fabrics until equipment in 2011. FCW Demolition vs Renovation Kraus Group, Waterloo, Ontario Established as Kraus Carpet Mills by Michael Kraus in 1959, the company has gone through a restructuring in the past year aimed at making it stronger for the future. In March 2013, Kraus announced the appointment of Steve Malinowski as president and CEO. Most recently, Malinowski served as president and CEO of Janes Foods, where he doubled the business’ turnover, successfully increasing profitability and equity value. In May 2012, a majority stake in the company was sold to Hilco UK, a British private equity firm with other interests in the floor and home products market. The sale set out to strengthen the company’s balance sheet to enable further investment in inventories and new product development. For 2013, Kraus has launched new products in tufted broadloom and carpet tile as well as in the hard surface categories — hardwood, laminate, cork and luxury vinyl tile, which it sources from around the world and distributes. Along with product improvements, Kraus is strengthening customer service, according April 22, 2013 fcw42213-pages.indd 19 WWW.FCW1.COM Flooring renovation projects that turn into subfloor demolition projects are costly and time consuming. Schönox has the products that can take your subfloors from rough and uneven to smooth, sound, and ready for flooring installation. Let’s talk soon about the Schönox solutions that can get you from here to there. HPS North America,Inc. 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Send resume to: richmond@dyerichflooring.com 1:04 AM Page 1 Creative Continued from page 1 of carpet and vinyl,” explained Larry Woodland, vice president of operations and sales for Wacky’s Flooring Group. “It ended up with five locations in the Maritime Provinces that were largely retail with a small commercial operation. Between 1980 and the acquisition, we grew Wacky’s to be a complete retail operation that offered the best prices on all types of flooring and window treatments. We had decorators on staff and a builder business. Scott Brookfield decided the company had a lot of potential. He said he wanted to double the size of the business in five years and he delivered through both acquisition and organic growth,” Woodland reported. There are now seven Wacky’s locations including Commercial Carpet Centres. Woodland said, “Now Wacky’s is known for our wide selections of flooring, an educated staff including decorators, and excellent installation services. Scott Brookfield encourages a fresh approach to explore other opportunities. We have recently added cabinets.” with quality flooring and service, according to John Wells, Taylor’s general manager, who became a minority shareholder. “Other companies focused on volume and price so we attracted a quality demographic,” Wells said. When Wells joined the business in 2001, it had one store each in the sister cities of Halifax and Dartmouth. Taylor opened its Sydney showroom in 2005 and its fourth store in Bridgewater, an hour’s drive southwest of Halifax, in 2006. Hallmark: The third big brand In 2012, Creative Flooring Solutions acquired Hallmark Carpet One. “Taylor’s four locations are high-end Mohawk Color Centers and Wacky’s seven are aligned Shaw dealers,” Brookfield explained. “I had been looking for a business with a presence in the Halifax marine industry and Cliff Gaetz, the former owner of Hallmark, is a player in that business. He was ready to sell the Carpet One business and is now our general manager. It was an opportunity to acquire another brand that has good potential for growth.” Taylor makes two Taylor Flooring was Wacky’s biggest competitor in the Halifax/Dartmouth area, until 2009, when Creative Flooring Solutions bought Taylor Flooring from Robert Taylor, who continues to lead the division. Taylor is celebrating its 20th anniversary this year. Taylor’s brand strategy is that all 300,000 people in the Halifax/Dartmouth area should consider Taylor to be synonymous Strength in numbers While each flooring brand serves a different market, there is strength in being part of a larger organization. “We maintain three separate companies in the region, but pool resources for warehousing, purchasing, installation and administration,” Wells explained. “We have about 200 installers, who are dispatched by a central office every day. The biggest advantage is buying power and the accumulated resource of all three retail brands’ experienced staff.” FCW Career Opportunities Position Wanted Agents Wanted Dodd's Carpet, Inc. Calhoun, Georgia Seeking Agents to Sell Promotional Goods & Specials Submit information via e-mail to hopelewis@comcast.net or call [706] 625-1811 Moving to lower Keys of FL. Have lived flooring all my life.Would be an asset to local company's. rheminger.toledo@gmail.com Seeking a Sales Manager Position Tile Setting Products Manufacturer in Texas Email: martin.martinez@texrite.com Career Opportunities LARGEST FLOOR COVERING FRANCHISOR IN NORTH AMERICA HAS OPENING FOR REGIONAL VICE PRESIDENT Candidate must have experience in the floor covering industry. Responsibilities include recruiting new franchisees and servicing current members with the best marketing and merchandising programs in the flooring industry. Overnight travel will be required. The territory is California, Arizona and Nevada. Our proprietary programs help retailers become more successful while maintaining their independence. From national advertising to aggressive turnkey sale events to a state-ofthe-art consumer website, to B2B programs to private label merchandising, we provide the tools needed to succeed in today’s business environment. Compensation will be discussed with qualified candidates; Excellent Benefits Package including Medical Insurance and 401K. Email Steve Mintz at SMintz@abbeycarpet.net with cover letter and resume. All responses will be kept confidential. 4/17/13 4:12 PM 22 The Last Word What does it all mean? I n November 2010, The Department of Commerce (DOC) initiated antidumping and countervailing investigations on imports of multilayered wood flooring from China. Since then, there has been an affirmative determination, appeals and now a remand. While I knew for certain that appeals would be filed, I was frankly relieved that the larger process was perhaps over. With friends on both sides, it was at times hard to watch the deep passion coupled with high stress levels and even exhaustion. For them, I wanted it over. And also for the industry as a whole, who together was battling a sinking economy. Sitting alone on the press platform a year and a half ago at the final hearing in DC, I felt the weight of the proceedings, wishing my friends on both sides well. But here we are in the midst of a review and appeals, both sides re-entering the battle ground. As in 2010 and 2011, FCW will remain steadfast in our coverage bringing the simple facts and attempting to demystify the legalese and subtle nuances of the case and its proceedings. Indeed, there are lots and lots of facts and fine distinctions to be made — much of which the majority of the industry isn’t aware of or simply doesn’t understand. What I think everyone understands is that this case took resources — financial, personnel, time. It disrupted the flow of business of the companies involved on both sides. And for those not directly involved, it caused confusion. What many didn’t understand then and still don’t is that the rates are payable by the importer of record only. There isn’t the paper chain of seller and buyer that exists with Lacey compliance. And, the rates go under annual review so the money is held until final determinations are made. This remand is a review of the case as is. Much has changed since the petition was brought to the DOC. U.S. manufacturing has ramped up. Chinese manufacturers are making moves to play in the high-end market and bring more specialized product here. None of this is under consideration in this phase. There are two important things now being considered. Because imports were a large percentage of the U.S. hardwood market, does it follow that they were the cause of injury to the U.S. wood manufacturers? Or was the weak economy and housing market to blame instead? Also in question is the exclusion of the hardwood plywood market in the initial proceedings. Counsel for the petitioners— the Coalition for American Hardwood Parity — will tell you that it is a raw material and not the same players or market. But the opposition contends that it is part of the makeup of multilayered wood flooring and should be included. And so it continues with this round. FCW remains dedicated to bringing you solid reporting of the case. And we wish both sides well. — Amy Joyce Rush FLOOR COVERING WEEKLY The Industry’s Business News & Information Resource FCW Editorial and Sales Headquarters 50 Charles Lindbergh Blvd., Suite 100, Uniondale, NY 11553 (516) 229-3600 • FAX (516) 227-1342 Editorial (516) 229-3600 Fax (516) 227-1342 Advertising (770) 919-7747 Fax (770) 919-1348 Classified Advertising (516) 227-1407 Fax (516) 227-1342 Editorial Santiago Montero Publisher & Editor in Chief (516) 229-3617 smontero@hearst.com Amy Joyce Rush Managing Editor (516) 227-1421 arush@hearst.com Kimberly Gavin Editor at Large (706) 278-3690 kimgavin@aol.com Raymond Pina Senior Editor (787) 467-1181 raypinafcw@yahoo.com Mallory Cruise Assistant Editor (516) 227-1359 mcruise@hearst.com Janet Herlihy (361) 906-1117 herlihyjanet@gmail.com Tanja Kern (417) 522-9722 kern.tanja@gmail.com Maya Avrasin (917) 750-3146 m.avrasin@gmail.com Columnists Jon Trivers I take the floor (530) 876-8454 jonathantrivers@sbcglobal.net Chris Ramey Strategic insights (561) 876-8077 cpr@affluentinsights.com Kermit Baker Beyond the numbers kermit_baker@harvard.edu Ed Korczak As I see it ed.korczak@gmail.com Marge Redmond Heard on Main Street marge@oldtownflooring.com Christine Whittemore Flooring the customer cbwhittemore@simplemarketingnow.com Tom Jennings First things first (785) 843-1678 thomasjennings@hotmail.com Advertising Southeast, Midwest, West Coast U.S. & Canada Charlton Calhoun (770) 919-7747 Fax (770) 919-1348 ccalhoun4@aol.com Northeast U.S. Cal Calhoun (770) 919-7747 Fax (770) 919-1348 chcalhoun3@hotmail.com Save the broccoli Classified Ads Stacey Iaccino (516) 227-1407 Fax (516) 227-1342 siaccino@hearst.com I ’ve heard that in their quest to be environmentally friendly, some people are foregoing the use of wood products — whether it is paper products, hardwood for flooring and furniture or many other uses. And certainly, that’s understandable; we see Save the Trees and Save the Planet bumper stickers and signs everywhere. But I want to talk to you about the plight of poor broccoli. How come no one decries the terrible tragedy of this noble vegetable? And tell me, where have all the planet’s broccoli forests gone? Last time I saw a stand of broccoli growing wild was … wait, come to think of it, I’ve never seen broccoli growing wild. Of course, this is all tongue in cheek. We have no need to worry about broccoli — the reason is simple: we can always plant more. Broccoli is a renewable resource that is managed by farmers all over the world. We plow, we sow, we reap in a never ending cycle that keeps broccoli on our tables and in our bellies. The same applies to much of the supply of hardwoods used in this country for flooring. Most domestic growers manage their forests responsibly — I even heard that there are more trees in America today than there were 200 years ago (although I suspect that has something to do with the fact that 200 years ago wood was not only the primary building material but also our primary energy source). Yes, there is still a lot of environmental abuse going on in the world with clear cutting of land, mismanaged A Hearst Business Vol. 61 Publication January FLOOR COVERIN 28, 2013 WEEKLY A Hearst Business Publication December ✓ SURFACES G No. 24 $4 FLOOR Winter ma rkets heat up By Janet Herlihy 2013 $4 4 G WEEK LY — Santiago Montero Commercial Vol. 61 Outlook NAHB to DC: By Mallory Cruise 2013 Don’t derail recovery Rush year looks Supplement to Floor Covering Continued Retail plan ning good By Taryn Baum tile Dye Lab carpet Shaw Contract’sGold award this year won the NeoCon carpet category. for the modular P e r i o d i c a l P e r i o d i c a l $4 and Michael s Interior Surface award earns Retail PT2012.indd 11 solves FloorFolio sound issues latest Carpet tile’s ns design directio Bank of Centiva gives nia flair India Califor PM 9/18/12 2:07 Thomas Young Group Production Manager (516) 227-1369 tdyoung@hearst.com Matthew Lippl Production Artist (516) 227-1354 mlippl@hearst.com Administration Sherridan Basdeo Advertising Administrator (516) 227-1307 sbasdeo@hearst.com Carolyn Giroux Audience Development Director (516) 227-1376 cgiroux@hearst.com Adriana Marzovilla Financial Manager (516) 227-1364 amarzovilla@hearst.com George R. Hearst Jr. Chairman Frank A. Bennack Jr. Vice Chairman Richard P. Malloch Group Head & President Steven A. Hobbs Executive VP & Deputy Group Head Robert D. Wilbanks Group Controller Sales Headquarters 50 Charles Lindbergh Blvd., Suite 100, Uniondale, NY 11553 (516) 229-3600 • FAX (516) 227-1342 Floor Covering Weekly (ISSN-0015-3761) is published bi-monthly by Hearst Business Communications, Inc./FCW Division, 50 Charles Lindbergh Blvd Suite 100, Uniondale, NY 11553. Periodicals postage paid at Uniondale, NY and additional mailing offices. Subscription rates: Domestic: $25 per year, $48 two years; Canada: $60 per year, $110 two years. Sales Agreement No. 4001287. Foreign: $174 airmail. Single copy Domestic: $4.00, Canada: $6.00. Printed in the U.S.A. POSTMASTER: Send address changes to FLOOR COVERING WEEKLY, PO Box 3012, Northbrook, IL 60065. FCW Inside Sorenson r: Xavier Steyae talks IVC expansion 18 CFI inaugurate Davis Award s annual conve at ntion It’s been roughly two decades World Wide since Web opened public. When its universe the to the By Kimberly pany’s websiteconsumers click Gavin onto a comtoday, it and because is of possibilities second nature, nological [Nashville made by advancemen ] techThe are greater. ts, the expectations Internationa l The first website Floor CoveringCertified Installfrom the was created ers (CFI) flooring industry in held its 19th the company. 1994 by Laticrete, annual convention according Very simplistic, to was to provide at the Sheraton its main purpose Hotel and nical bulletins, material safety data Convention sheets, techstraightforwa contact information, where several Center and rd pieces of hundred information. other Websites installers today Bernie Madden attended purpose. “Eight are serving a vastly seminars, gets first different workshops out of ten award. a company consumers and listened on their website check out to keynote the store. speakers. before they to Jane Walker, It’s not really CFI principal, According business, an appointmentgo into was bigger and “Everything based this year.” where people the website is our Walker said new lobby make a judgment that from are and what workshops, supplier events about who we’re all events we Garcia, advertising all about,” explained to during the convention three-day Gary were and marketing Coles Fine tant, she pointed full. But even more Flooring manager, out, the number imporTodd Calloway,in San Diego. ers under of 40 installwas impressive. interactive manager kept asking at Shaw, marketing “Everyone where we “It’s important echoes these people,” sentiments. By Raymond Walker said. got all these young for us to mation and Pina under 40s Not only provide inspiration infor- [Manchest in attendance, were the research for people ers in their “The retail there were their er, N.H.] who dealers 20s and 30s. shopping installThat research flooring purchases kept pace Flooring experience ing,” she “That’s encouragare using America online. with technology, is more common said. has not ever,” he hand best to teach “It’s because we’ve said. ” said today than devices to help increase held electronic “We’ve developed done our them what an application Chiera. they floors.com, “Through websites customer person can sales and their costs don’t give like Shawrelations they browse use in the manage the salesare so labor away. from their compare of contact store to improve online money to products, initial point experience but afford education.” Then they have order samples, catalogs, installation all the way also for visualization publish the customer the Tom Jennings, recommend and use tools to see and ultimatelythrough credit, to vices referral, chairman, ations online, how their to an online with before and Inc., was according WFCA Serchoices along after photos the keynote Continued to the opening speaker during on page 17 president of marketingFrank Chiera, vice lation. We know of WFCA Leadership people trust her instal- held Flooring and advertising, mendations in honor America. the recomand referrals of Chris Davis, Conference, and friends man and of their WFCA chairCEO who 10 family a home center times more than died earlier Jennings spoke of they trust this year. how Davis this weekend.” announcing they goal as CFI: had the same have a sale “to ing installers encourage dealers Introduced and floorto work together July 2012 America’s satisfaction,” during for customer summer Flooring he said. “He convention Fla., and that this had believed strongly in Orlando, available to occur if next month loadable achieve its the application as full potential.” industry was to from iTunes a downing America’s Maintaining website, members and Floorthat momentum up for the continuing who Fast Phase to a free iPad, II program signed relationship build those dealer/instaland though the received s is a key ler equally well focus for forward aft application For breaking CFI er Davis’ news updated iPhones and on Kindles, Android works One way passing, Walker going each business CFI is other handheld tablets, said. day, visit Davis Award, doing that is with Celeste Carr, us online devises. at www.fcw1.com the Chris given this Floors Direct, owner of Ocoee, fcw8202712-page Madden, year to Fla.-based principal s.indd 1 signed up of Madden-Mc Bernie Interiors for Fast Phase II of Farland is a high-endLeawood, Kan. Continued Madden on page 4 flooring business who Continued Flooring America goes hig h tech FCWCommercial-SE 3:49 PM 2012 G WEEK LY The Tech nology Iss ue for increase 12/17/12 4:42 PM Publication COVERIN Changing of websitesrole e for future 1/18/13 Business August 20/27, FLOOR on page 4 on page 47 A Hearst Weekly The momentum that built mode for slowly in 2013. And 2012 is expected “Our Commercial business, said to push the industry flooring industry executives, business tum into continues 2013,” said into a stronger to see strong will be quite good Randy Merritt, optimistic growth by 2014. growth and but president, we expect family businessdoes expect housing Shaw. On to continue demand and the residential this momenmarket continuesis benefiting from price levels side, he remains new construction to continue to be weak, well for future cautiously to improve. and is starting but is expected “Builder flooring activity,” to grow. Th to improve e residential and multihe said. as the new replacement home market improves. This bodes The National depression for four years, [Dallas] Association in Oklahoma, (NAHB) one facet Th Howard said, of Home is keeping of the showroomse atmosphere was homa division” said Roger Voge, and as a close watch Builders see recovery, the economy that election casual, OklaBy Janet Herlihy is beginning scattered Washington president it shouldn’t in Irvine ing & Decorating for Star to , D.C., and on postitself for take and Grapevine, in hotels located “We’re in Floorpotential . readying very interestingany more hits. retailers, Jinx Yoder, changes Texas, and policy that Most retailers large PET carpet in legislation/ NAHB needs to times and could aff and will show told FCW Dallas regional and small, attending the Paris, Texas, owner of Paris Tile be at its most the cant ect housing Additionally members store. We that they & Marble, it at the front improvemen said, “Business active and engaged as , NAHB the People in saw signifi flooring will still pleased with t in 2012 of the all even is aggressively 2013. soon as much as they the government have the is picking who wanted and are expecting- the higher end better sales we get the products markets were best offering can be. As up. to wait ‘til of the year of the market, in 2013, Shaw, Mohawk, nomic recovery. to avoid derailing asking and Congress through this lame and optimistic. at that farther after the fi but are are back to duck session about how events but will move an ecorst into the showroom,” Beaulieu distributors buy now.” in the economyhesitant Susan Adair, the biggest gets back in earnest, Right now, affect business. along Aaron including it will according infl he added. of Adair’s might Carpet, Pirner, owner and BPI drew of NAHB, to Jerry Howard, Swiff-Train, with Dallas, said, said Howard. uence on the bottom have Fine Floors “I was surprised NAHB’s By Amy Joyce is very optimistic. and CEO of “Winter T&L to CEO in line,” 2012 policy is product and dealers to see a wide market is wants the that us. I think Rush NAHB held very firm CAP, a CCA CAP was still 2001-2003 important range of hear it’s better a — it to Global tax cuts extended; up and not want partner, operates that the suppliers down, but Constructio about the latest programs. address the webinar on Tuesday than Surfaces [Salem, change to it does we are current political n is recovering N.J.] Dec. 2 16 locamortgage LVT is a tions; and, tions housing region and Chuck Moreau,are not distracted.” in interest deduc- in post-election sell Grizzle A year ago, Rusvery, very environmen tunate and have fordoes not retailers 19 business in the hot prodwant tax Washington took the uct and we owner of t The housing units (all reported been sales as well. rates to increase. Jerry Howard, Manningto helm of Brazos Valley flooring . Alongside ahead,” said Peter better retail Floor & Design, continue industry “The builder Jim Tobin, n with to our has Messin and around related) Mills, NAHB, grow ner, president the been commercia three locations chief lobbyist market is College Station, a familyin a state owned and David l and residenstrong Wichita, of Messnearly 100-year-ol of for ner Crowe, chief in tial LVT Kansas. “We Texas area, Carpet, product lines. company economist has been Pittsford, d that was good growth have had a ahead of We are Continued suburb of Continued a grounded projections Rochester, deeply on page 3 on page 12 the market year. When in tradition N.Y. point,” he “Some of at this like the our said. went down and rest of the in ‘07 and haven’t been competitors Since ‘08, we started industry, then, he was mired able to invest has invested making in a painfully in their his time investments recovery. in showrooms, slow Russell better people, — giving us His job integration, overseeing the Grizzle an advantage.” An inviting then and now is to a job made tems, locations,better sysplot a path For 2013, because easier shoppers wood walkway guides of careful Messner includes training,” for the future through Pirner said. Carpet Town. has set a goal growth in due diligence before that “When of a 6 to new at the same company things the purchase 8 percent started to pursuing values that time to stay markets while increase and that by attracting improve, pany’s core nington’s aligned with and true to the were in is We’ve we “We are from the a younger values. a great com- help,” Mantaken market re-developin start. “Th Today, Grizzle g our website market. And 2012 the 35 plus share, starting position. at’s been he said. For breaking a big was to reach year-olds. points to in 2011. acquisition news updated In October, year, it will our wholesale great, with success By the Amtico as each business have a young, the end of the the company and commercial mainly in Manningto a strategic move that both day, visit For breaking also getting Residential fresh look. us online that announced n the news updated at www.fcw1.com involved businesses. remodel has We are while enablingto expand its global allows and the Amtico Mannington Commercia 12243112Pages.i with social changing each business been OK He expects our product media and too.” reach companies’ day, visit it to bring sales forces ndd 1 increases l mercial production us online Messner across all mix in showroom,” mercial, new its LVT will carry at www.fcw1.com explained. areas — commercia com- ing both housing and 1-28-13pages.in onshore. “We will l products, “We are 2013 will LVT, sheet remodeling. comdd 1 be selling pleased with be good includand more because consumer “I think the acquisition. current Manningto carpet tile, using savings the n Commercia Continued l “Choices on page 17 Continued No. 16 September 2012 Kermit Bake r Housing to increas Publication e A Hearst Business in 2013 Breakin from the g free downturn Empowered by 2012 growth , next By Amy Joyce Acquisition bring marke, product t advantage Mannington ’s Grizzle sets cours 2012 COVERIN Visit FCW at #S5761 & booths #B3370 Setting the Sta for Recover ge y 24/31, Production rt To subscribe: call (866) 813-3752 or go to fcw1.com/subscribe For reprints of articles: Wright’s Media (877) 652-5295 P e r i o d i c a l No. 2 FCW Vol. 62 forests, illegal and over-logging, especially of exotic species around the world. And it’s true that the real environmental issues happen in processing, manufacturing and shipping of wood-based products. And, of course, we should try to limit our environmental impact whenever possible. Still, for the most part, the wood and paper products we buy here in North America are safe, recyclable, renewable and sustainable. So one crisis has been averted — broccoli isn’t going anywhere. Neither is wood as long as we make sure we’re buying from suppliers that manage their forests as a crop is managed — that is planted and replanted with an eye toward successive generations and production. The key is a sustainable approach that preserves the forests and keeps them productive. Here at home, that is happening in a big way. North American domestic species are alive and well, are growing just fine and in generally well-run and sustainably managed forests. Many of the major manufacturers of flooring are keenly aware of that and, to their credit, many have pioneered the very measures and practices that make and keep our forests “green.” So whether its paper towels or hardwood floors, don’t worry, as long as we’re acting responsibly, we can always plant more. Trees as well as broccoli. on page 6 fcw42213-pages.indd 22 8/22/12 3:40 PM 4/17/13 4:10 PM Mary Bishop* worked in her family’s flooring business and devoted herself to her family. When a Christmas Eve seizure led to the discovery of a grade III brain tumor, Mary suddenly had to focus on an intense treatment plan which included radiation, chemotherapy and fighting the tumor. Good thing someone told her about the Floor Covering Industry Foundation g in lp he u, o y c am lp i f nd or d he e. a h n e s p s a er op s eu u t g s n a yo nd e a o e y r t r i l pl t u, e r s t u o f g o y tr n n r pe an a e e s ry w ’ k t r h v t t a u n e I w s u M “ n t t bo ha yo s u a T he r b s w fi , e ll u a k e a ’s yo th m it g t e.” , i l u e p h m eo r p Fo ng i lp e h l e fe y il s ines Bus ng p* i o r h e s v rco y Bi lo o Mar F ily Fam Do you know someone who could use our assistance? Let them know there’s hope. For information or to make a donation, please call 714.634.0302 or visit FCIF.org. *The FCIF treats all of its grant recipients confidentially. Mary wanted to share her story with the public but asked that we keep their identity veiled. Her name has been changed FCIF_ad_2011_FCW_2.indd 3 9/26/11 2:41 PM fcw4813-pages.indd 24 4/1/13 9:43 AM