Periodical

July 23/30, 2012 Wood 15
Perspective
Top industry executives Dan Natkin, director
of wood and laminate business, Mannington
Mills; Jim Gould, president of the Floor Covering
Institute; Michael Martin, CEO of the National
Wood Flooring Association (NWFA); Don
Finkell, CEO, Anderson Hardwood Floors; Harry
Bogner, senior vice president of hardwood, Unilin
Flooring; Milton Goodwin, vice president product
management, wood Armstrong; Kevin Thompson,
hardwood category manager at Shaw; and Neil
Poland, president, Mullican Flooring, talk about
the state of the hardwood industry and where
the areas of opportunity can be found.
Poland: The greatest challenge for us as a
manufacturer is the increasing demand for variety
from consumers, builders and interior designers.
What are the bright spots in the
hardwood industry?
Natkin: There are early signs that new home
construction is slightly on the rise; big builders
are slightly bullish but still fragile.
Gould: I think the brightest spots in hardwood
fl ooring have been the improvements in
product quality and installation methods.
Eliminating formaldehyde and reducing VOCs is
also being addressed.
Martin: A bright spot in the industry is that
we’re seeing the fi rst real gains that we’ve seen
in the past fi ve years.
Finkell: We’re starting to see some markets
(mid-Atlantic, south-west, mid-west) experience
improvement. Another bright spot is we have
historically low mortgage rates (down to less
than 5 percent.)
Bogner: Consumers are continuing to demand
products with a strong price/value relationship.
Our company’s leading-edge manufacturing
technologies will continue to enable our Mohawk
and Columbia brands to offer stunning products
at a competitive price.
Thompson: I think we’re in a very conservative
growth mode. I have seen a couple of industry
projections that show a very gradual, modest
increase, maybe 5 percent or less over the next
three to fi ve years.
Poland: One bright spot is the increased demand
for maple, hickory, and, in general, species other
than oak. A second bright spot is handsculpted
and other surface textures are experiencing
signifi cant growth within the wood segment.
What was the biggest challenge for
hardwood sales growth over the past year?
Natkin: Price is at an all-time low for hardwood,
raw material is an infl ationary profi t. There isn’t
the ability to leverage a price increase because
of excess capacity and increased competition.
Gould: The biggest challenge to sales growth is
the economy. Wood flooring is considered a longterm
investment and when the economy is not
stable or people are not secure in their jobs, they
don’t want to make that long term investment.
Commoditization is an industry challenge, not
necessarily a challenge limited to hardwood.
Martin: Raw material shortages. Since lumber
prices were so low, many forest owners chose
not to harvest, so that led to raw material
shortages. In addition, Lacey affected imports,
which have dropped in recent years.
TOMORROW ’ S SUCCESS
begins today.
Finkell: The rest of this year will continue to be
diffi cult but we expect to see improvement
next year. I think, to me, it’s still all about
foreclosures. One positive we’re seeing is
foreclosures getting processed, so I think until
they work through the foreclosures and get
those incredibly cheap houses out of market,
I don’t see how housing can recover.
Bogner: In response to the economic turbulence
of the past few years, those consumers who
were worried by the unfamiliar economic dip,
many times, continued during 2011, to simply
purchase the cheapest fl ooring they could fi nd,
just to get something on the fl oor.
Goodwin: The biggest challenge continues
to be a decline in total volume due to the
decline in the housing industry. There are a
lot of players vying for a smaller pie. That puts
pressure on pricing.
Thompson: Continued slow growth in new
home construction — that has been the biggest
challenge. Also, economic uncertainty. Gasoline
prices have come down, but I think all the
key indicators from an economic standpoint
continue to affect all of fl oor covering and with
hardwood being the largest ticket item of all
fl oor covering options, it makes it the one that
may have suffered the most.
Mohawk understands the demands of your business. We offer all the tools
you need to differentiate your store, increase your traffic, and grow your
sales. As the most recognized flooring brand in the industry, you can count
on Mohawk to help you succeed...today.
MohawkFlooring.com/retailers
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