Periodical

Randy Me ritt
By Kimberly Gavin
ple realize,” he said.
s a ds value
By Janet Herlihy
itself. “We create value by sharing knowledge
that helps our customers make more money
— be it bath rugs retailers, designers in commercial
o retailers in a depre sed residential
market. It drives our i novation and helps
people partner with us long term,” he a ded.
“If we don’t kno what the consumer
wants, we can’t deliver it,” a ded Gary
Johnston, senior marketing manager. “If we
don’t know how she shops, we can’t help our
retailers deliver the right experience.”
Flooring sho pers today fa l right in line
with census age groups, the research shows:
26 percent are betw en 25 and 34; 26 percent
are betw en 35 and 4; 26 percent are betw en
45 and 54; and 2 percent are between 5 and
65 years of age, respectively.
party to further validate the report.
Most are colleg educated — 32 percent have
Introducing Dr. Erich Joachimsthaler, an
an undergraduate degr e, 29 percent have some [Las Vegas] Mohawk’s 20 1 Fiber Satisfaction
Study put SmartStrand to the test keting and branding and founder of Vivaldi
expert and author on busine strategies, mar-
co lege and 18 percent have a post-graduate
degr e. The majority also work full time (45 with consumers and the result showed that Partners, Tom Lape, president of Mohawk’s
SmartStrand buyers were significantly more residential and commercial carpet busine s,
satisfied than nylon buyers. The study results said, “We went outside the industry to s e if
were revealed at Surfaces.
SmartStrand rea ly stands up to its claims.”
cording to the report, buyers noted Joachimsthaler was contracted to make
wit how easy Smart-
sure the research could pa s the rigor of
p e review and presented his findings at a
on here. He confirmed the research
0, 0 consumers and
ple,
ance to
19
By Amy Joyce Rush
iodical
expanding internationa ly.”
Continued on page 6
By Kimberly Gavin
of brands.
officer for Invista.
Brian Carson
fiber does both.”
John Turner, Jr.
Invista’s TruSoft
loor Covering W ekly a nounces th entries in its third annual Gr en-
Step Awards — a program that recognizes the industry’s path in environmental
sustainability and responsibility. Th entries now go to a
distinguished panel of judges who wi l selec this year’s recipients.
“This industry has b en, and continues to be, a leader in the gr en movement,”
said FCW’s executiv editor Kim Gavin. “From i novative produc to
proce ses and practices that are second to none, the floor covering industry
continues to make great strides in it sustainability efforts and provide lead-
A l ok a the 20 1 entries for Gr enStep begins on page 4. The judges’
ership to other industries.”
takes place in Dalton, Ga.
Continued on page 17
By Janet Herlihy
After nine years of Carpet America Recovery
Effort (CARE) leadership, combined with support
from a l segments of the industry, carpet
reclamation/recycling is back on its way to
becoming common practice in the U.S.
FCW Insider
o dical
Continued on page 4
Some recycling centers were forced out of
business while others stockpiled post consumer
(PC) carpet, hoping for a time when
Continued on page 18
Continued on page 19
al
By Janet Herlihy
Continued on page 14
great Surfaces
26
The Last Word
Finally, the real numbers
This is the 20th year that Floor
Covering Weekly delivers its
Annual Statistical Report
of the size and scope of the flooring
industry. Twenty years ago, we were
the only ones to bring accurate, vetted
data to the industry at large — the only others who had
access to this kind of information were large companies,
mostly manufacturers, who had to pay for it. Today, you
have access to some of the exact same data they do.
Back then, no one could say with any accuracy — outside
of their own small world and product segment — the size
or scope of the market. Certainly, there was no consensus
as each manufacturer had its own point of view. Too often,
those manufacturer’s views were colored by their own limitations
— the market segments they served, even down to
the actual products they made, and, of course, their own
competitive issues.
Today, those same limitations exist. And while conversations
with leading manufacturers and executives is part of
our process for understanding the changes in the market,
guesses about market size — even educated guesses — are
simply insufficient.
Instead, we stick to primary data — quantifiable numbers
that are tracked, updated and revised by the U.S. government
through various agencies. We understand that anecdotal
information is by its very nature inaccurate and incomplete.
By the numbers it looks pretty good
While it does have its place, it is really only through disciplined
research and a thorough and unbiased understanding
of the market that you can get any reliable data.
For our numbers, we turn to Catalina Research, a professional
research organization that is recognized as one of the
industry’s leading sources.
Once we have reliable data, we look to Jonathan Trivers
and his marketWise report to help make further sense of it
all. In marketWise, Trivers gives us a different and unique
view of what the industry looks like from the outside —
where products are sold, the forces driving retail and
changes in the market.
As a result of these efforts, we are able to bring to you
what is unequivocally the industry’s best data and market
analysis. We spend a lot of time, money and effort in getting
this information to you, but as far as we’re concerned,
you deserve no less.
In these times, more than ever, solid information is critical
for our readers and for this industry. The truth is that
nothing less than our very survival depends on it. Armed
with accurate data, key insights about the dramatic changes
happening throughout all channels, combined with a thorough
understanding of the dynamics behind the numbers
and maybe you have a chance. Otherwise, you’d just be
guessing. And when your job, your business and your family’s
future is on the line, guessing is just not good enough.
You deserve better.
— Santiago Montero
FLOOR COVERING WEEKLY
The Industry’s Business News & Information Resource
FCW Editorial and Sales Headquarters
50 Charles Lindbergh Blvd., Suite 100, Uniondale, NY 11553
Editorial (516) 229-3600(516) 227-1342
(770) 919-7747 (770) 919-1348
(516) 227-1407(516) 227-1342
Editorial
Santiago Montero Publisher & Editor in Chief smontero@hearst.com
Kimberly Gavin Executive Editorkimgavin@aol.com
Amy Joyce Rush Managing Editorarush@hearst.com
Raymond Pina Senior Editor raypinafcw@yahoo.com
Mallory Cruise mcruise@hearst.com
Janet Herlihy jgherlihy@sbcglobal.net
Tanja Kernkern.tanja@gmail.com
Maya Avrasin m.avrasin@gmail.com
Columnists
Jon Trivers I take the fl oor
Chris Ramey Strategic insights
Kermit Baker Beyond the numbers
Ed Korczak As I see it
Manny Llerna Retailing road map
Marge Redmond Heard on Main Street
Christine Whittemore Flooring the customer
Tom Jennings First things fi rst
Advertising
Southeast, Midwest, West Coast U.S. & Canada
Charlton Calhoun (770) 919-7747(770) 919-1348
Northeast U.S.
Cal Calhoun (770) 919-7747(770) 919-1348
Classifi ed Ads
Stacey Iaccino (516) 227-1407(516) 227-1342
Vol. 61 No. 4 A Hearst Busine s Publication February 20/27, 2012 $4
Read on its own, this year’s annual statistical report
isn’t necessarily a shout-it-from-the-rooftops
.excitement fest. But taken against the backdrop of
the past five years, I think it’s pretty darned good.
While the value of U.S. flooring in dollars didn’t escalate
dramatically, sales did climb higher in 2011 than they did
in 2010. Sure it was a mere 2.5 percent, but considering
that change in dollars was negative in 2007, 2008 and 2009,
that’s a positive trend, especially coming on the heels of a
4.1 percent growth in 2010.
But square foot sales actually dropped in 2011 versus the
prior year, but by a very small 1.5 percent. Volume losses in
2007, 2008 and 2009 were in the double digits.
After two years of slipping beneath the $1.00 per square
foot mark, average flooring sales climbed back up to $1.02
per square foot. That’s a good thing, because the recession
we are still climbing out of was characterized by the
unusual escalation in raw materials prices. That left us with
the unusual position of low demand for the product but
high costs to produce and transport.
The ability to get square foot prices up indicates that
there was enough demand in 2011 to pass along raw materials
increases. The statistical report doesn’t measure it, but
manufacturer profitability (and hopefully distributor and
retailer) should have also seen improvements.
I see much of what has been happening over time continuing
to happen. Wall-to-wall carpet loses share to hard surface
Shaw’s Merritt sees improvement in 2012
L
Invista taps into today’s consumer
Invista spends a lot of time and money trying
to stay on top of wha the carpet consuming
public wants and n eds on behalf of its Stainmaster
brand. The latest round of research,
which surveyed 1, 0 fl oring consumers
about their shopping habits, is adaman that
the industry must be clear with its me saging
and recognize that the consumer is ge ting
information in a variety of ways, a cording to
Steve Griffith, chief marketing officer.
“We talk to the consumer every month
to different degr es,” Griffith explained to
FCW. The company conducts verbal phone
surveys, conducts online Internet panels as
we l as hires research firms to speak directly
to the customer. “The n eds of consumers —
especia ly in today’s climate — change more
ik every company in the fl oring busine
s, Shaw Industries has had to change will be contentious. There will probably be lenges, but it was strong through th end of
say this one will be like previous elections, it the commercial busine s. There will be chal-
course through the worst rece sion in more fighting on airwaves than we have s en 20 1 and backlogs are g od. We wi l k ep
modern memory, a period that’s also s en in the past. Everybody is frustrated on both riding that carpet tile horse, it’s rea ly hot.
drasti changes in the carpet industry. Shaw sides of the fence. How that will affect busine
s and titudes I don’t know. But that’s from tile versus broadloom is higher per unit.
And the beautiful thing for us is that revenue
president, Randy Merri t, recently spoke with
FCW Executive Editor Kimberly Gavin about certainly a factor at some level.
ge ting through the rece sion and how the fiber
How has the product mix changed?
shakeup has changed the busine s.
Does commercial hold up in 2012? Me ritt: In a lot of the residential cha nels,
Me ri t: That’s certainly po sible. That said, including multifamily, manufactured housing
What does 2012 look like to you?
the government wi l spend le s money. Institutiona
ly, there is le s money a the public some busine s coming back to the mid-to –
and retail, we’ve s en trading down. There is
Me ri t: We’ve a l said the same thing for the
last thr years, and we’ve b en wrong the sch o level. We wi l s e improving hospitality
busine s. Health care wi l continue to be mi dle gets be ter. As you trade down, you se l
mid-higher end. It’s not luxury, bu the u per
las thr e years. But anytime th economy is
trying to recover, things should gain momentum.
The big question to me is what impact some impact on spending, but I don’t see units but you have le s revenue.
g od. Corporately, the election may have le s per unit, so you se l the same number of
th election wi l have. I don’t think you can any reason why I would be pessimistic about
Continued on page 18
FloorForce’s new website
Continued on page 18
Dr. Erich Joachimsthaler
and Mohawk’s Tom Lape
SmartStrand gets high marks
Vol. 61 No. 1 A Hearst Business Publication January 2-16, 2012 $4
Ru se l Gri zle, incoming CEO, with Tom Davis, retiring CEO at Ma nington
Grizzle takes helm
at Mannington
Invista launches TruSoft
tion and development for Invista, elaborated,
“We’ve tried to build on the softne s and the
Invista is launching the latest in its arsenal of performance origina ly launched with Tacte
se in 20 and Luxure l in 2009. TruSoft is
soft fiber products for the residential carpet
to focus on how to improve ourselves in all market with TruSoft. This nylon 6,6 fiber is the softest Stainmaster available. A the same
areas of our operations, be more efficient, the newest addition to the Stainmaster family time, we want to deliver performance. This
[Salem, N.J.] Russe l Gri zle t ok over as move more product and therefore try to grow
CEO of Ma nington Mi ls on Jan. 1, and regardle s of the state of the industry.”
A cording to Invista executives, TruSoft Extremely soft fibers are available in the
while he brings with him a d ep respect for the While Gri zle is emphatic tha the company is the softest Stainmaster fiber to date. It also marketplace in bath mats, for example. But the
company’s we l-defined culture, he has a few wi l continue to focus on the core U.S. market offers the performance that consumers have softne s often comes at a price. The powderpuff
f el of a bath mat comes withou the tip
ideas of his own on how to grow the busine s. and that it wi l remain commi ted to U.S. come to expect from the Stainmaster brand,
“Our core values of who we are, are very manufacturing, he s es both global competition
and growth o portunity outside the U.S.
in mainstream residential se tings. TruSoft is
according to Steve Griffith, chief marketing definition and durability nece sary to perform
we l defined — care, do the righ thing, work
hard/play hard, control our own destiny. I “We wan to continue to expand on our T.M. Nuckols, director of product i novadon’t
s e those changing. They were part of the manufacturing base in the U.S. but also have
company for almost 1 0 years,” said Gri zle. international operations in the future. We
A the same time, he is we l aware of the don’t wan to lose sight of our core market,
n ed to organica ly grow and transform but you have to l ok at emerging parts of the
Ma nington acro several key areas including
lean manufacturing, waste elimination growth. So in the next five years or so, I s e us
world that have so much tail wind in terms of
and global expansion.
“We are trying to bring in some of the Gri zle has spent the last 21 months at
newer managemen techniques that you read Ma nington Mi ls as COO preparing to take
about from a l other parts of the world and the CEO position as Tom Davis retires after
other industries,” he said. “It’s a time for us
Preserving the past, positioning for future
Pre-Surfaces issue 2012
F
Carson and Turner reveal
leadership plans
GreenStep 2011
entries are in
[Calhoun, Ga.] Mohawk Industries named Brian Carson president of Mohawk Flooring
Busine s Unit and John “J.T.” Turner, Jr., as president of Dal-Tile begi ning this month.
Carson replaces Frank Peters and Turner fo lows Harold Turk. Here, both Carson and
er share their plans to direct the companies and their brands into 2012 and beyond.
FCW
Vol. 60 No. 7 A Hearst Busine s Publication April 4/11, 20 1 $4
FLOOR COVERING WEEKLY
selections wi l be a nounced thi summer when the a nual awards ceremony
Carpet reclamation and
recycling on road to recovery
The rece sion deal the nascent industry
a blow when markets for recycled carpet
declined along with sales of new carpet.
Murray leads Shaw’s sustainability
Shaw Industries recently ta ped Paul Mu ray, former environmental health and safety and
sustainable busine s practices leader with contract furniture giant Herman Mi ler, to head
up its environmental sustainability efforts. Mu ray, who is Shaw’s vice president of environmental
sustainability and environmental affairs, relocated from Michigan to take on a new
challenge in a car er that spans over 20 years in the sustainability field. FCW executiv editor
GreenStep
on the residential side of the business.
High-end hard surfaces maintain
popularity because the high-end shopper
has returned to the market with
her desire for ceramic tile, stone and
wood intact. Luxury vinyl tile was a
big winner throughout the economic
downturn, and is maintaining momentum. The area rug
market appears to be gaining from the hard surface demand.
The residential market picked up last year, but only about a
point and a half.
The commercial market stayed strong, growing nearly 5
percent over the previous year. Here, the carpet tile business
continues to prosper because it’s an easy product to
work with. Resilient is a solid second with heavy emphasis
on fashion and style.
Builder flooring purchases were down significantly from
what they were in 2007 — the year that market crashed.
Thus far in 2012, housing starts are trending up by double
digits in the first quarter. Existing home sales grew in the first
quarter of 2012. The economy seems to be improving at a
slow but steady rate. Unemployment remains a concern, but
the consuming economy seems to be holding ground.
In all, the 2012 Annual Statistical Report brings good
news. The snapshot shows a challenging year, but better
than the one prior. This year is shaping up to be even better.
Each improvement gains us a little more breathing room.
2.25% CVD imposed
Vol. 61 No. 3 A Hearst Busine s Publication February 6/13, 2012 $4
FLOOR COVERING WEEKLY
The Industry’s Busine s News & Information Resource
SURFACES
POST
Painful cuts last year pave
the way for Beaulieu in 2012
2012
Flexible format brings
new success to show
*For more Surfaces coverage s e pages 10 & 26
according to Ralph Boe, president and CEO.
While Boe characterizes the company as [Las Vegas] While Hanley W od reported Tarkett used this o portunity to launch
The fa l of 2011 was a difficult one for Beaulieu.
Thr e of its senior level executives left he’ sti l oking for a few key executives. 10 percent over 2011, a tend es were torn on strong once again pulled retailers into its
“we l managed going into 2012,” he admits that attendance a this year’s Surfaces was up a new display and selling system and Arm-
the company — James Le slie, COO, and For the time being, operations report to whether 2012 would prove to be be ter than large ba lr om space with a wide range of new
Jeff Meadows, CMO, both left in November, him directly; David Vita oversees sales and last year. But, there did s em to be consensus product and a strong distributor presence.
preceded earlier that year by Patricia Flavin, marketing for a l specified commercial busine
s; and, Steve La d heads hospitality. On of positive things to come.
Beaulieu, the two largest exhibitors, found it
tha the show was a su ce s and a harbinger At the same time, Ma nington and
senior vice president of marketing. While the
company was forced to close down thr e of the residential side, Casey Johnson heads While traffic s emed a bit light at times, rewarding to be on the show fl or. “We have
its plants due to slower than expected sales, direct sales; Kathy Fisher overs es home centers;
Joe Wi liams leads the company’s export on the show fl or but exhibited just outside g od show for us,” said Dan Natkin, director
the inclusion of vendors who chose no to go benefi ted from not scaling back, and it was a
on a more positive note, it was also able to
restructure its $230 mi lion debt.
and distributor busine s; and, Wendy Jaynes in m eting r oms, conference r oms and of Ma nington’s w od and laminate busine
s. Ed Duncan, Ma nington’ senior vice
Today, Beaulieu of America has hit the is now marketing manager for the Bli s brand. ba lr oms created crowds off the main fl or.
ground ru ning, a leaner mor efficient organization
that is ready and determined to uphold another flat year,” Boe said. “Refinancing is back Mohawk, which held its western
“We are going into 2012 prepared for That exhibitor flexibility is what brought president of marketing, a ded, “We
and grow its place in the carpet industry, complete and we have finished our consolida- regional event just outside th exhibit
a ba lr om. Arm
— Kimberly Gavin
Production
Thomas YoungProduction Managertdyoung@hearst.com
Matthew Lippl Production Artistmlippl@hearst.com
Administration
Sherridan Basdeo Advertising Administrator sbasdeo@hearst.com
Carolyn Giroux Audience Development Directorcgiroux@hearst.com
Adriana Marzovilla Financial Manageramarzovilla@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
Suite 100, Uniondale, NY 11553.
To subscribe: call (866) 813-3752 or go to fcw1.com/subscribe
For reprints of articles: Wright’s Media (877) 652-5295