Bigger footprint plus technology drive growth
Transcription
Bigger footprint plus technology drive growth
Vol. 62 No. 21 A Hearst Business Publication November 11, 2013 FLOOR COVERING WEEKLY The Industry’s Business News & Information Resource $4 3 Frank Ready retires from Armstrong Thomas Mangas fills CEO spot Frank Ready CMH’s fleet of trucks T&L Distributing Co. is based in Houston. The Haines team: Scott Roy, Mark Blakley, Rosana Chaidez, Bruce Zwicker, John Coakley, Bill Piechowski and Fred Reitz P e r i o d i c a l Overview of CMH based in Wadesboro, N.C. For breaking news updated each business day, visit us online at www.fcw1.com 11-11-13-pages.indd 1 Bigger footprint plus technology drive growth [Wadesboro, N.C.] Hard work; a willingness to adopt the latest technologies into operating procedures, a focused product offering and a string of strategic acquisitions during the industry’s most trying period has propelled CMH Space Flooring Products to an estimated $200 million in sales this year, according to key members of the close-knit organization. “Change is something many companies, and most people don’t like,” said Hoy Lanning, president and CEO. “We’re always looking for new and changing products and looking for new ways to solve customer problems. This is how we create opportunities.” “Our core philosophy of keeping the customer serviced has not changed,” said Wadesboro distribution manager Marty Cox. “When I first started, it was not rare for me to have to throw product in the back of a pickup truck and drive it to South Carolina — just to keep the customer serviced.” Today, CMH provides a sophisticated UPS barcode inventory system that’s linked to its drivers who have GPS systems that adapt to changes in schedules, traffic and weather. “Somebody might have a competitive product; but nobody out services us,” said Cox. Art Layton, CMH Space Flooring Product’s vice president of marketing, said it’s that core attitude along with the advanced technology that allows CMH to stay ahead when it comes to service. “We’re not trying to find six ways to say, ‘We can’t.’ We’re always working to find that one way to say, ‘We can.’ We try real hard to maintain personal relationships with our customers and our vendors, to make things work and to keep things fun," said Layton. Founded in 1989 as a carpet cushion supplier, CMH Flooring Products expanded into the vinyl floor market with Congoleum in 1991. In 1996, CMH Flooring Products expanded its territory in the Carolinas with Allison-Erwin and into Virginia with Canterbury — both regional Congoleum distributors at the time. Sales grew to $50 million. Continued on page 16 11/6/13 4:28 PM JOIN OUR FAMILY With over 80 different styles of hardwood flooring products, three shipping locations, and an elite class customer support team, Urban Floor now offers exclusive distribution territories in selected areas. Join our fast growing company! We currently ship from: 1 City of Industry, CA 2 Houston, TX 3 Atlanta, GA 1 3 2 866-673-1011 Email. [email protected] www.urbanfloor.com Call. Untitled-1 24 LACEY ACT COMPLIANT 10/31/13 1:27 PM News Ready retires from Armstrong Mannington laminate: 100% Made in America Company makes executive management changes [Lancaster, Pa.] After 30 years at Armstrong Flooring Products, Frank Ready is retiring. Thomas Mangas will succeed Ready as CEO effective Nov. 16, 2013. Mangas has served as chief financial officer of Armstrong since February 2010, leading finance as well as information technology, global business services and process improvement. “I would like to thank Frank for his 30 years of dedicated service. His many contributions will be felt for years to come,” said Matthew Espe, CEO of Armstrong World Industries. “In Tom Mangas, we have a well-seasoned leader, whose global mindset and customer focus will enable our flooring business to fully leverage recent investments and have a bright future. I am equally excited to welcome Frank Ready Dave Schulz as my new finance leader. The ability to quickly fill these positions from within is a clear demonstration of the effectiveness of our organization Correction Corrections vitality and succession planning processes.” David Schulz will succeed Mangas. Schulz most recently served as vice president, finance of Armstrong Building Products. He joined Thomas Mangas Armstrong in June 2011 after spending 14 years with Procter & Gamble and the J.M. Smucker Company in a wide range of finance leadership positions. FCW FCW FCW Smart marketing in the upturn “This year, as we move out of the recession and the economy gets stronger, it is the [New Orleans] Here in New Orleans last perfect year to focus on marketing,” Jeanne month, the Starnet Worldwide members Matson, president and CEO, Starnet told came together to share best practices and to Floor Covering Weekly (FCW). Randy Rubenstein of Rubensteins in Seattackle, together, how to market in a post-retle, one of the conference’s panelists noted, cession world. “We are all market developing people. We need to sell ourselves and need to sell our strengths. We need to lead with service and follow it up with marketing.” Unlike the spring meetPanelists Rob Haily, Jim Lloyd, Jim Vanhauer, ing, (the group holds two Ellen Zucker,Frank Pelosi and Randy Rubenstein meetings a year) the fall event By Amy Joyce Rush FCW is not mandatory but this year’s attendance was impressive with 147 of the 170 members attended — the 170th member, in fact, was approved last month. Over the last three years, Matson said Starnet has worked to formalize the meetings to make sure that the agenda is robust and meaningful to members. Two years ago, the group targeted moisture mitigation as the theme, last year it was project management. Not only is now the time to look at the challenge of marketing, Matson said that this group, because of its diversity, is ideal for such a discussion. “The great thing about Starnet is that they are all entrepreneurs and the great joy is that they are all different —they are all in the commercial flooring contractor business but they are all different in the structure Continued on page 20 Stainmaster PetProtect carpet to woo pet owners ter carpet cushion features a proprietary breathable moisture barrier, which allows Invista is hoping to connect with the millions moisture vapors from the sub flooring to of pet owners in the U.S. and Canada with escape up through the carpet while preventits latest Stainmaster brand extension — the ing spills from soaking though the carpet and cushion, making thorough cleaning PetProtect carpet and cushion system. Stainmaster PetProtect carpet is made of easier, according to Invista. Research by the American Pet Product SuperiaSD, solution dyed nylon 6,6 fiber, which is resistant to fading from strong Association found that more U.S. housecleansers and bright sunlight. Stainmas- holds have pets than they have children. “Pet owners love their pets, but our consumer research shows they want tidier pet-friendly living spaces,” said Melissa Minihan, Stainmaster vice president of marketing. Invista research showed that pet owners want stain resistant and easy-to-clean carpet, and easy removal of pet accidents and pet odors when cleaning their carpet and quick and easy pet hair removal, according to Minihan. “The Stainmaster PetProtect Consumers will be able to relax and enjoy their pets with Stainmaster PetProtect carpet and cushion. system can serve as a solution for By Janet Herlihy November 11, 2013 11-11-13-pages.indd 3 WWW.FCW1.COM · FLOOR COVERING WEEKLY · 3 today’s households that consider pets to be part of the family.” Along with stains and odors, pet hair is even easier to remove from Stainmaster PetProtect carpet, according to Invista’s laboratory testing. “This means more pet hair in your vacuum and reduced pet hair on your clothes, something almost every pet owner will appreciate,” added Minihan. About a dozen Stainmaster PetProtect carpet styles will begin to roll out across the country in November in about 2,000 dealer showrooms along with POP materials, which promise to get shoppers’ attention at retail, according to Gary Johnston, marketing communications manager for Stainmaster. The launch will start in Stainmaster Flooring Centers and Showcase dealers as well as other retailers and will be in Lowes after some leadtime for aligned dealers, Minihan noted. More PetProtect styles will be ready to launch in time for Surfaces 2014. Invista is looking to all sorts of media to get the PetProtect message to consumers. “We will be using television, web, and con- [Salem, N.J.] Mannington Mills announced that beginning this month the company is moving production of the Diamond Bay Collection to its facility in High Point, N.C. from its current production location in China. As a result of this onshoring, 100 percent of Mannington laminate will now be made in the United States. Diamond Bay provides an exotic hardwood visual with clarity and depth of color, all with the durability and easy maintenance of laminate, according to the company. The collection comes in eight different colors of Brazilian Cherry, Hawaiian Koa, Himalayan Cedar and Kingston Mahogany. Offered in 12mm thickness with micro-beveled edges, the Diamond Bay collection comes with a 25 year warranty. According to Dan Natkin, director of wood and laminate at Mannington, the High Point facility can now achieve the high clarity finish that is the hallmark of Diamond Bay. “The way we are producing it in the U.S. provides a much more liveable gloss than the way the Chinese make it. Our lines that have been treated with this have done phenomenally well, so we expect Diamond Bay to do the same,” he said, adding, “Laminate has always been a category that we look at as anything we can imagine, we can produce. It doesn’t make sense to continue having someone else do it for us when we now have the capability as well.” Natkin also explained that the company fundamentally believes in U.S. production at its core. “We’ve always been a U.S.-based company, so that’s an attribute that is very important to us,” he said. “Quality control is another issue that is solved by onshoring. We can keep a closer eye on production being based 100 percent in the U.S.A.” — Brittany Walsh Mannington’s Diamond Bay, shown in Hawaiian Koa, is now made in America. sumer print, starting this month and will continue with a national campaign. The television advertising will be on cable channels scheduled around pet owner programs,” Johnston noted. “This is a great product that meets aesthetics and functionality plus the Stainmaster cushion for moisture control,” stated Johnston. The price point for PetProtect will vary according to face weight, but will be competitive with similar nylon products. FCW FCW Correction Corrections FCW FCW 11/6/13 4:06 PM 4 E= Estimate P= Projected R= Revised Sales in millions of dollars MSI: Unique and powerful MSI, founded in 1975, is the nation’s largest distributor of tile and stone with 2013 sales projected at more than $500 million. In an effort to maintain the integrity of FCW’s annual Top 25 Distribution listing, including MSI among the country’s full-line distributors didn’t quite make sense, though company sales are above all others. What does make sense is to shine some light on this unique and growing company. Amy Joyce Rush, managing editor, FCW Based in Orange, Calif., MSI distributes flooring, countertop, wall-tile and hardscaping products including natural stone products imported from more than 36 countries on six continents nationwide. The company maintains 18 distribution centers across the U.S. and Canada. In addition, MSI carries an extensive offering of porcelain, ceramic, glass and quartz products. The company maintains an inventory of more 50 million square feet and has made it its mission to continue to source the best products and make them more affordable and accessible in the North American marketplace. The company does this by using technology and other productivity tools to continually bring efficiencies to its sourcing and supply chain. For more on MSI, go to msistone.com. MSI Fast Facts Warehouse locations: Orange, CA Seattle, WA Houston, TX Lenexa, KS Deerfield Beach, FL Charlotte, NC Baltimore, MD Boston, MA Hayward, CA Phoenix, AZ Dallas, TX Chicago, IL Atlanta, GA Dulles, VA Edison, NJ Toronto, ONTO Key executives (Shown above from left) Rajesh Shah, co-president Manu Shah, CEO Rupesh Shah, co-president Key product lines Flooring Wall Tile Countertops Hardscaping 11-11-13-pages.indd 4 Ranking Company 2013 2012 Ra Key Executives 1 Haines Glen Burnie, MD 410-760-4040 jjhaines.com $320 $279 (R) Bruce Zwicker, president/CEO; Rosana Chaidez, VP sales & marketing and procurement; Scott Roy, VP sales & marketing and customer service; John Coakley, CFO, business development; Fred Reitz, VP supplies business & development; Bill Piechowski, VP human resources; Mark Blakely, VP Haines flooring operations 2 BPI Memphis, TN 901-744-6414 bpiteam.com $216 $205 Daniel Riley, CEO; John Anderson, VP; Wallace McAlexander, CFO; Elaine Bennett, VP; Sam Martin, sales manager 3 CMH Space Flooring Products, Inc. Wadesboro, NC 704-694-6213 cmhspace.com $190 $160 Hoy Lanning, president/CEO; Chris O’Connor, COO/ CFO; Todd Good, VP sales & marketing; Breck Berkey, VP sales branch sales; Art Layton, VP marketing 3 The Belknap-White Group Mansfield, MA 508-337-2700 belknapwhite.com $190 5 William M. Bird & Co. Charleston, SC 843-554-3040 wmbird.com $138.8(E) $124 Maybank Hagood, CEO; Robert Hagood, president; Gene Corvino, senior VP finance/CFO 6 Apollo Distributing Co. Fairfield, NJ 973-228-5000 apollodist.com $136.6(E) $122.0(E) Keith Slobodien, president; Jim Russomano, VP/GM; Chuck Greene, wood manager; Chris Courtenay, manager, residential vinyl, laminate; Carl Embrey, manager, commercial vinyl, laminate 7 NRF Distributors, Inc. Augusta, ME 207-430-2818 nrfdist.com $133 $124 Norman Pomerleau, president; Terry Pomerleau Gray, SVP; Lee Gray, SVP sales; Jimmy Pomerleau, VP carpet; Deb Giordano, VP wood 8 B.R. Funsten & Co. San Francisco, CA 415-674-0530 brfunsten.com $130 $112 Jim Funsten. chairman/CEO; Curt Thompson, president/ COO; Dave Bolton, VP concrete solutions; Rick Wagner, VP Tom Duffy Hardwood; Bob Ramos, VP Armstrong sales; Tom Kane, VP commercial solutions; Jon Youngberg, VP Tom Duffy Supplies 9 Tri-West Ltd. Santa Fe Springs, CA 562-692-9166 triwestltd.com $127(E) $112.4(E) Dan Proctor, president; Tony Geiger, CFO; John Lubinski, VP operations; Allen Gage, VP sales and marketing; Frank Kelly, VP sales 10 Ohio Valley Flooring Cincinnati, OH 513-561-3399 ovf.com $126.1 $111 Al Hurt, president; Jeff Garber, VP sales and marketing, Mark Roflow, VP finance 11 FlorStar Sales, Inc. Romeoville, IL 815-836-2800 florstar.com $126 $105 Wade Cassidy, owner/CEO; Scott Rozmus, president; Greg Stirrett, CFO; Mike Ricker, VP field sales; Kelly A. Cassidy, VP general counsel 12 Galleher Santa Fe Springs, CA 562-356-4610 galleher.com $125 $95 $150.0 (R) Ray Mancini Jr., president; Paul Castagliolo, executive VP/ GM; Bill White, president, commercial div.; Bill Prescott, VP sales Jeff Hamar, president; Todd Hamar and Rick Coates, SVP; Ray Iodice, CFO 11/6/13 4:27 PM 5 Ranking Company 13 Herregan Distributors, Inc. Eagan, MN 651-452-7200 herregan.com 14 2013 2012 Key Executives $114.5 $95.5 Ken Herriges, CEO; Bob Link, president/COO; Tom Splinter, EVP sales; Craig Folven, VP sales and marketing Paramount; Pat Theis, VP sales and marketing Mannington T & A Supply Co. Kent, WA 253-872-4998 tasupply.com $109 $97.0 (R) Owen Strecker, CEO; Mark Strecker, president; Will Crites, CFO; Steve Urlacher, COO; Owen Strecker, Jr., sales manager 15 Adleta Corporation Carrollton, TX 972-620-5600 adleta.com $107 $94 16 Swiff-Train Co. Houston, TX 713-937-1448 swiff-train.com $86 $80.0 (R) 16 T & L Distributing Company, Inc. Houston, TX 713-980-2175 Tldistributing.com $86 $73 Bob Thomas, chariman; Jeff Thomas, president; Bob Eady, SVP sales and marketing 18 Elias Wilf Corporation Owings Mills, MD 800-642-9453 flooryou.com $84 $81 Arnold Cohen, chairman; Jeff Striegel, president/CEO; Hillard Cohen, EVP; Rich Kearsley, SVP sales BPI celebrates 50 years of growth By Janet Herlihy Jack Adleta, chairman/CEO; John Sher, president; Skip Graves, senior VP finance LA Train, president/CEO; Kenneth Train, EVP sales and marketing; Jeff Train, VP operations; Don Evans, VP sales and marketing; Jonathan Train, VP development BPI’s sales force gathered together to celebrate 50 years of exceeding expectations. [Memphis, Tenn.] Founded in 1963 by the late Alexander R. Hill, Memphis-based Building Plastics, Inc. (known as BPI) has evolved and grown from a single 7,500 square foot warehouse distributor of Formica brand plastic laminate and Kentile vinyl plastic floors with eight employees to the second largest flooring distributor in the U.S. Today, BPI serves about 5,800 customers from 10 warehouse facilities spread across Texas, Alabama, Tennessee, Louisiana and Mississippi that total more than one million square feet and employ more than 400 staff members. Founder Hill posed a series of questions Continued on page 16 19 Reader’s Wholesales Distributors, Ltd. Houston, TX 713-224-8300 readerswholesale.com $83 All Tile, Inc. Elk Grove Village, IL 888-ALL-TILE alltile.com $82 21 Southern Wholesale Flooring Co. Kennesaw, GA 800--282-7590 swfloor.com $69.6 $69.6(E) 22 Longust Distributing, Inc. Mesa, AZ 480-730-3380 longust.com $68 $66 23 Tingle Flooring Lees Summit, MO 816-524-9555 wctingle.com $66 $62 Chip Moxley, president; Tyler Barr, sales rep manager; John Reinhold, sales rep manager; Tom Kennedy, sales rep. manager 24 Jaeckle Distributors Madison, WI 608-838-5300 jaeckledistributors.com $55.1 $52.3 Jeff Jaeckle, president; Torrey Jaeckle, VP; John Apple, SVP sales & marketing; Brad Simonson, CFO; Bill Simonson, VP of Operations 25 Cain & Bultman, Inc. Jacksonville, FL 904-798-1000 cain-bultman.com $52 $48 20 11-11-13-pages.indd 5 $78 $72 Lucky Burke, CEO; Adam Burke, president; John Foley, VP, Armstrong division; Kirby Jones, SVP Southern Traditions Bob Weiss, president/CEO; John Welch, CFO; Steve Rosenthal, VP sales; Marc Haberman, director of marketing Rich history sets stage for future Cain & Bultman enters its 90th year By Amy Joyce Rush Dennis Harrison, president; Delinda Kilgore, vice president; Sandy Fowler, VP sales Steve Wallace, CEO; Drew Mittelstaedt, president; Bo Boberz, CFO; John Laird, COO Michael Sandifer, chairman/CEO; Buddy Faircloth, president; Kirk Sandifer, EVP; Nick Melnyk, VP; Paul Roark, manager Armstrong Floors Kirk Sandifer, Mike Sandifer, Buddy Faircloth and Alan Kimball [Jacksonville, Fla.] “Partners in Business” has been Cain & Bultman’s motto since Norwood Sandifer bought the company back in 1959 and it has been its guiding philosophy ever since. In 2014, Cain & Bultman will celebrate its 90th anniversary. “Cain & Bultman is built on honesty and integrity and an offering of good strong brand name products in the market,” said Buddy Faircloth who has been with the company 48 years and became president five years ago. “Key ingredients of our Partners in Business strategy are providing long term business relationships, quality products, professional sales representatives and logistical excellence.” Continued on page 16 11/6/13 4:27 PM 6 News Accessories complete the package By Megan Salzano During tough economic times, it’s easy to assume that sundry products are not at the forefront of consumer transactions. But leading distributors said that strength of distribution is being able to offer “the whole package” and sundries — all the little things that allow for a flawless installation — are a big part of that package. “We provide the sundry materials that are compatible with the flooring products that we sell in almost all cases,” said Scott Rozmus, president, FlorStar Sales. “Offering those products sets one apart from competitors and gives you an opportunity to add value for your clients.” Distributors said accessories, such as adhesives, underlayment, trim and molding, can help seal the deal. “From our standpoint, accessories are extremely important for us to be able to provide because there’s an expectation that where they buy the wood they will be able to get everything they need to complete the job,” said Bob Eady, senior vice president sales and marketing, T+L Distributing. Bruce Burns, marketing manager, supply products/Formica laminate, NRF Distributors, stressed the importance of the accessories to the one stop shop. “We like to be able to count the fact that we have everything you need to complete a job available and can be added to our truck and delivered.” According to Rozmus, offering sundry products to customers provides an overall higher level of service and less cost to the customer. “We don’t want somebody not able to finish a job because they are waiting for a piece of the puzzle. So it is very important to make people aware of the sundries you have and what they’re designed to do and how they’re going to make what the dealer is already doing easier, faster and more profitable.” Eady added, “You can hold up a dealer getting a $20,000 to $30,000 check from a consumer because the moldings are wrong or aren’t delivered, so it’s very, very important to be able to provide those at the time you provide the wood.” Including accessories in a job order can also help solve issues that invariably arise. “From a service standpoint, if there ever is Distributors noted that offering sundry products isn’t without its challenges. “The technical requirements of selling these products is a barrier to entry for some potential competitors,” said Breck Berkey, president, Ellis Flooring Sales. “The number of SKU’s that are involved can be a daunting task,” said Young. Berkey explained, “Accessories demand that you stock a myriad of colors in each SKU and the colors are constantly discontinued and updated, and knowing the different names products are referred to by customers is always a challenge. Many installation products also have a limited shelf life and some need to be handled differently in the winter months.” According to T+L Distributing, persuading reps to talk about sundry products can also be tough. “They’re more interested in talking about that big old order of wood and less interested in talking about the $1,000 worth of adhesive that goes with it,” said Eady. FCW FCW a problem, if you are the provider of the package that was used and not just a piece of it, it would put you in a better position to identify the source of the problem and provide the most efficient and expedient resolution,” said Rozmus. Roger Young, sundries category manager at Shaw, added, “You know there is just one person to go to. You don’t have to go to this company that sold you adhesives and this company that sold you trim, you buy it all and we stand behind it.” Distributors agreed it is also important to be knowledgeable about accessories in order to help educate a dealer on what products are the best for their particular application and circumstance. Rozmus explained that a distributor is generally aware of what products are going to work well together and in what FCW FCW environments. A customer can utilize that knowledge and avoid pieces of the whole turning out to be, although all very good, incompatible. “Ensuring that the sundry products are sourced from the same outfit that provided the flooring, there’s just a lot less that is going to go wrong.” [Atlanta, Ga.] Five of the largest organizations representing tile contractors, installers and manufacturers have announced that eight industry professionals are the first to successfully pass the Advanced Certifications for Tile Installers (ACT) certification program. ACT addresses four technically-challenging installation areas of current importance: Large Format Tile Installation and Substrate Preparation, Mudwork, Shower Pans and Membranes. A specific certification demonstrates the installer’s skill and knowledge in each of these four segments. Correction Corrections First installers pass ACT certification The eight installers with this certification are: ▶ Brent Monroe, Artcraft Granite Marble & Tile Company, Mesa, Ariz. ▶ Tyler Nequist, Welch Marble & Tile, Kent City, Mich. ▶ Keith Tavshanjian, KT Marble & Tile, Oceanside, Calif. ▶ Dan Welch, Welch Marble & Tile, Kent City, Mich. ▶ Gavin Collier, Trostrud Mosaic & Tile Co., Palos Heights, Ill. ▶ Bill Dumas, Bricklayers and Allied Craftworkers Trainer, Livermore, Calif. ▶ Eric Manzaroli, Artisan Tile, Inc., Sterling Heights, Mich. ▶ Terrance Trame, Trendell Consulting, LLC, Clayton, Mich. Partners in the development initiative are: Ceramic Tile Education Foundation (CTEF); Tile Contractors Association of America (TCAA); International Union of Bricklayers and Allied Craftworkers (IUBAC); International Masonry Institute (IMI) and National Tile Contractors Association, with membership open to all tile contracting companies. FCW FCW Correction Corrections · 11-11-13-pages.indd 6 FLOOR COVERING WEEKLY · FCW WWW.FCW1.COM FCW November 11, 2013 11/6/13 3:42 PM 11-11-13-pages.indd 24 11/5/13 8:46 AM 8 Laminate QEP bundles products, services By Brittany Walsh During the economic downturn, many companies needed to reign in their business spending for survival. But while others were tightening their belts, QEP took advantage of opportunities this presented. Over the past year, acquisitions and expanding product lines have taken the company into new markets which continues to propel its growth. The company was founded in 1979, bringing to the marketplace flooring related products such as styling and installation tools. Now, the company provides manufacturing, marketing and distributing for the professional installers and do-it-yourselfers alike. QEP expanded into the engineered wood flooring business with the acquisition of Harris Wood in 2010, producing a huge increase in sales for the company. Recently, the company expanded into the laminate market with its appointment as Faus Group’s exclusive sales and marketing agent in North America. This partnership marks QEP as the selling arm for Faus. According to Jamie Clingan, senior vice president of marketing at QEP, geographically it was a natural fit with Faus’ main manufacturing plant located in Calhoun, Ga., a short trip from QEP’s main distribution center in Dalton. “When we found the opportunity to add them to our lineup, it was really a seamless transition. The close locations allowed us to very simply combine shipments,” Clingan said. With QEP’s partnership with Faus, the company aims to widen its product offering into markets where it previously had no play. “One of our initiatives is bringing a bundled approach to the market,” she said. “Now we can come to the marketplace with our wood lines, laminate lines, and all the products you need for the installation process. In doing so, we aim to have better coverage over the flooring industry as a whole.” Sergio Negre, chief operating officer at Faus Group, said the two companies have a lot in common with the products each bring to market on the high end. “They have an excellent high end hardwood line that can be coupled with our high end laminate. Going to market with those two lines will be a very complementary pairing,” Negre said. “Our only weakness is distribution. QEP has so much presence in the market and with the expertise we have in our products, they will be a very good brand behind it.” Clingan agreed that this arrangement will help strengthen the position of both companies in the marketplace. “The addition of the high quality Faus laminate line to our ever-expanding breadth of products enables QEP to better serve the needs of our customers. In turn, the extensive QEP distribution network provides stronger and wider sales coverage for Faus,” she said. Harris Wood, founded more than 100 years ago, prides itself on quality and positions itself on the high end of hardwood at a reflective price point. Clingan said that Faus is positioned very similarly on the higher end of laminate. QEP’s targets heading into next year include continuing to grow its top and bottom lines, looking into new innovations and adding new products into its offering. “That’s something that has always been a focus for QEP,” she explained. “As complicated as our business structure is to explain, providing products that will make the installers life easier has been our approach from day one.” FCW FCW Correction Corrections FCW 60 Webro Road Clifton, NJ 07012 (800) 394-9310 Fax: (973) 614-9099 [email protected] www.DriTac.com FCW Made In USA Since 1956 Resilient Flooring Adhesives Versatile, Eco-Friendly DriTac Eco-5500 • Multi-Product Adhesive - Cuts Down on SKUs • Permanent or Releaseable Bond • Spreads Easily with Easy Clean Up • High Initial Tack with Excellent Shear Strength DriTac Eco-5200 • • • • ® Multi-Product Adhesive Permanent or Releaseable Bond Roll On or Trowel Applied Very Low Odor Enter to Win Read Below DriTac 6200 • Proven Product Performance • Multi-Product Adhesive • VOC Compliant • Spreads Easily with Easy Clean Up DriTac 5000 • Firm-Set Pressure Sensitive • High Initial Tack with Superior Shear Strength • VOC Compliant • Spreads Easily with Easy Clean Up Exceptional design deserves exceptional flooring. 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Pressure Sensitive Flooring Adhesives for Installing: •Engineered Hardwood •Cork Tile •Vinyl Stair Treads FLOORING SHOWN English Flat CP0333-C R e s i l i e n t Tr i p l e P l a y P r o m o t i o n - R e g i s t e r H e r e 1 • 888 • CENTIVA 3 Ways to Win a FREE Apple iPad Mini - To Find Out More Information Scan the QR Code, visit us at www.DriTac.com or on Facebook centiva.com · 11-11-13-pages.indd 8 •LVT/Plank •Carpet Tile •VCT •Fiberglass Back Sheet Vinyl •Cork/Rubber/Foam Underlayment FLOOR COVERING WEEKLY or or www.facebook.com/DriTacLLC www.DriTac.com/TriplePlay · WWW.FCW1.COM November 11, 2013 11/6/13 3:44 PM Resilient 9 A mix of distribution models keeps vinyl thriving By Sharyn Bernard As the resilient category continues to grow, suppliers face a significant question — whether to go it alone through direct sales or cede some control in exchange for wider distribution through distributors. There are benefits to both models and there is no “one-size-fits-all approach,” according to resilient suppliers. “The benefit of selling direct is to understand how we can help decision makers accomplish their unique objectives,” said Glen Hussmann, president of Tandus Centiva. “Servicing customers through distribution is all about speed and reliability and having a wide range of products a customer needs now on the shelf and ready to ship.” Hussmann speaks from experience in both areas: Tandus’ primary channel to market has always been through direct sales but Centiva evolved through a multi-channel approach using direct sales, agents and distributors. When the two companies merged they kept their systems intact. IVC US also uses a hybrid approach. “The direct model really predated the distribution model when the company did not have regional distribution to support certain national accounts, there was no option but to set up logistics and sales support of our own,” explained Paul Murfin, co-CEO of IVC US. And while circumstances dictated this move, the model “essentially helped put IVC on the map and we have worked hard to maintain this model.” And the distribution model helped the company increase its geographic coverage, ensuring national exposure. Still, having two models “adds complexity to our business since these are entirely different product lines.” There are benefits and drawbacks to having both models in place, he added. “When selling direct, you of course have more control over the sales story and execution, but with it you also have the expense. The distributor model is an effective way of expanding our reach and leverages local relationships.” Hybrid models are not the norm, though. Most suppliers utilize either one method or the other and they are committed to — and even passionate about — that system. Proponents of distributor models said it gives them expanded territories, more marketing options and some other logistics and costs savings. Metroflor has used distributors for as long as the company has been operating. “We consider our alliance with our network of independent distributors to be one of our key, strategic advantages,” said Russ Rogg, president and CEO. He said the model gives the company an expanded sales force, enhanced customer service, a greater depth of inventory and superior logistics. What’s more, he added that using a distribution network that also services other products gives customers better service and better values November 11, 2013 11-11-13-pages.indd 9 WWW.FCW1.COM with bundling opportunities. For example, they can receive wood, ceramic, laminate and Metroflor’s LVT in the same delivery. “It makes it more cost effective for the buyer,” Rogg said. Most importantly, he said, distributors’ long-term relationships with their customers eclipse what a direct sales force can achieve. Meanwhile, other suppliers use a direct sales model and that system works well for them. In general, they said direct sales gives w e a r e t h e them more control and exclusivity. Karndean Designflooring has used direct sales since it was founded in the 1970s and has no plans to change. “We believed this provided the most value to our retailers by having them be exclusive providers of our product,” said Emil Mellow, vice president of marketing. “It shows a commitment to our retailers and builds the one-on-one relationships with our retailers.” While the company does use some m a r k e t l e a d e r i n distributors in one part of the country, 90 percent of their business is done directly. Direct sales require a significant commitment in time and resources, he cautioned. “To do a direct to retailer model, you have to have a strong financial and logistical commitment to stocking levels,” he said. Karndean stocks materials at such a level to provide direct shipping within a week to any location in the U.S. r e a l i s m Continued on page 10 b e c au s e residential & commercial the broadest line most styling awards more installation Options One retail display system unlimited looks ma n n i ng to n. co m 1.800.3 56.6787 · FLOOR COVERING WEEKLY · 11/6/13 4:09 PM tion tions 10 Resilient Vinyl thriving Continued from page 9 Suppliers do need to evaluate their current models, though, and be willing to make changes when and where necessary. David Reichwein, CEO of FreeFit, said while the company uses distributors, he questions the model. “I think you have to choose your distributors very wisely. Bigger is not necessarily better.” He noted that for FreeFit, the proprietary products need more training and effort. For big distributors with multiple lines, “you’re just one more in a stable.” FreeFit targets smaller distributors who aren’t just focusing on a top line number, although Reichwein stressed that “I position FreeFit so whomever we partner with, they make a good profit.” Still, he said he has considered going the direct route. The hurdle is that a company needs infrastructure in place. “I don’t want to take on something I can’t manage and effectively keep. I know what I’m good at which is innovation and manufacturing. So I try to partner with distributors who know a regional market and know product.” He said he is currently going through a process of parting ways with some distributors and adding smaller, “micro” distributors. “They are focused and really work it.” FCW FCW FCW DuChateau brings its signature style to LVT [San Diego, Calif.] DuChateau has made a name for itself in the hardwood category over the years for its signature European-styled looks. Since late 2012, the company has started expanding this success into the rising luxury vinyl tile (LVT) category with its Vinyl Deluxe Collection. According to Erika Hager, manager of graphics and marketing at DuChateau, the company decided to expand into LVT to create the visual of natural hardwood in a durable, low maintenance alternative. “We wanted to offer the same great looking products we provide in hardwood at a The Vinyl Deluxe Collection in Olde Dutch more affordable price point, so LVT was a great way to do that,” she said. “LVT is also very easy to maintain and can usually be cleaned with just some damp mopping.” In addition to providing a more affordable option to hardwood in an easy- DuChateau’s Vinyl Deluxe Collection in Como to-maintain format, the Vinyl Deluxe Collection is also FloorScore certified for has seen a great deal of success with the Vinyl low VOC emissions and uses 50 percent Deluxe Collection. “I think the look and the colors are what draw customers to the line. It’s recycled content. The collection features realistic texture, not the traditional species like oak. It provides pattern and color offered in 16 different more of a European-styled look that gives the styles that seamlessly coincide with the com- customer a unique option,” Singer said. Hager also noted that the positive feedpany’s hardwood offering. “The wire brushed texture and European-styled oil back has expanded beyond the residential looks seen in this collection are market. “We have started extending the line what makes it unique compared to into some commercial spaces as well, such its competition,” Hager said. “The as a few restaurants in the San Diego area positive response led us to recently and even major retail stores throughout the expand our offering with two new country have used it in their recent renovastyles, Como and Davos, which we tions,” she said. “We are very selective with have also reflected in our hardwood the products we bring to market because we have very high standards, but because the line collections.” Gail Singer, owner of Evans, has been so successful we certainly have plans Colo.-based Mitchell’s Floor Cover- to continue expanding.” Brittany Walsh ing and Design, said that her store FCW When you’re the expert in rubber flooring more people walk all over you. As the premier experts in rubber floor tile, stair systems, wall base or moulding, more and more people take advantage of Burke Flooring’s benefits. • Resilient, easy-to-install, easy-to-maintain solutions • Eco-friendly solutions that are beautiful • 75 years of R&D in rubber at your feet • Burke’s Uni-color System offering a wide array colors accross all products • Perfect for stadiums, airports, schools, healthcare facilities, and auto services • Made in the USA–delivering product when you need it R U B B E R F L O O R I N G I As the single supplier for a full range of rubber flooring Burke’s expertise has made specifying and choosing quality flooring easy and straightforward. With 75 years of delivering performance in rubber R&D people start talking. Then they start walking–all over you. To take advantage of our expertise today contact us at 800-669-7010 ext. 503 or visit us at www.burkeflooring.com S T A I R W E L L S Y S T E M S I W A L L B A S E © 2013 Burke Industries. Burke Flooring is registered trademarks of Burke Industries. · 11-11-13-pages.indd 10 FLOOR COVERING WEEKLY · WWW.FCW1.COM November 11, 2013 11/6/13 4:12 PM 11 I take the floor BY JONATHAN TRIVERS When good isn’t enough W e all say it; “That’s good enough.” For a small retail business, is that really true? Is good enough really good for your business? Probably not. How many times do you say or think, “Ah well, it’s good enough. I have more important things to worry about?” In retail, there are very few big things that will make a difference; it’s an accumulation of lots of small things. Retail is detail. All, not almost all, but all the details need to be the best. Really? Yes, really. The lighting is good enough? Don’t let yourself off the hook. Ah, the parking lines are really faded — it’s good enough. Nope, she’s getting older and her eyesight is not as good as it was and maybe her driving skills aren’t the same as they were (I speak for myself) so get the lines painted. So many of these things are small and seemingly inconsequential but to customers it is these little things done professionally that give her a sense of well-being and enjoyment or makes her distrust the sales pitch. Way back when Delta was a great airline, the chairman said, “She checks the drop down tray to see if it is clean; if it is clean the engines are in good working order.” Makes sense? If your bathroom is not really glistening, will she get the best wood installation? If your front windows are dirty, will she get the best value for her laminate purchase? That’s the logic of retail. Marriott Hotels loves their atriums but they know that it is all the small things about the stay that really make the difference. The entire management level of that corporation reviews customer complaints. The smaller the issue the bigger the complaint. No bag of coffee right next to the coffee maker? Bad. No light bulb in lamp by the easy chair? Really bad. The coolest duvet won’t help the hotel when the lamp doesn’t turn on because it is unplugged and you have to plug it in. These failings are small but to the business traveler they are unacceptable. And the hotels know that. Take the “good enough” test. Have employees evaluate parts of the company that are not part of their responsibility and have them look at them as if they were a customer. Have them list those things that are okay but not really good, just good enough. Take the list and put them in order of importance and start to make them great. Every year take this self-examination of your store. New problems will show up and old ones that you thought were fixed need to be fixed. That is okay. ____________________________________ 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. [email protected] EPA gives Mannington award [Salem, N.J.] Mannington Mills has been honored with a 2013 SmartWay Excellence Award from the U.S. Environmental Protection Agency as an industry leader in freight supply chain environmental performance and energy efficiency. Mannington has been a SmartWay partner since 2010, and has consistently demonstrated a commitment to corporate-wide environmental initiatives. Over the past three years, the company has shown a steady increase in the use of SmartWay carriers, and in 2013 nearly all carriers used by Mannington are in the SmartWay program, the company stated. “Mannington is honored to be recognized for our accomplishments. We have a longstanding commitment to continual improvement and operational excellence, and this award validates the work our associates do in this area,” said Dave Kitts, vice president, environment, Mannington. According to Mannington, it was one of 55 companies to receive this distinction, representing the best environmental performers of SmartWay’s 3000 plus partners. FCW FCW Correction Corrections FCW November 11, 2013 11-11-13-pages.indd 11 FCW WWW.FCW1.COM · FLOOR COVERING WEEKLY · 11/6/13 4:13 PM 12 Wood Home centers bring challenge By Mallory Cruise As the industry rebounds, hardwood is one category in particular that continues to experience significant growth. However, recent increases in hardwood pricing and tough home center competition remain a challenge to specialty retail and the entire supply chain. Still, as home centers gain share, independent retailers too have succeeded in carving out a profitable niche business by carrying better goods and more diversity of price points and species. Home centers have been expanding because they have secured themselves a place in the market through the products they offer, said Rosana Chaidez, vice president of sales, marketing and procurement at Haines in Glen Burnie, Md. “Home centers offer value, lower price options. That’s the niche product at home centers,” she said, adding that while home centers offer lower priced products, it is the independent retailers who specialize in highend, specialty product. “Specialty retail stores offer all price points and high-end consumers favor specialty retail stores. Most of the highend hardwood brands are not offered by the home centers. Retailers are winning the highend wood jobs,” she said. Correction Corrections · 11-11-13-pages.indd 12 FLOOR COVERING WEEKLY · Scott Rozmus, president of FlorStar Sales Inc. in Romeoville, Ill., agreed that it is the lower prices at home centers that draw the consumer into the store. “Home centers advertise low prices but if a consumer actually shops in the store, their strategy is to qualify the consumer and trade them up to better goods. Which will allow them to generate a bigger profit,” he said. Don Herndon, owner of Classic Wood Flooring in Rockledge, Fla., said home centers and retailers differ greatly in the products that they offer. “The home centers don’t have the same variety that we do. We do more specialty, custom works. We also tend to act more quickly than home centers,” said Herndon. Rozmus of FlorStar Sales said that home centers do have one main advantage. “By buying in bulk, home centers have the ability to buy entry level engineered and solid flooring at competitive price points because of large purchase orders. However, if a consumer is looking for anything they consider special or unique design-wise, I believe they are going to shop at an independent specialty retailer,” he said. Price increases disrupt market Jeff Shipe, owner of At Your Door Floor Store in Derwood, Md., said that he believes the industry will see an increase in hardwood purchases from home centers this year due to the hardwood price increases. “People come in and see one price and come back a few months later to find that it’s 10 to 15 percent higher and think it’s a sales ploy, so they leave and check out the home centers. In most cases, they discover that everyone’s prices are going up and then they’ll come back and do business with us,” he said. Shipe further added that his closure rate on jobs has dropped because of the price increases. “I think people see the advertisements for these low prices that aren’t realistic, and they go out searching for these unrealistic hardwood prices.” However, distributors have helped retailers, like Shipe, set themselves apart. “Our distributor has helped us private label product which definitely helps position us away from home centers. Our distributor has done a great job of creating a private label brand that is not available in home centers with a competitive price, and that has helped my business,” he said. Neal Hochstein, store manager of Classic Carpet One Floor & Home in Shelby Township, Mich., said that he is selling more hardwood now than he has in the past. However, Hochstein attributes the growth in sales to the “Made in Michigan” story of the products he sells as well as his store’s alignment with a local distributor and supplier. Hochstein noted, the store has been providing high quality hardwood products at very competitive prices. “At one time, we had 10 different manufacturer displays in our store, now we have three. Now I’m selling 10 times more wood in less square footage. It all comes from my Michigan distributor and supplier story — they get their wood from within a three-mile radius,” he said. FCW FCW FCW WWW.FCW1.COM FCW November 11, 2013 11/6/13 3:45 PM Wood 13 Boa-Franc celebrates 30 years [Saint-Georges, Canada] Boa-Franc, the manufacturer behind Mirage brand hardwood floors, celebrates its 30th anniversary this year. “It signifies dedication, commitment and devotion from Boa-Franc’s employees and partners,” said Luc Robitaille, vice president of marketing. Purchased in 1983 by current president Pierre Thabet, the company has grown to become North America’s leading manufacturer of prefinished hardwood floors, according to Thabet. He said it all began very modestly when he acquired the company as a little workshop. “There were three employees and three others were added in the first month,” he said. According to Thabet, everything could have ended March 3, 1984 when a major fire destroyed all of the company’s assets. Thanks to that dedication, commitment and devotion, Boa-Franc persevered. “We rolled up our sleeves and rebuilt. We were back in production on May 28.” Soon the company took on a new philosophy: quality and continuous improvement. Over the next three decades Boa-Franc built a solid reputation, and today the floors, entirely designed and manufactured in Saint-Georges by Boa-Franc, are distributed across North America through nearly 2, 300 specialized dealers and are internationally recognized for their quality. In 2012, just shy of its milestone anniversary, Boa-Franc was awarded the Grand Prix québécois de la qualité — the highest distinction bestowed by the Quebec government on businesses and organizations that successfully apply best business practices. Robitaille noted, “We’ll keep striving to excel and be the best everyday by applying rigorous and painstakingly small details that make all the difference to create a high quality product.” The company announced an anniversary consumer rebate sale which offers 50 cents per square foot discount to consumers on all Mirage products in Canada and the U.S. A special reward is also offered to Maestro and Elite Dealers’ in-store sales staff in conjunction with the consumer rebate sale. “It’s a way to say thank you to those who support us,” Robitaille said. Boa Franc’s Saint-Georges de Beauce plant Activities have also been organized for the employees and their families. “Our tion over the years and I hope they'll be here employees are the main reason for our success. in 10 years to celebrate our 40th,” Thabet said. I thank every one of them for their contribu— Megan Salzano 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 Housing impacts wood The hardwood is in part seeing growth due to a stronger demand for housing, according to distributors like Rosana Chaidez, vice president of sales, marketing and procurement at Haines. “New construction has bounced back from the low water mark reached during the downturn and there is pent up demand for new homes. Much of this demand is in the mid to high-end market,” she said. Residential too has seen an uptick due to remodel of existing homes. Chaidez said home prices are showing a nice increase. “Sellers are finally putting their homes on the market. Buyers anxious not to miss low rates are snapping up the available inventory. Hardwood has been the upgrade of choice in this second and third buyers’ market,” she said. The gap is also closing between the cost of soft surface and that of hard, according to Neal Hochstein of Classic Carpet One Floor & Home in Shelby Township, Mich. “Carpet fiber prices and soft surface product prices are climbing. I have carpet that is more expensive when installed than hardwood. When that happens most people will gravitate towards the hardwood because they believe they’re getting more value for their money and adding more value to their property,” he said. FCW FCW Board by board, we continue to set the standard. Be the wood flooring leader in your market. Call 1.866.448.1785 today. Correction Corrections FCW November 11, 2013 11-11-13-pages.indd 13 mercierwoodflooring.com FCW WWW.FCW1.COM · FLOOR COVERING WEEKLY · 11/6/13 4:13 PM 14 Wood Sustainable by nature Hardwood inherently has a number of sustainable advantages but suppliers too have worked diligently and made sizeable investments to receive respected third-party certifications. “I think that today’s wood flooring, especially wood flooring manufactured in the United States, is a ‘green’ product by its nature,” noted Paul Stringer, vice president of sales and marketing at Somerset Hardwood Flooring. Milton Goodwin, vice president of product management, wood, at Armstrong, added, “There isn’t a shortage of trees that we utilize to make our product because trees are replanted. It’s basically an endless supply of resources we can pull from to produce both the solid and engineered products we make,” he said. Dan Natkin, director of wood and laminate business at Mannington, agreed, “North America has one of the most sustainable hardwood forest areas in the world. Couple with that the fact that products like engineered hardwood continue to grow, using fewer trees for every square foot of production, and improved glues and finishes minimize any potential air quality impact,” he said. Goodwin at Armstrong added that hardwood contributes to healthy indoor living as well. “If there is dirt or dust on a hardwood floor you PureBond technology and third party certifican see it and clean it up, it’s sitting on top of cations support Mohawk’s family of brands. the floor. Hardwood doesn’t hold dirt,” he said. Stringer at Somerset said that sustainability also matters when it comes to company staff and we use our waste to create bio-fuels resources. “We prepare 100 year plans on that reduce our country’s dependency on timberland we own, we have foresters on fossil fuels. Nothing in our wood production goes to the landfill,” he said. Natkin at Mannington explained that green and efficient manufacturing generally go hand in hand. “The fewer raw materials we put into the waste stream, the more cost effective we become,” he said. Agreed Goodwin, “We use all of the wood, all the way down to the sawdust. We use remaining pieces to heat the boilers that run our plants. Utilizing 100 percent of what you take from the forest is good for business.” Shaw leverages hardwood veneers and solids that are grown in sustainably managed North American forests, according to David Wilkerson, director of corporate sustainability. “Since hardwood trees are a renewable resource, that enhances their green credentials. This is confirmed by the Cradle to Cradle Silver certification we have earned on all of our hardwood products which effectively differentiates them in the market place,” said Wilkerson. Mohawk too utilizes certifications with all of its brands. “Mohawk and Columbia FloorScore certified products meet criteria required by a variety of other well-respected organizations,” explained Harry Bogner, senior vice president, hardwood, at Unilin. “The U.S. Green Building Council (USGBC) accepts FloorScore certified products as compliant with LEED Green Building Rating Systems for residential and commercial ‘low emitting’ materials.” Environmentally responsible finishes are also part of the equation, noted Kevin Thompson, hardwood and laminate category manager at Shaw. “Since solvent-based finishes were eliminated many years ago, finishes are already environmentally-friendly. Lower emission adhesives as well as low-waste manufacturing processes make the biggest impact toward green today,” he said. From its environmentally responsible EnCore products, which utilize 50 percent less of newly harvested wood than traditional engineered flooring, and Greenguard certified enSURANCE installation products to its unofficial tagline “This is what it means to be green,” Anderson Hardwoods has been at the forefront of environmental product development. Green is also an important attribute when it comes to the commercial market.“As a growing segment of the market, it’s important for builders to be communicating that Made in North America green message. It’s as important to them as it is to us,” Goodwin noted. — Mallory Cruise · 11-11-13-pages.indd 14 FLOOR COVERING WEEKLY · WWW.FCW1.COM November 11, 2013 11/6/13 4:14 PM Carpet & Area Rugs Distributors have room for carpet By Janet Herlihy Whether a distributor has offered carpet for decades or added it more recently, the companies Floor Covering Weekly (FCW) talked to said soft flooring is an important part of doing business today. For Swiff-Train, “Carpet is now part of a healthy mix and will always be worth doing,” said Jonathan Train, vice president for the Houston-based company, ranked 16th among FCW’s Top 25 Distributors in 2012. Distributors have a lot to offer. “For retailers, there are now so many SKUs across all the flooring categories, that they would rather the distributor carry the assortment,” said Train. “The dealers don’t want to invest in all that inventory.” Delivery and freight can also be an advantage for distributors. “In Texas, if a dealer needs carpet by the weekend, most of the mills won’t be able to deliver that quickly. We have about a dozen qualities that we stock with four to 10 SKUs in each, that are bread and butter items that we can offer locally and quickly. We can give the dealer the convenience of being able to pick up the product at a Swiff-Train warehouse, which keeps pricing competitive. We also offer special orders through Shaw and Milliken and have private label programs with some of the smaller mills. There’s a time and place where Swiff-Train is a better fit for a dealer’s needs than waiting for a mill,” he stated. Transportation varies but for the most part Swiff-Train arranges its own shipping from the suppliers to its Houston facility. “Shipping to the dealers is bundled with other things or the dealer can pick up at the warehouse. Once you get into smaller size orders, it’s more affordable to get carpet from the distributor. We sell everything at ‘cut at roll’ prices,” Train explained. “Especially for dealers in more rural areas, where freight costs are higher, more carpet is being handled by distributors. The functions of the middleman are still important. The need still exists to have someone who can provide services to dealers not readily available from manufacturers,” he noted. Swiff-Train’s carpet business is growing and Train expects the shift to more carpet through distributors to continue. “Some of the large suppliers are driving a broader product mix, but the dealer may not want to get so many categories from one supplier. That creates an opportunity for others. Especially for some of the newer, smaller mills such as Engineered Floors, Lexmark and Phoenix, which might not have as large a network of sales reps as the big mills and can get their product to retail using the sales teams of distributors,” Train explained. BPI, ranked second among FCW’s Top Distributors and headquartered in NashNovember 11, 2013 11-11-13-pages.indd 15 WWW.FCW1.COM ville, has offered carpet since 1970. Today, carpet, along with most products, is private labeled under the Prestige brand, according to John Anderson, BPI vice president. The company offers commercial and residential broadloom and commercial carpet tile, stocking many of its carpet offerings in its Memphis and Dallas hubs. BPI offers dealers same day service at its hubs and next day delivery to any of its other locations. “Our prices are very competitive and our dealers also save freight as in-stock carpet ships on the same truck as all our other products for one flat delivery charge,” reported Anderson. Ranked 20th among FCW’s Top Distributors, All Tile Inc. began offering carpet in 1995, according to Bob Weiss, president and CEO of the company that serves dealers in 13 Midwestern states. Based outside Correction Corrections 15 Chicago in Elk Grove Village, Ill., dealers across a wide area appreciate All Tile for its convenience, trust and value. “We provide more of a niche with ShawMark’s Anything Goes. It’s a great product,” Weiss said. “We also offer carpet in stock that is available for quick delivery and value roll specials. Buying carpet from us gives our dealers savings on freight. Some even pick up the product at our warehouse. We are a great source for products and credit. Dealers also come to us because they trust us to have good products and get it to them on time,” Weiss stressed. FCW FCW FCW FCW PPG Congratulates Mirage on 30 Years of Flooring Excellence A Strong Partnership Built on Innovative Products and Technology PPG knows 30 years is no small feat because we’ve been around a while too. As a provider of innovative coatings for over 100 years, we’re proud to have been a factor in Mirage’s success for much of that time. PPG RAYCRON® urethane coatings protect the majority of Mirage’s award-winning hardwood flooring collections, offering outstanding scratch resistance and performance. These low-VOC, low-HAP coatings reduce energy consumption and minimize the impact on the environment. PPG offers more than just coatings. Our globally renowned R&D team worked with Mirage to develop their ground-breaking Nanolinx™ protective coating, which is 5 times more wear-resistant than competing finishes, and their Cashmere®* matte finish, which mimics the low-sheen appearance of an oiled floor. By supplying industry-leading coatings and technology, PPG has helped Mirage maintain a position of global leadership that will last another 30 years... and beyond. For more information about how you can partner with PPG Industrial Coatings, call 1-800-258-6398 or visit ppgideascapes.com * Cashmere is a registered trademark used under license. The PPG logo and Raycron are registered trademarks of PPG Industries Ohio, Inc. · PPG-BoaFranc Ad_FCW_v4 10-22.indd 1 FLOOR COVERING WEEKLY · 10/23/13 4:42 PM 11/6/13 3:51 PM 16 Carpet & Area Rugs B Carpet: Banking on ‘woman-owned’ deliberately purchasing more from minority and woman-owned businesses,” she explained. So far, 2013 is seeing an increase in carpet sales, which is offsetting the reduction in B’s commission tufting sales, which the company began in the summer of 2012. “While the economy has continued to surge and recede, we feel that our marketing initiatives are paying off for us,” Moore reported. [Dalton, Ga.] B Carpet, formerly known as Burtco Enterprises, has a new name, a new attitude and new certification as a woman-owned business granted by the Women’s Business Enterprise National Council. Elizabeth Moore, majority shareholder, president and CEO of B Carpet, is certain being recognized for its female-ownership will make a difference for B Carpet. “We gained certifica- tion in May of 2013 and we are excited about seeing where it leads,” Moore said. Designers, architects and specifiers who make decisions in the commercial carpet market are known to make purchasing choices using criteria other than price, according to Moore. “Besides looking at environmental sustainability for example, they are also considering social and community benefits and so are CMH grows more efficient with the adaptation of UPS’s they’re a lot of work.” CMH Space Flooring Products has grown paperless bar coding system, according to Cox. “It used to take us two days to do a full invenits business 300 percent since its first 1996 tory when we were much smaller. Now, we get acquisitions, according to O’Connor. in at 7:00 a.m. and we’re done before lunch on the same day with nothing being written More products Today, CMH Space Flooring has 75 trucks down,” he said. “Being big is great. Being good on the road at any given time, its customer reps is even better. There’s not a customer we can’t take an average of 1,500 sales orders a day and get to in three days. And in most cities we’re it has a line-up of 64 vendors, including many next day. That’s always been our standard.” The success of CMH Space Flooring Products heavyweights like Quick-Step, Formica, Congoleum, IVC US, Mullican, Anderson, and more. has had a positive impact on the local economy “There is still huge demand for branded items — that market is still there,” said Layton. “Our philosophy is to keep the number of SKUs low but stock them heavily.” CMH also provides two complete private label programs – Carolina Lifestyles and Continued from page 5 Carolina Home – that include carpet, wood, While the company is guided by the funlaminate and LVT. damental principle of being a good partner, O’Connor added, “Instead of one or two it focuses on the core values of distribution. reps calling on us, we now have 10 reps call- “When you look at distribution, distribution is ing to expand their business. Everyone wants basically three things — we are our customers’ to grow with us.” warehouse; we’re basically part of our customWhile the volume and number of products ers’ banking program, because we carry their has increased, managing it all has become accounts receivable; and, we put together programs on various products to push through their business and increase their sales and Having all employees pulling together was profit opportunity,” explained Faircloth. especially helpful during the recession. “We Most employees, including the sales force, did manage to fare better than the industry. have been with the company an average of 15 We can say for sure every day was hard and years, another key element of the company’s not a lot of fun but we all shared in the sacri- success, according to Faircloth. As well, its fices and hard work,” said Anderson. family roots remain strong. Norwood SanBPI reduced expenses and managed to difer’s sons Tom and Mike came into the make a profit every year as it has done every business. Oldest son Tom passed away five year of its history. BPI has achieved its remark- years ago and Mike is now CEO and chairable growth through internal strategies. “We man of the board. Kirk Sandifer is company have expanded within our current 10 state executive vice president and will someday foot print with more products, such as Quartz represent the company’s third Sandifer genStone and even cabinets,” said Anderson. “We eration of leadership. also expanded into Central Alabama in 2012 Cain & Bultman has weathered both and will be servicing Oklahoma in the third changes in its business and in the flooring quarter this year. And, on January 1, 2014, we business. When the company started, it sold will add Tarkett Sheet and LVT to our Texas, Atwater Kent Radios. Under the guidance of Oklahoma and Louisiana markets. Norwood Sandifer, it diversified its product BPI participates in local and national causes, offering to include, Zenith, JennAir and including an annual food drive supporting the KitchenAid. “We’ve always been a brand Mid-South Food Bank and an annual bicycle name house,” said Faircloth. drive benefitting the children of Porter-Leath, One of the name brands brought on in an organization that helps low-income families 1934 by Norwood Sandifer was Armstrong and children in Tennessee. It also sponsored Flooring. Today, the company exclusively the second annual Tim Norton Golf Tourna- distributes flooring and Armstrong repment in Huntsville, Ala. with proceeds going to resents some 80 percent of its business. St. Jude Children’s Research Hospital. FCW FCW Another milestone for the company was in Continued from page 1 Then, in 2002, CMH Flooring Products took a chance with a new product, Quick-Step, which introduced the concept of glueless, mechanically-locking, floating laminate flooring to the nation. Sales and margins flourished. The revenue generated through expansion into vinyl and laminate flooring positioned CMH for additional growth, triggering the 2008 acquisition of Space Flooring, based in Smyrna, Ga. The acquisition of commercial distributor Ellis Flooring based in Charlotte, N.C. followed in 2010. Then last year, CMH opened in Harrisburg, Pa. and expanded into the Northeast, which helped further open up the Washington, D.C., Delaware, Pennsylvania, New York and New Jersey corridor. “We went from $100 million to now $200 million but when the economy collapsed between the two sets of acquisitions, we had to work three times as hard. Now we’re starting to enjoy everyone’s efforts,” said Chris O’Connor, CFO. “Acquisitions are fun but BPI celebrates Continued from page 5 years ago that the company keeps in mind to stay true to its mission: “To distribute quality brand name products while providing service and value that exceed our customers’ highest expectations.” Hill asked, “Where have we been? Where are we now? Where are we going, and how are we going to get there?” Today’s leadership responds, “BPI comes from humble beginnings. It continues to grow its business by working hard and investing in its people and it will continue to grow by adapting to change.” Along the way, BPI expanded its product line to include all major types of flooring — carpet and cushion, laminate, hardwood, resilient and ceramic tile — as well as cabinet and counter surfaces and installation supplies. In 2005, BPI formed an ESOP Trust and paid out in 2013. The company is now 100 percent employee owned, according to John S. Anderson, BPI vice president. “Over the eight year period, the employees became stockholders and took ownership in their daily responsibilities of servicing our customers,” Anderson explained. — Janet Herlihy as well — a work-release program in conjunction with the local criminal justice system. “We had a hard time getting labor to move carpet cushion. People would stay a couple days and leave. Our work-release program helps convicts pay off restitution, cover daily prison costs and they get to keep the balance. Right now there’s about a 50 percent success rate, but it has helped a number of people who have become key in managing our inventory and molding programs,” said Lanning. FCW FCW Correction Corrections FCW Cain & Bultman Correction Correction Corrections Corrections FCW 11-11-13-pages.indd 16 Moore has more than 21 years of experience in the commercial carpet market. She started out working for what was then Burtco, which had been founded and named by her father (now chairman) Burton Brown in 1979. The decision was made in 2009 to rebrand Burtco. “We realized that we were creating some very elegant custom carpet, and our name and image needed updating to reflect our highly styled work,” Moore explained. “It’s been a lot of fun working the B advertising campaign with slogans like ‘B Creative,’ or ‘B Hospitable’.” FCW · FLOOR COVERING WEEKLY · FCW 1995 when it closed Florida facilities in Miami, Tampa and Orlando and one in Birmingham, Ala. in order to centralize the business out of Jacksonville. “To reposition ourselves to grow the business in the long term, we consolidated to the home office in Jacksonville where we can ship product next day to all markets we serve. That was real decision-making times for us but the best thing we have ever done. Our overhead would have been too high,” explained Faircloth. The company’s territory remains Florida and Georgia. During the last several years of recession, the company has seen both industry-wide and regional change. “The major thing is that we think the retail business in the state of Florida in flooring is in its infancy. We were such a builder-driven marketplace until the recession hit in 2007/2008. Even though it’s coming back a bit now, we feel remodel replacement market offers tremendous opportunity. We’ve invested in displays and programs to be in the position to increase our retail opportunity as retail comes back and we see that paying off for us now,” said Faircloth. In general, Faircloth said the basics of distribution stand but that the company continues to grow various product lines within the organization. “Distribution hasn’t changed a lot. The basics are maintaining inventory, providing a fair price and sales training,” he noted. Cain & Bultman sales posted at $48 million for 2012 and are projected to be $52 million this year. And when asked what will keep the company going strong in the future, Faircloth pointed back to the company’s roots. “Over the years, we’ve really been able to develop a partnership with our customers out in the marketplace,” he said. “Revenue kind of follows relationships.” FCW FCW FCW WWW.FCW1.COM FCW November 11, 2013 11/6/13 4:09 PM Untitled-1 24 10/31/13 12:10 PM 18 Carpet & Area Rugs Carpet mills team up with distributors to score at retail the retailer relationship, according to Goetze. “In many cases, the distribThe wholesale distribution utor becomes the brand, channel continues to grow and the distributor brand for carpet manufacturers. becomes more important While both distributors than the product brands. and mills sell to retailers, They understand that the two parts of the indusbundled benefits and try are more complemenowning the retailer relatary than competitive. tionship is key to gaining While manufacturers the greatest share of seek to market coastShawMark Anything Goes! retailer spend,” he said. to-coast, distributors Shaw’s is popular with distributors. “Distributors are very serve a more local or focused on revenues and regional area. Duane Goetze, Shaw’s residential marketing direc- margins, and they hate inconveniences. Our tor, explained, “Distributors are flexible, goal is to create programs and supply products and tailor their business and services to the that help them grow their revenues and make local market. Whereas manufacturers try to a solid margin.” While Shaw offers distributors a full line eliminate variation, distributors thrive on variation and utilize their flexibility as a com- of residential and commercial broadloom and carpet tile, as well as indoor/outdoor petitive advantage.” Able to tailor their services to what the indi- styles, it has provided a unique selling propvidual dealer needs, distributors strive to own osition with its ShawMark Anything Goes By Janet Herlihy another source of terms as line of high-performance well as quick turnaround — carpet products. order today, install tomorBeaulieu’s distributor row,” he said. business continues to grow, Beaulieu will also proaccording to Joe Williams, vide design work for private vice president of Internalabel programs and prodtional and home center sales uct knowledge and sales for Beaulieu. “Distributors support for the distributors are looking for value and and their dealers. Williams want to build their own added, “We will help them private label brands, but are help their customers with also beginning to piggyback with some mill marketing, Distributors carry Beaulieu’s Bliss sell through.” Getting carpet from for example, using some dis- Indulgence soft nylon product. manufacturing in Dalton plays that identify the product as Beaulieu’s, especially for EverClean, to a distributor depends on the quickest, a line of solution dyed polyester carpet, and most economical way. “A lot of distributors Indulgence, a collection of soft, solution dyed send trucks to us,” explained Williams. “It’s part of our special service that our freight nylon,” said Williams. Working with distributors is important department looks for opportunities for disbecause it gives Beaulieu access to dealers tributors for lowest freight costs. We also it might not otherwise reach. “Some are provide direct delivery or can drop ship to smaller dealers who look to distributors for our closest distribution center and they will local access to inventory. The distributor is pick it up there.” FCW FCW Correction Corrections FCW FCW Tile & Stone What is keeping tile distributors up at night? Unpredictable politics, an unstable economy, changing consumer demand: the U.S. building and renovation markets may be on the upswing, but it hasn’t been a smooth ride. Even with careful planning, the most seasoned business owners are finding challenges in running their businesses. So FCW asked tile distributors, what are some of the key issues keeping you up at night? Raj Shah, co-president MS International, Orange, Calif. Two issues are of primary concern at this time: overall volatility in worldwide economics and politics continues to add challenges to importing. Specifically, overseas inflation and interest rates are causing large changes in exchange rates which hamper the ability to make long-term plans when it comes to Scott Levy, EVP, operations Arley Wholesale, Philadelphia Obamacare affects the business and consumer climate overall. That shock to the system is going to happen, and no matter what side you are on, you can’t be happy. The more the media jumps on it and talks about it, it brings fear back to the marketplace. We Tom Kotel, president saw the shock to the system when WashingMid-America Tile, Chicago I think we are going in the right direc- ton shut down, and it hit the core areas that tion, but it’s a slow recovery. You have to we deliver to. When government workers are be serious about growing your market furloughed, they aren’t buying tile. share. I’m going to say that we’re definitely in the market for the best talent that we can Joe English, senior manager, ceramic budget. I don’t care if it’s sales, customer Swiff-Train Company, Houston The economy has been treating us very service, warehouse, that’s your best asset. You get everyone working as team, but I well. Texas and Oklahoma have been insubelieve organizational health trumps all else. lated from the decline of the last two to three years. All of our categories are up. There are So we’re working hard at that. imported product. Domestically a large issue is the non-renewal of GSP (generalized system of preferences). This is significantly raising the prices of imported products. In addition, regulations as it relates to importing are also causing challenges. changes in the ceramic market. Seems as if it’s not really a race to the bottom as far as price goes. Consumers are looking for style and value. Harold Yarborough, vice president D&B Tile Distributors, Miami Business is good because we make it good. We are in a tough market and the economy is improving at a slow rate. We have been updating and improving our website, which is ecommerce, and continue to partner with our vendors on their marketing strategies, and we are doing a better job of social media this year. Frank Garcia, CEO Gulf Tile & Cabinetry, Tampa Bay, Fla. In terms of worrying, we are having growing pains. All of us who have been through what we’ve been through are running very lean. You do a lot of different jobs. We are the highest hit area in the country, and we have a lot of make up to do. FCW FCW Correction Corrections FCW FCW Crossville’s urban-inspired Reclamation [Crossville, Tenn.] Crossville Inc. recently introduced the brand’s first digitally produced porcelain tile collection, Reclamation. “We looked to urban spaces and cityscapes for inspiration for Reclamation,” said Lindsey Waldrep, Crossville’s vice president of marketing. According to Crossville, the collection offers a quartet of colors — Whiskey Lullaby, Cotton Exchange, Steel City and Tobacco Road — with 16 different facings that interpret the look of wood, metal and concrete. Correction Crossville's Reclamation collection in Cotton Exchange with Cotton Etching Corrections · 11-11-13-pages.indd 18 Reclamation is manufactured in the U.S. with Crossville’s EcoCycle manufacturing process, contains a minimum of 4 percent recycled content and is Green Square certified. “Everybody loves a good comeback story, so we turned to America’s roots of industry and enterprise to create a line that answers designers’ appreciation of reclaimed materials, repurposed elements and sustainable products,” Waldrep said. Size options include 12 X 24 and 24 X 24 field tiles, along with a 6 X 24 etching accent. A 4 X 24 bullnose for Reclamation is also available. FCW FCW FCW FLOOR COVERING WEEKLY · FCW WWW.FCW1.COM November 11, 2013 11/6/13 4:10 PM Vote, FCW Spin and Win! Its as easy as 3 simple steps! 1. Stop by the FCW booths at Surfaces: S5761 & B3370 2. Cast your votes for the Dealers’ Choice awards 3. Pick a lucky number and spin the wheel. If your number comes up, you win $50 on the spot! It’s that simple! Surfaces Booths S5761 & B3370 Spin&Win2014.indd 8 10/9/13 12:08 PM Marketplace Smart marketing Continued from page 3 of their business.” A high percentage of membership is family businesses and Matson said within the group, there is a segment that is deeply committed to aggressively marketing their companies. “We felt our members needed to be more aggressive in showing the value they bring and the distinctiveness of their business. The time is right with people feeling more confident. How can we expand and continue to grow? This is very much member to member,” she said. From talking with members, Matson said they realize the importance having time to network and share ideas, challenges and solutions. “More and more, we evolved our format to discussion and spending time talking.” Some of the talk is done informally among friends and formatted roundtable discussions are utilized as well. “The challenge is to always anticipate their needs,” she said. The group is performing well after the recession, Matson reported. “Everyone is saying they are extremely busy. If you look at 2013, the front half started out slow. But our numbers look good and we are hearing from members the back half of the year and into 2014 is very strong,” she said. And there are pockets of growth and of slower recovery from region to region, one commercial business segment versus another, and among product categories as well. Recovery in the Northwest is a little slower, she said, while the Southeast is pretty good. “The Midwest always lapses a little — some areas are a little more remote and states like Ohio take a little longer to for the market to get strong,” Matson told FCW. Corporate, hospitality and higher education segments have held strong, she said, adding, “K through 12 remains a challenge from a budget perspective.” She said that as far as floor covering product goes — Starnet has some 50 vendor partners — carpet tile is outpacing broadloom though the design focus of carpet tile and the different sizes and dimensions offered pose greater installation challenges. “Our mission is to help members grow both top and bottom line and give them new revenue sources and to expose them to ideas and understand what has worked for other members,” said Matson. Strategies for growing your business Two panels of leading Starnet flooring contractors spent the first afternoon in New Orleans talking to the group about building their business through various marketing strategies. Whether it was attracting new customers or increasing business being done with existing ones, members offered examples that worked for them. “Things have changed. Business is much more competitive,” noted Bill Imhoff of Intertech Flooring in Austin, one of the panel moderators. Panelists addressed relationships with general contractors, end users and facility managers and the A & D community as well as how to win additional business both with Jeanne Matson, Phil Schrimper and Randy Weis existing clients and new opportunities. Jim Lloyd from Cornerstone Commercial Flooring, noted that when doing business with large A& D firms, many have reduced staff during the recession and have been slow to build. “We use these problems as coachable moments,” he said. “We need to market ourselves to the professionals as professionals — away from the dramas and emotions of the job.” Education, he added, is a key component. Tips from Lloyd included: Set up an education calendar monthly; sponsor an event; institute a dress code (adopt a personal style as a company); and, host a cocktail party once a month for clients — “It gives you an intimate, personal atmosphere,” he said. “Excellence is contagious so let’s be excellent. Be memorable on how you are spending your marketing dollars.” Speaking about end users, Jim Vanhauer of Commercial Systems in Omaha said it is all about “service, service, service. Take care of issues proactively and seamlessly.” Meanwhile, Ellen Zucker from CI Select in St. Louis, Mo., leverages her company’s different divisions which include a furniture company. The company, in fact, runs a lead sharing contest to encourage the divisions to share information. She also said that the company feels strongly about spending money on marketing. “We have to be creative and resourceful in bringing people together.” Frank Pelosi of Metropolitan Contract in Cherry Hill, N.J., said he limits the amount of bids he puts out. “You are giving your pricing to your competitors. Focus on the people that give you the best business — concentrate on your best customers.” Pelosi's business uses union workers. He also cautioned, “You can’t bend your price so much. You have to be prepared to lose. If they know you'll walk away, they won't hammer you so much.” Mike Patton, DSB (D.S. Baxley) said his company posted $11 million in sales four years ago but this year, sales have climbed to $20 million. He credits it to the company’s rebranding and strategic marketing efforts which include “branding everything,” from mouse pads, shirts to company trucks. “We make it comprehensive and develop message your company can get behind,” he said. But relationships, noted Bill Bohrer of Wall 2 Wall Floorcvoverings in Ketchum, Idaho, is No.1. “Sometimes a relationship trumps product, trumps service, trumps anything else. I can’t emphasize how important it is to keep these relationships.” FCW FCW Correction Corrections FCW It WIll Wear More Hats tHan You Do Try QFloors software on for size. • User-friendly software created specifically for flooring dealers • Manages inventory, sales, accounting, payroll, B2B and more www.qfloors.com (866) 563-0140 Contact Us Today! FCW 2013_QF_FCWclass_2.25x5.62.indd 1 11-11-13-pages.indd 20 1/7/13 1:12 PM 11/6/13 4:07 PM Stacey Iaccino [email protected] Call: (516) 227-1407 Fax: (516) 227-1342 Classifieds Next up in FCW, Dec. 9 Issue Ads Close Nov.26, 2013 Outlook 2014 Business Opportunities TIRED OF PAYING TOO MUCH FOR TOO SLOW FREIGHT? Tell the MILL to Ship: “CCL/DELTA-COLLECT” AFFORDABLE-FAST-DAILY DELIVERIES of CARPET from ALL Dalton area Mills to Virginia/DC/Maryland Broadloom as low as $0.30SY+FS ON 1000+SY Pay the driver C.O.D & take 10% discount. OVERNIGHT EXPEDITES only $500+Standard freight. Call or email ED for quotes. [email protected] or call 410-604-3330 START GETTING DELIVERY ON YOUR OWN TERMS AND SCHEDULE !! We get all the flooring others can't get at the lowest prices. Call 706-264-8425 WE HELP DEALERS Private labels, specialty mills & etc. Call us now at 800-228-4632 www.carpetbroker.com Get the word out Place your ad here Floor Covering Weekly Call: (516) 227-1407 Fax: (516) 227-1342 The New Leader in Flooring Software Pacific Solutions offers flooring’s only management software that runs native and optimized on iPad® and iPhone®. Call to learn WHY others attempt to imitate us. We Sell Freedom 111113Class/market.indd 25 pacific-solutions.com 800.400.4927 We buy used carpet cutting Machines. Please call 407-509-3030 Floor Covering Business for Sale Sarasota, FL Owner retiring after 25 years. Great location. Call Owen 941-374-9724 1 CENT/SF FLOORING ESTIMATING Fast & Accurate - Callidus Takeoffs www.commercialflooringestimating.com Career Opportunities Southern Wholesale Flooring Company Based in Kennesaw, GA, is looking for an experienced outside sales representative for the Montgomery to Dothan, Alabama area. We are looking for an experienced floor covering rep. that is familiar with the sales area. The ideal candidate knows the retailers, sales area and all types of floor covering products (to include installation supplies). This is a commissioned position that does include some travel and compensation will be discussed at the time of the interview. Email resume to resume@swfloor.com Sales Reps/Agents EcoTimber, a leader in sustainably sourced wood, bamboo & cork flooring, is seeking sales reps/agents with strong dealer relationships & experience with sustainability issues for these 6 territories: CA, Pacific Northwest, Mid-Atlantic, New England, Great Lakes, and Texas. Email resume to: [email protected] Sales/Marketing/Product Director TW Flooring Group seeks a Sales/Marketing/ Product Director for our Portuguese Cork. Need the ability to drive cork sales through our various channels including EcoTimber. Requires distributor dealer relationships & cork experience. personnel@twflooringroup.com Career Opportunities Cavalier Carpet Industries is seeking A company territory manager and independent agents in select territories, with responsibility of selling rolls to stocking retailers. All inquiries are kept confidential. Send resumes to: email [email protected] Fax # 706-517-1220 or 706-517-1044 or call Harold Hair at 800-681-1718 NEED $$$$ ?? I will buy your Oriental Rug and machine made inventory for cash!! I will travel to you in USA or Canada CALL MAURICE KAOUD AT 860-836-9559 SALES AGENTS NEEDED Industry leading hard surface company is seeking experienced independent sales agents with strong dealer relationships to sell hardwood, bamboo, luxury vinyl, and laminate in the following markets: SD, ND, AZ, NM, KS, OK, NE, IA, MN, MO and WI. Hard Surface experience is required. Email resume to: hardwoodfl[email protected] NYC based company is seeking a sales professional for its NYC showroom. Minimum of 3 years experience in floor covering sales. Must be knowledgeable in all facets of flooring-wood, laminate, carpet, ceramic, stone. Looking for ambitious and outgoing personality, professional appearance, with excellent communication and computer skills. Full time position. Salary plus commission with excellent benefits. Please forward resume to [email protected] Sales/Manager An established business seeking sales/ manager with 3-5 years experience and good people skills. We are a growing company that has a good reputation since 1965. Located in the panhandle of Florida. Send resumes & inquiries to: [email protected] CAREER opportunity for carpet sales agents Established territories available: Coastal SC/GA and SE Florida Inquire at [email protected] Randy's Carpets & Interiors Seeks qualified, experienced flooring covering installers for immediate sub-contract work at our Coralville/Iowa City location. [email protected] for installation rates or additional questions. Sales Reps Major wood flooring manufacturer is looking for sales reps to open territory and bring sales, must have customer base. Please email your resume to: fl[email protected] Visit Us At fcw1.com 11/6/13 9:20 AM 22 The Last Word The changing look of distribution D Same goes for BPI that went through a lot of the same struggles we all did during this recession but managed to find a path to success where others may have failed. No surprise that here as well, customer service was one of the company’s core principles. I admire these companies. Distributors, perhaps more than any other companies in the chain, have had to redefine who and what they are — back from the days when they supplied carpet to today where they compete with suppliers trying to go direct in their markets and where they have to develop their own private label programs that often include their own sources of overseas suppliers. These industry stalwarts have found a way, have cut new paths, have forged new alliances and they have primarily done so by staying true to the family and customer and service values upon which they were first built. Perhaps it is because of this affinity we have for distribution here at FCW that we take on this arduous task of calling them all, and culling down their information and cajoling (sometimes begging) these folks to bring you our list of the Top 25 distributors in the country. We think they’re worth it — the value, the support, the credit, the relationships, the product, the logistics, the excellence and the caring. If there’s anyone missing from our list, let us know and we’ll work to get them included next year. They deserve credit for a job well done. istributors don’t have it easy in the flooring business nowadays. Between manufacturers going direct, an onslaught of overseas suppliers coming in to the market, and the problems we’re having here at home, distributors are literally fighting everyday — some of them for their very lives. But others have managed to thrive in this environment. They’ve gotten closer to customers; they’ve started sourcing directly from overseas themselves; they’ve expanded into new territories; and, the largest have acquired competitors and expanded their territories. While some of the weakest companies went under, those with sound businesses have grown and now rival many of their own suppliers for size and impact in the market. Take CMH Space Flooring, featured in this issue. This company has been on a tear since 1991. Good values, early adoption of technology and a culture of humble caring have made it a stand out among its customers and suppliers alike. Of course, smart leadership doesn’t hurt and neither does a laser beam focus on customer service. Or Cain & Bultman, which after 90 years is still going strong and in a highly competitive market. Again, customer service is a keystone for this business. — Santiago Montero This particular issue of FCW is devoted to distribution — I’d say distributors are among the hardest working group of people in the industry, both representing suppliers and serving retailers. As a group, they have been challenged during the recession and the landscape has changed quite a bit over the last few years. Yet, it is by sticking to their core principles, staying true to their roots that the Top 25 have survived and in many cases thrived over the last few years. Read about CMH — putting the customer first has helped that company stay on top and grow even in the most challenging of times. The company has grown both organically and through acquisition. Cain & Bultman will celebrate 90 years in business next year. That’s something to be proud of. And we’ve featured a host of other Top 25 distributors over the years including Haines, T&L and Swiff-Train to name a few. In May, we featured Florstar as they celebrated their 25th anniversary. Indeed, there is something special about this group of companies. To me, the rivers that wrap around the city of Pittsburgh, the many bridges, the downtown skyline and the stadiums that host our beloved sports teams are all part of the city’s beautiful landscape. But it’s the people that remind me of the basics I grew up with, the work ethic that I’ve come to admire in so many of you in this industry. There is nothing quite like going home to remind you of the things that matter most. L ast month I had the pleasure of going back to my hometown of Pittsburgh, Pa. to check in with the folks at HomerWood, located in Titusville, and Karndean in Export, Pa. Yes, the picture posted on our Facebook page of Franco Harris and the Immaculate Reception statue at the Greater Pittsburgh Airport was completely self-indulgent. I can’t help myself when it comes to my hometown, its sports, its landscape and mainly its people. In Pittsburgh, you will find some of the hardest working, most genuine people in the nation. They are passionate, they are true to themselves. So it was no surprise when visiting with Wendy Wescoat at HomerWood to hear her passion about the company’s product — a uniquely Made in the U.S.A. product. The “character” found in HomerWood hardwood flooring is come by honestly — the wood is procured locally in the Appalachian Mountain range, it is handscraped by the Amish all right there in Titusville. Next, we were on to Karndean Designflooring in Export to visit with the new vice president of marketing Emil Mellow and PR and social media head Allison Tomei. Again, the execs here gave us, with great pride, a full tour of the facility. And it is an impressive facility, one that the company is quickly outgrowing. Its footprint is the same as other locations here in the states as well as overseas. It houses offices, showrooms, a warehouse and a robust production of presenters for working with the A&D community as well as retail. ✓ Y WEEKL COVERING A Hearst Busines at booths Visit FCW #B3370 #S5761 & SURFACES 2013 Stage Setting the very for Reco rkets Winter ma Commercial Vol. 62 Supplem ent to Floor a l o d i c P e r i news updated each business day, visit us online om tion April 8, 2013 $4 Consolid ated installs St. Mar y’s 4:42 PM SchÖnox sets flooring stage news updated each business Fashion forward commer cial carp et ges.indd day, visit us online at www.fcw1 .com 3/20/13 s.indd 1 11-11-13-pages.indd 22 Ron Nash of Laticrete Santiago Montero Publisher & Editor in Chief (516) 229-3617 [email protected] Amy Joyce Rush Managing Editor (516) 227-1421 [email protected] Kimberly Gavin Editor at Large (706) 278-3690 [email protected] Brittany Walsh Assistant Editor (516) 227-1358 [email protected] Janet Herlihy (361) 906-1117 [email protected] Tanja Kern (417) 522-9722 [email protected] Columnists Jon Trivers I take the floor (530) 876-8454 [email protected] Kermit Baker Beyond the numbers [email protected] Chris Ramey Strategic insights (561) 876-8077 [email protected] Marge Redmond Heard on Main Street [email protected] Tom Jennings First things first (785) 843-1678 [email protected] Rhonda Robinson Making What Matters Most Happen (541) 383-8044 Rhonda @RobinsonRo1.com Advertising Southeast, Midwest, West Coast U.S. & Canada Charlton Calhoun (770) 919-7747 Fax (770) 919-1348 [email protected] Northeast U.S. Cal Calhoun (770) 919-7747 Fax (770) 919-1348 [email protected] Classified Ads Stacey Iaccino (516) 227-1407 Fax (516) 227-1342 [email protected] 17 crucial for Ray Pina Thomas Young Group Production Manager (516) 227-1369 [email protected] Matthew Lippl Production Artist (516) 227-1354 [email protected] Administration Sherridan Basdeo Advertising Administrator (516) 227-1307 [email protected] Carolyn Giroux Audience Development Director (516) 227-1376 [email protected] Adriana Marzovilla Financial Manager (516) 227-1364 [email protected] Steven R. Swartz President & Chief Executive Officer William R. Hearst III Chairman Frank A. Bennack Jr. Executive 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. with SpectraLock art S SURFACE2013 Entries ed on page flooring mar ket Hard surface and secure ing FloorSc flooring supplier lucrativ e governm “All of our ent contrac & Schools ore and Greengu s are adoptproduct fied and ts. certifications ard Childre s are FloorSc this has product n ore certito verify had a great s emit that their specifications,” negligib organic impact le levels said compou of volatile specification manage Carrie Berger, on our nds (VOCs) to healthy plier Burke and contribu indoor air r for rubber national now required quality Industr te asked floor sup— if our product ies. “We are and Environ to achieve Leaders designations s meet indoor constantly hip in Energy standards. Being mental Design air quality able to say helps us (LEED) get and ‘yes’ and credits maintai prove it n specifi cations. Continu This ed on page 1-28-13page Editorial POST CARE Co to tackle nference challenge s Cruise and Business Mohawk’s Mike Zoellner and Elise Demboski with a retro Marilyn Monroe 10 By Mallory 1 A Hearst No. 3 $4 11, 2013 on Publicati CEO, president Karel Vercruyssen 2013 Low VOCs For breaking fcw4813-pa Vol. 62 Ralph Boe (right) with newly named acquisition Bōlyü Drift and Brights installed at carpet tile of Zoosk, the San Francisc the social o offices dating service. 3 Beaulieu preps for Boe’s retirement with co-CEO CEO 19 al tile pos ition $4 Inter view Scott Hum with WFC A phrey Cruise ing glob May 6, 2013 A Hearst Business Publication February [Orlan scaled back do, Fla.] petsPlus the last Alliance endure built upon Flooring the tough three years in strategy /Car- the order financial as it welcom its “Pillars for industry Success” times plaguinto convent turn around, . But things are ion here ed members to this g March beginni convent he added. By Janet 23-26. Underyear’s ng to ion theme “We’re Herlihy “Drive 2”, getting more to its member its help from s the skills, Alliance brought we had a great Carpet necessar supplier meeting tools and board. y for a s; (CARE) America Recover with our by the end “Welcom successful recovery products year,” I think it’s going y advisory will meet of May. e to the to be a great year. Ron Dunn in Wesley Effort Fla., for In order Logue, recovery,” Chapel, growth its co-CEO said John back. Commercial said. “Retail is head carpet to continue to ence, April 11th Annual of greeting Confercoming spearbuilding is 24-26. Th members Alliance/Carpet tively, CARErecycling efforts has much is up which strong. Housin e sPlus, the first at g and eff to be proud organization He added day of conventgeneral session is spurring have benefi will need help. ecrecogniz that the reported on ion. The ing its accompof. And while “We , is already group hopesbusiness.” also group, he 30-40 stores in our board ted greatly by evidenc lishmen up acknow upcomi 10 percent getting goal is more e of better members ts, it ledges ng months to open do this year, it’s a constan involved financial and challeng there is much network Accordi , but times ahead. ing among . Another The Pillars ng to Dr. Bob t challeng es to address. CARE ance Floorin to Ron Dunn, Establish members. e to keep Peoples for Success moving vided the ed co-CEO g/Carpe carpet industryin 2002, CARE many moving forward with of Allistrategy convent tsPlus, ing on ion foundat prorepresen the compan and is parts demand so people, marketattentio ts the ion, focusdedicate y based perception, n,” Peoples CARE now ing out of landfi solutions for keepingd to finding noted. plannin number g, and lls. In Septemb Continu s 80 certifi used carpet and another 20 returned ed on page ed processo er, national as Dr. Bob executiv rs of PCC, recyclers 21 network Peoples e director CARE’s making “We’re looking to facilitate of CARE. carpet recyclinup CARE was agenda is full. at big shift recycling,” In preparin g. s and trends ter review Peoples g the 2012 mid-March, in are said. carpet for Cal Fourth influenced “Some of Recycle, Survey, by the macro the factors the CARE Quar- and how the 2012 CARE it affects econom Annual ning for ic climate small business the Annual Annual Report, Peoples working es everywh pointed plan- market Meeting on the fi out that ere.” in April rebound nal plan as the and sold s, due to Cal which will more new carpet housing Recycle eventua is being lly be available Continu for Mohawk fina Gains lead lizes Marazzi No. 9 Vol. 62 Networki optimismng, new products , drives All iance By Mallory hot prodvery, very LVT is a to grow continue uct and we ial and residenare our commerc Rush lines. We By Amy Joyce tial LVT product ns at this Rusprojectio A year ago, of ahead of [Salem, N.J.] helm said. took the point,” he he has invested sell Grizzle Mills, a familySince then, g the ton old Manning in overseein easier his time nearly 100-yeardeeply owned n, a job made dilithat was integratio due and company of careful and in tradition because the purchase grounded industry, Mangence before Russell Grizzle rest of the the slow like aligned with a big in a painfully and values that at’s been was mired then that company from the start. “Th His job for the future recovery. d while nington’s plot a path said. to announce he is markets now new com- help,” October, the company Commercial growth in true to the In ton includes time to stay the Manning will carry both at the same that both forces values. , includthe Amtico and the Amtico sales pany’s core ial products points to the allows s’ commerc tile, using Today, Grizzle move that companie and carpet n as a strategic its global reach cial “Choices LVT, sheet acquisitio ton Commer com- ing ton to expand Manning on page 47 its LVT d Manning current bring Continue it to3-25-13Co while enabling n onshore.mmercial.indd 18 n. mercial productio with the acquisitio pleased “We are at www.fcw1.c s Publica March 2013 PINNACLE 4 PRACTICE & PROCESS 5 PRODUC T 10 PROMOT ION & COMMUN ICATION 1/18/13 For breaking — Amy Joyce Rush Busines Coverin g Weekly Grizz Mannington’s Great Floo wide and rs goes deep A Hearst tion , product Acquisition t advantage heat up bring markele sets course for future OklaRoger Voge, a,” said Floorin Oklahom president for Star homa division ng. & Marble, ing & Decoratiowner of Paris Tile up. casual, By Janet Herlihy is picking re was Jinx Yoder, said, “Business after the first ] The atmosphein hotels located [Dallas Paris, Texas, to wait ‘til s scattered and the who wanted buy now.” the showroom Grapevine, Texas, the People in and are back to Fine Floors in Irvine small, attending were of the year t of Adair’s large and is importan markets Susan Adair, retailers, flooring c. “Winter market Surfaces in Dallas regional products and optimistiwith Dallas, said, better than it’s the .” along us. I think pleased with Beaulieu are not distracted Valley T&L to Shaw, Mohawk, Swiff-Train, that the suppliers owner of Brazos in rs including see a wide range of Chuck Moreau,with three locations distributo . dealers to been programs has Design, drew area, the latest and BPI Floor & hear about Station, Texas d on page 12 g in the product and recoverin the College Continue tion is better retail Construc reported strong retailers is and market region “The builder sales as well. No. 7 s Publica 19 Great Floors, No. 9 on FCW’s Top 50 list, boasts an expansive showroom in Coeur d’Alene, Idaho. e ” them h Max boot sor ic of Mag Wind Max variety. Haleys Flooring & Interiors offers ABC Carpet & Home’s 6th floor rug department Sergenian’s grows in Wisconsin and Florida Separate retail brands, expanded commercial ces and distribution sales, administrative offi three in Madison. In Florida, there are now — Tampa, of G. Fried Flooring America stores The merger of Sergenian’s Floor Coverings told, sales tallied G. Fried Sarasota and Jupiter. All Madison, Wisc. with Florida-based to Jim has $25.8 million in 2012, according Flooring America in November of 2011, Sergethat Garner, CEO of the parent company resulted in a vital, diversified business and the majority 50 U.S. nian’s Floor Coverings, Inc. is ranked No. 40 in FCW’s 2013 Top shareholder of the business. Specialty Retailers report. In 2008, when the recession hit in Wisconsin, SergeA member of Flooring America, onethe builder business accounted for about nian’s operates a retail store and maintains Continued on page 23 a second facility that houses commercial By Janet Herlihy For breaking news updated each business 19 11:25 AM day, visit us online at www.fcw1.com location My Flooring America’s Denton, Texas Sergenian’s showroom features stylish Hard surface carries retail out of slump The 12:15 PM gates open at Surfa . 2013 about Stainmaster brand. coverage *Surfaces page 4 begins on Flooring Newton, said Ian put the program 101, who group. for the together this as a r, we see Gavin “Howeve ” ent opporBy Kimberly and year run,” said Bruce Zwicker, president in your business.Merritt margin enhancemadded, not The National to invest when By Raymond Pina CEO, Haines. “Housing is rising and right for you and president Randy a better [L V] Alliance . He tunity,” Newton disrupter ering be be like throwing Rush Both Bell Floorcov of more signifi- interest rates go up it will definitively as a market the program Amy Joyce offered Specialty flooring dealers are reporting collective 2013 will people trying that if Cruise and for all of us,” (NFA), a said that traf- rocket fuel on a fire with more nation’s also said group By Mallory right here convencant and sustained increases in both store our number than 40 of the still relatively low. support, the “It starts Network success is Growth, to buy in while rates are . gets good met prior Flooring on the year. fic and store sales across all categories. growth and additions into a ] Shaw a spotlight largest retailers, for a midBell. “Your [O new We’re coming out of a depression would pursue 2013 — put 2013 they said, is being fueled by rejuvenated in January, dakis, incomlaser sharp Surfaces and one priority.” Phil Koufi “Every year tion — Insight to create targeted, busi- pretty strong recovery.” year to con, said that meeting Merritt, better home construction, residential remodel deep on comability a president be g its Explained Construction and renovation of company’s was ing NFA going to that conventireview. The positive while expressin and the causes ness and Main Street commercial. g program y says it’s facilities, to support vendor at last everybod business plans said mercial spaces such as healthcare the Armstron cant because their families have the statistics informam reported “I haven’t been this busy in years,” signifi ces continue to cern for its dealers, s. but we didn’t year we have concrete especially owner schools and government offi group continue vely momentu 30-year industry veteran Jeff Kaspin, more than . This ed the first space on Main it believes in. to be progressi fall’s meeting group disintention crowd of it represent Carpet. rise but the return of retail it. It’s going told the ), “Shaw of Monroe Township, N.J.-based A.B. of carpet. while the opportunity. a new attendees proVance Bell to four years.” tion to support his my Street is proving to be the latest of And examine buy outside . potential (some 3,800 to insure future officiated “The amount of traffic coming through the next three retail and CEO from Armstrong cussed some closed doors, NFA members better for “With new housing comes new Koufidakis 1,000 dealers the together program et, chairman . “My job Hathafocused Buff pieces wood door is reminiscent of the good days before behind principal been the g president Borders, Berkshire Warren have has put amazing construction,” said Diana 12 grams publicly embracin as the new company service best opporsuccess. We economy went bad. And what’s really d on page flooring, Armbuy first meeting p is to bring the one it is quality and Shaw’s parent growth and Continue January, designer for commercial during wood group to me is how strong business was in leadershi Our product made major capital g. retail environment he told FCW is a new to with on you. that kind strong. “We’re seeing the and we’ve e time is to the group,” en they can choose ity from Armstron d, introduced February and March. Usually we get Th But business. improved tunities “Th opportun have $1 billion. already driving a lot of commercial So far, we Scrape Hardwoon, is a collection of push in April through June. I’m nts — over vendor meeting. American best for them. participainvestme conventio we’re also seeing a lot of hospitals renovating. in 3/8 the lly what is at the fall ahead of last year. That’s very encouraging.” available individua the NFA getting mass dip, America is building again.” scraped products adding that success in in 10 colors With the exception of an occasional had said, charge the led high-end have have Available dakis of categories es. Hard surface Koufi and with four: thickness that success monthly increases in new home sales 8 percent the first is starting tion in carpet,” group can spread and ½-inch property of increased sales, up some the Grain and goal as presiNFA program a trend among homeowners and to the first quartotal, the Blaze, Amber p he believed d and beyond. His on page 7 quality quarter of 2013 in comparison d Nest, Autumn is a direct-shi managers to remodel with better hardwoo Research. into Catalina Continue to Eagles according program ter of 2012, use. The ve pricing. goods is driving sales growth residentially. Smokeho Continued on page 23 competiti ble,” three members “We think we’re set up to have a good is considera that offers advantage 1:14 PM 2/8/13 “The price 5/1/13 3:47 PM 4/4/13 Drumline makes noise first ong: NFA’s : Armstrgroup buy option ight 2013 Shaw’s Ins better future wood a ing Build ces “The the displays.at a l o d i c P e r i $4 28, 2013 on Publicati P e r i o d i c a l FLOOR Business P e r i o d i c a l A Hearst FCW January No. 2 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 Production Going home Vol. 62 FCW Editorial and Sales Headquarters 50 Charles Lindbergh Blvd., Suite 100, Uniondale, NY 11553 (516) 229-3600 • FAX (516) 227-1342 For breaking 5613-pages.indd 1 s.indd 1 2-11-13page news updated each business day, visit us online To subscribe: call (866) 813-3752 or go to fcw1.com/subscribe For reprints of articles: Wright’s Media (877) 652-5295 om at www.fcw1.c 11/6/13 3:52 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 COMING SOON! A STAINMASTER® CARPET FOR EVERY MEMBER OF THE FAMILY. © 2013 INVISTA. All Rights Reserved. STAINMASTER ® is a registered trademark of INVISTA. 102813pages.indd 24 10/18/13 9:34 AM