2009 for many can’t be over soon enough. To say it was a challenging year for many would be an understatement. It is predicted that by the time an economic recovery is in full swing there may be upwards of 40% fewer floor covering dealers. That said this is the time to endeavor to be a survivor. Our straw poll indicates the backward slide is holding and in some places business is actually up. Geographic regions, and they may be small pockets, have actually refused to participate in the recession. Those who have continued to advertise are going to be the survivors.
Claims during recessionary times tend to increase and this year has been no exception. It is also harder to get claims settled as manufacturers are reluctant to cave in to dealer demands. You have to prove your case more than ever. Product quality has a tendency to slip as well but different than in the past we haven’t really heard a lot of complaints overall about poor quality. Manufacturers have implemented so much new technology that the processes used are much more accurate than in the past.
Installation in the commercial arena is a problem. With only so much work to go around in both commercial and residential, there is a feeding frenzy. As one commercial dealer stated, “It’s crazy out there, I’ve never seen anything like it.” Retail dealers are bidding on commercial jobs and installers with virtually no experience are installing carpet and flooring they have no business touching. As a result some very expensive jobs, bid at very low prices, have failed. This isn’t going to stop until the economy picks up
We’re actually seeing more opportunity in the industry than ever before as there are a multitude of new and different products and technologies coming down the pike. Much of this is being driven by the so called “greening” of products, legitimate or not. Legitimately you’ll be seeing at least a dozen new backings being offered with recycled content and these will require knowledge of installation. You’ll also be seeing new methods of installation and installation tools, the Glue 2 by Gundlach for sealing seams will virtually eliminate seam failures on carpet. There is a new traffic lane paper by Velcro that will eliminate claims created by pressure sensitive clear plastic traffic protector. There are installation systems coming out that will eliminate failures on hard surface products.
Installation failures and claims caused by moisture in substrates have gone through the roof this year. These types of claims have the potential to destroy a floor covering business. There are several reasons for this. One we mentioned is inexperienced dealers and installers working commercial jobs they have no business being on. Another is Fast Track construction and the green movement is creeping into the picture because HVAC systems are not being turned on until the building is ready to be occupied. You can’t install floor covering without the space being “occupant ready” and expect it not to react. You also can’t test the substrate until the space is conditioned prior to the testing and stays that way afterwards. We’re going to see many more problems relative to this issue.
Just because the economy is slow doesn’t mean the floor covering industry is not moving forward and people who specify, sell and install the products are going to have to get educated. Change is here and business as usual is no longer good enough.
There are a lot of things that will make business better and there is a lot of pent up demand. My prediction is that business will start to cautiously creep back so be ready for it. A lot of good things are coming and if there’s anything we can help you with, please just ask.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts