Looking back on 2010; we’ve heard so much bad and negative news that we may often think that’s all there is but I refuse to believe or participate in it. Certainly we can’t help but be inundated with depressing news but I’ve found over the years, things are never as bad as they seem. You hear how bad business is in the flooring industry over the past year but let me share some reality. Most manufacturers of residential product are even or maybe up a bit. The flooring industry is famous for adjusting to current economic conditions, whenever they occur. There is indeed pent up demand for flooring products as people will only go so long living without refreshing their homes. And many people have spent so much time at home they want to see something new and refreshing in it.
The technology in the industry has exploded with new fibers and yarns, backing systems and, at manufacturing level, equipment and machinery. This industry can do more with less than probably any industry in existence. Making flooring material is not a labor intensive business and with the introduction of new equipment and processes, there really is no need for a lot of people to do the work.
The commercial market is hard pressed to keep up with the demand for carpet tile, a lot of it at the expense of broadloom. Carpet tile is the hottest product in the carpet industry. It is also the product with the most technology behind it and it’s the most expensive textile product for general commercial use. If you listen to one positive aspect of the news, that businesses are flush with cash, they certainly are spending it on carpet tile. In this area, there has been millions of dollars spent by most of the commercial carpet manufacturers on new equipment that can make carpet tile and/or broadloom. Some of the equipment does both and some only carpet tile. There are also new tufting machines that can make both residential and commercial carpet at literally the push of a button. We’re embarking on an era where a lot of what you’ve known about flooring is changing, not only in the products but most certainly in the way they are installed. I’m proud to say we’re involved in the majority of the new installation technologies, working with organizations to bring them to the market place. You’re going to have to yield to accepting these new methods that will inevitably make installation easier and much less problematic.
The glut of flooring dealers has thinned and those remaining are not doing too badly, some even flourishing. This is the Darwinian Theory at work; “survival of the fittest.” If you’re reading this, you’re a survivor, now go out and be a dominator. Success means you have to be adaptable. Those in the lead will always change to stay there.
Education is starting to show signs of interest again. We’ve not had a Carpet Seminar in two years but recently we’ve had several inquiries as to when we’re going to have one again. This tells us that people in the industry are starting to be optimistic about business and about getting some new hires exposed to information they need to succeed. If you’re interested contact us so we can include you in the program.
The look ahead, in my opinion, and you should know that I’m an eternal optimist, is for business to improve. Why do I think that? First, some manufacturers who were hanging by a thread have experienced markedly increased business. Dealers I talk to are not so sullen; many are expressing signs of new life. My seminar at Surfaces has more attendees than I’ve ever had and the reports from Surfaces are for increased attendance.
I learned something from the man I first worked for in the industry forty years ago. He told me to “put the blinders on and run my own race. Be aware of your competition but don’t watch them or you’ll watch them go right by you.” I think 2011 will be a good year. If you think that way and act on it, it should be for you too.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts