FloorCoveringNews

Mercerville, N.J.—Last month Congoleum gained new leadership for the first time in nearly 20 years when its board of directors named Bob Moran president and CEO, succeeding Roger Marcus. Moran has a proven track record in growing building products companies through focused business strategy, passionate service and superior value-added products. He comes to Congoleum after stints with Nautic Global, Omega Cabinetry Group and Newell-Rubbermaid. Moran recently sat down with FCNews publisher and editorial director Steven Feldman, to offer his views on Congoleum—past, present and future.

Resilient certification garners industry-wide support

Kansas City, Mo.—Flooring installation training is on track to break records in 2012, according to Jim Walker, CEO of the International Certified Flooring Installers Association (CFI).

Robert Moran

The board of directors of Congoleum today announced that Robert Moran will be replacing Roger Marcus as CEO of the company. Marcus’ contract expires June 30, but it was unclear at press time as to when the actual transition will occur. Moran has reportedly already started with the company.

by Celia Payne

Call it retro, call it a throwback, but resilient continues to gain market share. What once may have been considered an outdated, cheaper alternative to the “real deal,” consumers are seeking ways to integrate the versatile faux looks into every part of their home.

Mercerville, N.J. — Congoleum announced today that it will increase prices 2% – 6% on select Congoleum sheet and tile products as well as sundries, effective with shipments on February 1, 2012.

By Ken Ryan

The shift toward resilient products in the flooring industry away from other hard surface offerings has created market opportunities for leading suppliers, as well as increased competition globally, particularly from China.

On the plus side, the soft economy has favored lower cost, performance value options like vinyl flooring in both residential and commercial segments; however, skyrocketing raw material costs have prompted some major manufacturers to pass along the increases, making for a rather volatile market as 2011 comes to a close.

Web presence is part of today’s new normal, identified as an essential component of the cost of doing business. In this industry, a website can be considered a landing page for the consumer to learn about products, programs and ways to improve her home, though that paradigm is shifting with the proliferation of social media platforms; particularly Facebook with its more than 750 million active users.

Today’s websites favored by Google and Yahoo search engines have fresh and unique content, so many companies are focused on updating and differentiating what draws consumers to their sites. Additionally, search engines filter duplicate content, so the World Floor Covering Association (WFCA) was careful to add features that made it one-of-a-kind when its spiders crawl through site content.

While the concept of installing a floor without the use of adhesives is no longer new to the industry, the idea of “floating” the floor has become all the rage in the resilient category. Thanks to advances in technology, as well as the acceptance of floating floors by retailers, installers and consumers, manufacturers continue to bring out innovative installation systems to help make the overall process of selling and buying a resilient floor easier and less stressful.

Since the economic downturn began the resilient category has been just that—resilient. Not only has the segment picked up market share it lost the previous decade, it has done so with technologically advanced products in an array of high end offerings.

Consumers may have become more cost conscious in recent years, but what they are most interested in is a product that provides great performance for the price. And manufacturers say this is a key ingredient as to why resilient has seen a surge in consumer acceptance.

MERCERVILLE, N.J.—Congoleum announced the launch of its new sample shopping cart and redesigned RoomVision decorating program on the Congoleum website at congoleum.com.

The philosopher Aristotle once said, “If one way be better than another, that you may be sure it is nature’s way.” A widespread embrace of sustainability initiatives brought the resilient flooring industry to a realization that nature’s way is the best, and the market was flooded with third-party certification programs proving so. Simplifying that process is the ANSI standard NSF 332, in its early stages of implementation.

Mercerville, N.J.—Congoleum announced today it will increase prices 6% to 8% on all Congoleum products, effective with shipments on June 27.

Luxury vinyl tile (LVT) is the hottest new product in flooring, with growth of 22.5% in residential product sales when the resilient category was down by 14.2% (FCNews, June 28). Most recently, it captured the fancy of exhibitors and attendees alike at the recent Domotex asia/ChinaFloor as the product du jour in the exhibit halls (FCNews, April 4/11).

Much of the U.S. may still be struggling to escape winter temperatures but the calendar says it’s officially spring. A time of rebirth and hope, not just in nature, spring is when consumers air out their homes and take a look at how to get the glum out of the house. One historical way has been to redecorate, with new floors and furniture and a fresh coat of paint. Spring traditionally marks one of the industry’s busiest selling times.

ORLANDO, FLA—Alliance Flooring’s annual convention here was themed with one word: Drive. Commonly used in this industry to facilitate store traffic and sales, close to 450 members of CarpetsPlus, Colortile, Carpetland and Floorco were asked to use the word as a metaphor for the journey of today’s state of business.

Some things get better with time, and visual technology in the resilient category is certainly one of those. Matured manufacturing processes and ink jet technology are producing looks that are as close to the real material as possible with visuals that begged the shopper to check for texture; patterns appeared to have the actual surface depth of quarried stone or handscraped wood. All of that, in addition to a value story that resounds with today’s buyer, made resilient a very popular category at Surfaces 2011.

Mercerville, N.J.—Congoleum will be connecting with retail salespeople every time they sell Connections glueless flooring during the Cash Connections promotion. Retail salespeople will have the opportunity to earn money for every carton of Connections sold during the promotional timeframe and retailers who enroll early in the promotion will be able to earn a 25% bonus increase in the carton reward.

Today’s distributor is far more than the order taker and credit giver of its predecessors; it is a barometer for what is happening in a particular region.

This is true in multiple ways, from general business conditions to the latest in product trends and styles. In fact, when it comes to helping retailers decide which products make the most sense to carry, a distributor is a venerable weather bell of information.

Resilient producers appeal to value, style to gain share

What was ultimately a false start to an upswing in the industry during the first and second quarters, 2010 has coaxed top executives in the resilient category to project a more conservative outcome for the coming year. However, it is one area that is expected to continue growing. The proliferation of LVT (FCNews, Nov. 22/29) and the advancement of fiberglass (see related story) has created a new value standard for the consumer when she shops floor covering. As one of the few segments capturing share in the residential floor covering market, modesty rules the 2011 diagnosis with an injection of optimism.

Mercerville, N.J.—Congoleum announced the launch of its new Facebook page and YouTube channel.

Retailers and consumers are invited to become fans of Congoleum by liking the page and learning about new products, decorating hints, and installation tips at facebook.com/congoleum. The site features room scene photos showcasing Congoleum floors, videos and in depth informative product pages.

Mercerville, N.J.—Congoleum recently introduced AirStep Basix, an entry level AirStep product specifically engineered for the builder and property management market that features Congoleum’s UltraTec product construction, which blends traditional felt and fiberglass product construction. As a result, like AirStep Evolution and AirStep Plus, AirStep Basix can be installed three ways: loose-laid, perimeter fastened or full spread over a variety of subfloors.

Mercerville, N.J.—Keith Anderson has joined Congoleum as the new regional manager in the Midwest region, filling the position left vacant by the promotion of Mike Sansone to vice president of sales. Anderson will be working with Congoleum’s Midwest distributors, All-Tile, Bishop and Mohawk.

Prior to joining Congoleum, he spent 11 years working in various sales positions with Shaw Industries. Keith has worked extensively in the builder business as well as in the retail remodel and replacement business.

Most products cross all boundaries when it comes to popularity—big screen TVs are in demand in New York as much as they are in California or Florida.

But when it comes to home decorating items like flooring, where a person lives in the U.S. plays a major role not only on the types of products bought but the particular styles used to spruce up the home. For example, houses in the Northeast are often decorated in more traditional looks while those in the Southwest incorporate more of the region’s Native American heritage in their decors.

Luxury vinyl tile (LVT) is the hot commodity in the resilient category, capturing nearly 8% of the total market in 2009 (FCNews, June 28). Part of what’s driving demand for LVT is the locking technology it employs, making it one of the easiest installs in the flooring industry.

While 8% may seem like an insignificant number, one would do well to remember that LVT is a relatively new resilient product, especially when positioned next to products like linoleum with more than 150 years in production. In comparison, LVT was brought into this country 40 years ago when Metroflor saw a demand for the product, said Michael Raskin, president. “My father saw LVT as an opportunity and was the first to have it made in Taiwan. Before that in the 1970s it was mainly self-stick, DIY-type tile. With Metroflor, my dad got them to improve the quality as well as bring luxury designs to appeal to the U.S. market at a value price point.”

As one of the few categories excelling in the soft economy, resilient manufacturers are taking greater risks with fall releases and it is of little surprise that most are focusing on luxury vinyl tile (LVT) and sheet products, as the value-perceived products in the category. Whether producing niche visuals or releasing mass volumes of new products, autumnal trends are dictated by the buyer’s preference for performance and visuals that enhance her home’s environment.

Mercerville, N.J.—Congoleum’s residential tile line, DuraCeramic, now features Scotchgard Protector and silver antibacterial protection.

“We are very excited to work with 3M to incorporate their Scotchgard Protector in all of our Dura products—DuraCeramic, DuraCeramic Options and Duraplank,” said Dennis Jarosz, vice president of sales and marketing, Congoleum. “With the incorporation of Scotchgard Protector, DuraCeramic has a significant performance advantage over the competition. Add to that the silver antibacterial protection which kills mold, mildew and germs on the floor, and DuraCeramic is far and away the best choice for consumers.”  He continued that Consumer Reports rated DuraCeramic the highest in the resilient category even before incorporating Scotchgard Protector and silver.

Mercerville, N.J.—In a filing with the Securities and Exchange Commission, Congoleum reported its confirmed reorganization plan became effective as of July 1.

As part of the plan’s implementation, it has closed on a new credit facility that increases its revolving credit line from $30 million to $40 million, which should be more than adequate to fund its growth.

For more information, call Congoleum at 609.584.3601.

After more than six years, a district court has approved Congoleum’s reorganization plan, paving the way for the company to emerge from bankruptcy. In the order signed June 7, Judge Joel Pisano of the U.S. District Court in New Jersey stated that the plan was supported by more than 95% of asbestos personal injury claimants.

Now that the plan has the court’s approval, Roger Marcus, president and CEO, said Congoleum will move to implement the plan. “That includes things we have already put in motion but couldn’t complete until the judge ruled favorably on our plan, like finalizing new financing arrangements with the bank. We already have the bank’s approval, but there is a lot of paperwork. We expect to complete these remaining steps and emerge from bankruptcy shortly.”

Mercerville, N.J.—Congoleum announced the promotion of Mike Sansone to vice president of sales. He was the Midwest regional sales manager from 2007.

“We are extremely pleased that we already had someone of Sansone’s caliber within our organization,” said Dennis Jarosz, vice president of marketing. “This allowed us to promote from within, knowing that he is an individual who can hit the ground running and contribute to our overall sales growth.”

An industry veteran of 30 years, he has worked with Armstrong Flooring, Mohawk Industries and Medallion Hardwood.