Resilient manufacturers announce price increases; Mohawk, Forbo the latest

Home Inside FCNews Resilient manufacturers announce price increases; Mohawk, Forbo the latest

Hicksville, N.Y.—At the beginning of April, two of the largest resilient flooring manufacturers, Armstrong and Mannington Mills, independently announced it will each raise product prices by 6%. Since then, a multitude of companies have followed suit. Armstrong

Armstrong and Mannington said increase measures would be implemented by June 1, 2010 and are caused by a considerable increase in the cost of raw materials. “Energy, raw materials and transportation costs are all rising,” said Paul Murfin, vice president of sales at Armstrong. “Significant manufacturing capacity for our raw materials was taken off-line during the recession, creating tightness in those markets ahead of input cost escalation.”

Mannington’s CEO and president Tom Davis also cited the rise in raw material costs that can no longer be absorbed. “Fortunately, the industry is on the rebound and the worst part of the downturn seems to be behind us,” Davis said. “We are hopeful that these raw material costs will stabilize soon and we can all begin to benefit from the improving economy.”

According to Murfin, price increments will be on vinyl composition tile, luxury vinyl tile, commercial sheet vinyl, linoleum, and residential sheet and tile sold in North America. Similarly, Mannington’s resilient sheet and tile products, accessories and sundries prices in the same region will be augmented, Davis said.

Congoleum will also implement an increase, according to an FCNews exclusive with Dennis Jarosz, senior vice president of sales and marketing. “Congoleum will be raising prices on all products by 4% to 7%, effective on shipments from June 1, 2010,” he said. “However, due to additional production efficiencies recently achieved on our DuraCeramic and Ovations products, we will not be increasing prices on those.”

Tarkett also recently announced it too would raise prices. Again, effective June 1, there will be a 6% increase on all commercial resilient tile lines, including Azrock Achieve, Advance, Asset and Expressions tile.

“Efficient manufacturing as well as cost-cutting measures and internal expense reductions have allowed us to absorb raw material and energy cost increases,” said Gilles de Beaumont, president of Tarkett commercial tile. However, he too cited the continuing price climb of raw materials, transportation and energy as one that could that could no longer be absorbed.

However, not all manufacturers have jumped on the price wagon. Metroflor, for one, will not be raising prices on any of its lines in the foreseeable future. “We don’t think it is the right time to pass on increases,” said Michael Raskin, president of Metroflor. “We are tightening our belts so the end user does not have to pay a higher price and will continue to do so as long as possible.”

Mohawk Industries announced in mid-April it would be raising prices on vinyl sheet, tile and sundries in response to Congoleum’s price raise. “As a result [of Congoleum’s 4% to 7% price increase], Mohawk Industries must increase selling prices on all orders shipped on and after June 1,” said Bob Leahy, senior vice president, Mohawk hard surfaces.

The following changes to pricing will be made:

  • All resilient sheet goods will rise 6%.
  • DuraStone products will increase 4%.
  • Alternatives, Choices, TT Series, CX Series tile products will rise by 6%, and Endurance Plank will rise 7%.
  • All sundry products will increase 6%.

Forbo also announced a 3% to 6% price increase on linoleum, vinyl and adhesive products due the rising cost of raw materials, effective June 1. The raise coincides with the end of the company’s “flooring stimulus program,” a discount on vinyl products to revitalize postponed projects and get installers back to work. Parties interested in those savings are encouraged to place their orders on or before May 31.

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