Laminate: Despite challenges, still a relevant product category

HomeInside FCNewsLaminate: Despite challenges, still a relevant product category

November 10/17, 2014; Volume 28/Number 11

When discussing the laminate category, it is important to note which segment of the market is being addressed, as the differences are staggering.

At the low end, laminate flooring occupies a strong place in the DIY market. However, most of those products reside in the home centers and other big box stores. Most specialty flooring dealers aren’t making money in the low end; many have walked away or limited their assortment.

The middle? That segment has eroded the most in recent years and has virtually disappeared from the specialty retail market.

The high end is a bright spot for manufacturers selling to customers who can afford that price range. “The upper end is looking healthy and has gained more acceptance—even by builders—because of the realistic looks and beveled edges,” said Pat Theis, vice president of sales and marketing at Herregan Distributors. “We have seen growth in the upper end with Quick-Step and Mannington. We feel good about the future of our laminate business as these manufacturers continue to come to market with great style and design.”

Drew Mittelstaedt, partner at Longust Distributing in Mesa, Ariz., said that while the laminate category has cooled in recent years, it remains a relevant segment. “We continue to do reasonably well at the high end. I sure don’t see it going away.”

Most distributors contacted by FCNews acknowledged that while their laminate business is holding its own, it has not seen the lift of other categories. Consequently, more of the emphasis has been placed on LVT, hardwood and tile offerings.

Still, laminate has its fans, among them Jeff Striegel, president of Elias-Wilf in Owings Mills, Md., who contends that the top end of the market has “reinvigorated” the business. “Also, increases in the prices of hardwood flooring and the presence of thicker laminate (12 mil and better) have led the way for laminate to go into the builder market for the first time in recent memory,” he said. “Several major builders have 12 mil laminate as part of their offering.”

The fact that laminate is being specified in some builder markets is an encouraging sign, but the reality is laminate is still the category most likely to suffer in an environment in which LVT and, to a lesser extent, hardwood flooring are flourishing. “Laminate doesn’t have the upside of wood and LVT, and there is continuing price pressure on laminate,” Striegel said. “But we have seen some of the most realistic wood visuals in laminate. Still, it is a category that has struggled.”

In light of its slowdown, many distributors have decreased their percentage in laminate in recent years. Some have said that laminate pricing vs. imports has made the business especially difficult for domestic producers.

Other distributors said they have found success with private-label lines, where they have been able to source some high-style products at very competitive price points in the high middle to upper end of the market.

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