Fuse Alliance: Bold initiatives aim to expand network’s reach, revenue opportunities

HomeInside FCNewsFuse Alliance: Bold initiatives aim to expand network’s reach, revenue opportunities

March 28/April 4, 2016; Volume 30, Number 20
By Reginald Tucker

Nashville, Tenn.—An enhanced online training curriculum, a new Intranet ordering system anchored by a revamped website, an installation awards program designed to showcase contractors’ design capabilities and services, and fresh new marketing aids are just some of the major initiatives presented to Fuse Alliance members at the group’s annual convention here March 13–16.

Geoff Gordon, Fuse Alliance executive director, unveiled the group’s ambitious plans during the opening general session before approximately 200 conference registrants comprising flooring contractors from across the U.S. and Canada. Driving home the conference theme—focusing on the “us” in “Fuse”—Gordon provided an outline of the new programs available to members for 2016. In summary:

Fuse University: An enhanced online learning management system entailing more than 65 educational modules, with more to be added each quarter. “We have 95 registered users with 145 courses taken so far and 355 courses in progress,” Gordon stated. “I know a lot of members have used it for their employees and they have said great things about the content.”

Spark Awards: A new awards program created to acknowledge flooring installation excellence. The goal, according to Fuse management, is to honor the distinctive craftsmanship of a properly installed floor and champion the positive impact that skilled contractors have on the building environment. Nearly 50 entries were submitted for the inaugural competition.

Experius: An online distribution channel featuring advanced ordering capabilities enabling members to purchase products (mostly sundries) seamlessly and efficiently. Technical enhancements allow a much more responsive experience for users, meaning Fuse Alliance members will now be able to access the program from smartphones and tablets. Other benefits include steep discounts for first-time users and rebates. The final component, which is expected to launch soon, is overstock—a feature that will allow contractors to post excess inventories for sale online. The initiative is supported by a revamped website with a new tagline: “Ready to be Floored! “

“This is something we’ve never had,” Gordon said. “The overstock products are paid-for inventory, so this will allow members to make money. Plus, we’ve been talking to manufacturers to see what kinds of products they might want [in the portal]. Ultimately we’re going to open it up to people beyond our membership as well. We really want this to grow.”

Another area the organization is looking to bolster is Fuse Commercial, a division established to pursue national accounts. The primary aim, according to management, is to partner with clients to help customers reduce their risk, accelerate delivery and lower overall costs. Whether the client’s project is in one location or multiple sites, Fuse Commercial management assures customers’ projects will benefit from the organization’s size and scale. Fuse boasts one of the largest partner networks of flooring professionals with more than 170 locations throughout the U.S. and Canada encompassing 1,500 professionally trained installers and 2,000 experienced project managers.

“Our primary goal is to grow your business as members and put more revenue in your pocket,” said Michael Hutton, the newly appointed senior vice president of Fuse Alliance, in his first official address to members. “We want to find ways to add value to you and make you more profitable, and that’s going to be achieved by going out and signing national contracts. We also want to grow the business for our vendor partners.”

Hutton, who joined Fuse Alliance a little over three months ago, was tapped to spearhead the organization’s efforts to accomplish those stated goals. He brings a wealth of experience in that area having worked at Interface Services where he was part of a team that helped grow revenues from $32 million to nearly $80 million during his nine-year tenure there. Right off the bat, Hutton is exploring ways to raise the “switching costs” for clients, which would make it financially unfeasible for potential customers to shop around outside of the Fuse Alliance network.

“If we can be a one-stop shop for our national, multi-site customers providing both best-in-class installation services and the best-in-class vendor partners out there, we would be essentially knocking out our competition and making it more difficult for them to come in and take over our portion of the business,” Hutton explained.

Ultimately, Hutton says, the success of Fuse Commercial hinges on engendering trust with those key national accounts while providing a high level of service and consistency for the customer. “Whether it’s Minnesota or Florida, or Maine or California, we’re going to provide clients with consistent coverage,” he stated. “We’re not really changing anything for Fuse Alliance members—many of you have had success doing this—it’s just that we need to be consistent when we go out and present to the clients.”

 

Member experiences

So far Fuse Alliance members like what they’re hearing. Earth City, Mo.-based Henges Interiors, one of seven new Fuse members, joined the group based on the strength of its educational programs, marketing support and experience. “One of the challenges flooring contractors face is finding ways to give professional bids to the general contractors that they, in turn, can decipher,” said Curly Kuldell, president. “That’s where Fuse Alliance can help members.”

Kuldell is particularly excited about Fuse University, which offers courses on everything from installation techniques to selling skills to operational software. He’s also a big fan of the Spark Awards competition. “The new awards program emphasizes functional designs as opposed to which contractor offered the lowest bid,” he explained. “With this awards program, Fuse management is trying to get us out of this ‘bidding mentality’ and look at the total scope of the products we are delivering for the major end users. I think it’s a great initiative, and we are definitely thinking about submitting an entry for the Spark Awards for next year.”

For other Fuse Alliance contractors, the primary allure of membership is the networking component. “Meeting with other like-minded people is the main draw for me,” said John Finch, a four-year member who manages projects for the Legacy Group, Renton, Wash. “Many of the contractors here are facing the same issues, so it’s good to talk with other members to see how they are dealing with problems and challenges.”

Kuldell agreed. “It’s always fun to come back to a national meeting a couple of times a year and talk to other contractors to compare what’s going on in Chicago, Atlanta, Los Angeles, etc. You get input from different regions and different people to see how others are attacking the same problems. It’s invaluable.”

One of those common problems identified during the conference is maintaining adequate staffing amidst a seesaw commercial business cycle. This can be particularly tricky for flooring contractors who have to strike a balance between having enough manpower to handle big jobs during busy times while not overextending payrolls for those periods when projects are sparse. To that end, Fuse members in attendance devoted a lot of time discussing the feasibility of establishing a shared services program—something that would be especially helpful when it comes to the time-consuming task of project estimating.

“I really don’t want to hire people just to do estimating and then have to let them go when it slows down again,” said Bob Pollock, president, Continental Interiors in Troy, Mich. Offering a potential solution, Fuse Alliance management provided Pollock with the name of a reputable company that was able to offer assistance. “I contacted the company and two days later a rep was in my office pitching us,” he recalled. “I’ll have more to say about it in 30 days, but so far the output has been good.”

Bob Plann, owner of Phoenix-based contractor Resource Arizona, shared his strategy for handling the estimating issue. “We send our estimating work to a firm in Greece that’s experienced in that area. We send the plans at the end of the work day our time, and the estimates are waiting for us when we get to work the next day.”

Another challenge contractors discussed during the conference was installer recruitment and training—an issue that’s impacting the floor covering industry at large. But it’s an issue that is particularly vexing for flooring contractors given the level of difficulty of the projects and the complex nature of the business.

Commercial flooring contractors like David Vernon, president of Resource 4 Floors, Fort Lauderdale, Fla., is tackling the issue using technology—web-based job boards, specifically. “We use sites like Indeed.com to find candidates,” he said. “We hired five new people who were younger than 22. They’ll probably need 18 months minimum of training before they’re up to speed.”

 

Commercial outlook

Several Fuse members expressed optimism about the short- to medium-term outlook for the commercial sector in their respective markets. And they have good reason: Fuse management cited statistics showing the commercial business grew 7.7% on revenues of $7.5 billion for 2015. What’s more, the group’s research shows a 17% increase in non-residential building over the year prior.

The numbers reflect what many contractors are seeing in the field. “In my market I’m seeing a lot of work with universities on the commercial side as well as multi-family homes on the residential side,” said Brian Boek, 28-year commercial industry veteran and vice president of sales and marketing for Christian Brothers Flooring & Interiors, Lakeside, Calif., which services the San Diego area. “The past few years in particular have been very good.”

Going farther north to Washington State, business is even better. “Our business was up 30-plus percent last year, which is consistent with the past few years,” Legacy Group’s Finch said. Much of the company’s business centers around tenant-improvement work for major tech companies.

Back in Missouri, health care is driving commercial sales. “The medical community is really on fire here, with all the activity at Barnes-Jewish Hospital,” Henges Interiors’ Kuldell said. “We’re also seeing a big increase in multi-family construction and assisted living facilities.”

For Fuse Alliance management, feedback like this means members—and the organization’s objectives by and large—are on the right track. “It’s important to us that members share their experiences,” Gordon told attendees, pointing to indicators predicting 2016 will be another solid year. “If you’re doing well, then we’re doing well. We’re only successful in how we work together.”

Must Read

Mohawk Builder + Multifamily promotes Made in USA portfolio

Calhoun, Ga.—Mohawk Builder + Multifamily is aiming to build a more sustainable world with a diverse portfolio of carpet, laminated wood and resilient flooring...

Johnsonite named Top Product in Fuse Alliance Supplier Awards

Solon, Ohio—Tarkett’s Johnsonite family of rubber tile and finishing accessories was named Top Product in the Fuse Alliance Supplier Awards during the group’s annual...

WFCA launches SEAL Academy

Dalton—The World Floor Covering Association (WFCA) has launched the SEAL (Seeking Excellence As Leaders) Academy, a leadership development and certification program billed as a...

Mannington hires award-winning carpet designer

Salem, N.J.—Mannington has appointed Jeanette Himes as manager of residential carpet design. With her extensive experience in carpet design, Himes is set to bring a...

Underlayment: Padding products tout form and function

Underlayment is a crucial part of the flooring installation process. Its benefits include sound absorption, moisture protection, substrate leveling and more.  Choosing the right underlayment...

Southwind names Jim Mahaffey divisional VP

Dalton, Ga.—Jim Mahaffey has been chosen to be the divisional vice president for Southwind's Northeast region of the sales team. Mahaffey joins Southwind after...
Some text some message..
X