Executive Forecast: Laminate & Wood—Suppliers dial up innovation to ward off competition

December 16, 2016

December 5/12, 2016; Volume 31, Number 13         

By Reginald Tucker

No one is expecting the laminate category to generate double-digit growth rates in 2017; after all, it is a fairly mature category in the U.S. On top of that, the segment is facing intense pressure from competing hard surface sectors, including LVT, WPC and, of course, hardwood.

However, don’t expect the segment to roll over in the face of fierce competition from other hard surface categories.

Travis Bass, executive VP, sales and marketing, Swiss Krono
screen-shot-2016-12-16-at-10-24-53-amWhat is your projection for category growth next year?
Flat to +3% growth.

What segments and/or products will fuel this growth?
Innovative laminate products with enhanced surface textures and value-add options.

What is the predicted growth of your company in 2017?
10%- 15%.

What is the “X factor” that will impact business next year?
New home construction and repair/remodel investment driven by increased home values and fueled by a stronger economy.

Where do you see opportunities for next year? Challenges?
Opportunities include non-residential, value-added products and Internet sales. Headwinds will be from domestic capacity coming on stream coupled with a strengthening dollar encouraging cheap imports from Europe.

What are some of your biggest initiatives for 2017?
We are working in collaboration with our affiliated European factories to introduce additional products. Domestically we continue to pursue the highest standards and styles for innovative product development.

 

Roger Farbee, senior VP, laminate & hardwood, Mohawk N.A.
screen-shot-2016-12-16-at-10-24-58-amWhat is your projection for category growth next year?
Approximately 1%-2% in dollar growth. However, we believe domestic manufacturers will grow at a higher rate as more import volume continues to shift to domestic production and as more producers focus on higher-end products.

What segments and/or products will fuel this growth?
Growth is being driven through residential new construction as well as increased remodeling activity. We are seeing laminate products being accepted in both single- and multi-family housing at rates unheard of 10 years ago.

What is the predicted growth of your company in 2017?
We will continue to outpace category growth by offering products with the highest level of realism, style, design and technical superiority in all of the channels in which we participate.

What is the “X factor” that will impact business next year?
There is still significant pent-up remodeling demand that will result in laminate flooring sales if consumers feel they have enough job and income stability to make an investment in their living spaces.

Where do you see opportunities for next year? Challenges?
Today’s highly realistic premium products offer consumers more options without having to compromise. There is also an appealing environmental story around laminate flooring products made in North America.

What are some of your biggest initiatives for 2017?
We are introducing more products using our state-of-the-art Deep Texture technology as well as our revolutionary Moisture Protection technology. These innovations are making customers think differently about what laminate means.

 

Drew Hash, VP, hard surfaces, Shaw Floors
screen-shot-2016-12-16-at-10-25-03-amWhat is your projection for category growth next year?
We continue to expect an increase in housing starts, which could have a growth impact of about 6% to 8% in 2017 for the wood industry.

What segments and/or products will fuel this growth?
Hardwood provides the high-end look that is very compatible with today’s newest home interior styles and trends. As a select choice, our engineered styles provide a range of looks that will help fuel this growth.

What is the predicted growth of your company in 2017?
Shaw Floors will continue to outpace the growth of the flooring market in 2017. Our wide breadth of categories and consistent standard of quality across our products supports this outlook.

What is the “X factor” that will impact business next year?
The “X factors” for business success will continue to be the delivery of a reliable customer experience and unmatched support for our retailers.

Where do you see opportunities for next year? Challenges?
We are continuously looking forward to discover new ways to communicate effectively with our customers and arm our dealers with the right information to tell the story of Shaw’s hardwood products succinctly and clearly.

What are some of your biggest initiatives for 2017?
Anderson will continue to expand in the new home construction market. Additionally, we will focus on delivering the most stylish and high-performing engineered styles available to respond to today’s newest trends.

 

Derek Welbourn. CEO, Inhaus
screen-shot-2016-12-16-at-10-25-07-amWhat is your projection for category growth next year?
We see continued growth for our laminate category at about the pace of U.S. GDP, which is between 2%-2.5%. We estimate the flooring category as a whole will have a higher rate of growth as the housing sector continues to recover.

What segments and/or products will fuel this growth?
In recent years vinyl (LVT in particular) has been growing. This was further expanded by the introduction of WPC. The success of these categories has inspired new innovations with composite products.

What is the predicted growth of your company in 2017?
We feel fortunate to continue to grow our global business. Company wide, our rate of growth is forecast to be in the low double digits. This is also what we expect for our North American division.

What is the “X factor” that will impact business next year?
The major “X factor” in the floor covering business is the rapid evolution of new product categories and the challenges that come with competing with products that didn’t exist previously.

Where do you see opportunities for next year? Challenges?
To us, the challenge and the opportunity are one in the same. It is how to successfully participate in the rapid expansion of composite products. We are investing the creation of an entirely new category of flooring.

What are some of your biggest initiatives for 2017?
Our largest initiative by far is the launch of our flooring line Sono, which is based on our new waterproof product technology that will make its debut at Surfaces.

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