FCNews’ Steven Feldman and Ken Ryan recently caught up with Artivo Surfaces CEO, Sunil Palakodati to discuss his role. 
Distribution has seen its share of consolidation. Should we expect to see more of this?
We believe consolidation will continue, and it’s largely driven by fragmentation in the industry and benefits of scale and evolution of technology. Customers today expect deeper inventory, faster fulfillment, national reach and integrated digital and logistics capabilities, which are increasingly difficult for smaller, fragmented distributors to deliver efficiently.
Scale enables centralized shared services, stronger investment in technology and data platforms and more resilient nationwide supply chains—along with broader and more sophisticated product portfolios. When done well, consolidation doesn’t just create a larger organization, it results in a higher-performing partner that can deliver more consistent value to customers.
How were you able to successfully integrate Virginia Tile, Galleher and Tom Duffy into the overall Artivo family?
Integration is an ongoing journey focused on building long-term capability. We’re aligning our shared services: brand strategy, marketing, sales support, products, technology tools and logistics while preserving the unique strengths of each company.
By integrating thoughtfully and prioritizing the customer experience at every step, we’re creating a platform where each brand performs better together than it could on its own. As we are integrating change is inevitable; however, we are focused on improving customer service levels as well as protecting and preserving our culture.
Amid all the change, how do you keep the momentum going?
We lead with a clear, long-term strategy and stay flexible in how we execute it. Our tactics evolve based on customers’ needs and realities, but our direction remains consistent while the path is negotiable.
Most importantly, our culture and the people who embody it drive momentum. By investing in our people and fostering a culture of collaboration and continuous learning, we give teams the tools, clarity and support to lead through change and drive progress together.
More acquisition targets ahead?
We will continue to evaluate opportunities that strengthen capacity, capability or market reach where it aligns with our strategy. We will remain opportunistic and remain long-term fit oriented with our targets.
What does your crystal ball say about the flooring market in 2026?
While no one can predict the market, we are assuming that in 2026 the residential business will remain soft in the first half with improvement expected later in the year, resulting in performance that’s likely flat overall. We’re cautiously optimistic that demand will hold, but the overarching priority is staying agile as the market evolves.
Final comments?
The industry is navigating turbulence with economic uncertainty, tariffs, evolving technology, shifting supply chains and fluctuating consumer confidence. In times like this, what matters most is staying committed to serving customers, investing in and developing our people and preserving a strong culture.
