Noah Fulton was recently named CEO of Karndean, culminating 20-plus years of rising through the ranks. That resume made Fulton the obvious choice to lead the LVT-only supplier into the future. Fulton stresses it will be business as usual as the company navigates through some global headwinds.
FCNews publisher Steven Feldman recently sat down with Fulton to get his thoughts on Karndean and the industry at large.
What type of change may the retailer see going forward?
Retailers can continue to count on Karndean for excellent products, consistent inventory and solutions-oriented service. Our commitment to providing value in those fundamental ways will not change, and we’ll remain focused on helping retailers be successful. We know we’ve established a market leadership position for LVT. We’ve been developing, manufacturing and supplying luxury vinyl products longer than anyone else in the U.S. market. With that said, we are always challenging ourselves: How can we be even better? How can we be easier to do business with? With all of the current market volatility, one focus has been providing stability in the short term while positioning ourselves to be a strong, reliable parter for the long term. That includes exploring ways to elevate our product and service even further.
How do you navigate tariffs, increases in fuel better than your competitors?
“Carefully” is the key word here. With such volatile market conditions, there is considerable risk in acting impulsively. In most cases, our hands are tied. The market inevitably presents unexpected challenges to businesses, and if those challenges raise costs for an extended period, there may come a time when those costs no longer can be absorbed. At Karndean, we assess every area of our operations in an effort to mitigate the impact on customers, whether that’s flexing shipping lanes, flexing manufacturing sites or simply deciding to carry an unexpected cost burden with the expectation there eventually will be some relief. In every case, the key consideration is minimizing disruption for the customer. As I consistently reinforce with our team: We control what we can control. For those things outside of our control, we have to react, and that can create tough decisions.
How do you absorb that?
Carrying deep inventory has served us—and, by extension, our customers—well. Having that strong inventory at multiple distribution centers across the country is beneficial as well. That level of product availability has provided us with a measure of protection against some of the challenges the market has presented recently.
How would you like the customer to perceive Karndean?
As the go-to supplier for LVT. It’s been our exclusive focus for more than five decades, and we do it really well. All of that history, experience and expertise translate to a clear difference in the product quality—aesthetics, durability and performance. Customers should also look to us as experts in the category. Again, that deep history, the long-established relationships—it’s a distinct advantage for us and a distinct benefit to our customers. Luxury vinyl is the best flooring product for an incredibly broad range of use cases, both residentially and commercially. But none of that matters if there’s reason to not have full confidence in the product. People should know that we are a partner they can trust for LVT.
Talk to me about categories beyond LVT. Will it always be resilient for Karndean?
Never say never. There are always conversations about how we can bring even more value to our customers. Today, we are focused on setting the standard for high-quality LVT. Could there be other options? The door is never closed, but whatever we do, I assure you we will do it exceptionally well. And for now, we know we do LVT really, really well.
You have sourced from the same factories for an extended period of time. Would you consider any domestic sources?
We’re always considering our options and evaluating our supply chain. Karndean operates in a lot of countries globally, so there’s an economy of scale that’s different from other suppliers. Domestic manufacturing has its pros and cons, and every supplier has different variables that factor in a decision like that. “USA Made” is a fantastic story, but the reality is there are considerations that we continue to review. As I’ve mentioned, one of our main objectives is to be a strong, reliable partner to our customers for the long term. The integrity of our supply chain is an immense component of that.
What have you identified as your biggest challenges today? Where do you see opportunity?
The biggest challenges are always the things outside of your control. What’s the long-term future look like in Iran and the Middle East at large? Domestically, when will there be an improvement in consumer confidence? When will there be more favorable mortgage rates? All are outside of our control, yet need to be navigated with clear, cohesive strategy.
There’s always opportunity, whether that’s untapped markets geographically or identifying the potential for new business relationships. We have very strong relationships with our customers, but we have to make sure we’re capable of growing where those sorts of opportunities exist. There also are opportunities to ensure people understand how our products can deliver value, whether that’s in a retailer display or for a large-scale commercial projects.
Have you implemented any changes so far?
Because of the ongoing market volatility, we’ve had to implement changes to product pricing and our freight surcharge structure. There are ongoing cost escalations affecting raw materials and transportation, and we could no longer absorb those costs. I wish I had a crystal ball to know when those cost pressures will level off, but for the time being they are challenges we’re actively navigating every day. But philosophically, we start by assessing how we can strengthen our operations to mitigate the impact on customers.
Rather than raise prices, you put on a freight surcharge?
There were a lot of considerations in deciding how to handle the dynamics of freight. Historically, there have been challenges with implementing fuel surcharges, but that’s the most fair way with the dynamic nature of them. We just want to be reasonable. We’ve always operated with just a flat fee and then material price. No business can absorb the entirety of these significant new costs being introduced to the market. It’s a difficult balancing act.
What’s the next big thing retailers can expect from Karndean?
We continue to raise the bar for loose lay, which has been getting a lot of attention because it really does offer a unique combination of benefits. Our namesake collection, Karndean LooseLay, has just been updated. While new loose lay continues to be introduced to the market, construction can vary. We’ve been in the market for 15 years, and that makes a significant difference in the quality of the product—style, reliable installation, durability, performance, all of it. It all goes back to being that LVT partner retailers can trust.
How does Karndean help a dealer make money?
It starts with product design excellence. Unlike most luxury vinyl suppliers, we develop and own all of our wood and stone designs, curating the natural materials that inspire them from around the world. Our product development team crafts the wood and stone to capture and enhance the natural beauty, ultimately resulting in strikingly realistic flooring designs that bring incredible value to our retailers’ showrooms. We understand our prices are slightly higher because we’re willing to invest what’s necessary to offer a high-end product. Higher ASP products yield better margins for retailers. Beyond an individual sale, Karndean retailers know their customers are getting a floor they’re going to love—the style, the durability and the performance. Successful installations generate repeat business and positive word of mouth for the retailer.
