"The market is finally rebounding from the deep recession." That's a direct quote (and typical answer) from one of the distributors answering this year's HF State of the Industry survey, which we conducted online in January. The quote demonstrates just how deep and painful the recession was for the wood flooring industry, given that the official bottom of the Great Recession happened almost exactly five years ago, when the Dow Jones Industrial Average hit its rock bottom of 6,594.44 on March 9, 2009 (as of press time for this issue in mid-March, the Dow was around the 16,000 mark).
Comparing other statistics from then and now illustrate just how far the economy has come. Total housing starts in 2009 were 553,900, while in 2013 they had rebounded to 926,800, still buoyed by historically low interest rates but nowhere near the 2005 peak of 2,068,100 (a chart showing housing starts can be found on page 68). In 2009, an astounding 83 percent of wood flooring distributors said their business had decreased compared with the previous year; this year more than 86 percent said their business had increased. The median square footage sold by wood flooring distributors surveyed in 2009 was a paltry 392,000; the median for distributors answering our survey this year had more than doubled to 950,000.
Beyond the statistics, intangibles demonstrate the solid ground for the industry in 2014. The mood at the Surfaces trade show in January was markedly more positive than it had been in recent memory, and the show floor was busy. Instead of a steady stream of news about businesses closing, companies are expanding or adding workers or both, and there is a continual stream of new job openings posted on the HF website.
To see all the good news from our 2014 survey, in which we asked wood flooring manufacturers, distributors and contractors how their businesses are faring and much more, turn the page.
In January an online survey was sent to all NWFA-member wood flooring manufacturers. Here are the results.
2013 Results*Manufacturers say their sales (in dollar volume) in 2013 were…
Last year:
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Raw Material CostsManufacturers say the prices they paid for raw materials in 2013…
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2013 PricesManufacturers say wood flooring prices in 2013…
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Future Pricing*Manufacturers expect prices in 2014 to…
* Numbers may not add up to 100 percent due to rounding. |
2014 Predictions
Manufacturers think business in 2014 will be…
Last year:
- 89% somewhat better
- 12% stay the same
Lumber/Flooring Prices Since 2002
The Biggest Threats*Wood flooring manufacturers answered that their biggest threat is:
Last year:
* Numbers may not add up to 100 percent due to rounding. |
Lacey OpinionsDo you agree or disagree with the Lacey Act?
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2013 Changes
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Should LEED Change?Should the LEED green building program recognize other wood flooring certifications besides FSC?
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In January, distributors filled out surveys about their business in 2013. Approximately 90% of wood flooring distributors who responded said they specialize in wood flooring; 10% were general floor covering distributors.
2013 SalesDistributors say the dollar value of their wood flooring sales in 2013...
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Changes in 2013
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Species Sold
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What They Sold
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How they sell:31% of distributors said they had sold some products online in 2013. |
Exotic shift?Five years ago distributors answering our survey said 19% of their sales were exotics. This year those combined numbers totaled only 6%. |
Finish Sold
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What is the biggest threat to your business? Distributors said:
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Threatened by LiquidatorsWe asked distributors if their business had been affected by liquidators (such as Lumber Liquidators). They said:
"Their high advertising budget promotes uneducated customers putting a higher value on price over quality, which often leads to disappointing results." |
2014 Outlook*What is the outlook for 2014? Distributors answered:
*None answered "somewhat worse" or "dramatically worse." * Numbers may not add up to 100 percent due to rounding. |
Regarding big boxes:
72% said their business had been affected by big box stores such as Home Depot and Lowe's
28% said it had not
(Last year 61% of distributors said big boxes had affected their businesses.)
In January, contractors filled out surveys about their business in 2013. Approximately 94% of them said they specialize in wood flooring; 6% deal with general floor coverings.
Species Installed*
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Finish Used
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Biggest ChallengesWhat is the single most important issue affecting your business specifically?
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2013 SalesContractors say the dollar value of their wood flooring sales in 2013...
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* Numbers may not add up to 100 percent due to rounding. |
Where They Buy(more than one answer possible)
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Looking at LiquidatorsWe asked contractors if their business had been affected by liquidators (such as Lumber Liquidators). They said:
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"I am always optimistic, otherwise I would not be in this industry." |
"People often want to compare prices of the premium product with [liquidators] … they do not offer customer education, and yet most consumers do not find this out till it is too late." |
They Install ...
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2014 Outlook*
* Numbers may not add up to 100 percent due to rounding. |
Building vs. Remodeling
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Install vs. Sand/Finish
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Construction Types
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- 42% basement
- 31% slab
- 27% crawl space
Housing Data
