Issue Date:1/24/2005
Hardwood Floors E-News
Monday, January 24, 2005
Issue 255
Next issue published February 7, 2005
Deadline for items: February 2, 2005
Send news to edit[email protected]
Flooring and Lumber Markets Should Stabilize in 2005
Flooring prices have been in decline for the better part of a year now-good news for contractors in the short-term, perhaps, but loaded with negative potential if manufacturers reduce production to cut their losses. Richard Poirier of Dimension International (Loretteville, Quebec) is sounding an alarm. "We are hearing some horror stories in the marketplace of excessive inventories, lower prices and general malaise in demand," wrote Poirier in the Jan. 1 edition of his e-mail newsletter, "The Naked Truth." "What we know is that a majority of flooring mills with kiln capacity are refusing dry lumber shipments and also that a few mills with flooring manufacturing capacity have decided to sell their lumber to others to reduce losses. If we do not see some curbing of production capacity soon, where will all this flooring go?" Tommy Maxwell of Maxwell Hardwood Flooring (Monticello, Ark.), who has seen about as many business cycles as anyone in his 30-plus years in the wood flooring industry, agrees that overproduction has been a problem, but he expects the market to stabilize soon. "You're looking at the backside of the market right now," says Maxwell. "We've had about eight months of over-production and price reductions and usually the cycle is about eight months long. Demand has been strong, but when you have more production than you have places to go with it, prices keep falling and sooner or later it's just not profitable anymore. These are supply-and-demand products, and you can't beat supply and demand. It'll straighten itself out, though." If anything, says Maxwell, lumber prices are likely to fall for only about another two months before demand catches up with and then passes supply. "The woods are wet in most areas of the country and it's going to be hard to harvest logs this spring. Once the lumber yards are depleted, you'll see a tightening of supply in lumber prices." Overall, says Maxwell, "I think 2005 is going to be a pretty good year for most of us. I'm more optimistic than some folks are, but that's what I think. Maybe not a great year, but a good one." To receive Poirier's "The Naked Truth" newsletter, e-mail him at [email protected].
Manufacturer News
Sport Court International (Salt Lake City), a producer of high-performance sports and residential court flooring systems owned by The Riverside Company (New York), and Connor Sports Flooring Corporation (Arlington Heights, Ill.) have merged to create Connor Sport Court International. The merger will diversify and expand the combined product lines and distribution channels of both companies. "The combined company will be able to offer both the institutional and the residential customers an even better product and service offering," says Will Bixby, partner in Riverside's Dallas office and the lead transactor on this deal. Charlie Graves, CEO of Sport Court International and CEO of the new entity, says that the two companies are a perfect match. "Sport Court is dominating the market in outdoor game court and synthetic sport surfaces, and Connor has a great history as the market leader and innovator in the hardwood sports flooring industry. Together, we are going to transform the market and establish our new organization as the top producer of sports surfacing and flooring." Although the companies have combined to become Connor Sport Court International, both companies will maintain staffing at their respective headquarters and Connor's production facility in Amasa, Mich.
TRB Flooring (Holly Ridge, N.C.) recently relocated to its new facility in Holly Ridge, N.C., and expanded its delivery fleet. The new facility doubles the company's storage space and provides an enclosed loading dock to better meet pickup and delivery requirements, while the expanded delivery fleet provides its customers with prompt service, the company says. TRB also has introduced a new line of solid prefinished exotic hardwood flooring called Nature's Charm.
Graf Brothers Flooring (South Shore, Ky.) has announced that a new six-head Weining molder has been added to further enhance the production volume of its plank floors. The company's emphasis continues to be the promotion of its rift and quartersawn wide and long plank flooring. In addition, the company has purchased 60 acres adjoining Graf Brothers' present property. The land will accommodate the company's new band sawmills, grading lines and lumber stacking system. It also will be used for an air-drying yard for green lumber. A second satellite log yard has been set up as a continued source of high-quality logs. For more information, call 606/932-3117, e-mail [email protected] or visit www.grafbro.com.
Ancestral (Saint-Georges, Quebec), a manufacturer of pre-oiled wood floors, has terminated the distribution of its products through Ta-Da Connection. Both parties will, however, continue to work together to provide end customers with warranty services for Ancestral products that were sold by Ta-Da. In addition, with the launch of several new species and colors last year, Ancestral experienced growth of more than 200 percent across all of its markets and wants to achieve increased results in Ontario. To that end, Ancestral established sales, services and logistics in Ontario to meet demand and to support the efforts of its dealer network. "With the recent hiring of Steve Sharko and the analysis of our 2004 results, we are strongly convinced our new strategy and the help of key dealers in Ontario will allow our partners and ourselves to achieve success in the province in 2005 and for years to come, says Raymond Duval, director of sales for Ancestral. Dealers can contact Ancestral directly at 800/493-3788.
People News
Columbia Flooring (Danville, Va.) has appointed Steve Bunch director of sales. He assumed his new role on January 1, replacing John Patterson, who retired from Columbia on December 31. Bunch joined Columbia in 2001 from Alloc Inc., where he was vice president of sales and marketing.
Porta-Nails Inc. (Wilmington, N.C.) has appointed Bernard and Vincent Tucker of Midlantic Marketing (New Jersey) as sales representatives to provide the Porta-Nailer Hammerhead Hardwood Floor Nailing System and The ARC to wood flooring distributors in Virginia, Washington, D.C., Maryland, Delaware, Pennsylvania and New Jersey. Midlantic offers years of experience to the wood flooring industry and can be reached at 609/654-1669.
Prestige Enterprise International (Cincinnati) has added Pamela Seibel as its U.S. account representative. She handles the company's unfinished red oak strip and 4- and 5-inch plank products from its Pennsylvania factory. Seibel can be reached at 513/469-6044.
The Woods Company Inc. (Chambersburg, Pa.) recently promoted Karen Lohman to office manager/customer support and Kenny Johnson to safety and personnel manager. Lohman will be responsible for customer service/sales and office management. Johnson will manage human resources procedures and administer safety procedures and policies. Both can be reached at 888/548-7609.
By the Numbers
Strip shipments for December 2004 totaled 55,400,000 board feet, up 5 percent from the 52,759,00 board feet shipped in December 2003, according to NOFMA: The Wood Flooring Manufacturers Association. Strip shipments for the 12 months of 2004 totaled 672,805,000 board feet, up 6 percent from the 633,114,000 board feet shipped during 2003.
Privately owned housing starts in December 2004 were at a seasonally adjusted annual rate of 2,004,000, according to the Commerce Department. This is 10.9 percent above the revised November 2004 estimate of 1,807,000 but is 3.0 percent below the December 2003 rate of 2,067,000. Single-family housing starts in December 2004 were at a rate of 1,678,000-13.1 percent above the November 2004 figure of 1,483,000. Privately owned housing completions in December 2004 were at a seasonally adjusted annual rate of 1,946,000. This is 12.5 percent above the revised November 2004 estimate of 1,730,000 and is 12.1 percent above the December 2003 rate of 1,736,000. Single-family housing completions in December 2004 were at a rate of 1,673,000; this is 15.7 percent above the November 2004 figure of 1,446,000.
The January 2005 National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) was at 70 points, down one point from December 2004 but the same as the average monthly level for the final quarter of 2004, which was the strongest period for the index last year. All three components of the index were off slightly in January: Current single-family sales declined to 77 points, down from 78 points in December; sales prospects for the next six months dropped from 80 points to 78 points; and buyer traffic went from 52 points to 50 points.
On the Web
Allwood Import (Portland, Ore.) has upgraded its Online Inventory Program, which allows Allwood's distributors to sell its products with zero inventory of their own. To try the program, visit www.allwoodimport.com, enter "test" as the temporary password at the "Distributor Corner" located on the right-top side of the Web site, or call Jason Warner at 503/255-7976.
Creative Hardwood Designs (Colgate, Wis.) has launched its new Web site at www.creativehardwooddesigns.com. The site is designed to showcase the company's inlays.
Professional Coatings Inc. (Cabot, Ark.) has created www.flooringclassifieds.com. The Web site provides a way for contractors, distributors and manufacturers to turn excess inventory into cash, the company says. Flooring Classifieds.com is an "open advertising" site for the flooring industry. Visitors to the site can register, sign in and post an ad at anytime. The site includes ads for a variety of flooring, including hardwood, cork, carpet, marble and vinyl. There also are ads for flooring equipment, tools, employment and business opportunities and services. The site is offering free advertisements through January 2005. For more information, visit the Web site, or contact Professional Coatings at 800/962-0344.
Job Watch
BonaKemi USA (Aurora, Colo.) seeks a regional distributor manager. Qualifications include working knowledge and understanding of the wood floor industry, contractor business and sanding/finishing, as well as proven experience managing large territories and calling on distributors, or three-plus years' experience in hardwood flooring sales and building relationships with distributors. Must be able to travel and work approximately 15 weekends per year. The position offers an excellent compensation and benefits package. RÈsumÈs should be sent to Shelly Ackley, HR Manager, BonaKemi USA, 14805 E. Moncrieff Place, Aurora, CO 80011-1205 or [email protected].
Torlys Inc. (Mississauga, Ontario) is seeking a sales professional based in the Golden Horseshoe/Niagara region. Applicants must have a demonstrated ability to build and maintain dealer relationships, as well as experience growing a market base and providing exceptional service to existing clients. For more information or to submit a rÈsumÈ, e-mail [email protected].
North Pacific Group Inc. (West Plains, Mo.) is seeking a hardwood flooring sales/marketing manager. Applicants must be confident self-starters and must possess and maintain a long-lasting relationship with industry contacts. Candidates should have prior experience with hardwood flooring, as well as with sales and marketing. North Pacific Group offers competitive wages and benefits including health insurance, 401(k) and tuition reimbursement programs. RÈsumÈs should be sent to Darwin Murray by mail at North Pacific Group Inc., 1101 Independence Drive, West Plains, MO 65775, by fax at 417/257-1804 or by e-mail at [email protected].
Mark Your Calendar
Dri-Eaz (Burlington, Wash.) will celebrate its 25th anniversary by hosting the Restorative Drying Symposium May 18-21 in Orlando, Fla. Attendees can choose from a variety of technical breakout sessions, with topics such as hardwood floor drying, IAQ and airborne fungi, antimicrobial application and desiccant technology. The symposium also features general session keynote addresses by top national speakers, including football star and Vietnam War hero Rocky Bleier and "Guerilla Marketing" author Jay Conrad Levinson. Attendees can register online at www.dri-eaz.com/drying2005 or by calling 800/932-3030. Those who register by March 1 will receive discount on the registration fee.
VNU Exhibitions Asia, an organizer of the Domotex Asia Chinafloor floor covering trade show, is sponsoring a business travel program to attract delegates from seven countries-Belgium, France, Germany, the Netherlands, the United Kingdom and the United States-to participate in the March 22-24 exhibition in Shanghai. In cooperation with Carlson Wagonlit Travel and HRS Hotel Services, the FLOORdisCOVERING program includes airfare, hotel, exhibition visits, transportation, seminars, factory visits and optional events. The factory visits will be arranged based on priorities indicated on participant registration forms. These guided tours will feature a meeting with the manufacturer's management. It is estimated than more than 600 exhibitors will show their products to about 20,000 visitors at Chinafloor this year. An extensive seminar program will be offered to visitors. For more information and registration forms, contact Dave Spreen by e-mail at [email protected] or call 707/445-2244.
NWFA Member Services
NWFA members can save on all their office products needs through Office Depot Business Services Division. Members can shop for supplies, furniture, toner, machines, and copy paper by phone, fax, Internet, or in-store. To get your discount, you must sign up. For more details, contact Mike Johnson at 800/613-4624, ext. 5012, or at [email protected].
