Hardwood Floors E-News - 2/9/2009

Issue Date:2/9/2009

Surfaces Exhibitors See Positive Results Despite Lower Numbers Although preliminary numbers were not yet available, it's expected that final attendance figures for Surfaces 2009, held Feb. 2-5 at the Sands Expo and Convention Center in Las Vegas, will be down from last year's 34,540. The show had around 700 exhibiting companies, down from last year's 982. Despite this, several exhibitors reported positive results from the show. "We had a really good show," said Steven Lima, technical services manager at Bostik Inc. (Middleton, Ma.). "We had 60 to 70 demos on Tuesday alone, which brought a lot of traffic to our booth." At the Aacer Flooring (Peshtigo, Wis.) booth, Todd Braun, vice president of international market development, noticed an overall decrease in the number of attendees on the show floor, but he said it didn't have much impact on their booth. "Surprisingly, we had more traffic than we anticipated," Braun said. Surfaces 2010 will be held one more year at the Sands Expo, on Feb. 2-4, before moving to the Mandalay Bay in Las Vegas in 2011.

NWFA Announces Details of NOFMA Certification Program Following the NOFMA/NWFA consolidation that took place on Dec. 16, the NWFA has now released details of how the long-standing NOFMA mill certification program will continue. NOFMA certification will now cost a $5,000 annual licensing fee; this fee includes two mandatory inspections. Mills that are currently NOFMA-certified must sign a license agreement to comply with established standards and requirements, and they must be current on annual fees to continue the program. Mills interested in becoming NOFMA-certified must: 1) pass an initial inspection of solid, unfinished strip wood for a $2,000 fee, 2) pass a second $2,000 inspection within 90 days, and 3) pay an additional $1,000 upon passing the second certification to complete the $5,000 annual fee, upon which certification is granted. If any mill fails an inspection, training must commence at its expense until two consecutive inspections are passed. NOFMA certification is currently available only to U.S. manufacturers, but the NWFA's NOFMA Standards Committee is considering expanding the program to include mills from Canada and Mexico, as well.

Smith & Fong and Teragren Dispute Continues A U.S. district judge has ruled in favor of Smith & Fong Company (San Francisco) in its patent-infringement counter-suit with Teragren Bamboo Flooring & Veneers (Bainbridge, Wash.). The dispute arose last year; Teragren initially sued Smith & Fong claiming Teragren had exclusive rights to strand bamboo products in the U.S. and Mexico. Teragren representatives are seeking a "reconsideration" of the ruling to address certain patent rights they feel were not addressed in the judge's ruling. According to a Teragren release regarding the case, "The court has not yet determined if strand bamboo products manufactured, marketed or sold by Smith & Fong are covered by Teragren's patent rights—or whether the defendants are infringing the patent." However, Smith & Fong representatives are satisfied with the ruling. "As a result of this ruling, strand bamboo products manufactured, marketed or sold by Smith & Fong are not covered by the patent rights claimed by Teragren," the company said in a statement.

Manufacturer News Robina Wood Inc. (Kennesaw, Ga.) has entered a joint venture agreement with Penghong Flooring (Dalian, China). Penghong will produce Robina's engineered wood flooring lines in accordance with Robina's Vaelinge license.

Ua Wood Floors Inc. (Douilo City, Taiwan) has opened a North American distribution center in Lancaster, Pa. The center will serve Ua customers in Canada and the U.S. The center contains more than 350,000 square feet of stocking levels.

Junckers Hardwood Inc. has moved its headquarters to New York City from Anaheim, Calif. The company opened a new warehouse on Long Island, and its Anaheim warehouse was relocated to Los Angeles. For more information, call 714/600-6887 on the West Coast, 714/600-6887 on the East Coast or 800/878-9663.

Distributor News Welco Floor Coverings (Vancouver, Canada) has partnered with Lester & Associates (Scottsdale, Ariz.) to market its Karelia line of flooring. Welco is the exclusive distributor of Karelia Wood Floors for Western North America.

Moby Dick Supplies LLC has moved its headquarters to Marana, Ariz., from Tucson, Ariz. The company's new mailing address is 6800 North Camino Martin, Suite 130, Marana, AZ 85741. The company's local phone number, 520/408-1411 and fax number, 520/408-1511, remain the same; however, its toll-free number, 866/408-1411, is no longer in use.

Dealer/Contractor News Wise Flooring (Kill Devil Hills, N.C.) has opened a new branch, Wise Flooring Ohio (Kent, Ohio), to serve northeast Ohio. The branch will be managed by Joseph Ramunni, who can be reached at [email protected] or 330/402-0072.

People News Appalachian Flooring Ltd. (Cowansville, Canada) recently hired Frank Austin as its U.S. sales manager. Austin has more than 10 years of experience in the hardwood flooring industry, most recently having worked as a national sales manager at Owens Flooring Company. Austin can be reached at 906/241-4795 or [email protected].

By the Numbers The annual rate of existing single-family home sales rose 7 percent in December to 4.26 million, according to the National Association of Realtors (NAR). However, the increase was fueled in large part by "distressed" home sales, homes that were foreclosed upon and dumped for less than their actual market value. December sales were up from a revised November rate of 3.98 million. Overall existing home sales — including condos, townhomes and co-ops — increased 6.5 percent. All other housing numbers posted negative results. The median existing single-family home price in December was at $174,700, down 14.8 percent from December 2007, according to the NAR. For all of 2008, the single-family median price was $197,100, which is 9.5 percent below the 2007 figure.

The annual rate of 4.26 million existing single-family units sold in December was down 1.4 percent from the 4.32 million unit-rate from December 2007, according to the U.S. Commerce Department. Overall in 2008, single-family home sales fell 11.9 percent to 4.3 million. This is the lowest sales volume since 1997, when there were 4.3 million units sold.

Sales of new single-family homes fell 14.7 percent to a rate of 331,000 from the revised November figure of 388,000 units, according the U.S. Commerce Department. The current rate is 45 percent below the December 2007 rate estimate of 600,000 units sold. The Commerce Department estimates there were 482,000 new homes sold in 2008, which is 38 percent below the 2007 figure. This level is down 76 percent from a 2005 peak.

The median price for these December new home sales was $206,500, or 9 percent lower than the December 2007 figure of $227,700, according to the Commerce Department.

Private spending on residential construction was at an annual rate of $319 billion in December, down 3.2 percent from the revised November figure of $330 billion, according to the U.S. Commerce Department.

The S&P/Case-Shiller Home Price Indices, which track residential real estate markets in the country's largest major metropolitan areas, declined again in November. The 10- and 20-city composites reached new lows, 19.1 percent and 18.2 percent, respectively. Of the 20 areas assessed, 11 showed record rates of annual decline, while 14 reported annual declines in excess of 10 percent. November was the 28th consecutive month the indices posted negative results. The west continues to be the hardest-hit region, with Las Vegas, San Francisco and Phoenix posting annual declines in excess of 30 percent. Yet, other cities scattered throughout the U.S. also posted record declines, including: Atlanta, Boston, Charlotte, Chicago, Dallas, New York, Portland and Seattle.

The residential remodeling industry furthered its slump in the fourth quarter, according to the Remodeling Market Index (RMI) from by the National Association of Home Builders (NAHB). The indicator for current market conditions slid 5.8 points to 27.7 from 33.5. Meanwhile, future expectations declined 8.1 points to 19.6 from 27.7. These are both historic lows for the indices since the NAHB began tracking them in 2001. Any RMI above 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005.

Trade Show News The International Wood Products Association (IWPA) reports that registration for its March 25-27 convention is triple last year's pace. For registration information, go to www.iwpawood.org or call 703/820-6696.

The International Builders' Show attracted about 60,000 people Jan. 20-23 in Las Vegas, down from about 90,000 last year. About 1,600 companies exhibited at the event, down from more than 1,900 last year.

Mark Your Calendar The NWFA will hold an Advanced Installation School Feb. 25-27, a Custom Design and Finish School March 10-13, and a Wood Flooring Basics School March 17-20. All schools will be held at NWFA headquarters in St. Louis, and NWFA scholarships are available for all technical schools. Furthermore, the Advanced Installation and the Custom Design and Finish schools are prerequisites for attending the NWFA's Expert Installation and Expert Sand & Finish schools. For more information, e-mail [email protected], visit www.nwfa.org, or call 800/422-4556 (U.S.), 800/848-8824 (Canada) or 636/519-9663 (local and international).

The Builders Association of the Twin Cities (BATC) (Roseville, Minn.) is holding general contractor continuing education classes Tuesday, March 10, and Monday, March 16, at its headquarters. The sessions will feature Roy Reichow of National Wood Flooring Consultants Inc. (Cedar, Minn.). Reichow will present sessions on "Risk Management of Wood Flooring," concentrating on the moisture-related flooring problems contractors most commonly face. For more information, visit the BATC Web site at www.batconline.com.

Lon Musolf Distributing Inc. (Vadnais Heights, Minn.) will hold Basic Coatings & Powernail days on Tuesday, Feb. 10, in Vadnais Heights, Minn., and Wednesday, Feb. 11, in Eden Prairie, Minn. Customers are invited for sales, demos, and prizes. Basic Coatings and Powernail will be giving away products and hands-on labor. For more information, call 800/537-1966.

Job Watch Junckers Hardwood Inc. is seeking a commission-based sales representative in the U.S. Interested candidates should mail a resume to [email protected] or fax it to 212/334-8062.

J.J. Derman is seeking a sales or management position in the U.S. Derman has more than 13 years of experience in chemical and wood flooring accessories sales. He was formerly a regional team manager and distribution business manager at Bona US. Prior to that he sold machines and abrasives for Bona US in the Midwest. He is based in Atlanta and can be reached at 303/478-3040 or [email protected].

NWFA Member Services The NWFA will be heading to the West Coast for its 24th Annual Wood Flooring Expo and Education Conference. The show will be held April 28-May 1 in Long Beach, Calif.

NWFA members can attend the Wood Flooring Expo for free. This year's Expo will feature 500 exhibit booths showcasing the industry's latest products, machinery, tools and services. The Expo will run for two full days on Wednesday, April 29 and Thursday, April 30 and will feature a wide variety of on-site demonstrations to enhance your wood flooring knowledge. A complimentary lunch will be served in the Expo Hall on both days for all Expo attendees, with a complimentary happy hour to be held during the last hour of the show on Thursday. Member registrations must be received in advance of the show to attend the Expo for free. Expo registrations for members received on-site in Long Beach will be $10.

Expo attendees also will have the opportunity to attend any General Session held during the Education Conference. Currently, three general sessions are scheduled. Wednesday's general session will be "Getting Your Business to Work for You," Thursday's general session will be "How to Capitalize on a Reviving Market," and Friday's general session will be "Advertising and Marketing." Expo attendees who want to attend the Welcome Reception, Awards Party or Networking Lunches may purchase these events individually for an additional fee.

For those members who want to attend the entire education conference, which includes all events occurring during the four-day convention, including the Welcome Reception, Awards Party, and Networking Lunches, the cost is $350 for registrations received by March 27. The cost for registrations received after March 27 is $400.

For more information, visit www.nwfa.org and click on the "2009 Convention" link.

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