Floor covering distributors are anticipating a 6 percent profit growth on average in 2015, two percent higher than in 2014, according to the North American Association of Floor Covering Distributors’ first quarter report (PDF file).
Distributors expect a 2 percent increase in input costs in 2015, similar to the increase the prior year. They also believe fuel prices will be lower in 2015, lending to 0.7 points of growth.
Manufacturer cost outlooks improved modestly in the first quarter of 2015 compared with early in the fourth quarter of 2014. More than 80 percent of manufacturers expect to increase their employee numbers in 2015, though 70 percent of them cited difficulty finding qualified candidates, according to the NAFCD report.
Sixty percent of manufacturers feel better about growth in 2015 than they did at the same time last year, said Kevin Gammonley, NAFCD executive vice president, in a statement.
The report also stated that 70 percent of manufacturers plan to add distributors in 2015.
