NFT Hardwood Market Study: Dealers’ Wood Business Continues to Be Strong
by Jeff Golden
April 13, 2009
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| Bruce Hardwood Floors
Lock & Fold American Originals Hickory Antique Natural |
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Our exclusive survey
of over 225 floor covering dealers and contractors tells us that the hardwood
category remained the same in 2008. The hardwood segment accounted for 21%
market share of respondents’ 2008 total annual sales.
A
closer look at the category showed that the residential replacement portion
captured 54% of 2008 sales, more than twice the 22% for the builder/new
construction category. The contract/commercial segment followed at 17% with
Main Street commercial at 8%.
On average, respondents
generated nine hardwood flooring sales, while on average the total amount per
hardwood sale was $3,710 in 2008 (Chart 1). The monthly average in hardwood
flooring sales for our respondents was $55,337. It is interesting to see that
33% of respondents sell from $35,000 to $100,000+ of hardwood monthly. Annual
hardwood flooring sales are now over $454,000 (mean), within the group, with
24% reporting $500,000 or more.
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| Harris Wood’s Trail
House Golden Palimeno |
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The
sales figures are growing with the increased floor space being dedicated to
showcasing wood flooring products. Wood products are the second most displayed
flooring product on the show floor with 21% of showroom space. Only carpet,
with 36%, gets more floor space.
Factory pre-finished
hardwood flooring continues to account for the majority of sales at 86%.
Job-site finished sales increased slightly to a 14% share. Sales of solid and
engineered are nearly split identically at 52% and 48%, respectively.
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| Mannington Mills’
American Walnut. |
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The
top selling brand of hardwood selected by our panelists is Bruce. Eighteen
percent of respondents selected Bruce as their top selling brand. Mohawk was
second at 12% with Armstrong, Anderson and Mannington rounding out the top
five.
Hardwood is still installed predominantly using a nailer at
40%; followed by glue-down at 28%; staple, 18%; and glueless (click), 14%
(Chart 2).
Red Oak was the runaway
top selling hardwood species at 55%, followed by White Oak, 11%; Brazilian
Cherry and Hickory at 8% each; Maple, 7%; Bamboo, 4%; Brazilian Walnut, Pecan
and Pine at 1% each; and other, 4%.
Buyers
are now selecting wider width products compared to last year. Products
from 2.5” to 3” wide now control half
of sales at 51%. The demand for products less than 2.5” and between 3” to 4”has
dropped. The market for wood products of 4” wide and above has increased
slightly (Chart 3).
A glimpse at the product
mix shows more dealers are now offering reclaimed woods to customers compared
to previous years. Machine/hand scraped woods and exotics are found in nearly
all showrooms
Here’s
what respondents said about the outlook on their 2009 business:
• Residential and commercial hardwood flooring sales are
expected to remain the same or decrease from 2008 levels.
• Product category sales will mirror those of 2008 with
carpet, 37%; wood, 21%; ceramic tile, 16%; laminate, 10%; resilient, 9%; stone,
4% and area rugs, 3% (Chart 4).
• The residential replacement segment will increase to 58% of
business, while the builder business will drop to 18%, and the
contract/commercial and Main Street commercial categories will remain stable.
• Demand for bamboo
products will increase two-fold.
Thirty-seven
percent of respondents are now working with six or more hardwood suppliers.
This is an 11% increase over last year. And the other respondents continue to
work with the same number of suppliers as in the past. Respondents report
sourcing significantly less of their hardwood flooring from general flooring
distributors and slightly more direct from a domestic manufacturer.
Eight out of ten
respondents indicate price is the primary factor influencing which hardwood
flooring manufacturers/distributors they purchase or recommend. Compared to
last year’s study there is a significant increase in the influence of price,
sales rep knowledge/support, style of products offered, low or no minimum order
quantity, and supporting marketing/merchandising materials. Brand reputation,
according to respondents is less important.
Survey
respondents are having more product quality issues from imported wood products
compared to domestic materials.
Competitive pricing leads the concerns of the respondents
followed by foreign imports, competing with other hard surfaces, consumer
knowledge of hardwood, moisture problems, product quality, durability of
finish, quality of installers, and legal issues such as the Lacey Act.
Even though the Lacey Act was not top of mind in this survey,
it will increase in importance for all industry segments from retailer to
contractor to distributor to manufacturer.
Editor’s note: The preceding is a snapshot
of a new comprehensive study examining the retail market for hardwood flooring.
The conclusions are based on the opinions, preferences and purchasing behavior
of U.S. flooring retailers/dealers. The study was conducted by Clear Seas
Research, a division of BNP Media.
This in-depth research study, including three-year trending
data, provides clear and actionable results to give companies a competitive
edge. This report provides insightful information to help manufacturers better
understand the changing industry and includes information on various topics
such as: What is the top selling brand of hardwood? What brands of exotic,
machine hand scraped and reclaimed woods are current top sellers? What
persuades retailers to sell/promote a particular brand? How do flooring
retailers rate their top selling hardwood flooring brand on several
attributes?
The survey was
administered online and emailed to 5,745 flooring dealers/contractors who are
also subscribers to National Floor Trends magazine. A total of 227 surveys were
completed for a response rate of 4%. The full and complete report is available
from Clear Seas Research. For information about ordering or to find out more
about Clear Seas Research services contact Sarah Turner at
turners@clearseasresearch.com or visit our website at www.clearseasresearch.com.
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