Article Number : 1894 |
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| Date | 4/11/2007 9:06:28 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1894 |
| Abstract | By K.J. Quinn Less than one month on the job as president and CEO of Award Hardwood Flooring, Dennis Mohn is bullish about the prospects for rapidly increasing business... |
| Article | By K.J. Quinn Less than one month on the job as president and CEO of Award Hardwood Flooring, Dennis Mohn is bullish about the prospects for rapidly increasing business. And why not? The wood industry has sustained sales growth for several years, and the company has built a solid reputation constructed around innovation and style. By building on these core values, Mohn believes Award can raise its game to the next level despite playing in an industry that has grown increasingly competitive over the years. “I think one of the biggest challenges facing all wood manufacturers is how to differentiate and create value,” he said. “It’s all about doing things within the product category that have never been done and creating new looks and innovative products.” After spending several years in the laminate industry, most recently as vice president of sales and marketing at Alloc, Mohn joined Award just a few months ago. A relative newcomer to the wood flooring business, the chief executive enlisted the help of former CEO Jim Kemmerling, who agreed to stay on as a consultant to help ease the transition. He assumes the helm of a company that has witnessed its share of ups and downs since it began as a longstrip wood flooring producer in 1998. Founded by a group of hardwood and laminate industry veterans, the company gained instant notoriety when it introduced an advanced ceramic finish called Wearmax, which enabled a wood floor to retain its beauty and character longer than competitive products. “When Award was founded, it took off like a rocket and had instant success,” Mohn said. “But the company grew too fast and did not focus enough on quality. It had some major product quality issues.” To the former owners’ credit, Mohn said, the group addressed these issues head-on by investing in new manufacturing technology and implementing quality control measures at the Wausau, Wis.-based factory. For example, all wood used in Award floors is graded every time it is handled. Frequent sampling and testing is conducted at every step of the manufacturing process. “Before it is placed in the carton, every piece of an Award hardwood floor is individually inspected over and over again,” Mohn said. The manufacturing process is completed while maintaining a clean environment that ensures dust and contaminants do not compromise the floor’s finish, while humidity control ensures optimum floor stability. Product mix A staple of Award products is its wide assortment of hardwoods, including domestic and exotic species, which over the years evolved in both finish and construction. Award continuously meets with interior designers to ensure it provides the most updated colors and species to accentuate the lifestyles of consumers. A sampling of some of Award’s latest wood flooring visuals are distressed hand scraped, sculpted and antique looks to accentuate decorating preferences. Chevrons and antique nail designs, the latter of which resemble nails drilled by a blacksmith, are available through special order. At Surfaces 2007, Award introduced its entry into the solid hardwood business by launching a ¾-inch-thick line consisting of 20 SKUs available in formats ranging from 2 1/4 to 4 inches wide. The North American Classics line, available in smooth and hand-scraped looks, comes in five domestic species. The high-end line features a finer Wearmax finish, Mohn said, adding that the Taber tests prove Wear-max remains the best wear-resistant finish in wood flooring. “One of the first things we have to do is secure distribution for our solids,” Mohn said. “We already have commitments from a lot of existing customers, but we have to firm up all those commitments and that’s a real focus for us.” National distribution is expected to be finalized by May 1. Award utilizes North American species for many of its engineered offerings, a selection that appeals to mainstream wood buyers and makes it easier to manage inventories since the supply is from the U.S. These looks are complimented with a wide range of exotic species ranging from Santos mahogany and African Paduak wood to Andirobia. “We are open to carrying other species as they pop their heads up,” Mohn said. The core Award offerings remain engineered wood floors, which target the high end with fine finishes available in different shapes and sizes. For example, American Traditions, which comes in 13 species and 14 hues, adds warmth and comfort to any room. The Urban Collection features exotic species, available in a two-strip clean modern style and a three-strip classic style that offers the traditional look of hardwood. Master’s Touch long-length planks are available in hand-scraped, smooth, distressed, sculpted and etched designs that come in six species and 14 colors. “Residentially, the products offer consumers a wide range of colors to fit many decorating themes,” said Nick Melnyk, vice president, hard surfaces, Cain and Bultman, an Award distributor in Jacksonville, Fla. “Commercially, Award has been very flexible in working with designers to fill their individual colors with the development of custom colors along with a finish that has excellent wear-resistant qualities.” Competitive distinction The majority of the Award line consists of wide-width planks and a quantity of color and species deep enough to satisfy consumer design preferences, Mohn said. For retailers, these are major selling points that distinguish the Award line from competitive products. “We have about 280 color combinations we can do, which is pretty substantial,” he noted. A case in point is Award’s Terra Bella line, which retailers find especially appealing due to its extensive color palette and wide planks that exhibit a smooth surface. “The 6-inch-wide planks offer consumers a choice in 28 colors, from light to dark, in three price ranges,” Melnyk said. “It is also a problem-free product for us and retailers.” Suggested retail prices range from about $6 to $14 per square foot uninstalled. “The line is very simple to sell,” said Clay Covington, sales and marketing manager of the flooring division at Butler-Johnson, a San Jose, Calif.-based Award distributor. “There are very few price points and the line is available in a diverse offering of colors and species.” Many of Award’s offerings are positioned as high-end products, an arena the company is focused on playing in. “We offer an upper-end product that is distinguished as a better product line, whether it is traditional, hand scraped or smooth,” Mohn said. At the same time, however, Award realizes it must offer an assortment of mainstream products that are fast movers at retail. “It’s an avenue to give the distributor something it can move pallets, so there’s a balance out there we’re trying to find,” Mohn said. Indeed, as a domestic hardwood flooring producer, Award is well-positioned to satisfy the service demands of distributors. For instance, it reports carrying a substantial inventory and boasts a low claims rate. “Award’s product quality is very good,” Covington said, “so we have very few problems, and few problems relate to happy retailers and consumers.” A variety of merchandising aids are available to prominently display the Award line and capture consumer attention at retail. Dealers have the opportunity to show off the latest collections in small footprint displays. “Award has done a great job over the last several years at identifying trends and developing collections and merchandising them in smaller format displays with limited price points,” Covington said. “They have simple, attractive displays that can be real profit centers for their retailers.” Looking ahead, Award is exploring the possibility of developing a hardwood line to compete against higher-end laminate floors. It will continue to solidify its national distribution network, Mohn said, to ensure support of its full-line programs. “We have to address where our weakest distribution is and improve upon it,” he added. “It’s an ongoing battle because everybody changes as you move on.” |