Article Number : 2764 |
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| Date | 12/14/2007 9:05:23 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2764 |
| Abstract | By Sarah Zimmerman Commercial continues to be the selling point in the ceramic arena according to mills in the segment. With the housing market down and residential maintaining an uncertain rebound, manufacturers stay positive, turning to trends to drive business in 2008... |
| Article | By Sarah Zimmerman Commercial continues to be the selling point in the ceramic arena according to mills in the segment. With the housing market down and residential maintaining an uncertain rebound, manufacturers stay positive, turning to trends to drive business in 2008. Focus on contemporary looks, product mix and merchandising, thinking “outside” the box and going green will lead the category in the year ahead, is what top players had to say. What is your forecast for 2008 regarding economy, products and trends? Harold Turk President of Dal-Tile From an economic and business standpoint, the residential market will continue to be an area of concern for next year, as there is uncertainty as to when the market will rebound. New home construction is driving much of the slowdown, however, we also see softness in the residential remodeling sector. The bright spot continues to be in the commercial segment. This growth is being fueled by urban development taking place in many of the major metropolitan areas, as well as the hospitality and education sectors. Even with commercial remaining strong, the significant downturn in new home construction is likely to more than offset any overall growth we see from the commercial category. The industry will also continue to be impacted by high-energy prices, so this is an area that all manufacturers will be watching closely. Finally, the weakness of the U.S. dollar versus foreign currency will be a challenge to distributors importing products into the country. Regarding products and trends, we see contemporary looks, such as stained concrete, monochromatic styles and designs that are simulating textiles including leather and fabrics, emerging and growing. This trend is stemming from the high levels of multi-family and commercial development in the metropolitan, urban areas. We expect this trend continuing into 2008. Glass and metal continue to be in demand. Rectangle and larger unit sizes will also continue to be very popular. Urban loft development has resulted in more contemporary selections. From a product perspective, homeowners are expanding their “living spaces” to include outdoor areas, such as patios, loggias, outdoor kitchens and pool decks, and are looking for tiles that may be used in exterior applications. Homeowners are looking to create the same comfortable and stylish experiences outdoors as they have indoors. John Blanton National sales manager of Fritztile The majority of Fritztile installations and sales are commercial buildings, which do not seem to be affected yet by the slow down in home sales and the credit crunch. Consequently, our sales projections for 2008 are very positive. As an innovative manufacturer of unique flooring products we are continually trying to develop new offerings. Jim Dougherty Executive vice president of Florim Florim is looking at 2008 very realistically, and we see it as a year of opportunity. Everyone across the board is coming off a challenging ’07. We’re no exception, but this year has been a building year for us. We launched new branding, honed product development, streamlined our sales strategies and prepared new merchandising and marketing. As we look to next year, we’re on track for numerous new product launches, a benchmark merchandising program and a new, focused plan to connect with retailers. How are you positioning your company to grow business as we approach next year? Turk: Our goals are and will continue to be to focus on our customers and to manufacture and distribute high-quality, fashionable tile that reflects the latest trends in the marketplace. Since Dal-Tile has more than 240 sales service centers across the country, we have been able to successfully leverage our distribution to consistently provide a high level of service to our customers. Our galleries, stone centers and sales service center showrooms provide our customers a resource when additional assistance is needed to help their customers make selections. As a leader in the tile industry, we’re fortunate to have the resources to continue moving forward, despite the significant slowdown in the residential segment, by continuing to invest in technologies that allow us to create even more exciting products than the year before. One thing that I’d like to emphasize is that builders haven’t stopped building altogether. They are simply building less aggressively than they have in recent years. Also, certain segments within residential construction have not slowed as much as the overall industry, namely multi-family and the market for high-end custom homes that are still being built and remodeled. Our product mix has positioned us well to serve these segments. In support of production builders, we are able to leverage our broad distribution network to provide customized programs on either a national or regional level. Dal-Tile has the best sales team in the industry. It is extremely knowledgeable and tuned in to the current environment, as well as changes coming down the line, which allow us to adapt our focus to different industry segments as the market dictates. Blanton: Continued growth is, as always, fresh innovative products, but now, more important than ever, are environmentally friendly flooring solutions. To meet the need of eco-conscious products, we have recently introduced Fritztile utilizing post-consumer recycled glass aggregates. ‘Green’ product development is the wave of the future not only in flooring but all construction products, and it’s our priority focus. Beginning in 2008, we are introducing a new floor patch and self-leveling underlayment system consisting of 90% fly ash and sand. Dougherty: Our customers see that we are not hindered by a slow market. We’re still full steam ahead on new product launches and the unveiling of new merchandising and programs. Our forward motion instills confidence that we’re going to make the most of 2008, no matter the challenges the market poses. We’re working closely with our distributor partners to maximize every opportunity—developing the company in a customer-centered manner with a market-focused style. Ironically, a slow market means we all have to work harder and faster, and that’s exactly what we are doing. |