Resilient commercial report: Sales up; slowdown looms
Article Number : 3338
Article Detail
  
Date 6/11/2008 8:24:12 AM
Written By LGM & Associates Technical Flooring Services
View this article at: //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=3338
Abstract By Sarah Zimmerman
Unlike the residential resilient arena that’s been jumping hurdles for a number of years, the commercial segment has maintained a steady course with increased sales of high-single to low-double digits in the first quarter of 2008...
Article By Sarah Zimmerman
Unlike the residential resilient arena that’s been jumping hurdles for a number of years, the commercial segment has maintained a steady course with increased sales of high-single to low-double digits in the first quarter of 2008.

Trends and technology such as an increase in LVT, improved visuals, diverse colors, new Web capabilities and the environment have been heading up the segment’s growth, according to leading mills. And, although it’s been nothing but smooth sailing, mills are looking to such advancements to keep them afloat as 2009 approaches with prediction of a slight downturn.

Jeff Krejsa, director of marketing for Johnsonite, said the first quarter has been very good from a growth perspective. “Like all brands that focus on commercial, we have not felt the direct impact of the sub-prime mortgage crisis.” But he also noted the company is viewing the remainder of the year cautiously, “as we have seen new architectural development projects start to fall off and raw material increases continue to impact all categories.”

Reese Moore, director of VCT business, Mannington, agreed the segment has continued to grow in the first quarter with an increase in Main Street commercial. However, he too called for a bit of a dip as the category approaches next year. “There will be some industry slowing on the commercial side in the beginning of 2009, but this year we can expect continued growth similar to last year’s.”

Also seeing consistent growth throughout the first quarter was Armstrong. Dominic Rice, vice president of commercial resilient, noted signs of a slowdown ahead but remained optimistic. “While we do not anticipate a decline as has been experienced on residential construction, we do see some weakening in retail and a little slowdown on the healthcare side, but we expect education to remain positive.” He noted resilient continues to be the product of choice in many commercial applications because of its performance, attributes, design and cost.

And, today’s commercial resilient sector is seeing an increase in sustainability, a focus on texture and color innovations and enhanced technology. Diane Martel, vice president of marketing for Tarkett Commercial Tile, said from an aesthetic view, the company has received requests from the A&D community for specific tonal colorations and a high demand for customizable flooring—color, texture, tile shape and size. “Now more than ever, architects and designers want their designs to be unique. They want to feel they have truly created something that is their own.”

Martel noted the company’s Karim Kolors—homogeneous commercial tile—as an instant hit with designers for these reasons. “Karim Kolors is unique due to its variety of shapes and customizable options: texture, grout treatment and bright colors.”

She also mentioned the environmental movement as becoming more and more prevalent as LEED continues gaining momentum. “Tarkett is currently focused on energy reduction in its manufacturing, and Azrock’s ReUse program, which recycles product samples as well as used and unused flooring into future product.”

Parterre Flooring Systems has been on board with the green movement for quite a while, said Fred Roche, president and CEO. The company’s LVT has 45% recycled content, and the company plans to announce North American recycling locations later this year. He also mentioned the maturing digital photography quality and computer-generated graphics as making pattern possibilities limitless, which is positively affecting sales. Its latest product line, HardCore, is the core of its hard surface offerings and contains a number of unique designs.

Armstrong’s Rice agreed the beautiful visuals and more sustainable solutions available in the commercial marketplace are something to take note of, but he said some of the more straightforward, practical, immediate technologies have focused on maintenance and installation improvements as of late. He listed new coatings, backings and installation options as a few of the latest advancements. “We have been extending the use of the UV- cured urethane coatings across our portfolio of resilient products because it creates low maintenance, saves money, cannot be easily stripped and is longer lasting.”

He also noted the company has converted its traditional felt-back sheet vinyl products to a fiberglass backing for increased flexibility, stability and increased handling, installation and coving.

Johnsonite’s Krejsa said there is a continued blurring of the use of different resilient materials. “There was a time when aesthetics limited the use of certain materials, relegating them to backroom or performance-related areas.” He said advancements in textures and colorations of rubber and linoleum allow for a greater blending of materials, maximizing the performance of a space without sacrificing the aesthetics. He also pointed to the environment as a huge factor driving the category, stating education as key. To offer an outlet of the most up-to-date information, Johnsonite launched www.john soniteenvironment.com in March. “It allows us the opportunity to fully explain our responsibility and efforts related to sustainability.”

Mannington’s Moore also said environmental impact is driving the company’s strategy. “Visuals, color and performance are still steering the segment, but within the green parameters. The environment and sustainability is becoming more and more involved in the segment’s growth.”

Relay RE, for example, is one sustainable product moving Mannington forward, made of 20% post-consumer recycled content and 15% pre-consumer, which increases LEED points.

He also named LVT as the fastest growing product in the segment and said Mannington is at the forefront with advanced styling and Quantum Guard HP—a UV-cured urethane wear layer released this year.