State Of Wood Industry: Diversity In Species Driving Business
Article Number : 357
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Date 5/13/2003 10:46:00 PM
Written By LGM & Associates Technical Flooring Services
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Hicksville, N.Y.—There was a time when the making, marketing, selling and installing of wood floors was relatively simple: Chop down an Oak tree—sometimes a Maple tree—cut it into planks; throw on some stains and a protective coating; put them into a box, and ship them to retail stores and lumber yards for consumers to purchase. Today, however, it is not that easy. Though Oak still accounts for roughly 70% of all hardwood flooring sales and Maple still ranks as a solid second choice of specie for wood flooring, the world has been opened up for the consumer and she more than ever wants the looks and feel of woods from far off exotic locations as well as choices beyond the traditional Oak and Maple floors her parents and grandparents had. “There is no question that consumers have pushed and voted with their pocketbooks that they want more diversity,” said Michael Badar, senior vice president of sales and marketing for Armstrong World Industries. “She wants her home to be unique and, while Oak is good for many people, there is an increasing amount of consumers who want something different, something they can call their own. It’s no different than other industries, such as clothes, where she is dressing to her individual tastes.”

Technology and a global economy have also played a large role in why the industry has been able to diversify as quickly and efficiently as possible. Advances in the manufacturing process has enabled manufacturers to create planks featuring a variety of widths and lengths; offer options such as solids or engineered; create a number of ways to have the floor installed, from the traditional glue- and nail-down methods to today’s mechanical locking systems; different surfacing treatments to ensure the face does not wear, fade or scratch easily, not to mention techniques to make a specie look different such as handscraping, and a host of other innovations designed to bring the world of wood flooring into the consumer’s home. Beyond the technical advances, the global economy has made it easier for manufacturers to source products from all corners of the globe. Consumers are no longer confined to choosing species from the forests in the Eastern half of the U.S. Not only are woods now being sourced from the Pacific Northwest , but product is coming in from Europe, Africa, Australia, South America, the Far East—China, Vietnam, Indonesia, etc.—and even Russia.

While this spurt of new woods coming ashore may seem to have happened overnight, it really began in the mid 1990s, around the same time the Internet and manufacturing advances were changing the world forever. Ed Korczak, executive director of the National Wood Flooring Association (NWFA), said the organization became keenly aware the category was about to undergo a major expansion because of the wide assortment of species starting to pop up at its national convention. “If you look at the growth in diversity of our show over the past decade, it has paralleled the industry,” he told FCNews during 18th edition of NWFA’s show last month. Recognizing this influx of new woods could cause confusion the association published its first “Wood Species” guide in 1996. The 32-page, four-color brochure listed 13 domestic woods and nine species from outside the country. Later this year, NWFA will be publishing a revised edition expected to list twice as many species, with many being imported woods. “There used to be a time, not long ago,” Badar said, “when it used to be just Oak and Maple. Today, saying there are 50 species on the market is probably an underestimate.”

The reason is, beyond the actual number of species available is the fact that many of them come in different shapes and forms, so to speak. Using the most popular species of them all, Oak, as a prime example, it is easy to see how this is true. Most people are familiar with Red Oak, which is harvested from the forests in the Eastern U.S. and Canada, But, there is also White Oak from the Pacific Northwest. And, now, some companies, such as Tawa, are importing floors made of Oak from Eastern Europe, particularly from the forests in Poland and northern Germany. Even Bamboo, one of the fastest growing of all exotics, has choices. Of the approximate 1,500 types of Bamboo, four to five varieties are suitable for flooring with the most popular being Moso. This also doesn’t take into account the rare and, in some cases, ancient woods being reclaimed from old buildings and cidar vats in England to railroad ties in Asia and those being dredged up from rivers and streams around the world. With so much to choose from, Badar said it is a challenge for everyone in the supply chain—mills, distributors and dealers—to know what and how much to offer.

For smaller mills, the strategy is to find a niche and be the best, as was evident by what many of the companies exhibiting at the NWFA show last month were doing. One of the biggest challenges is to stay ahead of the curve because it could take up to a year from the time a tree is cut on the other side of the planet to it ending up in a dealer’s store. For the large companies, such as Armstrong, the challenge is to “cover the spectrum but not get caught up so as to loose track of what’s important,” Badar said. “We’ve positioned our three wood brands—Bruce, Hartco and Robbins—a little different so that they compliment each other rather than compete,” he explained. “And, working with our distributors we’ve taken a targeted approach to ensure dealers get the products and brands that can be the most successful in their marketplace. “The one thing that we, Armstrong and the industry, have to make sure is not to neglect what has got us to this point,” Badar noted. “Oak still accounts for the majority of sales so we are still looking at ways to improve it as well.”

John Himes, director of wood and laminate products for Mannington Mills, stressed that while carrying a broad line of wood products is key in making yourself an authority in the eyes of the consumer, it is important to remember that what the industry perceives and what the end user perceives are sometimes two entirely different things. For example, Brazilian Cherry is now offered by just about every major wood flooring manufacturer doing business in North America, and it can be found in almost every retail display. “But that doesn’t necessarily mean it has become a commodity species like Oak and Maple,” Himes explained. “We need to remember,” he added, “the consumer coming into your store is either purchasing a wood floor for the first time or hasn’t bought one for seven to 10 years. So, for her, Brazilian Cherry is still a new and exotic look. We, in the industry see it everyday, so it has become commonplace. But in her mind, it is just as exotic as say, Bubinga or Sapele, both of which come from Africa.”

Because of the vastness that now comes with the wood industry, officials say education and communication are key components to ensuring the category’s continued success. “Many of the new species require special installation and finishing techniques,” Korczak said. “Plus how they are finished decides how they have to be maintained. And, as we saw at our convention, the issue of concrete moisture is a major concern especially now because each species reacts differently and it is important for dealers and installers to know and understand this in order to make sure the sale and installation are done properly.” “One of the biggest challenges,” Badar said, “is to get distributors and dealers comfortable with these new types of products. And since not all will carry everything, you need to gear your educational messages accordingly. “Despite these challenges,” he concluded, “there is a world of opportunity out there to create additional sales.”