Lancaster, Pa.—Citing a desire to focus more directly on his company’s businesses, Michael Lockhart, chairman and CEO of Armstrong World Industries, has assumed all responsibilities for the manufacturer’s Floor Products operations. As such, Chan Galbato, who has served as president and CEO of Armstrong Floor Products since June 25, 2001, has left the company in order to pursue other opportunities. “As we approach emergence from bankruptcy,” Lockhart explained, “the Chapter 11 process is placing fewer demands on my time. This allows me to focus more directly on Armstrong’s businesses. Chan and I agree that this situation creates a redundancy between our roles.” Galbato joined Armstrong at age 38 from ChoiceParts where he was president and CEO, and prior to that spending much of his career at General Electric. Lockhart called him “a unique individual with great vision and energy. He is a talented and accomplished leader with an impressive track record of innovation and team-building across a broad range of business disciplines.”

Beyond the fact that Armstrong is getting ready to re-emerge from Chapter 11, he added the change in leadership is driven by a desire to eliminate the holding company philosophy, to reduce overall resources and apply all available resources to increasing the success of the manufacturer’s core businesses—flooring, ceiling and cabinets. With regard to Armstrong’s flooring division, Lockhart praised the work Galbato had done during his tenure. “In his two years at Armstrong, he made significant contributions to the company. He oversaw the integration of Armstrong Wood Products with Armstrong Floor Products, ultimately creating one flooring business.” This was completed earlier this year, when Galbato made a number of corporate changes to streamline the flooring business unit’s three operations—Europe, resilient and wood. (FC-News, Feb. 3/10).

Lockhart also credited Galbato for “renewing our focus on commercial flooring—an area where we are currently enjoying good success. Under Chan’s leadership and expertise, we have also been able to bring about significant cost reductions in our European flooring operations.” Due to the change in leadership, the National Association of Floor Covering Distributors (NAFCD), announced that Lockhart will replace Galbato in a panel discussion at its 32nd Annual Meeting, Sept. 5 to 7 in Chicago (FCNews, June 23/30). The interactive session brings together four of the resilient industry’s top executives—Lockhart; Tom Davis, president and CEO of Mannington Mills; Roger Marcus, president and CEO of Congoleum Corp., and Ulf Mattsson, president and CEO of Domco Tarkett.

In other news, Armstrong announced it has opted to not attend Surfaces 2004 in favor of hosting dealers at its world headquarters here as well as holding “town hall” meetings with its distributors in their local markets. Armstrong is the latest major mill announcing it will not be exhibiting at the 15th annual Surfaces in Las Vegas, joining Shaw Industries, Mohawk Industries, Congoleum and Columbia Flooring. In a press release, the industry’s largest resilient and wood manufacturer said it wants to make Armstrong Avenue—its new, two-story, 20,000-sq.-ft. customer visitation center—the centerpiece for year-round trade shows. “While the Surfaces show, organized by the premier Hanley-Wood, is a leading event in flooring, Armstrong’s strategic plan now calls for a more intimate contact with customers,” the company stated. Described as “a permanent trade show,” Armstrong Avenue was opened last year and is home to the company’s portfolio of products. The mill said it considers the facility “one of our most strategic marketing assets. It provides a venue to display and discuss with customers the entire Armstrong portfolio, keeping product at the center of what Armstrong does.”

In 2004, the manufacturer said it plans to bring more than 1,000 flooring customers to the Avenue. During this time “they will receive focused attention and see all Armstrong products up close. Management feels smaller, more focused meetings work well for introducing new products and customer programs.” Besides seeing the products and services it has to offer, the company feels this will be an opportunity for attendees to get a broader exposure to the entire Armstrong organization, including manufacturing, customer service, operations, and research and development. “In addition to Armstrong’s competitive advantages with the Avenue,” the mill noted, “the company has a unique facility for customers visiting over-night—Armstrong Manor—a 19th century home now equipped as a first-class inn and conference center.” So as not to leave its distributors in the dark, Armstrong said it is planning to hold more than 100 town hall-style meetings through-out the country with its disributor partners. “Armstrong believes this new ‘customer centric’ marketing strategy will make better thing happen at the retail level,” it concluded. For more information on the Avenue or Amrstrong’s new marketing strategy, call the company at 717/397-0611.