Surfaces mirrors economy—slow but alive, Overall mood remains optimistic despite downturn
Article Number : 4207
Article Detail
  
Date 2/18/2009 10:25:59 AM
Written By LGM & Associates Technical Flooring Services
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Abstract By FCNews Staff
LAS VEGAS—With the specter of the economic crisis looming large over the Sands Expo & Convention Center here, the 20th anniversary of Surfaces may not have had the bells and whistles of previous markets but it provided positive results for the thousands who participated whether as an attendee or exhibitor...
Article By FCNews Staff
LAS VEGAS—With the specter of the economic crisis looming large over the Sands Expo & Convention Center here, the 20th anniversary of Surfaces may not have had the bells and whistles of previous markets but it provided positive results for the thousands who participated whether as an attendee or exhibitor.

While both attendance and number of exhibitors were down, which most participants said they expected, fact is, just under 25,000 people turned out for the more than 700 companies occupying space on exhibition floor.

Dana Teague, show director for Hanley Wood, Surfaces’ owner, told FCNews that while final figures were not in as of press time, the company estimated that compared to Surfaces ’08, this year’s attendance, exhibitor count and overall square footage of booth space were all down between 25% to 30%.

On the surface it may appear the show was bleak, but for those who did choose to make the trip and participate it turned out to be worth the investment— for both attendees and exhibitors.

Barry White, owner of Carpeteria Flooring Centers in Lancaster, Calif., not only brought a client with him to find carpet, he was searching for carpet as a match for a very large project. Not to mention venturing downstairs because “that’s where you find the best, most phenomenal deals. The little companies are the power source—they allow you to redo your store to suit changes in customer needs.”

This is especially true during these tough times, he added, as there may still be people shopping, “but they are looking for deals so we have to make sure we have the right products to satisfy them.”

Gary Cissell, flooring director of Nebraska Furniture Mart, found the trip from America’s heartland to be “very worthwhile. Surfaces provides me the opportunity to stay in touch with my vendors, see the latest innovations, network and shop for deals.”

Halfway through the market, Jeff Cook, owner of C.R. Carpet in Ft. Wayne, Ind., said the trip had, so far, been worth it. “We found a couple of new, innovative products that we’d like to take back to our business. There are a couple of cleaning products we are interested in as well.”

He added the show’s specials are good enough “where we can stock up for the year and use that for our in-stock products,” as well as make sure he’s prepared for when the economy starts moving in the right direction. “I’m looking forward to a big upswing; that’s why we are stocking up on what we’ve got.”

And Lee Horwitz of A&M Flooring America in Fresno, Calif., said despite the down times he “still feels the players need to be here and see what’s out there, as well as speak to executives. We’re in our 69th year and we still have a great deal to learn. That’s why we’re here— to see the different product categories and groups.”

Exhibitor response

Like the attendees, most companies with which FCNews spoke felt good about the show despite the drop in attendance. Most, such as Piet Dossche, CEO of USFloors, said the company came to Surfaces with lowered expectations based on the economy.

And just because one may have knocked a notch or two off the expectation ladder doesn’t mean the show wasn’t successful if those expectations were met. “We still have had a very good show,” he added. While a final tally was not yet ready on the kind of business USFloors was doing, Dossche said at its space, “the booth has been steady the entire time.”

One of the big questions going into this year’s show besides attendance was how certain companies that chose to exhibit in ballrooms adjacent to the main show floor but not actually in the exhibit hall would fare.

Kim Holm, president of Mannington Mills’ residential business, said the company made a smart move, noting, “This may have been our best Surfaces ever.”

Betsy Amoroso, Mannington’s marketing communications manager, added the intimacy of the ballroom setting allowed for more than just the selling of products. “There was a great deal of networking taking place between dealers, distributors and our people. It really worked out better than we expected.”

Other exhibitors—whether on the show floor or in ballrooms— generally had positive remarks for how things were going. Again, noting that by coming in with lowered expectations they were not caught off guard but, rather “pleasantly surprised” by the positive mood of attendees who, they pointed out, came to Vegas to buy.

Jon Kocemba, vice president of marketing for Torlys, echoed what many companies said: “There are no tire kickers here. Those who came to Surfaces came to buy. They may not be purchasing as much as in years past, but they are still spending.”

At the Faus booth, Jane Little, director of marketing, said, “Those who came want to buy—even displays.” Like many, she said the company was taking a more realistic approach to the situation. “Even though the economy is bad, you still have to be out there and show confidence. We want to stay out in front and let retailers know they are our partners.”

While saying traffic was “way down,” Ken Peden, COO of Formica, admitted it was still “the best show we’ve had in terms of distributors placing orders for samples and new products. They’re being cautious, but they are optimistic. We’re all struggling so it’s good to see the mood of our wholesalers relatively upbeat.”

Teaching opportunity

Steven Wang, chief developer and founder of software provider Floor Covering Soft, noted the slow traffic gave him more of an opportunity to explain how his company’s products can help dealers be more professional and profitable.

“It’s slower,” he explained, “but the people have more time to learn the system and we are able to spend quality time teaching them its functions.”

Like most of the software companies, Wang said retailers were stopping by searching for new technology and ways to upgrade their operations. “They are eager to learn now that business is slow.”

As it has been with all previous Surfaces, there was no shortage of learning opportunities and attendees took full advantage. FCNews “Claims File” columnist and industry troubleshooter Lew Migliore of LGM & Associates said both the three-hour workshop he conducted the day prior to the exhibit floor opening and the panel session he was part of on the event’s final day “were well received. We had good crowds at both considering the overall attendance numbers.”

Teague said overall the show’s education program was once again selected by Surfaces’ dealer attendee council. “They’re the ones on the front lines every day so they know what’s needed. That’s why they do such a great job with the topics.”

On display

Regardless of the economy, attendance, number of exhibitors and so on, Surfaces, like any market, is about products, programs and services that can help attendees be more profitable.

Most exhibitors took a cautious approach to the market given the state of the economy and projections for what’s in store for the remainder of the year.

Based on what he was seeing at the show, Horwitz pointed out one good outcome from the slow economy. “Maybe companies are cutting back and finally realizing the ridiculous spending on new samples before the market has a chance to decide if it likes the recent introductions.”

Cissell echoed the feeling of many of the retailers in noting “the suppliers were well prepared with some very good deals. I was pleased with the number of new introductions in all the product categories.”

For his tastes, he cited such things as Avaire’s Snapstone; Beaulieu’s latest Bliss products, particularly Flirtations; Mannington’s new Adura products; Masland’s high-end Luxerelle items and Anderson’s wood introductions “were all very interesting.”

(Editor’s note: Due to the
breadth of products, programs and
services introduced at this year’s
Surfaces, FCNews will detail each
category separately throughout
this issue and future issues.)
—Matthew Spieler