Article Number : 4274 |
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| Date | 3/10/2009 10:02:35 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4274 |
| Abstract | By K.J. Quinn When FloorExpo opened for business in October 1998, it sought to create an organization consisting of the largest and best residential flooring contractors nationwide while protecting and improving their profitability. Now entering its 10th year... |
| Article | By K.J. Quinn When FloorExpo opened for business in October 1998, it sought to create an organization consisting of the largest and best residential flooring contractors nationwide while protecting and improving their profitability. Now entering its 10th year, members and officials concur the group has done that and more. “Looking back, in taking an initial leap of faith, it really was one of the best business decisions I ever made,” said Tim Coleman, president of Coleman Floor Co. in Schaumburg, Ill., a charter member. “It provided additional resources to better manage and understand my business, and to a greater degree, understand the flooring and homebuilder industries.” FloorExpo is arguably the largest organization for flooring contractors in the builder and multifamily markets, counting 25% of the top 100 as members. The organization operates two divisions—Home Solutions and MultiFamily Solutions—which generate approximately $2.8 billion in combined annual sales, each serving more than 50 locations. Home Solutions members service the single-family builder business while MultiFamily Solutions’ flooring contractors focus on REITS, property management companies and apartments. “The members of both groups are market leaders in their respective segments,” said FloorExpo CEO David Gheesling. “That network was and continues to be made up of the top independent contractors in flooring.” Jerry Hosko, president and COO of Redi Carpet in Houston, said the group’s approach to helping members deal with the multifamily aspect of the builder business has been especially helpful. The formation of MultiFamily Solutions in 2003 enabled the residential flooring contractor to take advantage of different affinity programs relative to its business, resulting in big operational savings. “FloorExpo has given us the ability to bring marketing ideas and programs, and point-of-purchase materials all together in a way that’s presentable to our customers and makes sense.” Like most groups in the flooring industry, FloorExpo offers a plethora of training, business programs, national purchasing power and marketing services to support its members. “Our No. 1 goal will be the same as always: assisting members in being the best businesses they can be,” said Jay Smith, president. Indeed, two major membership benefits are networking opportunities and information sharing among colleagues. This was cited by Larry Barr, president and CEO of Floors Inc. in Southlake, Tex., as the primary reason the flooring contractor joined the group as one of its founding members. “We thought we were a ‘big kid’ on the block until we met other guys from around the country. Through relationships we developed with those folks, we made a lot of money and helped a lot of other people make a lot of money.” It is these working relationships among members which have served as the foundation from which the organization was built. “It is no coincidence that these successful businesses are run by absolutely wonderful people,” Gheesling said. “The relationships that have been created and strengthened by FloorExpo are something of which I am very proud.” Relationships forged with suppliers have had a major impact on FloorExpo’s success over the years as well. “Companies like Armstrong, Mannington, Dal-Tile, Carpenter and Beaulieu were with us at the beginning, and we still have incredible relationships with them today,” Gheesling said. “We have other partners who are critically important to us, but I call those few out because they have been with us the longest.” Looking ahead The recession and dramatic downturn in residential construction have not negatively impacted the overall state of the group, officials said, as members remain focused on weathering the storm while preparing for better days to come. “For the most part, we’re all getting through it,” Coleman said. “I think that’s a credit to the members. They’re smart individuals who learned along the way and do the right thing.” To that end, the group is focused on supporting members with programming designed to help improve their competitive position and operate more efficiently. For example, FloorExpo’s “Power Sessions” is a series of regional idea-sharing workshops where members speak to fellow members about how to maintain or grow their businesses, cut costs and the like. “National business programs such as CitiFinancial consumer financing and Chase credit card processing are saving our members substantial amounts of money,” Smith said. “We have the best programs in the industry in both these areas.” Members interact with one another in a variety of ways, such as at the national conference and regional meetings. They automatically receive critical industry news, real-time updates, and annual conference and regional meeting details via e-mail, Gheesling said. Monthly conference calls, informal and typically brief, enable members to get up to speed with the latest happenings in the builder segment. “They do a very good job of keeping membership involved,” Redi Carpet’s Hosko said. “They are continuously asking us what we’d like to see and do.” Advisory boards, comprised of some of the industry’s most successful professionals, advise FloorExpo’s management team in several key areas, including products, services, business opportunities and management strategies for the membership. “Obviously, flooring is a core product, but I think you’re going to see the group expand into other areas,” said Barr, who sits on the FloorExpo board. “As the group comes up with more programs to enhance the ones we have, you will get more dealer participation.” Moving forward, increasing membership and expanding its business into other product categories are key parts of FloorExpo’s growth plans. “You will see us exploring the addition of new divisions where it makes sense, such as cabinetry, where we can best leverage our core competencies and where it will provide important synergies for all members across all divisions,” Gheesling said. “FloorExpo has helped our members, our employees and supplier partners in ways, large and small, over the first 10 years. And we are just getting started.” |