Article Number : 5181 |
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| Date | 1/12/2010 9:07:46 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=5181 |
| Abstract | PRICE HIKES: Looks like the carpet price hikes that were originally announced for October, then rescinded, are back on. The mills have announced that come January they will be raising prices by at least 4%. Unlike the failed fall hike, this one appears likely to stick. The carpet manufactures have done a... |
| Article | PRICE HIKES: Looks like the carpet price hikes that were originally announced for October, then rescinded, are back on. The mills have announced that come January they will be raising prices by at least 4%. Unlike the failed fall hike, this one appears likely to stick. The carpet manufactures have done a yeoman’s job to cut costs from their operations but even they can only do so much. Case in point, while writing this column, an item came across my desk from another chemical company that supplies the carpet industry with a crucial component saying it is raising its prices—again. EVEN MORE: Based on the results of our extensive polling of manufacturers for our annual Executive Forecast issue (FCNews, Dec. 7/14), don’t be surprised if the price increase of carpet is not a singular event. Executives in other categories noted how their sectors are also being hit by increases from raw materials as well as other factors, such as reduced lumber supplies for some species, and said they expect to see flooring prices raised at least once throughout the industry at some point in 2010. We’re never a fan of price hikes—especially during tough economic times—but it is hard to condemn manufacturers that can no longer absorb the increases they are experiencing from their raw materials suppliers. GOOD NEWS: If there is a silver lining to these price increases, it is that employers in the U.S.—and around the world—say they are planning to increase payrolls next quarter for the first time in over a year as confidence in the economic recovery grows. In its latest quarterly survey, Manpower, the world’s second-largest provider of temporary workers, said its gauge of employment for January through March rose to six from minus two for the final three months of this year. In the U.S., seven of 10 industries surveyed anticipated an increase in first-quarter hiring compared with the prior three months, while 17 of the 35 countries and territories questioned planned to add staff. Manpower interviewed more than 28,000 employers in the U.S. and about 71,000 employers for its global data. HONORING HAIG: Congratulations go out to our longtime friend and industry veteran Haig Pedian who was honored by the Chicago Floorcovering Association (CFA) during its Presidential Dinner with the organization’s Lifetime Achievement Award earlier this month. This is an honor well-deserving to a well-deserving person. Haig, who sold the 103-year-old business in 2003, helped grow the retail company that bore his family name into one of the country’s most respected flooring operations, winning national Retailer of the Year in 1958, 1968 and 1972. He was CFA’s president in 1963/64, was the first president of the RFI in 1974, chairman of the Wool Bureau of New Zealand in 1997/98 and one of the handful of caring industry people who helped form the Floor Covering Industry Foundation. Well done, good buddy. LIGHTER SIDE: Retailers in the Broken Arrow, Okla., area have at least one sale they can look forward to making, thanks to the reality show, “The Biggest Loser.” Local resident Danny Cahill was the winner in the just completed eighth season. The 39-year-old shed 239 pounds and was rewarded with the $250,000 grand prize. When asked what he plans to do with his winnings, the land surveyor and musician told Jay Leno, “The first thing I’m going to buy? Carpet. We have had the most horrible carpet for eight years in our house.” Looks like Cahill’s loss is a flooring dealer’s gain. |