Lancaster, Pa.—In a move designed to
streamline its marketing efforts and better capitalize on its powerful consumer
brand name, Armstrong World Industries has combined its two main flooring
operations into a single organization. At the same time, the company is
returning to the ceramic tile business, a category it had been out of since
selling American Olean to Dal-Tile in 1996. The ceramic business will be placed
under the new flooring organization created as a result of the restructuring.
The reorganization merges the flooring portion
of the Armstrong Wood Products (AWP) operation into the Armstrong Floor Products
(AFP) business, with Chan Gal-bato continuing as president and CEO of the
division. Through the first nine months of this year, the combined businesses
accounted for 65% of the company’s overall sales. The wood cabinet business of
AWP will remain under the leadership of Chuck Engle.
In a related move, Frank Riddick resigned from
his posts as president and CEO of AWP, as well as president and COO of the
manufacturer’s parent company, Armstrong Holdings. He said the integration of
the flooring businesses basically “eliminates the need for my current role.”
AWP was created after Armstrong purchased Triangle Pacific (TriPac) in 1998.
TriPac consisted of the cabinet division and hardwood flooring manufacturers
Bruce, Robbins and Hartco, as well as a laminate program under the Bruce
moniker, namely Traffic Zone and Carnival. Michael Lockhart, chairman and CEO of
Armstrong Holdings, credited Riddick for the “crucial role he played in the
TriPac and DLW AG (European floor products) acquisitions.” Also, “in his
role as COO of Armstrong Holdings, he had the courage to take on the leadership
role at AWP and tackle the many challenging issues facing the business.” As
far as the restructuring, he said it was “a necessary thing to do.
This reorganization aligns Armstrong’s vast
product selections of wood, vinyl, linoleum, laminate, [ceramic] and specialty
carpeted floor products into a single organization.” Roger Oates,
Armstrong’s vice president of residential flooring, said the repositioning was
needed because Armstrong is not just a vinyl company anymore. “We are a total
hard surface flooring operation and this gives us the opportunity to better
leverage our entire portfolio of products and services. “In fact,” he added,
“we are really a global company. And, this gives us the chance to fully
integrate our various marketing strategies and find all the synergies to better
leverage our strong consumer brands, particularly the Armstrong name.” Galbato
said while this move affords Armstrong the chance “for global integration of
these critical components of hard surfaces floor coverings, the separate sales
and distribution systems for wood and resilient products will remain in
place.” Oates pointed out that Arm-strong resilient uses 15 wholesalers while
the three wood brands utilize approximately 75 between them. “There won’t be
any massive changes in these areas. But, we will look for opportunities to
leverage our strengths and, if there area any weak links, we will correct
them.” He explained, the re-structuring is more about putting the entire
flooring network under a single chain of command so that each operation is
functioning on the same page with a more uniform look and feel. “It’s a way
to better manage our entire product assortment and brands and mix-and-match them
through the various distribution channels.”
Back In Ceramics Part of this strategy
en-compasses getting back into the marketing and selling of ceramic tiles. While
full details of the program have not been announced, FCNews has learned the
return to this category after a five-year absence will not initially include
Armstrong manufacturing the product as it did in the 1990s through American
Olean. Instead, Oates said, the venture will be run similar to the company’s
laminate initiative. “Out of the block will be sourcing the product. We will
be involved in the style, design and packing of it, but someone else, or a
consortium of manufacturers will be making the goods for us.”
To run the operation, Armstrong has named Ned
Case as general manager of the ceramic business. He will report to Frank Ready,
senior vice president of sales and marketing for AFP. Prior to the appointment,
Case was involved with Armstrong’s strategic planning team. Oates said he will
now establish his own ceramic team and be-gin building the program from there.
In other news related to the restructuring, Kevin Biedermann has been named
general manager of laminate, a newly created position. His responsibilities
include driving the day-to-day activities of the business as well as provide
leadership in defining the business’ long-term vision. He will be assisted in
his efforts by Larry Browder, marketing manager, laminate, and Kristi Barbari,
associate marketing manager.
Prior to Armstrong, Biedermann spent four
years as vice president of operations for AAR, a service provider to the airline
industry, and 11 years at General Electric, where he held several management
roles across a broad spectrum of business units. Finally, Debra Esbenshade has
taken on the role of general manager of product styling and design for both
residential and commercial products. She had been general manager of residential
marketing. In her new role, Esbenshade will work closely with the product
management team, including George Gehringer, general manager of design, to
“re-establish Arm-strong’s leadership position in design,” said a company
spokes-person. She will report to Galbato. —Matthew Spieler
