Preverco invested $2.5 million to improve production efficiency

By Steven Feldman
St-Augustin, Quebec, Canada—The hardwood flooring landscape gets more crowded by the day. Players include those who once specialized in alternative floor coverings to those who have yet to even set foot on American soil. So how does a retailer choose with which manufacturers to partner?

This is the question that Preverco, a Canadian manufacturer of high-end hardwood flooring with its roots as a finishing company, seek to answer every day. “We worked very hard to ensure we had the smoothest finish in the industry,” said Julien Dufresne, vice president of sales and marketing. “At this time the Canadian flooring industry was essentially broken down into two types of companies: those who focused on milling and those who focused on finishing.”

This changed six years later when the milling companies in the area began to integrate finishing into their production lines. “In 1994 we bought our first plant to manufacture our own hardwood,” he said. “We have been a fully integrated hardwood flooring business ever since.”

Now with more than 250 employees and four facilities, Preverco has become the second leading supplier in Canada and is making strides in the U.S. “Our goal has always been to provide distributors and retailers with products they can make money on, pure and simple,” Dufresne said.

Preverco realizes that to give distributors and retailers these products, it needs to differentiate itself from the competition. One such differentiator is what it considers its more intimate, family feel. “We look at our distributors as our partners,” Dufresne said. “It is our obligation to work with them, giving them what they need to be profitable.”

One way to do this is to make available a comprehensive support system for customers. Preverco has steadily increased, and continues to increase it‘s sales force in all major regions in North America from the Southwest to New England.

Distribution is another point of distinction. While logistically most Canadian flooring companies require distributors to order by the truckload and well in advance, Preverco keeps its entire inventory in stock to quickly ship out only what distributors are demanding at that moment. “Shipping out a pallet rather than a truckload is not a problem if that’s what is needed at the time,” Dufresne said. “We don’t have a minimum order in place because it’s just not realistic for many of our customers. They may need a specific, more rarely ordered species of wood for one retailer by tomorrow. Preverco is happy to do that; the key word here is flexibility.”

Flexibility not only as it relates to inventory but to product offerings as well. The company has spent a great deal of time researching its customers’ exact hardwood flooring needs. To that end, Preverco is introducing three new product lines this year it claims meets the needs of the industry.

In illustration, the company will speak to the requests of builders and architects with its Commercial and Professional Series, and also to those retailers who are seeking entry-level products via its new VeryWood line. Along with its celebrated clean finish products, Preverco will incorporate a rustic look into several product lines with variation in its finishes, boards and processing techniques.

“Over the past year we have faced challenges that have served to improve our product offerings,” Dufresne said. “Inexpensive Asian imports had a big effect on the marketplace, as did exotic species of hardwood and an increased demand for engineered products. We responded to these challenges, and that is clearly reflected in our inventory.”

Maintaining quality and adding value

With so many modifications to its lines, there is a new mission for the company as well: maintain the high-quality edge and value that is the essence of the brand. This means that along with a broad range of products must come a flawless manufacturing process, added-value finishing techniques and easy installation.

To that end, last year the company invested $10 million in the expansion of its manufacturing facilities that will result in a fivefold increase of plant capacity dedicated to producing engineered hardwood. Another $2.5 million was invested to improve production efficiency and allow for faster turnaround on purchase orders without sacrificing quality. A new, high-tech scanner analyzes each individual piece of wood to identify its grade and highlight any possible defects. The defects can then be quickly eliminated using automated cutting tools.

Preverco has also added new components in its varnishing lines. The line now includes new, improved rollers as well as a varnish unit that enables quick color and varnish style changes. This equipment also helps to add a varnish coat beneath the planks, allowing for maximum protection against humidity and providing increased dimensional stability to the boards.

In continuing with tradition, Preverco still claims to offer the smoothest finish in the industry. “Rather than using a simple urethane finish, we combine aluminum oxide and nano particles to increase board hardness and durability,” Dufresne said. The company’s Sigma finish also provides UV and anti-microbial protection. Installation ease has also been addressed through a recent partnership with Välinge Innovation, which has provided Preverco with a cutting-edge locking system. The new technology makes flooring quick and easy to install with Preverco’s own PreLoc system and will be offered in widths ranging from 3 to 5 inches.

New brand image

With a full range of products and commitment to quality, Preverco has decided to launch a new brand image. “We will be able to support distributors and retailers with a branding campaign that responds to the concerns and demands of consumers,” said Jean-Sébastien Roy, marketing manager. “Sales should increase as we convey the message that whatever your hardwood flooring wishes are, Preverco has a high-quality product that is a perfect fit.” The new image will be backed by a new InfoCenter and merchandising tools for retailers and distributors.

“If we don’t do it, we don’t sell it”

Preverco is dedicated to being a one-stop-shop by providing a full range of product from 2-1/4-inch wide, 3/4-inch solid planks to 7-inch-wide engineered planks, each offered in varying lengths. “A major strength for us is we are able to control everything from the wood that we use down to the finish and distribution,” Dufresne said, possibly the most important attribute that differentiates Preverco.