SWEET SUCCESS: Mohawk’s recent ColorCenter Convention in Orlando, Fla., drew 800 members, more than half of the enrollment. Of 1,500 ColorCenter members, 200 are in the Elite class and the remainder are in the Select group, and it is Mohawk’s goal to convert 50 to 100 Select members to the Elite category every year. A highlight of the convention, which was titled “Quest for Success,” was an address by Jeffrey Lorberbaum, Mohawk’s chairman and CEO, who delighted the audience with his cogent observations, cautious predictions and caring advice. He said business has not been good and the faltering housing market is only one reason for the slowdown. He said a lot of the fundamental needs—food, gas, health benefits—are costing more and squeezing the dollars out of consumers, and as a result they are spending less.
MORE: Lorberbaum told the ColorCenter members that “we expected things to get better by this time, but they haven’t.” This means you will have to change your business model, he told the group, and since Mohawk has the same problems, it will have to make the same changes. He pointed out that Mohawk changed from a carpet company to a floor covering company. “We decided to be a leader in everything we do,” he said, and the company is either #1 or #2 in all its endeavors. He said Mohawk is going to continue to make necessary acquisitions “in order to give you what you need.” He pointed out the company is investing internally “to give you the products, systems and training that will help you succeed and prosper.”
ONE MORE: “Our success depends on your being successful,” said Lorberbaum. To that end, he noted that the company invested more than $150 million to improve product offerings. We are making a big effort to create high-end products, the one area of the economy that has not been hit hard, he said. He noted that the difficult times will continue in the short term, and there are no signs of improvement for the next six months. Recovery will begin in remodeling and be followed by new construction. The commercial sector is still good but will slow some as the year goes on. This year Mohawk has invested 40% more than last year in consumer advertising and will have 1,280 more TV spots than in 2007.
STATS: The official numbers for Surfaces 2008 have been released and, says show owner
Hanley Wood, they “exceeded exhibitor and industry expectations.” The 34,540 in attendance included retailers, distributors, manufacturers, installers, architects, designers and builders. There were 982 exhibiting companies in 490,000 net square feet of space and 249 were new to the show, increasing the product diversity and breadth of selection available to buyers. Floor Covering News provided comfort and convenience to weary visitors in the new Attendee Service Center we sponsored. Located adjacent to the exhibit hall, the center offered Internet access and on-site personnel to assist with hotel and restaurant reservations. What was significant about Surfaces 2008 was the strong retailer response in the face of an uncertain economy and difficult times.
CHANGE: Surfaces 2009 will be a departure from the usual time slot of the show, which was a Wednesday to Friday sequence, and will take place Tuesday to Thursday. The dates are Feb. 3 to 5, the place is the Sands Expo & Convention Center and the conference program will begin on Monday, Feb. 2. If you plan that far ahead and want additional information, visit www.Surfaces.com or call Hanley Wood 800.547.3477 or 972.536.6400.