Farnham, Quebec, Canada—Every now and then, a company taps into something
that is so successful it forces the firm to rethink its original strategy, a
most enviable position by most standards. That is the case with Tarkett and its
FiberFloor line of resilient floor coverings. Due to its initial success,
company officials gathered with local politicians outside its 600,000-sq-ft.
manufacturing facility here last month to participate in ground-breaking
ceremonies for a $20 million expansion. When complete next summer, the
30,000-sq. -ft. addition it will allow the mill to produce Fiber- Floor in North
America instead of having to import it from its other facilities around the
world.
Along with the investment of a new production line, Tarkett has launched two
additional FiberFloor collections three months ahead of their scheduled release.
To accommodate the original launch date of these products—Surfaces 2005—the mill
is designing newer products to be unveilled during the trade show, set for Jan.
26 to 28 in Las Vegas. Mark Brown, director of marketing for Tarkett’s
Residential division, said sales have been “so overwhelming” since the
manufacturer introduced the technology to North American distributors, dealers
and consumers in January. In fact, Jan Lembgrets, president of Tarkett’s
Residential division, noted in the first 10 months of the year, sales were more
than twice what officials expected. “Response from all our target audience has
been absolutely remarkable. “As a result of the excitement and demand,” he
continued, “we have accelerated the launch of two new collections. These
positive initial reactions as well as the excitement that we still see in the
segment, are the main catalysts for building this plant.”
Lembgrets said the manufacturing expansion should show customers and the
industry how serious Tarkett is in terms of expanding the use and market share
of its FiberFloor products. “This is not an easy product to make and is a big
investment compared to traditional resilient.” Still, the risk involved is
minimal he added, because of Tarkett’s early success, not to mention this is a
flooring technology the company is very well versed in so it can see the
long-term potential. 30 Years Old Jacques Bourdeau, Tarkett Residential’s senior
director of product development, noted the Fiber-Floor concept has not only been
in Europe for 30 years, it is a staple there “and Tarkett has the lion’s share
with four of our five plants making it.” Compared to traditional resilient,
Lembregts said “it is not an easy floor to make and does require a bigger
investment. But, we’re confident the success we’ve experienced will continue.”
So far, more than 3,000 FiberFloor display units have been placed, which is
60% of the maximum the company planned over the long-term. “We have been getting
great placement,” he added. “We’ve positioned it as a new category within the
resilient segment and believe that is one of the reasons for its success.
Instead of having it get lost in a sheet vinyl display, we created its own
stand-along unit to emphasize this is not your traditional resilient floor
covering. “And,” Lembregts continued, “it has worked. Even with dealers who do
not carry vinyl have taken on FiberFloor as they realize both its potential and
opportunity to make a profit as margins range from 45% to 50%.” Once Tarkett
begins producing it in North America, Lembregts said it will be a total capacity
add-on for the company’s worldwide operations. “We’re not relocating a current
production line here. This will be all-new, state-of-the-art equipment from
Germany, so it’s a true capacity increase.”
It will also make Tarkett the only manufacturer to make this type of floor in
North America, “which we feel is a tremendous advantage as the segment gains
more momentum,” said Brown, who added, it will also allow the company to produce
each FiberFloor style for North America. Opportunities Abound For the dealer, he
said, “this is a great opportunity as it gives him a new way to make money—it’s
a new story to tell the consumer and it can’t be shopped. “It is also a great
chance for the installer,” Brown added. “FiberFloor is flexible; requires less
prep work, and it lays flat with no glue needed—it’s a true resilient floating
floor. Overall, it is very efficient and time-friendly compared to traditional
sheet floors. In fact, it can be installed two to three times quicker.”
Officials believe that even though this is technically a four-decade-old
concept in Europe, the timing is now right on this side of the Atlantic. One of
the big reasons is the growing acceptance of installing a floor covering without
the use of an adhesive. “Thanks to the success of transitioning laminates from a
glue-together product to one that requires no glue,” Brown said, “there is an
immediate acceptance level with the installer.” Executives feel the timing is so
good that Fiber-Floor presents a great many opportunities for the entire selling
chain beyond just retail. “We’re researching and exploring other selling
channels,” Lembgrets said, “such as the commercial market. In Europe it is used
in a variety of commercial settings because of its benefits and features, most
notably, the ability to save time which is so important in the contract area.
“But, we don’t want to place FiberFloor anyplace before we are fully confident
it will work in that setting,” he added, “so we are not rushing into things.”
While Tarkett is exploring other markets for Fiber-Floor, the company still
has to focus on meeting the current demand. To that end, it has expanded the
offering with two collections—Fresh Start and Easy Living. Both lines, which
compliment the first FiberFloor collection, Personal Expressions, were
originally scheduled to be launched at Surfaces ’05, but Tarkett is making them
available now. In terms of FiberFloor’s initial offering, these two new
collections round out the portfolio in terms of price points. The original line,
Personal Expressions, is the high-end grouping as it features a 125mil
construction with a 20mil wearlayer.
Fresh Start, with an 80mil thickness and a 10mil wearlayer, is the entry
level product, retailing between $1 and $1.25 per foot, while Easy Living, at
100mils thick and a 14mil protection layer, comes in at the mid-price range of
$2 to $2.25 per foot. Unlike Personal Expressions, the first set of designs for
the two new collections are based on traditional natural looks of stone, wood,
ceramic, etc. Brown said Tarkett plans to expand both lines with some
non-traditional patterns as the original collection has. “We are committing to
this is a big way,” he concluded, “because we are very ecstatic about its
success and even more so on the potential it has to offer everyone who gets
involved with it.” Lembregts said, “This marks two major achievements for
Tarkett. We are increasing the manufacture of a new product category that is in
high demand by consumers, as we are expanding our capabilities and presence here
in Farnham, a community we have been proud to be a part of for 74 years.”