Normally when sales slow down, claims pick up, but that can't be said of 2007. This has not been a normal year. Only certain segments of the market have slowed, and not everybody's business is off- all the news isn't bad. The commercial sector has been booming, and the hospitality market has taxed manufacturing capacity. Lead times for carpet, especially custom orders, have extended to almost four months in some cases. The high end residential market is strong. The builder market has taken a dive, but multi-family is up.

Diversity is the key. If you sell flooring, you should be selling all types. I find it hard to believe anyone who sells hard surfaces doesn't sell rugs.

One thing we've seen this year is an increase in hardwood claims. This is not because the wood is defective, but people selling it don't understand the product. The biggest industry problem is not installation; it's selling the wrong product for the wrong place and not understanding it. A great example is wood. It's a tree cut into boards. It gouges, dents, scratches, absorbs water, ex-pands, contracts, discolors and can create a whole slew of problems if you don't think realistically. Most of the situations we've been involved in are the fault of ignorance. This is an indication many of you have a whole lot more to learn about wood, and that information is readily available- start reading it.

Prices have gone up and will continue to do so for all floor coverings. Manufacturing carpet, for example, uses a lot of energy. Synthetic fibers are derivatives of oil. When the price of oil goes up so will the price of carpet. And, all flooring products are transported in trucks almost all of which have diesel engines that get four to six miles per gallon. Have you seen the price of diesel fuel lately?

So the housing market is not that great, but not all housing is off. If you have the money to buy, the market is excellent. Prices are down and so are interest rates. What's happening now with housing and business is an example of Darwin's survival of the fittest. The weak flooring dealer will be culled from the herd, and the most adaptable dealer will find success and thrive. You also have to get into the 21st century and use existing technology to make life and business easier and better. I can't believe we still get calls from dealers who refuse to use computers. They call asking questions about things they could find on the Internet. Some brag about doing things the old way, but when you ask them how business is they'll tell you it's not good and lament about competition. The competition is using new technology.

Speaking of competition, we have been so nauseatingly told that Home Depot was going to crush the independent retailer. Let me ask you this: Have you ever gone there to buy anything? Great if you know what you're looking for, not so great if you need someone who really knows something about what you want. And floor covering has to be sold by someone who understands the product. It got in over its head, now's your chance to make it stagger.

Thank you for all the kind words in 2007. I sincerely appreciate it. A special and sincere thank you to Floor Covering News for letting me write this column. I think 2008 will be a great year for the wise businessman if we all make it so.