Money Well Spent: 2020 flooring investments target future growth

Money Well Spent: 2020 flooring investments target future growth

Monday, January 20, 2020 flrom Floor Covering Weekly

Carrie Edwards Isaac, Shaw; Keith Campbell, Mannington Mills
As flooring manufacturers head into 2020, leaders are bullish on the industry’s outlook and are making extensive and aggressive plans to invest in a variety of areas to grow their businesses, from expanding their physical footprints to growing their product assortments.

For Mannington Mills, the biggest investment will be finalizing the Phenix acquisition, said Keith Campbell, chairman of the board. “It will culminate this year and it will expand our portfolio,” he said, adding that the company will expand its rigid core facility in Calhoun, Ga.

The company will continue to invest in its new rubber plant in San Jose, Calif. It will also invest heavily in its Calhoun distribution center and will add state-of-the-art equipment as well as consolidate its warehouse functions to a single location. “We’re already starting to see the benefits of that.”

Product innovation is top of mind for Armstrong Flooring. “We plan to continue to build on our track record of innovation by introducing new products to our resilient portfolio that includes rigid core, LVT, vinyl sheet and tile,” said Brent Flaharty, senior vice president, chief customer experience officer.

He said part of the company’s focus on product innovation is to make the products more accessible. “We’re also focused on building stronger relationships with our customers, including retailers who sell our products, architects and designers who specify our flooring, and the homeowners and business owners who install and live on our floors each day. We’re working to hire more people to service our customers, directing resources to the most in-demand products, and simplifying processes so that we can serve our customers better.”

The company is also looking to further expand into other areas, such as healthcare, education, retail, hospitality, office, single-family builders and multifamily.

MSI has a long history of investing in the industry, according to president Raj Shah. “Our motto has always been to make products affordable and accessible; our investments will continue along those lines.” He added that the company’s main investments will be around trends and design. “We have hundreds of new products being introduced in the upcoming year that meet the dynamic trend environment that exists.”

Shah added that the company will continue to look to ways to improve its logistics. “Accessibility is very important to MSI as we try to get closer and closer to our customer base. In 2019, we opened seven new distribution centers and look to continue those investments in 2020 and beyond.”

The company is also investing in tools to enhance customer connectivity. “Our goal is to reduce the amount of noise in the supply chain of flooring,” said Shah. “This way information on products, fulfillment, pricing, et cetera, should be available with a click of a button. In addition, helping our retailer customers with tools such as our visualizers, embeds and B2B tools have been a large success in helping them close transactions.”

Shaw is taking what it calls a comprehensive approach to its investments. “To continue to stay ahead of the market and to meet our customers’ and consumers’ evolving flooring needs, we perpetually evaluate where to invest for the most significant market impact,” said Carrie Edwards Isaac, vice president marketing and consumer strategy, residential division. “We’re taking a comprehensive approach to innovation in 2020 — with a focus on manufacturing, hard and soft surface product design, branding, consumer research and education.”

She said Shaw has invested heavily in its U.S. manufacturing operations and will continue to do so. “Over the past five years, Shaw has invested more than $1.5 billion in our U.S. manufacturing operations — both hard and soft surface.” The company will continue to modernize its Andalusia, Ala. facility this year. “This $250 million-investment in advanced manufacturing operations helps ensure we produce high quality products consumers demand cost effectively. Additionally, in 2020, we’ll complete the expansion of our carpet tile facility in Adairsville, Ga., which houses manufacturing, warehousing and recycling operations for our commercial business.”

Product innovation and new technology will also be in the forefront for Shaw, according to Edwards Isaac. “Shaw will continue to drive advancements in the technology of core and surface treatment solutions for the resilient and hardwood business segments.” She added, “Shaw is committed to meaningful partnerships and is dedicated to a customer-centric approach that includes purposeful communication, education, transparency, and the desire to exceed expectations. By continually advancing our in-store displays, digital marketing tools and customer education offerings, we strive to help our customers reach their full potential and achieve business success in partnership with Shaw.”