Hardwood flooring’s loss of market share to competing hard surfaces over the past 10-15 years is well catalogued and documented. That sobering assessment, however, has done little to deter wood flooring professionals’ continued love affair with the category as evidenced by the high level of attendee participation in (and enthusiasm for) this year’s National Wood Flooring Association (NWFA) expo. In fact, according to show management, this year’s event—the 38th convention in the group’s storied history—drew its highest numbers in two decades.
“Attendance is back to pre- COVID-19 levels, and we have seen an influx of new members coming into the industry looking for education,” Michael Martin, NWFA president and CEO, told FCNews. On-site attendance was particularly robust. “This year we tried something new: We asked our exhibitors and distributors to invite their customers to come as their guests for the second day of the show.”
Mission accomplished, vendors said. In fact, many exhibitors FCNews spoke to attested to the bump in visitor volume. “It’s my understanding that there are fewer exhibitors this year, which means the ratio of attendee to exhibitor is higher, and vendors can spend more time with visitors,” said Dan Natkin, chief commercial officer at Bauwerk, parent company of the Somerset and Boen brands. The experience was much the same at the Kährs space, where Renee Tester, vice president of marketing, reported brisk traffic and busy appointments, especially on opening day. “We had really meaningful conversations with people who stopped by the booth,” she said.
The selection of venue also played a big role, according to show management. “Certainly the dining and culture of New Orleans was a nice bonus as was the weather to entice people to attend,” Martin said. “New Orleans could not have been a better background for bringing us together.”
At the end of the day, though, the NWFA expo is all about unity, Martin noted. “Our event is really about bringing our community together as much as it is about the latest hardwood products on display.”
That sentiment underscored the theme of this year’s event: “Raise the Bar.” The tagline, according to Julie Russell, outgoing NWFA chairwoman, reflects members’ ambition to not only exceed their own expectations but also the expectations of the association and the industry at large.
“Raise the Bar reflects the association’s commitment to our members and the group’s work on every front,” she told attendees during her opening-day address. “We will only move forward with what helps us as an industry. Together, we’re turning the page to a new era of innovation and craftsmanship and community. Think of ways we can lift each other to new heights with skills enhancements, forging connections and championing our industry and contributing to our communities. Together we have the power to light a path to a lighter future.”
The path forward, however, will be paved with challenges. The hardwood flooring sector continues to face stiff competition from look-alike product segments. Meanwhile, the flooring industry at large, as a matter of fact, is contending with larger macro-economic issues. However, NWFA leadership says now is not the time to retreat.
In support of its members and the wood flooring industry as a whole, the NWFA announced both new and existing initiatives designed to help contractors, manufacturers and distributors promote their business and the category at large. To that end, the group is continuing its efforts as part of the American Hardwood Coalition—an organization comprising more than 30 state, regional and national hardwood associations that have joined together to promote hardwood flooring via a $3 million advertising and promotional campaign.
“While wood flooring has experienced growth overall, we are concerned about the dips of about 10% in category sales over the last two years,” Martin told attendees. “We are intent on reversing the trend of lost market share and focusing on growth through consumer and ‘pro-sumer’ awareness.”
NWFA is seeking a minimum of $20 per member to go toward the campaign. “Every little bit helps,” Martin said. “As the industry is made up of small businesses, we have to unite to compete with the dollars coming from large budgets of other categories that do spend millions on promotion every year. It’s up to all of us to take pride in our products and help promote our industry.”
Moving from the creative to the scientific and political advocacy arena, NWFA is also promoting the fact that hardwood is one of the more sustainable building products available today, especially when compared to other flooring options. This is supported by “cradle-to-grave” studies conducted by NWFA in conjunction with the Decorative Hardwood Association. These studies provide valuable information regarding environmental product declarations (EPDs) related to solid and engineered wood floors.
“EPDs have quickly become the international standard for measuring a product’s total greenhouse gas emissions, commonly known as the carbon footprint,” Martin explained. “What is evident in these studies is that both wood flooring types have a noticeably smaller carbon footprint or total global warming potential than all other flooring product categories. We now have the scientific evidence to confidently claim that wood flooring is better for our planet and for our people.”
Martin said NWFA plans to continue demonstrating the industry’s advantages in this regard to the legislative, architectural and design communities to grow the market through sustainability awareness. As such, NWFA will co-host the Flooring Sustainability Summit scheduled for July 17-18 in Washington, D.C. Event goers will gain insight into the latest developments in flooring sustainability, with focused discussions on green building standardization, health and material reporting, embodied carbon and more. Visit flooringsummit.com to register.
Medium-term outlook
Despite ongoing concerns related to competition, interest rates and inflation, Martin said wood flooring is currently treading a path of guarded optimism for 2024. He cited surveys showing less than a fifth of wood flooring professionals expect strong growth in 2024, while 15% expect sales to be up significantly, by 8% or more. A third of professionals surveyed expect moderate sales growth, with overall revenues expected to be up between 3%-7%. And about a third of sales professionals expect sales will be unchanged compared to last year, according to NWFA research.
Another challenge is homeowner sentiment. “When homeowners are skittish, they may be reluctant to purchase or they may postpone a purchase,” Martin said, citing the current political climate. “The Consumer Confidence Board agrees with our members, predicting economic growth will gradually slow under the headwinds of 2024, and the presidential election will keep things in question throughout the year. However, real GDP growth is expected to be around 0.5%. So we are moving positively—just not very fast or very far. However, consumption is expected to expand during the second half of the year. That’s a bright spot we can look forward to after the convention.”
(Look for more coverage of the 2024 NWFA convention in upcoming editions of FCNews.)
