feeling the heat - dritac...distributors,” galleher presi-dent jeff hamar shared with fcw....

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THE INDUSTRY’S BUSINESS NEWS & INFORMATION RESOURCE F L O O R C O V E R I N G W E E K L Y THE INDUSTRY’S BUSINESS NEWS & INFORMATION RESOURCE VOL. 68 | NO. 26 The annual listing begins on page 8. Feeling the heat By Mallory Cruise-McGrath DISTRIBUTION ESSENTIAL BUT CHALLENGED Distribution continues to play a key role in the movement of floor covering product across the country and around the world, but pressure on margins and changes in global product supply are bringing unique chal- lenges to this crucial segment of the industry. “Slower growth or, in many instances, the absence of growth, is having profound im- plications on the performance and results of many flooring distributors,” Galleher presi- dent Jeff Hamar shared with FCW. “Ongoing shifts of con- sumer buying behavior with tra- ditional retailers losing share to big box formats and alternative sources is a difficult reality to manage. The tariff situation has Continued on page 10 NOVEMBER 4, 2019 $4

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Page 1: Feeling the heat - DriTac...distributors,” Galleher presi-dent Jeff Hamar shared with FCW. “Ongoing shifts of con-sumer buying behavior with tra-ditional retailers losing share

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The annual listing begins on page 8.

Feelingthe heat

By Mallory Cruise-McGrath

DISTRIBUTIONESSENTIAL BUTCHALLENGED

Distribution continues to playa key role in the movement offloor covering product acrossthe country and around theworld, but pressure on marginsand changes in global productsupply are bringing unique chal-lenges to this crucial segment ofthe industry.

“Slower growth or, in manyinstances, the absence ofgrowth, is having profound im-plications on the performanceand results of many flooringdistributors,” Galleher presi-dent Jeff Hamar shared withFCW. “Ongoing shifts of con-sumer buying behavior with tra-ditional retailers losing share tobig box formats and alternativesources is a difficult reality tomanage. The tariff situation has

Continued on page 10

NOVEMBER 4, 2019 • $4

Page 2: Feeling the heat - DriTac...distributors,” Galleher presi-dent Jeff Hamar shared with FCW. “Ongoing shifts of con-sumer buying behavior with tra-ditional retailers losing share

26 NOVEMBER 4, 2019 | FLOOR COVERING WEEKLY

T H E D I S T R I B U T O R I S S U E

places immense value on eco-friendlyflooring installation solutions, whichhas long been a focal point for DriTac’sbusiness, he noted.

Added Clarkson, “We receive consis-tently positive feedback from our dis-tributors about our ability to increasesales to their highly regarded clientele.”

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DIVERSIFYING FOR DISTRIBUTIONADHESIVES, SUNDRIES & EXCEPTIONAL SERVICEBy Elise Linscott

Manufacturers of flooring adhesivesand sundries offer solutions through-out every stage of a project, fromsubfloor preparation to ensuring astrong grab and smooth floor for thefinal product.

Through partnerships with distrib-utors, these companies are also able toexpand both their own network andenhance distributors’ businesses.

“The nature of our products re-quires distributor relationships, andour distributors — or rather logis-tical partners — need to be local inall markets, rather than a few masterlocations, to effectively get productsto our customers,” said Britton Wat-son, senior marketing and commu-nications manager at Schönox HPSNorth America. “We provide a valueto distributors because our nation-wide sales force is active in their dis-tribution territories and drives busi-ness to them.”

Watson added that Schönox sales-people are unique in that they areboth business-minded and technical-

ly-minded; most have hands-on floor-ing installation experience so theycan relate to customers and quicklyprovide answers to questions, bothabout the products and best practiceinstallation. Schönox distributors alsoappreciate the benefit of the compa-ny’s relationships across the country,Watson said.

Companies like Laticrete alsopride themselves on their customersupport. In fact, the company’s CEO,David Rothberg, lists his cell phonenumber on his business card, empha-sizing Laticrete’s 60-year history thatstill feels like a family-run business,shared Clint Schramm, marketing -concrete remediation at Laticrete.

Another way Laticrete has been in-vesting in its business and customerservice is with Laticrete University,an e-learning program for distribu-tors and other flooring professionalsthat teaches about new products, ad-vanced technology and industry bestpractices. And since its introduction,usage has increased 20 percent year-

over-year, according to Schramm.“Other ways Laticrete supports dis-

tributors’ business is by developingand launching cutting-edge productswith fast lead times that are backedwith ongoing field training, technicalsupport and introductory pricing toaid in trial and sales pull-through,”Schramm said.

The investments Laticrete hasmade in architectural specificationawareness also help distributors cre-ate larger order demand for some ofthe world’s most premium construc-tion projects, Schramm added.

As well, DriTac Flooring Productsgo hand-in-hand with distributors’hardwood and resilient flooringlines, said David Clarkson, vice presi-dent of sales, Eastern U.S.

“We complement their sales andadd value by offering them prob-lem-solving, eco-friendly flooringinstallation solutions that meet theneeds of their valued customer base,”Clarkson said.

The professional flooring trade also

Companies like Schönox HPS NorthAmerica take pride in salespeoplethat are business-savvy with technicalknow-how.