The numbers: What they are, what they mean

Posted Date: 7/17/2014

By Amy Joyce Rush

I’ve noted before how painstaking our process for getting this Stat Issue right is — even though our numbers are from venerable Catalina Research and the renowned Jon Trivers. Perhaps that is why this annual report has been anticipated and chronicled for more than 20 years. I bet any number of high level industry execs could pull all of FCW’s Stat Issues from their own book shelves.

And what about the 2013 numbers? At a glance, the growth doesn’t look all that impressive. But perspective is everything — overall sales gains were at 3.1 percent in 2010; 2.5 percent in 2011; 4.8 in 2012; and, now 5.5 in 2013. What I see is a slow creep, but a slow creep upwards and that’s a good thing. After a three year long plunge, I’ll take the slow ride back up.

And the numbers surrounding flooring sales are a good thing as well. Catalina reports that builder spending for flooring is up 19 percent and residential square footage construction is up by 20 percent. From my perspective, everything points to continued growth in flooring.

No doubt that soft surface has had a struggle. While it posted increases for 2013, they were minimal as a result of the consumer’s attraction to hard surface. Some say that will change as younger home buyers enter the market and look for lower priced options. In addition, high end and low end continue to do well while the middle remains squeezed. But we also see soft making a difference and that will likely help the category going forward.

Hardwood had a tough year with continued pressure on supply and a barrage of price increases. That’s evident when you look at a dollar increase of 12 percent but volume increased by just 4.7 percent. That scenario is expected to change as well when supply and demand are back in synch.

Still, hard surface was a bright spot and significant increases continue to be seen in vinyl and ceramic tile. And it will be no surprise that LVT will continue to show a strong growth curve moving forward. Just think about all of the investments announced and being made this year to support growth of the category.

Ceramics growth at 13.1 percent was floor coverings largest percent increase. Technology has driven this category forward and into more places for use. And design for the products just keeps getting better and better.

The numbers do look good. But we also have the benefit of “boots on the ground” here at FCW that assures we understand the true meaning of the numbers. Our July 7 Northwest Georgia/Dalton Revival issue attests, things are indeed turning around and it’s not just seen in sales dollars generated but in those dollars being invested in future growth. That issue is likely to be the most powerful edition put to print this year.