Jeffrey Lorberbaum
FCW Exclusive Interview
Jeffrey Lorberbaum, Mohawk Industries’ chairman of the board, recalls a time when carpet was 65 percent of all flooring utilized in the U.S., and both manufacturers (Mohawk included) and retailers specialized in a single product category. That has changed significantly and the former carpet mill is now a $9 billion house of brands that produces every flooring category.
“Most consumers had to go to different stores to satisfy their various product needs,” Lorberbaum told FCW. “We saw an opportunity to change the paradigm as other products began expanding their share of flooring sales. We had broad relationships with all the distribution channels and a trucking and logistics system that could provide fast service and delivery across the country.”
Today, Mohawk, based in Calhoun, Ga., offers carpet, rugs, ceramic, stone, wood, laminate, LVT, sheet vinyl and countertops. And while some of the company’s expansion came organically as it developed new technology and innovative products, much has come from strategic acquisition.
“Acquisitions are a fundamental part of our strategy and have been a major catalyst in our evolution. Since 1992, we have completed over 35 acquisitions. After the economic recovery gained traction in 2013, we transitioned to a high growth strategy and have invested more than $5.5 billion in our business since then. About 60 percent of that was spent on nine acquisitions, expanding our product categories, brand portfolio and geographic footprint,” he said.
And the company is far from finished. Lorberbaum said that Mohawk is in its strongest financial position ever and aggressively looking for new opportunities to enhance the business and bring value to its customers.
“Each acquisition brings innovative ideas that we can leverage across our portfolio on how to improve our styling, product features, marketing and efficiencies. From people across the world, we get many creative ideas that translate into new products and processes in other parts of the business,” he said.
Fueling Mohawk’s rapid growth has been a constant commitment to innovation — not just in manufacturing but in every area of its business.
“Since 2013, we invested more than $2 billion to improve our existing businesses. These investments have supported innovative product introductions, capacity to satisfy market growth and efficiencies to improve cost. These include expansions in LVT that will yield over $1 billion of fashionable products; SmartStrand Naturals, a softer more luxurious carpet than wool; longer and wider engineered wood; deeply embossed laminate that improves upon Mother Nature; and 48-inch ceramic planks that replicate wood and stone visuals,” Lorberbaum said.
The focus, though, isn’t just on product, he said. “We are improving our service with faster delivery and more accurate delivery dates. We are providing award-winning merchandising to communicate our features and benefits to the consumer as well as internet tools that enhance transactions and information flow. Our training provides our customers with essential product knowledge, sales skills and unique tools to operate their businesses more profitably.”
Mohawk has also had the benefit of a global manufacturing footprint that allowed it to garner expertise from state-of-the-art facilities around the world. For example, said Lorberbaum, “Our Italian business is leading the ceramic industry in style and design, which we pass along to our other regions around the world. For decades, our laminate business in Europe has set the standard for innovation, and those advances place us at the forefront of the category in the U.S. With LVT, you’ll see the same impact. Our U.S. LVT business has benefited from the extensive expertise gained from our European operations.”
With all of the acquisitions and investments in infrastructure and product development, Lorberbaum said, there is more to come. “We will continue investing in our business at elevated levels to expand our differentiated products and increase the efficiency and capacity of our operations,” he said.
“We are currently exploring new greenfield opportunities as well as acquisitions to broaden our product portfolio and geographic reach. We will continue to deliver unique products and features with greater appeal and create new trends in the market. We will enhance the quality, service and value we deliver to our thousands of customers.”