Mannington Residential president, Zack Zehner
Mannington’s unique approach
[Salem, N.J.] UFLPA (the Uyghur Forced Labor Act) has wreaked havoc on the supply chain and, according to Mannington Residential president Zack Zehner, “We have been up to our eyeballs on that subject” since the beginning of the year, he told FCW while visiting headquarters here in Salem. But in true Mannington fashion, the company has faced it with transparency, tenacity and even positivity.
Coming off of 2022, David Sheehan, senior vice president of residential product, shared that the company was flush with inventory. Added Zehner, “We knew it was going to be a soft market but we continued to invest in all major categories.” That included vinyl offerings, hardwood, laminate and now carpet with the earlier Phenix acquisition.
In the face of confusing regulations and a lack of documentation protocol, the company turned to its in-house counsel and supply chain expertise to work hard at managing what had quickly become another round of supply chain insecurity.
“We have been very transparent because we are close to the details,” Zehner said. “We got notice out to retail and how it was affecting LVT before they felt it and experienced it.” And, he continued, “We took advantage of our unique position as a manufacturer and continued our commitment to U.S. manufacturing.” The company communicated with its customers through letters, webinars and interviews. “We were clear on what was happening at customs,” he noted.
Closely monitoring and managing the situation has helped the company better understand what needed to be done. Offered Sheehan, “I’m on a first name basis with the customs officers.” As well, Mannington is working with local legislature in Delaware, New Jersey and Georgia, as well as the Senate Finance Committee “so they understood the impact of what they are doing,” he explained.
While both Zehner and Sheehan are clear that while they are against forced labor and agree in principle with the Act, the challenge is how to show they are compliant with the law and regulatory structure. “It is hard to understand,” Sheehan noted.
Indeed, documentation of traceability goes back through every layer of supply — all the way to the crude oil — every ingredient going into the resin. “There is a high level of evidence and documentation required. We have submitted multiple rounds but no release (of product),” said Zehner, adding, “We don’t expect release in the short term.”
What Now?
This is where the company plays on the positive. “We pivoted while we work on the process and get the message out on what we can service reliably,” said Zehner.
The Adura Selling System, for example, was introduced long before this situation arose. It was designed for ease of shopping. Once the consumer is set on a visual, they can choose from different formats — WPC, SPC and glue-down. That strategy laid a strong foundation for navigating current import obstacles.
“It is a flexible approach and allows the RSA to get the construction right for the home,” explained Zehner. Today, the merchandising system has been updated to clearly mark readily available and Made in the U.S.A. product. “It’s a new point of sale where the key component is a flag (indicating) what is made here.”
Added Sheehan, “Everything with a flag is made here and we have it. We tell them what we do have, not what we don’t have.”
This, said Zehner, keeps it positive but also allows Mannington to control the message. The focus, he said, will be the WPC products made in the U.S. in Calhoun, Ga. and glue-down made in Madison, Ga.
“Retailers appreciate us for being open and honest,” offered Sheehan.
The company, said Sheehan, is also working hard to re-establish the supply chain. “It’s a tremendous undertaking switching 140 new visuals to a new supplier.” The strategy, he said, is to onshore or re-establish supply with what is missing.