Diversification is necessary for every business — in the product you sell, the market you serve. It has proven a way to survive the most tumultuous times. We saw the power of being diversified during the Great Recession and again during the global pandemic. Restaurants that were forced to close created family dinner takeout and adult lemonade stands; salons created bottled hair products for pick up; wine shops suddenly delivered — whatever it took to survive and, in some cases, thrive.
The same holds true for the flooring industry. Over the years, we’ve seen distributors expand their offerings to include aligned segments and sundries and other building products. It’s also a way to grow and stay relevant.
Here too at FCW, we’ve moved well beyond our print edition roots to a digital edition, robust website, daily emails and an active social media outreach. As well, we took the opportunity to launch our video platform FCWLive in the midst of the pandemic when it was the closest thing to human contact we could provide. This has become a home for all types of content from leadership viewpoints (View from the Top) to our in-the-moment On the Scene segments. In the last week alone, we’ve posted video from the WFCA’s meeting in D.C., Mohawk Group’s launch in N.Y.C. and Starnet leadership. They are fast — a minute or two — but informative.
If you’re a flooring provider or retailer that has historically been residential based, consider a dip into the commercial market as a way to diversify. Really since the Great Recession, flooring companies moved to diversify to have solid footing in both the residential and commercial markets allowing for flexibility when markets shift. Both commercial and residential sectors have been rollercoaster rides with uncertain performance. Diversity in sectors served is important, even within residential and commercial categories.
The commercial market includes everything from corporate offices and education buildings to healthcare and hospitality. There’s also Main Street Commercial —something we address in depth in our November 6 Issue focusing on those smaller installs that still require a product that can withstand heavy foot traffic, spills and more. While these avenues have been challenged at times, the good news has been that while one sector struggles, another experiences an uptick.
Kermit Baker, chief economist at The American Institute of Architects and FCW columnist, digs deep into today’s commercial dynamics in this issue. It’s a great read. Construction of industrial buildings is up, in part due to onshoring of manufacturing. Retail construction is up, not in brick-and-mortar but rather warehousing.
Many of the shifts are results of the global pandemic — its impact continues to disrupt the market. One stunning stat is that one quarter of paid workdays nationally are worked remotely. That means that some have never gone back to in-office working at all. This trend continues to effect corporate construction where companies are revamping and retooling over building.
Over the years, we’ve seen different approaches to taking on commercial business from full-blown operations to a simple commercial contractor’s counter with select product offerings. Think about early in the pandemic shutdown where local business and schools closed their doors — many took the opportunity to update and renovate. Being able to serve diverse opportunities from a new high-rise being constructed to the local grocer renovating is a real benefit.
While specified commercial is indeed a bigger undertaking, it is nonetheless an opportunity to consider. As our team heads to NeoCon in Chicago this month, we always look forward to the innovative and design-forward products making their debut here. It is at The Mart where we see emerging trends — color, texture, form and function — that will in some way find their The commercial market has also long been focused on sustainability so it is here too that we learn about the very latest achievements around product development and ingredients, processes and practices.
With flights to climb and showrooms scattered inside and outside of The Mart, NeoCon is a physical endeavor but one worth spending time at. See where you can diversify beyond your residential roots or simply take in the latest products in development.
Stay safe. Stay inspired.