September 2014 Virginia Tech Housing Report

September data holds positive news. Housing is up 18 percent year over year, but multifamily is the driver so far. Rental demand is strong and single family sales of new homes remains weak. 

However, it is only one month of data. Currently, there is much month-to-month volatility in the data, which is expected in multifamily reporting, but not for other sectors. For instance, currently single family housing starts and single family new house sales data were volatile with lots of revisions from the previous months, which is not typical. 

What does this volatility represent? Patience and ardent attention to the data over the next few months will tell. 

As written in previous months, the near-term outlook on the U.S. housing market remains unchanged - there are potentially several negative macro-factors for a robust housing recovery (based on historical long-term averages). Once the economy improves, we should expect to see housing improve as well. Learn more about these factors in the September 2014 Housing Report here.

Each month you can access specific data on new housing starts, existing home sales and construction spending, and feature analysis on overall impact to the economy and your business. These monthly housing reports are provided courtesy of Virginia Tech. Remember to take advantage of all the exclusive industry reports and research available to you as an NAFCD member. Visit the Members Only section of the website to access more reports, username and password required.

 

Floor Covering News

Driving Productivity and Profitability

By: Kevin Gammonley

Growing your business requires a number of important things, not the least of which is educating your people and building a quality network. Education is key to staying ahead of industry trends and networking is about making connections and building enduring, mutually beneficial relationships. Ask any senior executive, politician, community leader or successful salesperson who has exceled in their career what the keys to their success have been. An overwhelming majority will say that to succeed, you must continually educate yourself and your team and leverage your network. These two things are the catalysts for success.

Facilitating business connections amongst distributors and manufacturers is the most apparent role of the North American Association of Floor Covering Distributors (NAFCD) due to our valued events throughout the year. In addition, a core driver that initially attracts distributors to the association is a desire to learn from other distributors and be exposed to leading-edge training on how to drive productivity and profitability within their distributorship. There are many options for distributors to simply listen to professional speakers, but within NAFCD events, they are exposed to trainers, consultants and educators who specialize in wholesale distribution and/or the flooring and building product industries. The opportunity to learn from these individuals as well as from peers, competitors and trading partners is invaluable.

Read the full distributors' perspective column in the current issue of Floor Covering News.

 

Visit NAFCD's New Exhibitors at the Annual Convention

With over 150 distributors and 130 manufacture & service providers represented at the 2014 NAFCD Annual Convention, we wanted to take this opportunity to welcome NAFCD's 24 first-time exhibitors to the show!

• Abet Laminati
• American OEM Hardwood Floors
• Artistic Finishes
• Bboss, Inc.
• BFS USA
• Brazefloor
• Carlton Hardwood Floors
• FP Bois
• Global Market Partners
• Integra Wood International
• Johnson Hardwood
• Kraus Flooring
• LM Flooring
• Loxcreen Flooring Group
• Matek, Inc.
• Old Wood LLC
• Prolex Flooring USA
• Robinson Lumber Co.
• Schonox
• Shamrock Plank Flooring
• Tramex LTD.
• Unilin Flooring
• Wagner Meters 
• WE Cork

 

Distributor and Manufacturer NAFCD Quarterly Sales Trends Report Available

Distributors Quarterly Sales Trends Report

The NAFCD Distributor Quarterly Sales Trends Report showed that Q3 sales growth rates slowed year/year versus Q2, but September was the strongest month of the quarter highlighting the fact that momentum improved toward the end of the quarter. Initial 2015 forecasts indicate slightly better sales and profit growth for distributors next year with labor levels continuing to increase as confidence in the recovery remains firm.

• Distributor Executive Summary
• Distributor Quarterly Sales Trends Report

Manufacturers Quarterly Sales Trends Report

NAFCD manufacturers saw solid growth again in Q3. The NAFCD Manufacturer Quarterly Sales Trends Report showed that manufacturer growth rates on average increased 9 percent in Q3, similar to the growth in Q2 and ahead of the 5 plus percent growth distributors saw in Q3. September was the strongest month during the recent quarter, up nearly 11 percent versus a year ago.

• Manufacturer Executive Summary
• Manufacturer Quarterly Sales Trends Report

 

Registration for the 2015 University of Innovative Distribution Is Open

The University of Industrial Distribution, a renowned educational program focused on serving the unique needs of the wholesale distribution industry, has officially changed its name to the University of Innovative Distribution (UID). 

UID serves the wholesale distribution companies and is not limited to those who deal in industrial products. The name change reflects the evolution of companies served and future direction of the program. Read the full announcement for more information.

Learn how to improve your company's bottom line and personnel performance at the 2015 UID, taking place March 8-11 at the JW Marriott in Indianapolis, IN. Register today.

Did You Know NAFCD Offers...

Sponsorship Opportunities for the 2014 NAFCD Annual Convention

Distributor registration for the 2014 NAFCD Annual Convention is tracking ahead of last year and continues to grow - don't miss your opportunity to generate enhanced exposure for your firm in front of this valuable audience by becoming a Convention sponsor! 

The benefits and recognition your firm will gain provide a maximum return on your investment. Click here to view sponsorship opportunities.

Interested in Sponsorship Opportunities? Contact Scott Narug, NAFCD + NBMDA Director of Sales at 312.673.5974 or snarug@distributorconvention.org for exhibit and sponsorship opportunities.

2014 NAFCD Annual Convention Highlights

Learn About the Power of Employee Ownership at the 2014 NBMDA Annual Convention 

Learn how you can improve your business in the optional session The Better Exit Strategy: Happier Selling, Happier Employees, Stronger Company presented by Mary Josephs, Founder and CEO, Verit Advisors. In this session Josephs will discuss the compelling power of an Employee Stock Ownership Plan for distributors and manufacturers, selling for full value, how to the selling founder can avoid all capital gains taxes and more.

Learn more by visiting the 2014 NAFCD Annual Convention Website.  

2014 Annual Convention Speaker Spotlight Highlights

The 2014 NAFCD + NBMDA Annual Convention speaker line-up features thought leaders who will share their expertise on economic trends, innovative thinking, generational differences, trends in the building product supply chain and work-life engagement.
 
What If....? Inspiring Innovation and Performance In this presentation, Mike Rayburn teaches innovation, possibility thinking and personal mastery. Diverse audiences across North America are raving about the program, having learned how to realize their amazing, unrealized potential.

Top 5 take-aways for attendees:

• Tools to learn and expand innovation and possibility thinking.
• Tools for effective time management and moving from "managing change" to "creating change."  
• How to set empowering goals which can effect exponential personal and organizational change and improvement.
• Identifying and maximizing the specific, personal traits critical to career peak performance.
• The power of a sense of purpose and how to harness it for real success.

Learn more about Mike Rayburn. 

NAFCD Quarterly Executive Trends Index Highlights

Distributors The Q1 NAFCD Quarterly Executive Trends Index showed that 2014 looks to be another year of recovery for distributors with the arrival of warmer spring weather. Weather has been the largest driver to the slower sales growth for distributors with 36 percent who experienced a 5 point or larger negative sales growth impact in January due to weather. Other key points include a strong 2014 sales growth outlook and continued profit progress. 2014 full year growth is forecast up 8 percent versus 2013 up 10 percent as NAFCD distributors expect less upside in 2014; up 9 percent versus 2013 up 13 percent.

Manufacturers According to the nearly 40 manufacturers that responded to the index survey, they expect another year of strong sales and profit growth in 2014. Despite the negative weather impact on first quarter sales growth, 2014 sales are currently forecast to increase 11 percent. Twenty-three percent of manufacturers have increased full year 2014 forecasts over the last 90 days. In addition to strong sales forecasts, 50 percent of NAFCD and NBMDA manufacturers anticipate an increase in headcount over the next 90 days and nearly 80 percent plan to add distributors during 2014, highlighting manufacturer expectations for a continued recovery in 2014.

Compare the results of your company with key trends identified by your fellow NAFCD members in the full 2014 Quarterly Executive Trends Index Report.

Floor Covering News Features NAFCD Distributor Column

Each month NAFCD provides a column to Floor Covering News that speaks to distributor related issues. This month David Powell discusses the value of decision making and the importance of keeping it simple.

David Powell
Erickson's Flooring & Supply Co.

Distributors' Perspective: The importance of keeping it simple

Powell believes that there is a sweet spot for good decision making that requires you to get enough information to make a good decision, but not too much so you don't run the risk of analysis paralysis and delay making the decision, or don't make the decision at all (which is still a decision, just not a good one). If you wait until you are 100% sure, it is almost always too late to capitalize on that opportunity being offered to you or to avoid the problem you are dealing with. Putting off making a decision in order to procure more and more information tends to confuse the issue at hand and makes the decision process more difficult than it already was.

As distributors, we are frequently-sometimes daily-sent offers from new suppliers to carry their product lines. Without a good decision-making process, we could potentially pass up a great opportunity or make very bad decisions to take on product lines that aren't a good fit for our companies. With so many data points coming at us via the Internet, trade publications, news outlets, business partners, customers, etc., it's tough to keep it simple and stay true to an effective decision-making process.

The NAFCD trend reports are an excellent way to get key data points in a simple, straightforward manner to help you and your management teams make better decisions. Continue reading the full article here.

Interested in becoming a guest author for the NAFCD Distributor Column? Contact Elizabeth Hyden for more information.

2014 Employee Compensation Survey

Hiring and keeping good employees is essential to the profitability of your business, especially in today's economy. To achieve that goal, you must consider your overall employee compensation plan - not just your pay scales, but your benefits program as well - in comparison to other firms in distribution.

To help you evaluate your situation, NAFCD and NBMDA are co-sponsoring the 2014 Employee Compensation conducted by Profit Planning Group. Approximately 1,000 firms in 30 distribution lines of trade will be participating.

Compensation-The compensation data will be broken out into three components by position-base salary, bonus and total compensation. In addition, the range of common experience for total compensation will also be provided.

The positions to be covered include:

• Executives-those with titles such as chief executive officer, chief financial officer, chief marketing officer and the like
• Operating Employees-includes such positions as office manager, purchasing agent, warehouse employee and warehouse supervisor
• Sales Employees-including both inside and outside sales reps
• Branch Managers

Participants will receive a complimentary copy of the results in May 2014. Non-member participants will be subject to a fee for the report. Results will include information on executive compensation, employee compensation, sales commission plans, inside/counter sales policies, and benefit programs. For more information on this report, visit our website.

To participate, please click here (Excel) or here (PDF) for a copy of the survey. Once you download the survey, please mail the completed survey to The Profit Planning Group by February 28, 2014.

Save the Date for 2014 NAFCD + NBMDA Annual Convention

Sheraton Dallas Hotel

Join us for the 2014 NAFCD + NBMDA Convention November 18-20, 2014 in Dallas, TX. The NAFCD + NBMDA Annual Convention unites the top distributors, manufacturers and service providers from the floor covering, specialty building material, cabinetry and woodworking industries to network, engage, learn and grow their businesses. This is the most anticipated and highly valued distribution-focused event of the year for suppliers to gain valuable access and deepen relationships with their distributor customers.

Visit the Annual Convention Website for more information.

Trinity Logistics: The Drop Trailer Solution

We know the new FMCSA Hours of Service rules are making it tougher than ever for you to coordinate your schedule with carriers in order to load and unload freight in a timely, efficient manner. The result is late or missed appointments, crowded docks and floor space, long waits for drivers, detention fees and a generous dose of frustration for everyone involved. By implementing a drop trailer program, you can alleviate (or eliminate!) the issues caused by clogged docks and limited warehouse space. It's actually pretty simple! Read our latest blog for all the details. Interested in learning more about a drop trailer program? Email Kellie at kellie.morgan@trinitylogistics.com for more information!