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

August 2014 Virginia Tech Housing Report

August data can be viewed as representative of the 2014 housing market to date. Certain subsectors performed okay, and many sectors were disappointing. There has been a lot of volatility in the data, this is expected in multifamily reporting - but not for other sectors. For instance, housing starts and new house sales data has been volatile - and this is not typical.

What does this volatility represent? We have to be patient and pay keen attention to the next few months of reporting.

As written in previous months, the near-term outlook on the U.S. housing market remains unchanged. There are potentially several negative macro-factors or headwinds at this point in time for a robust housing recovery (based on historical long-term averages). Once the economy improves, we should expect to see housing increase as well. Why?
1. Lack-luster household information
2. A lack of well-paying jobs being created
3. A sluggish economy

Learn more about these factors in the August 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.

2014 NAFCD Annual Convention Highlights 
 
Meet Sal Giunta, the first living Medal of Honor Recipient since the Vietnam War. 

Staff Sergeant Salvatore, "Sal," Giunta is the first living person to receive the Medal of Honor, the highest honor presented by the U.S. military, since the conclusion of the Vietnam War. A valiant leader, former U.S. Army Staff Sergeant Sal Giunta was introduced by President Barack Obama as being "as humble as he is courageous" when he was presented with The Medal of Honor for his heroic actions during combat in the Korengal Valley of Afghanistan. Saving his squad from the Taliban during a deadly ambush in Afghanistan, Sal shares his courageous story and the importance of teamwork, selflessness and leadership. Join us for this true American hero's story of unwavering courage, dedicated teamwork and decisive leadership at the 2014 NAFCD Annual Convention.

Learn more by visiting the 2014 NAFCD Annual Convention Website.  

Save the Date: 2015 University of Innovative Distribution

Learn how to improve your company's bottom line and personnel performance at the 2015 University of Innovative Distribution (UID). 

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 is designed for all staff working in the wholesale distribution channel, including distributors, from manager-level personnel to CEOs, and manufacturer personnel working with national distribution channels. Courses fill up quickly, so mark your calendars and plan to join NAFCD at the 2015 UID!

Registration opens soon! Sign-up on the UID website to be notified as soon as registration opens. Watch the site for more information and course details.