Monday Morning Memo Changes

As we wrap up a successful 2014, and in continuation of our efforts to provide the most timely, relevant and impactful information, NAFCD will be revamping member communications in 2015.

Stay tuned for more information in the new year. In the meantime, this will be the final Monday Morning Memo of the year. We will continue to provide timely information on important topics through the remainder of 2014 and into 2015 via dedicated emails as needed.

We look forward to continuing to serve you in 2015! Don't forget to update your member profile to ensure everyone in your company is receiving their copy of NAFCD's communications. 

Register for the 2015 University of Innovative Distribution

University of Innovative Distribution

March 8-11, 2015

JW Marriott Indianapolis Hotel

Indianapolis, Indiana

Register here

The 2015 University of Innovative Distribution (UID) is a concentrated four-day format that has helped increase the effectiveness of hundreds of NAFCD member employees.

Click here to learn about the 2015 UID courses. Courses provide a hands-on experience with knowledge you can apply and share when you return to your company. The more popular courses fill up early, so don't wait. Register today!

Important Affordable Care Act Update from NAW

In guidance recently unveiled by the Obama Administration and slated to be published later this month, the Departments of Health & Human Services and Treasury reveal the imminence of regulatory action to render "group health benefit designs that do not provide coverage for in-patient hospitalization services" as non-compliant with the Affordable Care Act's employer mandate:

"The Departments believe that plans that fail to provide substantial coverage for in-patient hospitalization services or for physician services (or both) (referred to in this notice as Non-Hospital/Non-Physician Services Plans) do not provide the minimum value intended by the minimum value requirement and will shortly propose regulations to this effect with a view to being in a position to finalize such regulations during 2015 and make them applicable upon finalization."

To read a new NAW Regulatory Alert on this topic, click here.  

NAFCD is a member of NAW, whose primary purpose is to represent the wholesale distribution industry before Congress, the White House, and the judiciary on issues that cross the industry's many lines of trade. NAW encompasses over 100 national line-of-trade associations, including NAFCD.

Did You Know NAFCD Offers...

Showcase your affiliation with NAFCD by including the NAFCD logo on your website, in catalogs, letterhead, business cards and more!

To download the NAFCD Proud Member logo, sign into the NAFCD website and click on "Download NAFCD Logo" under the Members Only tab. You will need your username and password to access this section of the website. 

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

Don't Miss Your Chance to Submit a Nomination for the 2014 NAFCD Awards! 

The deadline to submit nominations for the 2014 NAFCD Leadership in Action and Lifetime Achievement Awards is quickly approaching.

Has one of your colleagues made significant contributions to the floor covering industry? If so, be sure to take advantage of the opportunity to recognize them with one of the two NAFCD awards. All nominations must be submitted for consideration by September 1, 2014.

              NAFCD Leadership in Action Award

The Leadership in Action Award recognizes individuals for the positive impact and meaningful contributions that they have made to their company's success. This is an opportunity to highlight a future leader within your company.

              Submit qualified candidates for the 2014 NAFCD Leadership in Action Award.

NAFCD Lifetime Achievement Award

For exceptional leadership or outstanding contributions that have led to expanding the vision of the floor covering distribution industry, this award is presented to any individual that meets the criteria, regardless of membership in NAFCD.

              Submit qualified candidates for the 2014 NAFCD Lifetime Achievement Award.

Award winners will be announced at the 2014 NAFCD Annual Convention, taking place November 18-20, in Dallas, Texas.

Additional details for each are available on our website.

NAFCD's 2014 Profit Analysis Report (PAR) Deadline Extended

To ensure all NAFCD members have the opportunity to participate in the PAR survey, we have extended the survey submission deadline to August 29, 2014.

Participants will receive the following at no cost ($995 value):

-Industry Chart Book Report - A financial and operating profile of the entire industry.
-Personalized Profit Improvement Profile - A confidential report sent directly to you comparing your firm with similar participating firms. Many firms take this report to the bank to discuss loans, lines of credit and plan for the future.
-Profit Toolkit Online - A Microsoft® Excel spreadsheet to assist your financial planning. Instructions are included with your profit improvement profile.

Note: Non-participants must purchase the report to receive the results. 

Visit the NAFCD website and download a PDF of the survey. Submit your survey by August 29, 2014 and receive your free report!

NAFCD Member Press Release

Haines Announces Grand Opening of Wheeler Supplies Center

NAFCD member Haines & Company, Inc. announced the grand opening of the Wheeler Supplies Center in Orlando, Florida on August 22, 2014. 

This is Haines' first Supplies Center opening and the beginning of Haines - Flooring Supplies Division expansion into the Florida market. Haines began the new supplies division when it ac quired Allied Products in early 2013 and then grew the division when it acquired CMH Space and Ellis Flooring in early 2014. Haines now operates twenty six Supplies Centers throughout the Mid Atlantic and Southeast. 

The Wheeler Supplies business has employed a very knowledgeable team of four, led by Jed Collins, Sales Manager Flooring Supplies, to start the Florida expansion. Jed has been a sales leader at Wheeler since the acquisition of Wheeler by Haines in 2007. The Wheeler Supplies Center is stocked with a broad array of flooring installation tools and supplies to meet the expectations of flooring contractors and flooring dealers. In addition, the current flooring supplies available to Wheeler floor covering dealers will be expanded and sold by the existing team of Wheeler Account Executives. 

For more information on Haines & Company, Inc. and to view the full press release, visit the NAFCD Member Press Release page. 

Participate in the 2014 Profit Analysis Report (PAR) Survey-August 15 Deadline!

Last chance to participate in the 2014 PAR Survey!

In our continuing efforts to deliver the value our members expect from their industry organization, NAFCD is pleased to continue the Profit Analysis Report (PAR). Results presented in this report are based on income statement, balance sheet and operating data supplied by NAFCD firms. Deadline to participate in the PAR Survey is Friday!

The information in the report provides answers to questions such as "Are the most successful firms in a down market placing more emphasis on gross margin management or expense control?" In addition, the report provides direct comparisons between your firm and other industry firms in the floor covering distribution business; however this valuable information is only available to firms that participate in the study.

Participation

To participate in the 2014 Profit Analysis Report study and receive the final report at no cost, visit the NAFCD website and download a PDF of the survey. All surveys must be submitted by August 15, 2014.

June 2014 Virginia Tech Housing Report

The housing industry is improving, but the pace is agonizingly slow. In the latest Virginia Tech Housing Report, Urs Buehlmann and Al Schuler analyze statistics from across the industry and conclude that the housing industry has turned the corner, but growth is painfully slow.

Key reason why the housing and economic recovery remains muted:

• Housing remains a difficult reach for many young people - jobs, credit, school debt, are problems.
• Today's market is 30% or more cash sales, including many foreign buyers.
• The economy is having some difficulty dealing with demographic issues (aging population), debt and credit issues.

Learn more about these factors in the June 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 Employee Compensation Report

Learn how your firm's employee compensation package compares to the rest of the industry with the 2014 NAFCD Employee Compensation Report conducted by Profit Planning Group. This study analyzes 2013 compensation data of 978 U.S. firms in more than 6,000 locations. The results provides information about both executive and employee compensation including salaries, bonuses, commissions and perks. It also includes details about fringe benefits such as health insurance, retirement programs and employee time-off. Firms were categorized into over 20 sales volumes and over 100 geographic areas.

To purchase the 2014 NAFCD Employee Compensation Report, click here.