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

NAFCD Quarterly Executive Trends Index

In an effort to increase the value of information we provide to our members, the North American Association of Floor Covering Distributors and the North American Building Material Distribution Association have partnered to develop a valuable benchmarking and forecasting tool.

We are excited to announce the launch the NBMDA / NAFCD Quarterly Executive Trends Index! NBMDA/NAFCD has compiled a BRIEF quarterly online survey. This survey will be sent tomorrow, Tuesday, July 9th. Please look for this email.

All survey responses are anonymous and confidential with responses aggregated only to identify key trends in the industry (sales growth for the industry, inventory levels, changes in operating costs, etc.).

The full survey results will be sent back to members in late July and will provide you and your organization with actionable information you can put to use in your business month to month.

We hope your company can commit 5-10 minutes each quarter to fill out the survey. The debut survey will take slightly longer to complete as we attempt to secure some historical data for comparison purposes going forward. We look forward to your participation!

- Kevin Gammonley                     - Michelle Miller
NBMDA Executive VP                   NAFCD Executive VP

NAFCD's Commitment to Education

NAFCD and NBMDA unites the top manufacturers, distributors 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. A powerful line-up of speakers will headline the 2013 NAFCD + NBMDA Annual Convention. Providing practical tips and best practices that will enhance each attendee's business and personal brand, these nationally recognized speakers will share their expertise on economic trends, driving sales, relationship building, trends in the building product supply chain, corporate culture and leadership improvement. To view the complete list of NAFCD speakers and topics, please visit the NAFCD + NBMDA Annual Convention Website.

 Top Reasons Why Distributors Attend the NAFCD + NBMDA Annual Convention

Distributors in attendance at the convention are looking to spend time with their current suppliers and identify new lines to carry. Attending distribution firms represent approximately 900 distribution center locations throughout the U.S. and Canada. Here are just a few reasons why distributors regularly attend the NAFCD + NBMDA Annual Convention:

• Strengthen relationships with current manufacturer partners
• Connect with potential new suppliers
• Access industry education, information and trends
• Access best practices