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.
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.
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.
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.
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.
April 16-19 at the Music City Center in downtown Nashville, TN
While at NWFA's Wood Flooring Expo stop by the NAFCD Booth #544 to connect and learn more about exclusive membership specials!
Not only is the NAFCD Booth a great spot for NAFCD members to connect, but this is also a great opportunity for industry colleagues to learn more about NAFCD and how membership can increase opportunity and add value to your business. We look forward to seeing you!
2014 NAFCD Quarterly Executive Trends Index
The Q1 distributor and manufacturer 2014 Quarterly Executive Trends Index is now available! The report, compiled by a leading research firm and in partnership with the North American Building Material Distribution Association (NBMDA) is based on member data submission and provides valuable benchmarking and forecasting data.
Previously, the Quarterly Executive Trends Index Reports only focused on the issues and challenges facing distributors in the industry. For the first time this report covers insights from distributors and manufacturers in the industry.
The Distributor Executive Trends Index key points:
Slower sales growth in January due to unfavorable weather
Strong 2014 sales growth outlooks
Continued profit progress
The Manufacturer Executive Trends Index key points:
Last Chance to Participate in the 2014 Employee Compensation Survey
Today is your last chance to participate in the 2014 Employee Compensation Survey. Your participation will ensure a comprehensive report. Approximately 1,000 firms in more than 30 distribution lines of trade are expected to participate.
The results of the 2014 Employee Compensation Survey can help you determine where your compensation plan stands, not only within the industry, but also compared to other companies in distribution.
To participate in this survey, please click here (Excel) or here (PDF) for a copy of the survey. Once you download the survey, please submit the completed survey to The Profit Planning Group by TODAY.
Visit NAFCD During NWFA Wood Flooring Expo
April 16-19 at the Music City Center in downtown Nashville, TN
While at NWFA's Wood Flooring Expo next month, don't miss the NAFCD Booth #544 to connect and learn more about exclusive membership specials!
Not only is the NAFCD Booth a great spot for NAFCD members to connect, but this is also a great opportunity for industry colleagues to learn more about NAFCD and how membership can increase opportunity and add value to your business. We look forward to seeing you!
2014 NAFCD Quarterly Executive Trends Index
The Q1 distributor and manufacturer 2014 Quarterly Executive Trends Index is now available! The report, compiled by a leading research firm and in partnership with the North American Building Materials Distribution Association (NBMDA) is based on member data submission and provides valuable benchmarking and forecasting data.
Previously, the Quarterly Executive Trends Index Reports only focused on the issues and challenges facing distributors in the industry. For the first time this report covers insights on distributors and manufacturers in the industry.
The Distributor Executive Trends Index key points:
Slower sales growth in January due to unfavorable weather
Strong 2014 sales growth outlooks
Continued profit progress
The Manufacturer Executive Trends Index key points:
2014 NAFCD Quarterly Executive Trends Index Available
The Quarterly Executive Trends Index for 2014 is now available! The report, compiled by a leading research firm and in partnership with the North American Building Materials Distribution Association (NBMDA) is based on member data submission and provides valuable benchmarking and forecasting data.
Previously, the Quarterly Executive Trends Index Reports only focused on the issues and challenges facing distributors in the industry. For the first time this report covers insights on distributors and manufacturers in the industry.
The Distributor Executive Trends Index key points:
Slower sales growth in January due to unfavorable weather
Strong 2014 sales growth outlooks
Continued profit progress
The Manufacturer Executive Trends Index key points:
Strong 2014 sales and profit growth
Increase in headcount over the next 90 days
80% plan to add distributors during 2014
This data and analysis is available exclusively to NAFCD members. View the Q1 distributor and manufacturer reports here.
New NAFCD Membership Video
Creating a Forum for Connecting with Partners. Alex Shaoulpour, President & CEO of Horizon Floors Inc. discusses the value he receives as a NAFCD member.
Posted By Maddie Moss,
Thursday, February 20, 2014
Winter ITR Report Now Available
The Winter 2014 Economic Outlook Report, compiled by the Institute for Trend Research (ITR), is now available. This quarterly report grants you access to the latest updates on the U.S. macroeconomic climate, with numerous economic data points critical to your business. The report allows you to forecast what effect the economy has on your business and what you can reasonably expect for up to six quarters in the future.
View the Winter report, by logging on to the NAFCD website here.
Reminder: Quarterly Executive Trends Index Report Survey Released
The first Quarterly Executive Trends Index online survey for 2014 was sent last week directly from Cleveland Research. Based on your feedback, in 2014, this report is also being made available to manufacturer members. The survey was sent to the main contact of each NAFCD member - both distributors and manufacturers. Make sure you check your Inbox for the survey link to respond.
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.). If you did not receive your survey link, please contact Michelle Miller at mmiller@nafcd.org.
CEO of Institute for Trend Research, Brian Beaulieu will be presenting on the Fall 2013 Economic Outlook Report at the 2013 NAFCD + NBMDA Annual Convention. During this session, Beaulieu will overview short- and long-term global economic forecasts, regional economic updates, and an outlook on inflation. In addition, he will provide insight into the relationship of political events and economic growth and provide economic indicators that executives should follow and receive proven strategies for leveraging economic forecast.
The next Quarterly Executive Trends Index online survey was sent last week directly from Cleveland Research. At this time, the survey was only sent to the main contact (or Cleveland Research Survey designee) at our distributor member companies. The survey will be open to Manufacturers in 2014. Please note that the deadline to respond is November 1st. Additional questions have been added based upon member feedback. 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.). Mark Herbeck from Cleveland Research will be providing the survey results with full analysis at the Annual Convention on Wednesday, November 13th.
NAFCD has partnered with a leading research firm to provide you with the NAFCD Quarterly Executive Trends Index. The report is based on member data submission and provides valuable benchmarking and forecasting data. You can compare the results of your company with key trends identified by your fellow NAFCD members.
Your input will be requested for the second report which will be available in October and presented at the 2013 NAFCD + NBMDA Annual Convention during Mark Herbek's session, Trends in the Building Product Supply Chain. With your participation in the Quarterly Executive Trends Index survey, a larger amount of data can be aggregated for better comparison and analysis.
In addition to the Quarterly Executive Trends Index, NAFCD's new partnership provides you with access to research on home centers, residential construction, non-residential construction, industrial distribution and other related topics. These industry updates and insights will be provided monthly and are available in the Members Only section of the website, username and password required.
2013 Performance Index Survey Deadline Extended to August 26!
The best source of financial benchmarks for the industry is the NAFCD Performance Index. This report presents a wealth of financial and operating guidelines. In addition, it provides direct comparisons between your firm and other participating firms. This valuable information is, however, only available to firms that participate in the study.
To participate in this survey, 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 with a copy of your income statement and balance sheet by August 26, 2013.
NAFCD Announces New Alliance Partner
Trinity Logistics is a leading privately-owned 3PL offering truckload, LTL, intermodal, international, and specialty freight arrangement, as well as logistics consulting, technology, and freight management services.
Their devotion to service, commitment to continuous improvement, and dedication to honesty and ethics set them apart in the industry. With so many 3PLs to choose from, count on their 35 years of experience and our solutions-driven team. They have over 200 team members in over 90 locations across the country. Trinity is consistently ranked in the top 25 providers of our kind in the nation by Transport Topics magazine, providing freight solutions on a global scale. With their corporate headquarters in Seaford, Delaware, multiple regional service centers, and over 90 agent offices throughout North America, they are positioned to provide a solution for any of your logistics needs, no matter how extensive, with the best customer service you'll see in the industry.
NAFCD Quarterly Executive Trends Index Deadline Approaching!
The deadline to submit your brief quarterly online survey is July 19!
Don't miss your chance to participate in the Quarterly Executive Trends Index and gain valuable benchmarking data in identifying key trends in the industry including sales growth for the industry, inventory levels, and changes in operating costs. All survey responses are anonymous and confidential.
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.
Contact info@nafcd.org for more information, or if you did not receive your invitation to participate email.
2013 NAFCD Profit Index Report
NAFCD is pleased to present a new and improved version of the very popular Performance Index Benchmarking Report now open for your participation. As a participant in this survey, you will you receive a copy of:
Industry Chart Book Report - A financial and operating profile of the entire industry
Personalize 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. Access instructions are included with your profit improvement profile.
To participate in this survey, 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 with a copy of your income statement and balance sheet by August 15, 2013.
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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.
April 16-19 at the Music City Center in downtown Nashville, TN
ve Trends Index
NAFCD has partnered with a leading research firm to provide you with the NAFCD Quarterly Executive Trends Index. The report is based on member data submission and provides valuable benchmarking and forecasting data. You can compare the results of your company with key trends identified by your fellow NAFCD members. 
The best source of financial benchmarks for the industry is the NAFCD Performance Index. This report presents a wealth of financial and operating guidelines. In addition, it provides direct comparisons between your firm and other participating firms. This valuable information is, however, only available to firms that participate in the study. 
Trinity Logistics is a leading privately-owned 3PL offering truckload, LTL, intermodal, international, and specialty freight arrangement, as well as logistics consulting, technology, and freight management services.