Hardwood Floors April/May 2017

APR/MAY 2017

THE MULTIGENERATIONAL WORKFORCE EMBRACE DIVERSITY, MAXIMIZE YOUR POTENTIAL

NWFA Wood Flooring Expo Preview

U.S. WOOD FLOORING MARKET: OPPORTUNITIES AND THREATS IN 2017 TECHNICAL FOCUS: EVALUATING WOOD AND CONCRETE SUBSTRATES

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FEATURES

O N T H E C O V E R

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Leadership through the Generations, by the Generations | By Stacy Brown As a successful fourth generation business, the Hickmans are continuing the family legacy and growing the sawmill founded in the 1930s. Hear their secrets to addressing today’s challenges of managing a multigenerational workforce while staying true to the company’s original values and inspirations.

NWFA Wood Flooring Expo Preview Following five consecutive years of growth, this year’s Expo will offer even more education, hands-on demonstrations, and opportunities to engage across the generations. 103

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Successfully Leading a Multigenerational Workforce | By Matt Beaudreau With four, or sometimes five, distinctly different generations working side-by-side, the challenges of communicating with and motivating all of your employees can seem insurmountable.

PUBLISHING PARTNERS

the magazine of the national wood flooring association

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CONTENTS

Tommy Maxwell | Chairman Michael Martin | CEO Anita Howard | COO Bree Urech-Boyle | CFO Brett Miller | VP, Education & Certification NWFA LEADERSHIP

Industry Insights:

PUBLICATION ADVISORY COMMITTEE Julie Russell, Chair & Board Liaison | Glitsa, a division of Rudd Company Rose Mary Cummings | Maxwell Hardwood Flooring Len Daubler | Shaw Industries, Inc. Galen Fitzel Avi Hadad | Avi’s Hardwood Floors Inc.

18 Government Affairs Understanding how the Farm Bill impacts our industry.

By Dana Cole

22 Designer Insights Designing spaces that will live up to the daily wear of tiny (or large) paws. 24 Market Matters U.S. Wood Flooring Market opportunities and threats in 2017.

By Emily Morrow Finkell

Lenny Hall | Endurance Floor Company, Inc. Kevin Mullany | Benchmark Wood Floors, Inc. Jenny Riddle | Distinctive Hardwood Floors Adam Williams | Palo Duro Hardwoods

By Stuart Hirschhorn

PUBLICATION TEAM

Business Best Practices:

Stacy Brown | Publisher/Editor | stacy.brown@nwfa.org Brett Miller | Technical Editor | brett.miller@nwfa.org Laura Boyle | Creative Director | laura.boyle@nwfa.org Megan Lhamon | Industry News Editor | megan.lhamon@nwfa.org Katie Schenk | Media Production | katie.schenk@nwfa.org Jodi O’Toole | Web Development | jodi.otoole@nwfa.org

28 Finance Talking across the generations about finances. 30 Sales Savvy The greatest sales tool is your end-to-end customer experience.

By Bree Urech-Boyle

By Paul Reilly

34 Customer Corner Selling hardwood floors in a humid climate.

111 Chesterfield Industrial Blvd. Chesterfield, Missouri 63005 P : 800.422.4556 Local : 636.519.9663 F: 636.519.9664 E: news@hardwoodfloorsmag.com W: www.hardwoodfloorsmag.com

By John Shepard

40 Technology 10 ways to use technology to engage your multigenerational workforce. 43 Marketing How do you build a marketing plan that spans the generations?

By Jodi O’Toole

CONTRIBUTING WRITERS Roger Barker

Jodi O’Toole Stephanie Owen Roy Reichow Paul Reilly Aaron Schaalma John Shepard Scott Taylor

Wayne Lee Megan Lhamon Michael Martin Tommy Maxwell Brett Miller Josh Neuberger Kjell Nymark Katrina Olson

By Katrina Olson

Matt Beaudreau Bree Urech-Boyle Dana Cole Jason Elquest Emily Morrow Finkell Lenny Hall Stuart Hirschhorn

At the Site:

56 Sponsored Content The lowdown on using natural penetrating oil finishes.

By Josh Neuberger

ADVERTISING SALES

58 Technical Troubleshooting Evaluating wood substrates. 65 Technical Troubleshooting Evaluating concrete substrates. 72 Subfloor Focus Minimizing moisture over concrete.

By Brett Miller

Libby White Johnston Media & Advertising Sales libby.johnston@nwfa.org | 337.794.9232

By Brett Miller

By Roger Barker

Hardwood Floors Magazine (Print: ISSN 0897-022X and Online: ISSN 2475-5125) is published on a bi-monthly basis, plus the annual Industry Guide, by the National Wood Flooring Association and distributed without charge to its member companies and their employees, as well as qualified individuals throughout the wood flooring industry. Publication office: 111 Chesterfield Industrial Blvd, Chesterfield, MO 63005. Phone: 800.422.4556. Printing office: Walsworth, 306 N. Kansas Ave., Marceline, MO 64658. Printed in the U.S.A. Standard postage paid at St. Louis, MO, and additional offices. Postmaster: Send address changes to Hardwood Floors Magazine, 111 Chesterfield Industrial Blvd, Chesterfield, MO 63005. Single copy price is $8, annual Industry Guide is $50. Subscriptions: $40/year (includes 6 issues and Industry Guide) in the U.S. and Canada. Copyright © 2017 by National Wood Flooring Association. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited.

78 Tech Talk What are some of the common By NWFA causes of subfloor squeaks?

Regional Instructors

80 Health & Safety Focus Safety walls and seatbelts. 83 Unique Techniques Add a little flair to your repair.

By Wayne Lee

By Aaron Schaalma

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The No. 1 in floor protection floorotex

Product Focus:

110 NWFA Wood Flooring Expo

Exhibitor Showcase 120 Technology & Business Software

Also in this Issue:

6 Chairman’s Cut

By Tommy Maxwell

8 Wood Stock 85 NWFA Resources 91 Updated Jobsite Checklist 122 New Products 124 Ad Index

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126 Final Coat: CEO’s Message

„The best choice for protecting your floor.“

By Michael Martin

protects

TROUBLESHOOTING SUBSTRATES Page 58

waterproof

Do you know your substrates? Learn more about how the conditions of substrates can affect the performance of wood floors, and how to address those conditions to maximize the end results.

anti-skid

Follow Us:

breathable

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Impacting the Next Generation of Wood Flooring Professionals CHAIRMAN’S CUT By Tommy Maxwell Chairman, NWFA

It’s no secret that the wood flooring industry, like many other trades, is facing a shortage of skilled labor. Eighty-six percent of construction firms reported trouble filling available positions last year, and 93 percent of employers now cite hiring challenges as a barrier to growth in the coming year. So who will carry on our legacy and become the next generation of leadership in our industry? I’d like to highlight one of the many ways that you can make a difference: supporting the NWFA Education and Research Foundation (NERF) Scholarship Program. This program was established to help educate future generations of wood flooring professionals, and you can participate by contributing to fund scholarships. There are three different scholarship funds, each with different contribution levels: • Industry Advocates Scholarship. Donations to the Industry Advocates Scholarship are used to fund general NWFA training scholarships. Contributions to this fund can be made in any amount. • Legacy Scholarship. Two years ago, the NWFA established the Legacy Scholarship to recognize individuals who have contributed significantly to our industry. This scholarship is one I am passionate about because it provides a meaningful way to honor those who have passed by allowing them to continue making a difference in advancing our industry. The idea came to me when a dear friend, Bob Haggard of Hassell & Hughes Lumber Co., left us much too early. It was important to me that Bob not be forgotten, and that his legacy would endure. Contributions in any amount can be made to the Legacy Scholarship fund, but to be recognized as a Legacy Scholarship honoree, contributions must total $5,000. • Named Scholarships. Donations to Named Scholarships will be combined with other Named Scholarship donations to establish individual scholarships honoring innovators who made significant and lasting contributions to the industry. Contributions to this fund can be made in any amount, but a total of $20,000 must be achieved to establish a Named Scholarship. Current honorees include industry icons Edgar P. Anstett and Dick Hradecki.

Thanks to the generosity of our members, NWFA awarded nearly $6,250 in scholarships in 2016 and more than $100,000 total since the establishment of the program. More information about the honored industry leaders and the scholarships that have been awarded in their honor is available at nwfa.org/ scholarships.aspx. To make a donation, simply go to nwfa.org, and click on the “Donate to Foundation” button, or contact the NWFA at 800.422.4556. The NWFA knows that to tackle the skilled labor shortage, multiple modes of action are necessary. From the creation of the online NWFA University designed to reach a younger tech-savvy social generation to working with the Federal Department of Labor on an approved apprenticeship program, NWFA is working tirelessly on addressing this situation. I encourage you to check out An Industry Effort: Addressing the Skilled Labor Shortage on page 85 that details what your association is doing, as well as more ways you can personally make an impact. In closing, I’d like to thank you for allowing me to serve as your Chairman over the past year. It has truly been an honor. I encourage you to help us continue to advance the industry by improving wood flooring knowledge and hands-on skills for the next generation of craftspeople.

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Some things are better together

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• System performance combines beauty and durability that’s also easy to understand and use • World-leading Bona Finishes perform even better with Bona Sealers underneath • Bona Sealers add coloration and allow Bona Finishes to adhere even better to the floor • Creates unbeatable floor protection on any floor - home, office or heavy commercial

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CONTRACTOR CORNER

GROWN, MILLED AND CRAFTED IN TROPICAL PARADISE Jason Johnson, owner of Floor Coverings Hawaii in Kailua-Kona, Hawaii, has been in the flooring business for 24 years. Seven years ago, he decided to branch out and start his own company, and he joined NWFA in 2016. Running his business in Hawaii, Johnson likes to push installations where he can use materials that are sourced from the islands. Roughly a dozen times a year, he has the opportunity to make this happen. Recently Johnson was hired for a fun, out-of-the-ordinary job using locally grown and milled flooring. The material for the floors came from local spots in Kailua-Kona and was milled at Big IslandWood Products, owned by Clark Allred. “There was a connection with everyone on this one. The homeowner is the attorney for the owner of the ranch where some of the flooring came from,” says Johnson. “Clark Allred, who milled the flooring, used to mill on-site at the ranch where they have an old-school mill. It’s really unique how all these people came together to make this job happen.” FLOOR FOCUS By Megan Lhamon

• The California Occupational Safety and Health Administration (OSHA) Standards Board voted against lowering the permissible wood dust exposure limit. Learn more at hardwoodfloorsmag.com. • Norbord’s Builder Insights released a podcast, featuring Brett Miller, NWFA VP of Education and Certification, regarding the importance of acclimating hardwood before installation. Listen to the podcast here: apple.co/2lj7Dnt. • MAPEI is highlighting its 80-year anniversary with a contest for contractors who use its products. For every $100 of products purchased, contractors can submit documentation for one entry. Six winners will be chosen during the drawing that will be held Jan. 4, 2018. Learn more here: giveaway80.mapei.com. • The final NWFACP Certified Sales Advisor learning path in NWFA University has been launched. More information about NWFA University can be found online at nwfa.org/nwfa- university.aspx. • Kemp’s Flooring was recently named an Elite Dealer by Armstrong Flooring, Inc. Elite flooring showrooms are hand-selected retailers that display the broadest selection of Armstrong flooring in every product category. RETAILER ROUNDUP

Four different species were used during this installation: Ohia, Pride of India, Norfolk Island Pine, and Monterey Cypress. “All of the end grain was milled like an engineered floor. The wear layer was a 1/4 inch with a plywood backing,” says Johnson. “The other species were milled into unfinished, engineered flooring.” The master bedroom,

hallway, and living area floors are Ohia (Metrosideros Polymorpha) engineered. Ohia is a very dense and

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MANUFACTURER MEANDERINGS

durable wood, mostly produced in solid, but occasionally engineered when requested. “The wood for these floors came from the business where the homeowner works, just a fewmiles from the home,” added Johnson. The center bedroom’s flooring was manufactured from a tree the locals call Inia (Melia Azerdarach) or Pride of India. “The materials for this floor came from a lot next to an elementary school in the area,” said Johnson. “The trees were being removed for a house pad, which worked in our favor.” The south-end bedroomwas made fromNorfolk Island Pine (Columnar Araucaria) end grain that came from the ranch property, owned by a client of the homeowner. “This flooring is one of our latest creations – end grain engineered flooring,” says Johnson. “We have found it to be a great use of the smaller logs that come from the Norfolk Island Pine.”

• Wagner Meters has released an AIA-approved on-demand webinar presenting breakthrough scientific information that challenges traditional methods for measuring moisture in concrete slabs. Access the webinar at aiaspec.com. • American Sanders welcomed a new training manager, Daniel Boone, who will lead the creation and day-to-day operation of the American Sanders wood floor sand and finish training program. As the former Technical Director at the National Wood Flooring Association, Boone created a national curriculum for the wood flooring education program and trained more than 10,000 students. • Hallmark Floors of Southern California was awarded “Best of Design” and “Best of Customer Service” on Houzz, the leading platform for home remodeling and design. The flooring company was chosen by the more than 40 million monthly unique users that comprise the Houzz community from among more than 1 million active homebuilding, remodeling, and design industry professionals. • Artistic Finishes was honored by Twin Cities Business as a “2016 Small Business Success Story.” The company was specifically recognized for the adoption of lean manufacturing and continuous improvement programs, which helped the company bounce back after the recession. View the profile here: bit.ly/hfm2lj959t.

The stage area is Monterey Cypress (Cupressus Macrocarpa) end grain engineered flooring. All material for this flooring was salvaged locally from trees that were being trimmed or removed. PROCESS DETAILS Even though the flooring was grown and milled nearby, acclimation was still a critical part of the installation. “The house is located about 20 minutes south of Kailua-Kona and sits about 2,000 feet above Kealakekua Bay. Even though the flooring was engineered, I still let the material sit on-site for a while with the house being so close to the water,” says Johnson. “The Ohia and Pride of India were on-site for about six weeks prior to installation.” After the flooring had been acclimated to the conditions of the home, it was time for installation. “The glue-down installation took about a week,” says Johnson. “All species were sanded and finished with two coats of Glitsa Infinity II and two coats of Glitsa Max Satin.”

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Left: Shiloh Old, VP, International Operations and David Old, Owner of Old Wood. Above: Example of an end grain installation. Courtesy of Old Wood, LLC.

Old Wood, New Business

By Megan Lhamon

really have a use in sawmills, which makes us an attractive candidate for the Wood Innovations Grant.”

Family-owned business, and NWFA member, Old Wood, LLC has seen promising growth since venturing into a new business opportunity utilizing wood salvaged from fires, floods, and other reclamation efforts. “We’ve grown about 50 percent in the last eight months,” says Shiloh Old, VP, International Operations. “We are now exporting all over the world, most recently to Singapore, China, where we just shipped a white oak end grain floor for the lobby of a well- known hotel.” Old Wood is an established maker of large-scale innovative flooring. With this new business initiative, they will finalize market-ready, fully finished flooring products in both end grain and 3/8” plank flooring. As a national and global leader in end grain flooring, Old Wood will introduce new methods and designs in end grain panelized and mesh-backed products. Wood for this purpose is sourced from Old Wood’s family ranch, Native American lands, and National Forest lands. “Most of the products we make come from forest fire reclamation or pre-fire thinning in the American West. Pre-fire thinning of small diameter timber (8-10 inches in diameter) is beneficial because it helps to remove trees that have a high risk of feeding wildfires,” says Shiloh. “We are able to make use of timber from small diameter trees that don’t

Old Wood applied for the Wood Innovations Grant, funded by the U.S. Forest Service, in early January. The grant supports traditional wood utilization projects, expands wood energy markets, and promotes using wood as a construction material in commercial buildings. Old Wood is a great contender for the Wood Innovations Grant because they can source wood from post-fire salvage and pre-fire thinning as well as make use of small timber. “The grant would help us to develop new products that come from small diameter timbers, before or after forest fires and to create a better fully finished, panelized end grain product. The “The grant would help us to develop new products that come from small diameter timbers, before or after forest fires and to create a better fully finished, panelized end grain product.”

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MAKE SURE THE PIECES FIT. Count on NWFA/NOFMA certified manufacturers

Anthony Oak Flooring, Inc. Buchanan Hardwoods, Inc./Manufacturer of Elite Brand Flooring Carroll Hardwood Co.

For more than 100 years, NOFMA Certification has provided a mark of distinction for wood flooring. NWFA’s NOFMA Certification provides an assurance that the wood flooring you are buying meets or exceeds the industry standards for grade, configuration, moisture content, and average board length. Look to NWFA/NOFMA certified manufacturers to assure an architect, designer or consumer that a particular product meets industry-accepted standards.

Cumberland Lumber and Mfg. Hassell & Hughes Lumber Co. Lewis Brothers Lumber Co. Lewis Lumber & Milling, Inc. Maxwell Hardwood Flooring McMinnville Manufacturing Co. Middle Tennessee Lumber Co. Miller and Company Magnolia Flooring Mill/Chickasaw Brand

Missouri Hardwood (Since 1911) by Hardwoods of Missouri, L.L.C.

Monticello Flooring & Lumber Co.

Mullican Flooring

Ouachita Hardwood Flooring Quarter-Sawn Flooring, L.L.C. Roberts Wood Products, Inc. Shaw Hardwood Flooring Smith Flooring, Inc. Somerset Wood Products

NWFA WELCOMES THE NEWEST NOFMA CERTIFIED MILL:

Superior Hardwood Flooring/Herwynen Saw Mill Ltd.

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www.nwfa.org | 800.422.4556

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money would aid in our efforts to run tests and potentially build a production method for a fully finished end grain floor,” says Shiloh. “From a sales perspective, the grant would allow us to attend international shows where we could sell to hotels, restaurants, and commercial buildings. These outlets provide a strong market for end grain flooring because it is so durable.” Worldwide, wood sourced from sustainable and renewable sources, including salvaged and reclaimed wood, is gaining market share. Consumers spanning the globe are selecting products such as those manufactured by Old Wood that are responsibly sourced and that contribute to preserving and protecting the environment.

“We have high hopes that the pull of our effort will create long-term, sustainable jobs in rural areas in a higher paying industry than traditional sawmill work,” says David Old, Owner of Old Wood. “This will, in turn, create renewed vigor and demand for projects that are in need of real world material sales.” “Our expectation is to see end grain become a significant market segment occupying a place between carpet, tile, stone, and other woods,” says David. “We look forward to showing and selling our products at national design shows, such as NWFA’s Wood Flooring Expo and TISE (The International Surface Event), and to seeing where this business venture takes us in years to come.”

More details on the Wood Innovations Grant can be found at fs.fed.us/science- technology/energy-forest-products/ wood-innovations-grants.

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• City Floor Supply’s (CFS) YouTube channel achieved several significant milestones recently, reaching more than 1,000 subscribers, charting more than 756,428 video views, and garnering 2,000,000-plus minutes watched since the channel was established in 2013. City Floor Supply’s video library can be accessed by visiting cityfloorsupply.com and clicking on the “videos” button on the site’s navigation bar. • Lockwood Flooring hosted a successful member-sponsored Retail Sales event at NWFA headquarters. The event highlighted the importance of having educated sales DISTRIBUTOR DOINGS hardwood floor during its lifetime. • Armstrong Flooring introduced the first Thomas Armstrong Awards, honoring distributors who exemplify integrity, a resilience of spirit, and deep dedication to their customers. Six winners were chosen in 2016 and honored during a special awards event at The 2016 International Surface Event in Las Vegas, Nevada. professionals to ensure the optimal performance of the

From Waste to Wonder By Megan Lhamon

As a fourth-generation woodworker, Stephen King, owner of SAP Hardwood in Chapin, South Carolina, was destined to develop a love for the craft. Aside from running his business, King has started a new hobby making cutting boards using wood waste from his installations. “It all started when I was installing hardwood floors in multimillion dollar homes in Charleston, South Carolina,” says King. “There would be a ton of really high- end wood leftover, and the homeowner wanted nothing to do with it, so I’d go back in and pull the wood out of the dumpster and turn it into a cutting board.” Now, when King finishes an install, he uses the leftover wood to make his client a cutting board as a thank you for their business. “I’m trying to take my company in more of a green, sustainable direction, using safer finishes and properly harvested wood,” says King. “Part of this is not letting valuable material go to waste. With the

Photos Courtesy of Stephen King.

cutting boards, it works in favor of my business and my client because I’m able to use what would have otherwise been thrown away and my customer receives a custom cutting board that matches their newly installed hardwood floors.” While the current demands of his flooring business don’t allow for much downtime, King would eventually like to be able to turn this hobby into a new business endeavor and sell his custom cutting boards in a shop. Another hobby of King’s is creating custom wood prints from salvaged trees. You can check these out on his Etsy shop, Sapwoodworks.

SUBSCRIBE TO HFM E-NEWS The latest industry news delivered right to your inbox. Visit hardwoodfloorsmag.com for details.

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NWFAAwardWinners CHOOSE BOSTIKADHESIVES ONTHEIR PROJECTS

NWFA2015 Floor-of-the-Year: Best Commercial Design: OuradaDesigns I Adhesive: BostikGreenForce™

101Winners USEBOSTIK . Since 1999, Bostik has been used on 101 of theNWFA’s Floors-of-the-Year, over65%of all award-winning, glue-down floors. In the 30 years of the NWFA, the industry has evolved. In 1989, Bostik introduced Bostik’s BEST ® , the first moisture-curing polyurethane hardwood flooring adhesive. In 2010, Bostik revolutionized hardwood flooring installation by offering the first adhesive & moisture barrier so effective that it did not require moisture testing of the concrete slab, Ultra-Set ® SingleStep™. Bostik’s industry-changing innovation continued in 2014 with the introduction of AXIOS™ Tri-Linking™ polymer technology. Found in GreenForce™ and Ultra-Set ® SingleStep2™, AXIOS™ products offer a Lifetime Warranty for UNLIMITED moisture vapor protection (no slab moisturetesting required) andareeasytocleanoffofprefinishedflooring, even after cure. Combine this with Bostik’s Thickness Control™ Spacer Technology in Ultra-Set ® SingleStep2™, and you have the highest feature set available from the biggest and most trusted name in hardwood flooring adhesives.

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Reduce, Reuse, Recycled Kindling Boxes

In an effort to teach their nine-year-old son, Sam, about business, customer service, money, and marketing, Beth and Gramps Mosner started making and selling 100 percent recycled kindling boxes. The boxes are built from scrap material, and the kindling itself is made from various pieces of scrap wood, all cut to the same length. Gramps remodels old houses and builds custom furniture, so there is always an abundance of scrap wood around. “When he brought home the first box, I loved it and thought for sure it could be sold, especially around the holidays – what a unique Christmas gift,” said Beth. The boxes can be ordered with the standard Annapolis Kindling Company and schooner graphic or custom designed. The Mosners have made St. Michael’s boxes and even a Clemson Tigers box. Beth gives her husband complete credit for coming up with the idea and building the boxes. He put her in charge of marketing and Sam is head of sales. It’s a family effort, and the important part is teaching their son to be more outgoing, and the importance of good customer service. Sam even has to write thank you notes to all of his customers. Beth works in Sales and Marketing at Miltec UV, a manufacturer of Custom UV equipment.

Pinnacle floors have texture you can feel with your eyes.

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produced to our stringent standards, Pinnacle brings the feel of hardwoods and all of your expectations together as never before.

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GOVERNMENT AFFAIRS INDUSTRY INSIGHTS

By Dana Cole

Oak tree farm.

Time Flies… Farm Bill Up Again for Reauthorization

that comes to mind. But similar to the Nutrition Title, energy programs historically have been included as sweeteners to attract support from states where row crop agriculture or dairy is not huge. The Farm Bill is a unique animal in that support or opposition typically breaks down on regional, and not political, lines. So the inclusion of these two titles helps bridge those regional differences. The energy portion of the Farm Bill has a number of positive programs for forest-based biomass. One of these programs — called the Bioenergy Program for Advanced Biofuels — has been helpful to densified biomass fuel (wood pellet) producers that serve the domestic market. Under this program, pellets typically sold into the bag market (which consumers buy to run pellet stoves, for example) that are made from our residuals (sawdust) qualify as an “advanced biofuel.” The rationale behind the program is to make biomass a more-attractive heating option, particularly in areas of the country that rely on fossil fuels like heating

It is hard to believe, but Congress will soon begin another Farm Bill writing cycle. It seems like only yesterday that we wrapped up the last Farm Bill, but the fact of the matter is that this critical piece of legislation that underpins U.S. farm policy expires every five years, and we are coming up on that deadline quickly. The Farm Bill is critical to the hardwood sector as our two key export programs —Market Access and Foreign Market Development — receive not only their funding, but their authority to continue operating under this bill. Obviously making sure these two programs not only are reauthorized, but receive their full allotment of mandatory funding, will be key deliverables for the Hardwood Federation team here in Washington, D.C. What is not so obvious is that there are other parts of this massive legislative package that can be helpful to our facilities and our customers. Take the Energy Title, for example. When one thinks about the Farm Bill, energy is not the first topic

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INTRODUCING:

Specialty Crafted Hardwood Flooring

3/4˝ Unfinished Solid Flooring

5/8˝ Unfinished Engineered Flooring

Our new Legacy Flooring Line includes our Legacy Reserve Flooring which embodies all of the richness and beauty from true rift and quartered premium hardwood lumber. The appearance of the floor features grain variations and characteristics of wood as Mother Nature intended. Our Legacy Live Flooring showcases a cut of lumber known as Live Sawn. This technique will give the floor an old world vibe with a rich mix of grains and patterns. Both floors boast impressive lengths and are available in multiple widths. Contact us to learn more about this specialty crafted flooring.

FAMILY OWNED & OPERATED SINCE 1992

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GOVERNMENT AFFAIRS INDUSTRY INSIGHTS

DID YOU KNOW? The energy portion of the Farm Bill has a number of positive programs for forest-based biomass.

Time Flies…Farm Bill Up Again for Reauthorization (Continued)

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pellet producers that serve domestic markets — the same pellet producers that depend on our sawdust to make their product. Programs that can help this sector have the potential to revitalize demand for our sawdust and alleviate at least some of our accumulating residuals concerns. And there are potentially other areas in the Farm Bill that could benefit hardwood manufacturing facilities. We have been working with our colleagues in the softwood sector in advancing the Timber Innovation Act, which would establish a new performance driven research and development program to advance tall wood building construction in the United States. The Farm Bill is the expected vehicle to make that bill a reality. The good news is that we are very early in the process and have some time to think and strategize about other policy provisions that we could advocate for in this next Farm Bill that benefit our hardwood facilities directly or indirectly through our value chain. We look forward to working with hardwood companies from all sectors, including the flooring sector, on additional ideas for the Farm Bill. Please feel free to share. Dana Cole is Executive Director at the Hardwood Federation, a Washington D.C.-based hardwood industry trade association that represents thousands of hardwood businesses in every state in the U.S. and acts as the industry’s advocacy voice on Capitol Hill. She can be reached at dana.cole@hardwoodfederation.com.

oil or propane to heat their homes and businesses. The bottom line is that qualifying as an “advanced biofuel” allows solid biomass fuel producers to receive direct payments from the U.S. Department of Agriculture (USDA). There is another program called REAP — Rural Energy for America Program— that also provides funding for installation of wood heating systems in rural communities. These systems run on pellets or chips and typically are installed in rural hospitals, schools and, in some cases, heat entire towns. A third program, known as the Community Wood Energy Program, or CWEP, seeks to accelerate deployment of highly efficient wood heating equipment. CWEP is a competitive grant program that assists local governments with the capital costs of installing high-efficiency, biomass-fueled heating systems. CWEP provides states, counties, and municipalities with matching grants through the USDA to offset the costs of installing heating systems that utilize locally available biomass resources, such as wood chips, wood pellets, or other biomass energy feedstocks. These programs are worth highlighting in part because they might be helpful in addressing mill residuals issues that are surfacing for our members in certain regions of the country. Last year’s warm winter and relatively low fossil fuel prices have been tough on

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21

DESIGNER INSIGHTS INDUSTRY INSIGHTS

human-occupied spaces also include custom details like built-in dog feeding areas within the kitchen cabinets and fashionable dog sofas and beds with cushions upholstered in colorfully patterned fabrics. Speaking of fabric, check out the expansive selection of upholstery fabrics by companies like Sunbrella, Crypton, and other performance brands. For years, the family dog wasn’t allowed on the furniture because of the damage it could cause, but now upholstery choices are being made based on what would be pet-friendly and easily cleaned. Now the family dog might have its own sofa covered in Crypton fabric with designs by either WilliamWegman or Thibaut. According to a 2015-2016 survey conducted by the American Pet Products Association (APPA), 65 percent of U.S. households, or about 79.7 million families, own a pet. The pet industry is expected to surpass its $62 billion record set in 2016 according to the APPA. “The pet humanization trend is alive and well and continues to drive growth at the premium end of the market,” said Bob Vetere, CEO of APPA. “As Millennials prepare to take the reins from the Baby Boomer generation as the primary demographic of pet owners, they stand to develop this trend further.” Pet owners are a very diverse group of consumers. Young singles, newly married couples, young families, empty nesters, and retired seniors are just some of the types who are dog owners. Regardless of the age or phase in life, dogs enhance our lives in some wonderful ways. Whether young professionals or retired seniors, many feel that owning a dog is an ideal solution to living alone. Pet ownership can provide for social opportunities with other pet owners. Pets, especially dogs, can help you connect with other people, helping reduce stress, loneliness and giving a sense of responsibility and purpose that contributes to overall well-being. We’ve witnessed the influx of pet-friendly flooring options over the past few years as demand has grown. It goes without saying that hard surface flooring is easier to maintain when cleaning up not only spills, but also pet accidents and muddy paws. There are numerous hardwood floor options that are incredibly durable and stand up to daily wear quite impressively. Aluminum oxide finishes have eliminated a large percentage of typical surface scratches, and current flooring trends

Every dog has its day, right? These days it seems as if dogs are living the high life. We’ve seen a growing number of adorable pooches who have their own Instagram and Facebook profile pages as well as a large following. Everywhere I’ve traveled recently, it has been easy to find hotels that are “pet-friendly,” complete with dog treats and courtesy leashes in the lobbies. At The International Surface Event in Las Vegas, I listened to some entertaining “dog tales” from the National Wood Flooring Association (NWFA) team about Woodrow Forest Barker, aka “Woody.” He has become the NWFA’s adored mascot. As the NWFA team told cute stories about Woody, I couldn’t help but think there are a lot of Woodys out there that hold special places in the hearts of the dog lovers who are also choosing furnishings and flooring for their homes and offices. Homeowners and office owners alike are now designing spaces around the needs of pets and are choosing products that will live up to the daily wear of tiny (or large) paws. If you spend any time searching HGTV.com, Pinterest, or Houzz you easily will find posted photos of “pet projects” that feature custom-tiled dog bathing areas, and comfy indoor air-conditioned and heated kennels fit for a king (or a King Charles Spaniel). Beyond dog-specific areas, the A Dog’s Life Woodrow Forest Barker, aka “Woody.”

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By Emily Morrow Finkell

As we move into this economy that follows the recent presidential election, we’ll continue to see the introduction of more and more pet services, pet- centric products, and pet home products. Hopefully, we will also see more hardwood flooring companies provide comprehensive and relevant information to consumers on dog-friendly wood flooring options. Emily Morrow Finkell is an interior designer and CEO of EF Floors & Design, LLC in Dalton, a provider of hardwood floors and home furnishings, and NWFA design contributor. She can be reached at kikermorrow@gmail.com.

happen to include many species like white oak and hickory species, which are inherently harder than some others. Further, current hardwood trends such as low to zero-gloss, face-sawn, wire- brushed and various other distressing techniques make for a very forgiving flooring aesthetic as compared to the higher gloss, smooth wood floors of 20 years ago. Suffice it to say, consumers need not compromise on the style or quality of their hardwood floors if they have a dog to consider; they merely need to be cognizant of the wood species, the type of finish used, and adhere to the manufacturer’s recommended maintenance for cleaning.

Dontalla Finkell.

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MARKET MATTERS INDUSTRY INSIGHTS

By Stuart Hirschhorn

U.S. Wood Flooring Market: OPPORTUNITIES AND THREATS IN 2017

These are challenging times for the wood flooring market. Wood flooring’s ability to make additional inroads in the U.S. floor coverings market is being stymied by increased competition from wood-look ceramic tile planks, new and innovative luxury vinyl tile (LVT), and flooring made of plastic composite products (WPC). These competing wood-look floorings are beginning to take share from manufacturers of solid and engineered wood flooring. Wood flooring market growth trends are also being hampered by slower gains in new housing construction, a key driver of wood flooring sales. In addition, rising hardwood lumber costs are making it harder to capture consumer’s growing preference for wood-look flooring. Wood flooring manufacturers and marketers will need to take advantage of stronger gains in the residential replacement market and increased penetration of the commercial market to make further inroads in the U.S. floor coverings market. Dollar wood flooring sales (shipments minus exports plus imports) are estimated to have increased by only 3.1 percent in dollars and 3.6 percent in square feet in 2016. U.S. sales reached an estimated $3.8 billion and some 1.7 billion square feet. These gains compare to a 12.5 percent compound annual growth rate in dollars and 9.4 percent annually in square feet between 2011 and 2015. Sales gains were strong during this period due to double-digit increases in housing starts. This is important to this market since wood flooring has the highest dependence on the builder market, more than any other flooring material. Housing starts increased closer to 5 percent in 2016, which dragged down wood flooring market gains. Competition also intensified from ceramic tile and resilient flooring manufacturers, both of which are also able to offer wood- look flooring. In 2016, the strongest competition came from LVT products, especially from click-installed LVT wood-look planks. Catalina Research Inc. estimates the total LVT market increased

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MARKET MATTERS INDUSTRY INSIGHTS by 33 percent in dollars and 27 percent in square feet in 2016 (Catalina Report on LVT and Other Resilient Products). At the same time, ceramic tile sales rose by an estimated 6.4 percent in dollars and 4.9 percent in square feet. As a result of these trends, wood flooring began to lose share to the other flooring sectors that can provide wood-looks. Wood flooring is estimated to have accounted for 32.6 percent in dollars and 16.7 percent in square feet of total sales of these flooring sectors (ceramic tile, laminate, resilient, and wood flooring) in 2016. This is down from a high of 34.7 percent in dollars and 17.5 percent in square feet in 2014 and 2015. Share has been lost in residential and commercial markets. These recent declines compare to sharp inroads made by wood flooring between 2002 and 2014. Pricing also became a barrier to growth in recent years due to the sharp increase in

as the need for rental housing becomes satisfied. Conversely, builder purchases could be offset by an increase in single- family home construction as the first-time homebuyer market improves. Stronger gains for single-family home construction could be an important selling opportunity for wood flooring manufacturers since the average new single-family home built is more than twice the size of a new multi-family housing unit. Selling opportunities are also expected to strengthen in the important residential replacement market. This market, which accounts for about 53 percent of total wood flooring sales, is benefiting from record existing home prices, rising personal income gains, and growing consumer confidence. This key market has been a drag on industry growth for most of the current recovery period; however, an improved labor market is giving a boost to homeowner purchases. The only headwind is how fast and how far mortgage rates increase.

Consumers also seem to be purchasing higher-end flooring. This can be seen in the industry’s pricing trends. The wood flooring producer price index, which measures the price of the same flooring over time, declined by 3.9 percent in 2016. However, average wood flooring selling prices, which measures the price of a current mix of flooring types, was flat. Meanwhile, wood flooring manufacturers

hardwood lumber costs. This reduced wood flooring’s price competitiveness. Between 2011 and 2015, average wood flooring selling prices increased by 14.6 percent. During the same period, average ceramic tile selling prices rose by 7.8 percent, resilient flooring prices by 10.5 percent, and laminate flooring prices by only 1.1 percent. There was some leveling off in wood flooring

“Stronger gains for single-family home construction could be an important selling opportunity for wood flooring.”

and marketers must find a way to increase their penetration of commercial markets, since commercial markets are estimated to lead floor coverings industry growth during 2017. Commercial market sales could benefit from rising corporate profits and relatively strong increases in the Main Street commercial market — sales to retailers, professional offices, and service providers. The industry must push commercial’s share of total wood flooring sales above the current 19 percent and get closer to commercial’s one-third share of the total U.S. floor coverings industry. Catalina Research will be tracking wood flooring industry trends during 2017 including an analysis of U.S. manufactured versus foreign-sourced products, customer demographics and factors driving demand, and the Outlook for 2018. For more information contact Stuart Hirschhorn, Director of Research, at 561.988.0853 or shirschhorn@catalinareports.com. Stuart Hirschhorn is Director of Research for Catalina Research Inc.in Highland Beach, Florida. He can be reached at shirschhorn@catalinareports.com.

prices in 2016 as hardwood lumber prices declined; however, wood flooring average manufacturer selling prices remain double the floor coverings industry average. Pricing could remain a problem during 2017 due to a 7.9 percent increase in hardwood lumber prices in the second half of 2016. This will put pressure on U.S. manufacturers to increase prices once again. Pricing pressures are also coming from foreign-sourced products. In 2016, average selling prices of imported engineered wood flooring increased by 10.8 percent and average imported solid wood flooring selling prices rose by 8.2 percent. Wood flooring prices could rise once again just as ceramic tile and LVT prices are leveling off. LVT could become more price-competitive as new production capacity comes on-stream worldwide. At the same time, selling opportunities could slow further in the builder market with housing starts expected to increase only in the low single-digits during 2017. The slowdown in the new housing market reflects a decline in multi-family starts

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27

BUSINESS BEST PRACTICES FINANCE

Talking Across the Generations about Finances

Generational conflict at home and work is not a new concept. Did any of you Baby Boomers attend Woodstock despite the pleadings otherwise from your Traditionalist parents? How many Baby Boomers are now struggling with Millennials at work because they question everything, even during their first day on the job? Conflicts among the generations may not be new, but what is different is that with all the rapid changes, the generation date ranges are getting shorter, causing there to be a greater number of generations working together than ever before. Generation X (born 1965- 1980) was bashed by Traditionalists (born before 1945) and Baby Boomers (born 1945-1964) for many years before the Millennials (those born approximately 1981-2001) came along for all three of the previous generations to join in the battle against. Now parents and teachers also are engaging with the generation of those born after 2001, and those children are quickly approaching working age. With all of this in mind, it is no wonder that generational differences are such a hot topic right now. Learning to understand others is an important skill to develop to help work through these generational differences, especially as it relates to money both at home and in your business. How many of you have the following questions or concerns? • Do you struggle to get through to your children about the value of owning their own business or starting a solid career? • Do you have aging parents and find it difficult to discuss finances with them? • Do your children shut down when you try to talk to them about important topics like money? You can start the process of feeling more in control of these matters by being armed with a little knowledge, some actionable steps, and a lot of patience.

Knowledge as Armor

You don’t need to spend hours a day reading to be knowledgeable enough to talk with your family members or co-workers about money. Whether you agree with them or not, a great place to start is to work on seeing things from their perspective. The book “Sticking Points,” by Haydn Shaw, is a potential resource for gaining this sense of perspective. The author spends much of the first part of the book going into the “ghost stories” of each generation. Reading through these stories makes it easier to have empathy for the different ways generations handle life situations. A key takeaway from this book and other similar resources is that you can’t change the perspective of other people, but you can learn to appreciate them and combine strengths to work together more productively. There are many resources out there on technical knowledge related to money. You will want to go into any conversation with a minimal level of knowledge. A financial adviser would be a great resource to consult with before approaching your family member or co-worker. They typically have years of experience working with multigenerational families and their finances. Investing a little time will go a long way in helping you accomplish your goals related to money, your business, and the success of your children or employees.

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