Hardwood Floors October/November 2024

distributors. “Most of what distributors do is mitigate claims. The problem with manufacturers selling direct is they can’t qualify their customers. When you sell to a professional, you don’t get claims. Anyone going directly to a consumer is sticking out their neck,” said one respondent. Other top concerns include: • Political climate • Inflation • Supply chain disruption • Competition from local liquidators One NWFA distributor is concerned about a potential housing bubble collapse. “The interest rate has not come down as much as they were projecting, and the housing market is not really moving. Real estate agents say there is limited inventory. Why is there a limited inventory? Well, no one’s selling. No one could afford to buy another house at a 7 percent mortgage. If they have a 3 percent, they’re likely to stay put. The cost of living is going up and skyrocketing. I’m seeing a trend with some builders being unable to pay their suppliers due to rising supply costs.” Training on the products they sell remains important to NWFA distributors. Karolitzky added: “We have to keep fighting, explaining the benefits of real American hardwood to people, especially those who are environmentally conscious. If we keep to the standards and don’t lowball, we’ll become stronger on the other side.”

DISTRIBUTORS

What are your top opportunities for 2025?

1. Product diversification 2. New talent 3. Improvements to operations

What are you most worried about in 2025?

1. Economy 2. Manufacturers selling direct 3. Inflation

DO YOU SELL ONLINE THROUGH AN ECOMMERCE WEBSITE?

YES

36

64

NO

WHERE DOES THE SHARE OF YOUR BUSINESS THAT INCLUDES LVT/WPC/LAMINATE STAND?

STAYED THE SAME

DIDN'T SELL

46

8

38

8

INCREASED

DECREASED

2025 ECONOMIC CONCERNS

Nearly three-quarters of distributors said the economy is their biggest concern going into 2025. Manufacturers selling direct is another concern for about half of the distributors.

the magazine of the national wood flooring association

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