Hardwood Floors October/November 2024

MANUFACTURERS

Industry Outlook 2025

Manufacturers’ expectations for 2024 full-year sales were favorable. A little less than half of manufacturers said they expected their 2024 sales of wood floor products to be up. Reasons provided included a broader customer base and hardwood recouping market share. Nearly 27 percent forecast a moderate decline in full-year sales.

2025 SALES OUTLOOK

How can the wood flooring industry insulate against non-wood threats and continue to gain market share? “We need to get past preaching to the choir and expand our advertising to the general public. We know why wood flooring is superior. We need to do aggressive advertising on social media, Facebook, Instagram, and TikTok to convince the younger generation that, honest to goodness, we have the very best product for the earth for them to put in their house,” Bill Buchanan, managing partner at Buchanan Hardwoods, said. “It’s renewable, it’s sustainable, it’s recyclable. It’ll last. These hardwood floors have been out there for more than 100 years. Sure, you can find something cheaper. It’s made of plastic and may look like wood, but it’s not the real deal. Have you ever seen the giant plastic island floating in the middle of the ocean? Go online and take a look; it will scare you.” “Of course, hardwood is more beautiful, but you can’t rely on aesthetics alone when making a case for real wood,” said Thomas Buxton, sales manager at Mountain Craft Wide Plank. “Focus on the sustainability and advantages of hardwood. It’s a lifetime product that can be sanded and re-stained to update the look. You can’t do that with a synthetic product.” Looking ahead, manufacturers are optimistic, expecting sales for 2025 to continue an upward trend. About 70 percent expect growth next year, and just 7 percent expect a moderate decline. Manufacturers report that the top opportunity going into the second half of 2024 and 2025 is product diversification, followed by operational improvements, value-added services, and new distribution channels. Like 2024, NWFA manufacturers were most concerned about the economy (65 percent) heading into 2025. Many manufacturers also worry about continued impacts from a volatile political climate (50 percent) and commodity-level pricing (46 percent).

27

Up significantly (8%+)

42

Up somewhat (3 to 7%)

23

About the same (-2 to +2%)

8

Down somewhat (-3 to -7%)

0

Significantly down (-8%+)

5%

0%

15%

10%

35%

25%

55%

30%

45%

20%

50%

60%

40%

Other concerns include: • Competition from non-wood floor coverings • Import manufacturers

Traditional wood-flooring distributors remain the most common go-to market strategy for 64 percent of respondents. More than a quarter of respondents reported moderate price increases in 2024. However, half of NWFA manufacturers reported that pricing remained the same as the previous year. Half of NWFA manufacturers in the survey anticipate pricing remaining the same in 2025. About 42 percent will increase prices. One manufacturer said that while prices for equipment and materials continue to rise, flooring prices have not, making it challenging to stay competitive in today’s labor market. “It’s a tight squeeze. Trying to find employees, pay them well, and treat them well. That is a challenge.” Nearly 58 percent of manufacturers said raw material costs will increase in 2024, and half expect that trend to continue in 2025. Many say increased

MANUFACTURERS

What are your top opportunities for 2025?

1. Product diversification 2. New distribution channels 3. Improvements to operations

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