By Drew Hash, President and CEO of Southwind Flooring
Q: In your view, what were the contributing factors that led to the sales/volume declines in 2024 (i.e., high mortgage rates, consumer confidence, some other factor(s), etc.).? Please be as detailed as you can be
We can identify a few major reasons: hard surface growth, lack of consumer confidence, low home sales, and high mortgage rates.
Q: Higher-end carpet fared better than the rest of the market. WHAT is driving this and do you see this trend continuing?
Consumers spend/yd due to less carpet yards per home/install allowing for upgrades while still being affordable.
Q: What is happening with regard to pricing (i.e., +/-). Also, at what retail price point/range (i.e., $14-$16 per sq yard) is the industry seeing the strongest activity?
If retail price points are suggested, I would increase the ranges mentioned from wholesale ranges to retail ranges, if desired.
Q: In recent years, carpet’s share loss has diminished somewhat vs. hard surface? In light of that, do you believe soft surface has found its equilibrium?
Yes, in terms of “share of floor” due to the “assigned” use by room. And remember, carpet has qualities that hard surface will never be able to duplicate.
Q: If not answered already, what are the bright spots for soft surface – (ex: decorative segment keeps growing, commercial segment, multifamily, custom rugs, etc?)
Area rugs and high-end residential carpet are bright spots from a decorating standpoint. Multifamily continues to be a budget-friendly and acoustical bright spot. A bight spot in commercial continues to be carpet tile.